Kutxabank S.A. is a Spanish savings bank based in Bilbao. It was formed in 2012 through the merger of three Basque savings banks: Bilbao Bizkaia Kutxa (BBK), Kutxa, and Caja Vital Kutxa.

Kutxabank

Kutxabank began operations with a strong solvency position and a leadership role in its core business areas.

History

The origins of Kutxa can be traced back to 1879, when the Caja de Ahorros y Monte de Piedad Municipal de San Sebastiánwas founded in San Sebastián. In 1896, the Caja de Ahorros Provincial de Guipúzcoawas established. These two entities merged in 1990 and were known commercially as Kutxa. On January 1, 2012, Kutxa merged with BBK and Caja Vital Kutxa to form Kutxabank.

Merger and Restructuring

The 2012 move to create Kutxabank did not result in a full merger, as the management boards of each savings bank chose to maintain their own identity and autonomy. After the bankruptcy and public rescue of several Spanish banks, European financial institutions required Spain to transform the organizational structure of savings banks and liberalize their capital share.

In a session on October 23, 2014, the General Assembly decided to convert Kutxa into a bank foundation and passed new statutes to regulate the institution.

Operations

Kutxabank operates with a commitment to serving its communities and promoting economic and social development. It has a strong position in its primary areas of activity, characterized by a low level of credit risk, strong asset quality, and solvency.

As of June 2024, Kutxabank's cash balances amounted to EUR 5,543.56 million.

Financial Performance

Kutxabank's financial performance for 9M24 shows a positive evolution of Net Interest Income and Service Income. Net income for 9M24 was EUR396 million, a 2.8% year-over-year increase. Core revenues for 9M24 were EUR1,515 million, up 16.4% year-over-year. Kutxabank's CET1 ratio reached a new all-time record.

Fitch Ratings affirmed Kutxabank's Long-term Issuer Default Rating at BBB with a Positive Outlook. Fitch expects Kutxabank to operate with a CET 1 ratio above 17% in 2024-2025, supported by conservative capital management.