Caixabank Sa Unsp/Adr

Good morning and welcome to CaixaBank results presentation for the third quarter of 2026. As usual, we are joined today by our CEO, Gonzalo Gortazar, and our CFO, Javier Pano. We will spend about 30 minutes with the presentation, followed by the Q&A, which is live, and you should have received instructions by email on how to participate. In terms of the timing, we have the press conference immediately afterwards, so we'll have to be mindful. But as always, my team and I will be at your full disposal after the call. And without further ado, Gonzalo, the floor is yours.

Good morning, Marta. Thank you. Thank you, everybody. It's a sad week for all of us in Spain, given the tragic accident, the train accident we had. First of all, it is for the relatives and associates of the victims of this tragedy. Having said that, we move into our results and the highlights of the results as you can see from the title, I think, are profitability and growth. We are yet once again combining pretty solid growth with an improvement in profitability as shown by our close to 19% return on annual equity, which is really what we want, profitable growth. You see the increased number of clients, close to half a million in the last 12 months. This is net clients gains. It's much larger, 1.2 million, if you look at it on a gross basis. Performing loans growing pretty much in line with the previous quarter, 8%. Customer funds, 5.6%. Here we have a slight slowdown. I'm sure we'll talk about it later. During the presentation and the Q&A session, very strong performance on insurance premium plus 12% So I'd say, frankly, very good commercial activity. NII is growing. Obviously now rates are starting to be tailwinds for us and volumes are helping. And I think it's worth highlighting that the customer spread adjusted for hedges has really reached an inflection point. It's up two basis points in the quarter. This is obviously the beginning of a trend. We've also seen NIM and their interest margin up three basis points, so it's not just customer spread but it's the overall balance sheet just inflecting at this point. Terminus for services, as it has been the case this year, very strong growth, 7.7% year-on-year. and obviously very well sort of broad-based as we will discuss later on. As the quality continues to improve, we have reduced non-performing loans, non-performing assets and improved the ratio despite the fact that in terms of lending growth, third quarter is as always seasonally negative, so quite good. Coverage at 82%, frankly levels that we haven't seen before. for decades and all that obviously is leading us to set the interim dividend at the highest end of the pre-announced range and also increasing our guidance in services to about 5.6 billion and return on title equity from above 18% to around 19%. Moving into the, as always, first the economy. Despite the risks and environment that is obviously volatile, the reality is we continue to do very well. We're expecting 2.6% growth in Spain. Around any time now we'll be seeing the GDP numbers for this quarter. I think actually what I've been told is that the growth this quarter is very much in line with our projections. So that 2.6% appears even more robust. Portugal we have increased recently, pretty good level 7. Obviously looking into the near term we also see continued outperformance vis-à-vis the Eurozone. Yet there is downside risk looking at the Middle East situation, but the reality is we have had downside risk for quite some time. What we have ultimately achieved is higher growth than expected, so it's a bit of a A paradox, I would say, at this stage I think our numbers show a continued and positive environment. You have the fundamentals there. I'm not going to go through them because you know them well. And obviously one of the big differences has been the increase in inflation. It's close to 5% at the end of September. This is obviously resulting in higher rates. Higher rates obviously help us, as you know, but they do slow down the growth in household savings. The savings rate as you can see there is expected to come down by approximately 1% from that 12 to 11% region and that is resulting in overall in the system a slower growth of customer fans and particularly side deposits as you can see. The system figures have moved from 7.1 to 2.5%. As you will see later, we are again outperforming the system, precisely where there is a lot of value to be created, the non-remunerated side deposit, so we are obviously very happy and satisfied that we continue to take the better part of the market. The three-year plan goes on well. You see that growth as a key target for us and how that's evolved in terms of client acquisition, almost 800,000 since the beginning of the plan, payrolls and other income deposits going nicely, business volume. And I think when you look at the market shares, client penetration, payrolls, business volume, savings, life risk, we see Thank you very much. Thank you very much. Thank you very much. Thank you. We have launched Beef and Pay as soon as it was possible. It's obviously early days but yet another Thank you very much for this interesting initiative again done by the system as a whole here in Spain. AI continue to apply throughout the business. I think the highlight this quarter actually is early October when we finally deployed massively to 16,000 commercial people in our commercial network the AI agent that allows to prepare and to close Thank you very much. Thank you. Thank you very much. The acceleration from north of 10% to slightly south of 10%, that's actually very good numbers. And business lending is doing very well. Obviously, that 11% growth includes some international numbers. You look at the overall growth in the domestic portfolio, 6.4% as you can see domestic, in this case including Spain and Portugal in our core markets. So it's very, very solid growth. Thank you very much The basics of our growth strategy were growing and gaining market share where we want. And you can see this on this page, looking at our customer funds, and you look at the right hand on the upper side. We are gaining market share on household side deposits. We've called the jewel of the crown. So yes, there's a slowdown, but we are still growing and growing faster than others. which is a good proof of sati and also our competitive positioning and then we're growing also in wealth management as a whole if you add pension fund savings and pension plans we gain yet another 15 basis points year on year which is what we like now we're going to be seeing small but positive gains in market share that's what's consistent with sort of a solid retail banking trajectory so very positive again the same way we're gaining market share of the SME or consumer lending Again, we pick our spots and we're doing the same on the high value-add of the customer-fund side. Sea-worth management going up north of 10% on deposits, as I said. It's on that 2.7% year-on-year. And if we just look at the private sector, it's 3.2%. Thank you very much. 11 basis points of market share gains in the last 12 months. Also, the non-interest-managed deposit balances growing at 4% year-on-year keep, I guess, doing the best of us in this market. Wealth management, some further detail on growth. As you can see, pension plans 8% mutual and savings of over 11%. Net inflows increased to 17.9%, a pretty good rate that has stayed during the summer and in this month of October. And again, nice gains in market share sustained. Thank you very much. Thank you. The differential growth rate of cash bank versus the market is allowing us to gain market share and actually to grow the market. Non-life is actually quite impressive when you look at health, household and auto. It's clear that our distribution strength is continuously leading us to growing faster on the market, banking market and the insurance market. And finally, obviously, this is all turning to value creation, value for shareholders. You look at return on tangible equity, earnings per share, book value per share, dividend per share on an interim basis. It's all moving in the right direction, and to be honest, in the current circumstances, the stars are pretty aligned for this to continue for quite a while, so I end up with that upbeat message and pass it on to Javier. Okay, so thank you, Gonzalo, and good morning.

From my side, the usual additional details on P&L and balance sheet. Let's start with the consolidated income statement. You already may see a net income at 1 billion 759 million. So this is up by close to 22% year-on-year. If we move further up, you may see that revenues are also progressing, up by close to 6% year-on-year. More details on revenues, NII, as you already know very well, up by 4.6% year-on-year, 2.5% quarter-on-quarter, basically sustained by strong business volume growth. Then revenue from services where we are clearly having a better performance and our initial expectations are by 8.3% year on year on the back of a strong wealth management and a strong protection insurance as Gonzalo was commenting. On other revenues, not much to say. Equity account that we have the usual seasonal deposit for the third quarter from Segur Casareslas. Then on operating expenses, we are up by 4% year on year. Fully on track to meet our guidance for the year, comfortably I could say. And then below, low-loss chances, cost of risk, 24 basis points, also fully on track. We have again some positives, some gains and losses from real estate gains, continue to dispose at a good pace and good margins on that portfolio.