CaixaBank Invested €125 Bn in Assets Throughout the Recession

3/09/2014 – Expansion

The purchase of the Spanish business of Barclays allows CaixaBank to take the leading position in the credit ranking and confirm the first place in deposits. Since the beginning of the recession, the Catalonian bank spent nearly €125 billion on five smaller entities and their assets.

Firstly, CaixaBank absorbed Caixa Girona in July 2010. The affiliate gave it €7.8 billion in assets and a stronger position as a leader among banks operating in Catalonia, its motherland. In September the following year, CaixaBank took over Bankpyme, a small entity holding a €1.2 billion worth of assets.

However, the most important purchase for the bank was Banca Cívica in March 2012. La Caixas branch paid €977 million through a swap for assets valued jointly at €72.2 billion.

After this acquistion which did not require any type of bail-out, CaixaBank rested for six months only before it announced a new transaction. In November, it bought Banco de Valencia from the Spanish Fund for Banking Restructuring (or FROB) for only one euro and offering an asset protection scheme in case of future losses. Together with the entity, CaixaBank gained a €22 billion worth of assets.

Now Also First in Credits

The Catalonian bank was one of the sure bets at the tenders of NCG Banco and CatalunyaBanc. However, it was outbidded by Banesco and BBVA, respectively.

CaixaBank‘s craving for growth resulted in the recent acquisition of the Spanish arm of Barclays which included assets valued at €21.6 billion. Once the deal sealed (in December this year), the entity’s credit portfolio will amount to €209 billion. To compare, BBVA holds a €208 billion volume of assets.

Besides, CaixaBank reinforced the lead in the deposits segment with €257 billion, with BBVA and its €237 billion ranking the second.


Original article: Expansión (by M. Romani)

Translation: AURA REE