June 22th, 2024 | 5:14

Bizkaia

Kutxabank becomes rich in the third quarter of 2023

Anton Arriola, the president of Kutxabank

Jeickson Sulbaran

October 27, 2023 | 3:00 p.m.

Positive financial developments in an uncertain economic climate

Amid the current economic turmoil, marked by high inflation and a general slowdown in credit demand, kutxabank has emerged with impressive financial results in the third quarter. The bank has reported a net profit of 385,2 million euros in the first nine months of 2023, a significant increase of 53,8% compared to the same period of the previous year.

Resilience in the face of macroeconomic challenges

Despite inflationary pressure and rising interest rates, which have impacted savings and investment, Kutxabank has demonstrated a remarkable ability to maintain the strength of its operations. The institution has skillfully navigated this environment, achieving 44% growth in its typical banking business, driven primarily by an interest margin exceeding 836 million.

Strength in commercial activity

The bank has not only weathered economic headwinds, but has also seen a vigorous expansion in its commercial activity. The contracting of products and services has experienced an increase, placing it above the sector averages. This is especially evident in areas such as mortgages and consumer and business financing, exceeding the entity's internal forecasts.

Impact of digitalization on the service

Kutxabank has continued to strengthen its digital banking model, a strategy that has resulted in a significant increase in digital sales. Digital contracting now represents 46% of total operations, underlining the growing customer preference for digital solutions. This innovative approach is positioning the bank as a leader in responding to evolving customer expectations.

Dominance in the investment fund market

The entity has also stood out in the management of investment funds, raising a total of 2.546 million euros, reflecting investor confidence in its product portfolio. With nearly 25.000 billion euros managed in this sector, Kutxabank confirms itself as a dominant player in the investment space, maintaining an enviable market share.

Stable credit performance

On the credit front, despite the general market contraction due to the rate hike, Kutxabank has maintained a robust position. The institution has managed to keep its credit investment stable, highlighting a 17% increase in financing to larger companies. Furthermore, its activities in the mortgage and consumer lending sector have recorded figures that defy the declining sector trends.

Expansion in the insurance sector

Kutxabank's strength is not limited to traditional banking and investment; its insurance segment has also seen robust growth, with an increase in the distribution of new policies. Particularly notable have been the increases in auto and health insurance, demonstrating the successful diversification of the bank's service portfolio.

Solid solvency position of Kutxabank

Finally, in terms of solvency, Kutxabank continues to be a stability pillar, with a fully loaded CET1 ratio of 17,5%. The entity has continually reinforced its provisions, emphasizing its commitment to prudent financial management and a strategic approach that prioritizes long-term sustainability over short-term profits.

Botton line

Kutxabank has transcended expectations in a volatile economic period, demonstrating the inherent strength and strategic adaptability of the entity. From the expansion in commercial activity to the solid position in solvency, the bank is positioning itself not only as a leader in the Spanish financial sector, but also as a role model in financial resilience and strategic innovation.

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