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Goirigolzarri warns that the rate hike does not guarantee that profitability exceeds the cost of capital

Highlights the "muscle" of the Spanish financial sector to contribute to socioeconomic recovery.

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Goirigolzarri warns that the rate hike does not guarantee that profitability exceeds the cost of capital

Highlights the "muscle" of the Spanish financial sector to contribute to socioeconomic recovery

BILBAO, 29 Sep. (EUROPA PRESS) -

The president of CaixaBank, José Ignacio Goirigolzarri, has pointed out that the financial sector must achieve a return above the cost of capital, a challenge that the normalization of rates will help, although he believes that this increase "will not be enough" to achieve it, Therefore, banks will have to redouble the transformation efforts made in recent years.

Goirigolzarri made these statements during his participation in the XXI Conference of CEDE Directors in Bilbao, at a table on the future of financial institutions, where he highlighted the "financial muscle" of the sector to be close to companies and families and to be able to contribute to socioeconomic recovery and the transition to "the new world".

In his speech, the head of CaixaBank, who did not attend the Congress in person but via video, indicated that the transition "towards a new world" is being experienced, with "radical changes" in the political, geostrategic, economic and social that are going to come driven by far-reaching global trends that, although, have accelerated with the pandemic and the invasion of Ukraine.

Goirigolzarri has stated that as directors they must feel "especially challenged" to act "in a responsible and decisive manner" because it is "what society expects". He has also alluded to the Spanish financial sector and has indicated that it must be "the protagonist and promoter of many of these changes".

The director added that, unlike what happened in the previous crisis and thanks to the work carried out over the years, the Spanish financial sector today does have the "financial muscle to be very close to companies and families and to be able to contribute both to socioeconomic recovery and to the transition to the new world".

As he has indicated, he has "great challenges ahead", one for each interest group, and he has specified, in the first place, that the entities must deliver a return above the cost of capital, "something that has not been the case in the recent years within European banking". As he pointed out, the normalization of interest rates "will undoubtedly help", but he believes that "it will not be enough" and, in his opinion, the transformation efforts that the sector has developed in recent years must continue and be redoubled.

Secondly, he pointed out that they must adapt to the changes in customer habits that "feed back with the growing digitization" that is being experienced, but it must be done from the realization that there are groups of customers with very diverse needs and habits. and all of them must be given "a differential and excellent service", in addition, doing it "efficiently".

Goirigolzarri added that talent management is becoming "increasingly complex" and, in his opinion, "it will be more so in the future". As he has stated, they need to incorporate "highly demanded profiles" not only by the banking sector but by the entire industry, which is a challenge from the perspective of attracting that talent.

"In addition, we must ensure that these new profiles and people with more traditional profiles are welcomed into a common culture," he added.

Likewise, he believes that the "decisive role" that the banking sector has for the well-being of citizens must be transmitted much more effectively to society, not only as a channel for savings and a provider of financing, but also as a "determining agent" on issues such as the energy transition.

Goirigolzarri has also stated that Spanish banks "compare very well" with European or American banks in terms of "quality of service and cost of financing" for both families and companies. "And it is that the sustainability of a company or a sector happens because society wants you to exist and sees your usefulness", she has said.

Therefore, he has assured that the reputation and image of a sector are "key to the future" of the same and all of this "are not easy challenges, but they are very exciting".