Ibercaja already meets all the financial objectives of the strategic plan

Ibercaja has successfully met all financial objectives of its strategic plan six months ahead of schedule. The strong Spanish economic growth and low unemployment have been instrumental in this achievement. The executive team is already working on the next roadmap, which will be presented between March and April. Directors are moving confidently into the final stretch of the 2024-2026 strategic plan, with all duties completed.

Spanish economy growth has outpaced the plan's projections, allowing Ibercaja to meet all financial targets six months early, specifically by December, the projected end date. Similar to 2025, Spanish GDP is expected to grow most among major European economies this year, providing a significant boost to the banking sector, which is highly cyclical.

Thanks to management and this favorable economic climate, Ibercaja has achieved all eight key metrics in terms of solvency, liquidity, and asset quality defined in the business plan, as evidenced by the data at the end of the first half. In some cases, the achievements are notably above expectations. Ibercaja will close the third and final year of the business plan with a clearly superior profit of over 300 million euros, having already reached 184 million euros by June.

The goal was to reach December with a return on tangible capital (ROE) above 10%, which is now at 12.6%. The investment and insurance business generates up to 40% of its recurring revenue, much more than competitors, and this has been crucial. High profit generation and low dividend distribution (they pay out 40% of profits) have been key to maintaining elevated capital levels.

The CET1 ratio is 14.2% as of June 30th, meeting the goal of being between 13.5% and 14%. Expenses are also on track, as Ibercaja spends 53 euros for every 100 euros in revenue, which is below the 54 euro threshold, indicating better efficiency. The bank has shed much of the real estate legacy from the 2008 crisis. What remains is fully provisioned, so sales do not result in write-offs.

The delinquency rate for property-related credits has dropped to half the 3.5% target set by the board. During these three years, Ibercaja has made no significant acquisitions, except for the purchase of Orange Bank's technology platform, taking advantage of its closure in Spain. The CEO is already working on the next strategic plan, with the next public preview expected between March and April 2027.

Ibercaja is celebrating this month, as it marked 150 years as a savings bank and Monte de Piedad in Zaragoza. The celebration agenda will conclude with an event uniting the 5,200 employees in the Aragonese capital.