MADRID: Spain's third-biggest lender Caixabank on Tuesday said it was targeting a ROTE profitability ratio of 12 to 14 percent from 2017 onwards, up from 3.4 percent today, thanks to both a rise in revenues and a sharp improvement in its efficiency ratio.
The Barcelona-based bank, one of the few Spanish lenders to have weathered the worst financial crisis in decades without needing public aid, said it would grow its revenues by 5.7 percent annually over the next three years.
It also aims to bring its efficiency ratio below 45 percent by 2018 to put it in line with big Spanish peers, cut its non-performing loan ratio to below 4 percent, compared to 9.9 percent at the end of 2014 and keeps its so-called CET1 fully-loaded capital ratio at between 11 and 12 percent.
In a presentation to journalists, Caixabank, one of the most acquisitive lenders during the crisis, reiterated that it did not rule out a capital increase to boost its solvency ratios if its bid for Portugal's BPI was successful.
However, it also repeated that it would set its dividend cash payout at least 50 percent for the next three years and would pay a special dividend or buy back shares if its CET1 capital ratio exceeded 12 percent.
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