CaixaBank targets 20% return on equity by 2027

CaixaBank CEO Gonzalo Gortázar expects the bank's return on tangible equity (Rote) to reach approximately 20% by 2027, positioning it among the highest levels in the European banking sector. Gortázar highlighted the bank's unique position as a leader in the Spanish and Portuguese markets, noting that structural profitability is expected to grow rather than remain stable.

Despite this optimism, the bank anticipates slower growth in its global credit portfolio, potentially staying below 7%. Gortázar identified the mortgage segment as having less growth potential and noted that inflation could reduce household savings rates, impacting deposit growth.

In addition to organic growth, investors are monitoring potential inorganic operations. There is ongoing speculation regarding CaixaBank's interest in acquiring the mortgage sector of Cetelem, a move that could immediately enhance its financing capacity in high-profitability segments. Analysts at Citi have set a target price of 14 euros for the bank, based on a dividend discount model.