The ratings on Caja de Ahorros y Pensiones de Barcelona (la Caixa) balance the low-risk profile and improving performance of the group's core banking business, comfortable liquidity, and strong management and franchise, with the higher risks stemming from the bank's sizeable portfolio of long-term equity holdings. La Caixa's focus on residential mortgage lending, coupled with its conservative underwriting and provisioning policies, underpins the low-risk profile and sound track record of its lending operations. Despite rapid branch expansion, which has fueled lending growth, the savings bank's asset quality continues to compare well with that of both peers and with industry averages. This should remain the case in the future, despite the weaker economic environment ahead. The enlargement of the branch network...
Companies mentioned in this report are:
- Caja de Ahorros y Pensiones de Barcelona (Unsolicited Ratings)
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis