JPM ups Caixabank, sees deposit strength driving profit

CaixaBank SA

20/11/2025 07:34

** ** J.P.Morgan upgrades Spain's Caixabank CABK.MC to "overweight" from "neutral", as it believes its "best-in-class deposit franchise" will help it deliver strong profit growth

** According to the brokerage, Caixabank controls the cheapest and most extensive deposit base in Spain (35-40% share of the payroll market)

** "This gives the bank an edge to capitalise on growth opportunities in an expanding market, supported by a rising population and a robust labour market," JPM says, citing the "very positive" dynamics of Spain's economy and banking market

** The broker forecasts return on tangible equity (ROTE) to reach 20% by 2027 and 21% by 2028, driven by rising net interest income (NII)

** It also raises its 2025-2027 earnings per share (EPS) estimates by 8% on average and hikes PT by 21% to 11.41 euros ($13.15)

** "Strong organic capital generation should allow Caixabank to return 18 billion euros to shareholders from 2025-28E earnings," the brokerage says

($1 = 0.8680 euros)

(Reporting by Javi West Larrañaga)

((javier.west@thomsonreuters.com; +34 918 35 61 12))