CAIXABANK: PLAN’22-24 - >12% IN ROTE, FL CET1 & YIELD (ANÁLISIS BANCO SABADELL)
2022-24 Strategic Plan, ROTE, FL CET and yield >12%. New T.P. € 4.00/sh. (+5% vs. previous T.P.).CABK would pay out €~9 Bn (40% market cap) through 2024: (i) 2022, with a pay-out ranging between 50% and 60% + € 1.8 Bn share buyback’22 (joint yield >12) and (ii) pay-out’23-24 >50% + every excess of FL CET1 >12%. In CABK’s base-case scenario of 2023 interest rates (1.5% vs. 0.8% conservative scenario), RoTE’24 would stand >12%, implicitly meaning ~+12% in Net Profit’23-24 vs. BS(e) and +14%/+30% vs. consensus in 2023-24. With our hypotheses (interest rates at 1% in 2023), CABK would generate € 8.2 Bn to distribute to shareholders (around -10% vs. CABK), leaving a ~10.7% RoTE’24 (in line with CABK’s conservative scenario). We revise Net Profit’22-24 (virtually unchanged) and with the share buyback our T.P. stands at € 4.00/sh. (+5% vs. previous and +30% upside). CABK is our top pick among domestic banks, trading at 0.8x P/TE’23, with a 9% RoTE’23 and 12% yield’22, and we reiterate our BUY recommendation.
Caixabank is an investment company based in Spain. Co. is involved in investment portfolio management activities across two areas: Services and Financial Business and Insurance. In the services area, Co. provides investment solutions for companies involved in the infrastructure, energy, services and entertainment sectors. In the financial business and insurance area, Co. is engaged in the investments for international banks, insurance and specialist financial services. Co. focuses most of its banking investments in India, China, the U.S., and Central and Eastern Europe with a particular interest in retail banking. Co. is also involved in the disinvestments activities.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.