Caixabank's Q3 net profit falls 8% on banking tax, unveils 500 mln euro buyback (updated)

CaixaBank SA

31/10/2025 05:20

Q3 profit down 8%, in line with forecasts

Net interest income down 4.3% y/y but up 1.4% q/q

Bank sees NII rising in 2026 driven by lending volumes

Ups 2025 ROTE target to around 17%, previously above 16%

Updates with Jefferies in paragraph 5, 2026 outlook and shares in paragraphs 7-8

By Jesús Aguado

MADRID, Oct 31 (Reuters) - Spain's Caixabank CABK.MC on Friday forecast a rise in lending income in 2026 on the back of higher loan growth driven by the national economy's continued outperformance compared with the rest of the euro zone.

The country's biggest lender by domestic assets also unveiled a new share buyback programme, its seventh, worth 500 million euros ($583.10 million).

Caixabank's third-quarter net profit fell 8% year-on-year to 1.45 billion euros, in line with forecasts, after a 150 million charge against a temporary banking tax, and with lower interest rates continuing to weigh.

Euro zone interest rates, which held near decades highs till mid-2024, helping boost banks' lending incomes, have been heading lower since.

Caixabank's net interest income - a measure of earnings on loans minus deposit costs - fell 4.3% year-on-year to 2.67 billion euros, matching expectations, but was up 1.4% from the previous quarter. For the full year, the bank forecast a 4% drop.

Jefferies said strong loan growth, especially a 8% rise in corporate lending, helped lending income in the quarter.

Caixabank expects the Spanish economy to grow 2.9% this year and 2.1% in 2026, around double the pace of the euro zone as a whole, helping grow its loan books. Its finance chief Javier Pano said rising lending volumes were expected to bring next year's margins "clearly above 2025."

Caixabank's shares, which gained 70% so far this year, were down 0.4% at 1128 GMT.

A rise of 6% year-on-year in fees and 8% in its insurance revenues helped the bank lift its 2025 target for its return on equity ratio (ROTE), a measure of profitability, to around 17% from previous goal of above 16%.

The bank also approved a first interim dividend of 16.79 cents per share due in November, or 1.18 billion euros.

        ($1 = 0.8575 euros)

 (Reporting by Jesús Aguado; additional reporting by Emma Pinedo; Editing by Joan Faus, Kim Coghill and Tomasz Janowski)

 ((jesus.aguado@thomsonreuters.com; +34 91 835 68 32; Reuters Messaging: Reuters Messaging: jesus.aguado.reuters.com@reuters.net))