The Aragonese bank Ibercaja has managed to exceed the objectives established in the 2023 Challenge Strategic Plan in terms of profitability, with a ROTE of 11.6%; solvency, with a ‘fully filled’ CET1 ratio of 12.7% and asset quality, with an NPA ratio of 2.8%.
The levels of profitability and solvency have allowed the bank to distribute a dividend of 400 million euros to its shareholder foundations in the three years of the strategic cycle, with which they have carried out social, cultural and promotion actions for the economic development of their respective territories of action.
In addition, it has allowed Fundación Ibercaja to provide the Reserve Fund with 260 million euros, 80% of the total that must be completed by the end of 2025, as reported in a press release.
Thus, Business Banking has managed to advance its business credit market share by 32 basis points. Ibercaja has gained presence in this customer segment, improving the diversification of the bank’s business and increasing its impact on the income statement.
The greatest synergies between face-to-face and digital banking; the new estate and financial planning service; and the relevance of specialization in retirement savings have been key factors in reinforcing the experience and confidence of Personal Banking clients, one of the “strategic segments” for Ibercaja.
Another milestone has been the gain in market share in value-added products, such as investment funds, with an increase of 98 basis points; pension plans, with an increase of 25 basis points; and life insurance, with an increase of 16 basis points.
In recent years, Ibercaja has also consolidated risk insurance, both Life and Non-Life, as one of the key businesses due to its potential for generating income and providing solutions to the insurance needs of individual and corporate clients.
On the other hand, Iberacaja’s measures have boosted the number of digital users by 17% between 2021 and 2023; and have led to more than 40% of the bank’s sales being made through digital channels and 75% of operations being self-service. In this area, the contracting of mortgages through these online channels represents 30% of digital sales.
More efficient, flexible and flexible organization.
The 30% increase in robotization through Artificial Intelligence and the release of more than 480,000 work hours have led to greater “efficiency and flexibility”, both at the operational and internal functioning levels, and increases productivity in commercial management.
The integration of sustainability and corporate purpose in the financial activity and corporate culture of the entity has had special relevance within the 2023 Challenge Plan. The integration of ESG parameters in the risk appetite declaration and the definition of a carbon footprint reduction strategy stand out as advances in this period.
Ibercaja currently has ten investment funds, five pension plans and a SICAV managed with ESG criteria that reached assets of 3,440 million euros.
