Grupo Cajamar records profit of €246 million through September, buoyed by the income from banking business

Grupo Cooperativo Cajamar continues achieving significant growth in the total volume of funds managed, reaching €100,837 million euros, 3.13% higher than in the same period of the previous year, lifted by the solid numbers in on-balance sheet customer funds and off-balance sheet funds, and the year-on-year growth of performing loans. Income statement margins show double-digit growth, and all ratios are improving, showcasing improved efficiency, strengthening capital adequacy and higher profitability. 

• Income statement margins show double-digit increases. Net interest income rose 20.4%, gross income was up 23.3% and pre-provision profit grew 34.6% year-on-year.
• The diversification of revenue sources consolidated the growth in total volume of funds managed to €100,837 million. Customer funds under management grew 8.6% year-on-year and off-balance sheet funds were 24.1% higher than in the same period of the previous year. 
• The strength and quality of the loan portfolio is reflected in the Grupo Cajamar's NPL ratio of 2.06% at the end of the quarter, one of the lowest among significant banks in Spain.
• The phased-in total capital ratio improved 0.4 percentage points to 16.2% and phased-in CET1 ratio rose to 13.9%, lifted by the 5.3% increase in eligible capital.

Results

Grupo Cooperativo Cajamar continues achieving significant growth in the total volume of funds managed, reaching €100,837 million euros, 3.13% higher than in the same period of the previous year, lifted by the solid numbers in on-balance sheet customer funds and off-balance sheet funds, and the year-on-year growth of performing loans. All income statement margins show double-digit growth, and all ratios are improving, showcasing improved efficiency, strengthening capital adequacy and higher profitability. 

Net interest income posted year-on-year growth of 20.4% to €926 million and, together with the contribution of fee and commission income and exchange rate differences, raised the gross income by 23.3 % year-on-year to €1,194 million. These sustained solid numbers have been buoyed by core banking revenue and the revenues from loans to customers, which improved by 31.8%.

Pre-provision profit totalled €649 million, 34.6% higher than for the same quarter of the previous year. As a result, operating result (operating revenues less operating expenses) was up 23.9 % and the cost-income ratio improved 4.6 percentage points year-on-year to 45.65%. 

After allocating €189.4 million to provisions and €141.8 million to impairment losses, in line with its policy of prudent management, consolidated net profit was €246 million, up 163.7% year-on-year, and the return on equity (ROE) rose 4.7 percentage points to 7.93%. 

Commercial Activity

The favourable sales performance contributed to growth in customer funds under management of 8.6% year-on-year to €55,589 million. On-balance-sheet customer funds increased by 5.6% and off-balance-sheet funds were up 24.1%, largely due to greater dynamism in marketing investment funds, which rose by 36.6% year-on-year compared to the sector average of 16.2%. 

The total assets on Cajamar Group's balance sheet ended the quarter at €61,139 million, 0.3% higher than one year earlier, with a diversified and high-quality loan portfolio distributed across households, the agri-food sector, large companies, SMEs and the public sector. Performing loans rose to €37,096 million, up 1.1%, with year-on-year growth of 3.6% for lending to businesses. Over a total of 12,045 million euros of new business lending, 44.1% was directed to the agri-food sector, 29.8% to large companies, 8.7% to SMEs and 17.5% to small businesses.

At 30 September, Grupo Cooperativo Cajamar is one of the significant banks with the lowest NPL ratio, specifically 2.06%, and has a better NPL performance than the sector as a whole. Net foreclosed assets were reduced by 37.2% and are now €155 million lower than in same quarter of 2023, and non-performing total risks decreased by 5.8 %, while the NPL coverage ratio rose to 70.1 %.

Customer Service

Of the significant Spanish financial institutions, Grupo Cajamar is the second best rated in terms of customer satisfaction, over the last 12 months, according to the consultancy Stiga, which specialises in measuring, analysing and improving customer experience. 

The 5,130 professionals employed by Grupo Cooperativo Cajamar's member entities provide tailored, personalised advice and service to their more than 3.8 million customers through 980 branches and rural counters, 7 of which are mobile branches serving 49 small localities with populations of between 170 and 1,500 inhabitants. These are complemented by the digital channels: App, digital banking and electronic banking.

Capital Adequacy and Liquidity

Grupo Cajamar boosted its phased-in total capital ratio by 0.4 percentage points to 16.2%, while improving its phased-in CET1 ratio to 13.9 %, on the back of a 5.3% year-on-year increase in eligible capital. It thus comfortably exceeds the regulatory capital adequacy requirements, with an excess of €806 million. 

The issuance of €500 million in preferred senior debt helped raise the MREL ratio by 2.1 percentage points to 24.94%, exceeding the final requirement set for 1 January 2025 of 23.08%. 

Grupo Cajamar maintains a comfortable liquidity position, thanks to solid growth and stability in customer deposits and diversified sources of wholesale financing. Overall, Cajamar has a liquidity coverage ratio (LCR) of 227.3%, a net stable funding ratio (NSFR) of 154.5% and a loan-to-deposit ratio (LTD) of 79.6%. In addition, the Group also has mortgage covered bond issuance capacity of €2,632 million.