The CECA sector records a 26.9% increase in profits

Return on equity (ROE) has improved in 2022 to 7.2%

Cost reduction efforts have had an impact on the efficiency ratio, which stands at 54%

Against a backdrop of tightening financial conditions, rising interest rates and high inflation, CECA's member entities obtained attributable profit of €4,232 million, representing an increase of 26.9% over the previous year, when it totalled €3,335 million[1].

This increase in profits was largely due to a boost in financial income, lower operating expenses and lower provisions. As a result of this performance, the return on equity (ROE) has also improved in 2022, namely by 1.6 p.p. to 7.2%.

On the revenue side, the improvement in net interest income was particularly noteworthy, rising 8.3% year-on-year in the fourth quarter. Financial revenues accelerated their growth to 10.4%, driven by the revaluation of the credit portfolio and higher yields on fixed-income, offsetting the 18.4% rise in financial expenses. Additionally, the more moderate growth in net fee and commission income resulted in a 5.7% increase in gross income compared to 2021.

As for operating expenses, there was a 3.9% reduction, mainly due to the synergies obtained from the integration processes.

Moreover, despite the uncertain economic environment in 2022, the doubtful assets ratio of credit to the private sector remained contained at 3.45% in December, mainly due to the favourable evolution of employment and measures to address rising energy costs, which allowed the trend of declining impairment losses on financial assets to continue, falling by 12.2%.

Cost reduction efforts also had a positive impact on the efficiency ratio, which improved by 5.4 p.p. to 54%.

Lastly, the sector's banks strengthened their solvency by achieving a CET1 ratio of 13.43% on average, comfortably exceeding the minimum capital requirements set by the European Central Bank (ECB).

Thanks to their financial strength, CECA sector entities continue to work together intensively, providing solutions to contribute to the well-being of all the people in our country and, more specifically, of the most vulnerable groups.

[1] This result is obtained without considering the impact of extraordinary income and expenses due to the two merger processes that were included in the sector's accounts in 2021; on the one hand, CaixaBank and Bankia in the first half and, on the other, Unicaja and Liberbank in the second half.