MADRID: Spain’s Caixabank raised on Tuesday its target for return on tangible equity ratio (ROTE) in 2024 to over 12% from 7.6% in the first quarter of this year thanks to higher banking revenues helped by rising interest rates.

As part of its new strategic plan, Spain’s biggest domestic lender by assets said it planned to raise revenues by around 7% between 2022 and 2024, driven by an increase in insurance income and a moderate growth in fees and commissions.

As a result, net interest income, earnings on loans minus deposit costs, are expected to rise by 8%, the bank said, while it would lower its cost-to-income ratio to below 48% from 58% at the end of 2021.

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The lender also said its board had approved a share buy-back programme of 1.8 billion euros ($1.88 billion).