The Caja Rural Group is a prominent banking group in Spain, distinguished as an alliance of 30 cooperative banks and their related undertakings.

Caja Rural Group

With origins dating back to 1966, the group has grown to become one of the leading exponents of proximity banking in Spain.

Overview

The Caja Rural Group stands out due to its structure comprising numerous cooperative banks working together. This model allows for a focus on local needs and close relationships with customers. The group boasts 2,346 local branches and a workforce of 9,708 employees, highlighting its significant presence throughout Spain.

Key Features

Cooperative Structure: The group is made up of 30 cooperative banks, fostering a collaborative approach.
Proximity Banking: With a widespread network of local branches, the group emphasizes close customer relationships and local market knowledge.
Financial Soundness: The Caja Rural Group maintains a solid financial position, ensuring stability and reliability for its members and customers.

Banco de Crédito Social Cooperativo (BCC)

Within the Caja Rural Group, the Banco de Crédito Social Cooperativo (BCC) plays a crucial role. Established in 2014, BCC serves as the central entity for the group's cooperative banks. It is directly supervised by the European Central Bank, holding the status of a Significant Institution. The Bank of Spain has designated the Cajamar Cooperative Group as an institutional protection scheme, with the BCC as the head entity. Under that arrangement, the individual local banks are exempt from solvency and liquidity requirements as these are supervised on a consolidated basis. In effect, the group's 18 local banks operate like branches, with no managerial independence.

Caja Rural de Navarra

Caja Rural de Navarra, Sociedad Cooperativa de Credito (CRN) is a member of the Caja Rural Group. CRN's strategy includes stable growth within its region, without plans for country-wide expansion or aggressive development outside of retail banking. Fitch Ratings expects CRN to maintain a CET 1 ratio above 17% in 2024-2025, supported by conservative capital management.

History

The Caja Rural Group's roots are in the establishment of Caja Rural de Almeríain 1966. Over time, various rural savings banks joined together, eventually leading to the formation of the current group. One example of a Caja Rural joining the group is Caixa Rural Vilafamés. On 10 February 1935 the Constituent Assembly of the Caja Rural del Sindicato Agrícola San Isidro de Vilafamés was held, although the start of the credit activity of the union traces its origins to 1909.

Financial Information

Caja Rural provides detailed economic and financial information. CRN’s operating profit ratio has remained stable over the business cycles in Spain. In 2023, profitability improved materially, reaching an operating profit/RWAs ratio of 3.2%, driven by the strong net interest income (NII; +61% yoy growth), benefitting from higher interest rates and a sustained low-cost deposit base.