CaixaBank criticizes the tax burden borne by banks and questions that they are "penalized" compared to other sectors

The banking sector has been in the spotlight of the current acting government for some time, which even approved the so-called banking tax that, for United We Can, has fallen short considering the results of the main entities. This Friday it was the turn of CaixaBank, which has earned 2,137 million euros up to June, 35.8% more.

“We will have to think about whether we want to penalize the banks, if there is an underlying economic reason for it to be like this,” he said at the press conference to present the results for the first half of 2023, held in Valencia. In a scenario of political uncertainty after the result of 23-J, and with the debate on whether to make the bank tax permanent, Gortázar has been very clear in his criticism of the high tax burden that banks bear.

“It makes no sense to tax banking more than other activities”. Bearing in mind that the type of companies is 25%, Gortázar wondered if “banks should contribute 40% while the rest 25%”. “It is not fair, because it is not true that we earn a lot of money,” he insisted. As he has been doing in his last appearances, he has once again denied that the benefits obtained are “extremely high”. “The results have improved because they come from very low levels,” according to Gortázar, who has referred to the fact that the bank's profitability is well below that of other sectors. Of the Ibex 35 they are in position 25, as he has pointed out, despite the growth that banks have had as a result of the sustained increase in interest rates.

Even so, remuneration for deposits remains unattractive. The sector continues to be reluctant to remunerate savings, despite the fact that the pressure to do so has even come from the Ministry of Economic Affairs, through the mouth of Nadia Calviño. However, Gortázar has defended that “gradually the remuneration of deposits is gaining strength and it is normal for it to be readjusted”. In his opinion, “this trend will continue”, although CaixaBank continues to send the message that “the way to save in the long term is not the bank deposit”.

And after the European Central Bank (ECB) undertook the ninth rate hike, Gortázar has stated that it should not be ruled out that there will be another one “just around the turn of summer”. CaixaBank takes for granted a “stop” in the signing of new mortgage loans, since it registered a 21.5% drop in new mortgage production in the first half of the year, to record 4,654 million. In this regard, Gortázar considered “logical to think that there will continue to be significant levels of decline”, even higher, between now and the end of the year..

In parallel, 55% of the entity's mortgage portfolio has already been repriced with the Euribor and the average rate increase ranges between 90 and 100 euros per month. Far, therefore, from the 200 or 300 euros monthly increase that is said in many cases, as pointed out by Gortázar, who considers that there is no “massive problem” and “a massive solution” is not needed.. It has advanced that the Euribor in December will be below 4%, with which “the problem will go less, not more”. In fact, he has pointed out that from the middle of next year it is estimated that mortgages will become cheaper, which will be “a good sign”.

Regarding the political scenario, the CEO of CaixaBank has opined that the uncertainty about the formation of the new government is not good news. However, he wanted to downplay its possible impact on the economy: “We have experience in 2016 and 2019 of long processes of uncertainty and repetition of elections, and in the two years there were economic growth rates higher than those of the European Union, with good evolution of the public deficit and the risk premium in Spain”. Therefore, he has asked to “normalize a situation that we may not like, because we must trust in the strength of the economy”.

However, Gortázar has admitted that the purchase of debt by the ECB has helped Spain in the past, so now “we have to do our homework”. And the duties are those of the future Executive: redirect itself along a “sustainable path in terms of deficit and public debt”. With the stability regulations just around the corner, “it is better to anticipate and take advantage of the good economic moment in Spain to put a little order in the public accounts”.

Regarding the bank's results, during the first half of 2023, 'core' revenues grew by 31.3% year-on-year, to 7,110 million euros, and the entity has highlighted the increase in interest margin, which was 4,624 million, 55.2% more. It also recorded growth in the result of the insurance service (+18.5%) and in the income from bancassurance investees (+59.2%), which offset the 4.2% drop in commissions.

Specifically, recurring bank commissions show a year-on-year reduction of 7.6%, “impacted, fundamentally, by the suppression of custody commissions for deposits from large companies”. The CEO explained that the “solid result is a consequence of the good progress of the commercial activity, as well as the prudent management of credit risk”. In addition, CaixaBank has announced its intention to carry out a new share repurchase for a value of 500 million euros.