By Helena Smolak


Spain's CaixaBank raised its 2024 profitability target after fourth-quarter net profit rose on higher net interest income.

The Spanish bank said Friday that it now expects its return on tangible equity--a key profitability metric for banks--to be above 15% in 2024, up from its previous target of above 12%.

The lender also raised its 2022-24 investor returns target to around EUR12 billion, previously guided at EUR9 billion.

For the fourth quarter, the bank's net profit grew 76% from the same period a year earlier to 1.16 billion euros ($1.26 billion). Analysts had forecast net profit of EUR1.21 billion, according to a consensus provided by the bank.

Net interest income stood at EUR2.75 billion, up 40% from a year earlier, but slightly missing the EUR2.76 billion expected by analysts. Net interest income, a key driver of revenue for retail banks such as CaixaBank, is the difference between how much a bank earns on clients' loans and how much it pays clients for their deposits.

CaixaBank's common equity Tier 1 ratio--a measure of a bank's resilience-- stood at 12.4% in December.

The lender declared a 2023 dividend of 39 European cents, up from 23.06 cents in 2022. It plans to launch a new share buyback program in the first half of 2024, CaixaBank said.


Write to Helena Smolak at helena.smolak@wsj.com


(END) Dow Jones Newswires

02-02-24 0144ET