By Elena Vardon and Kosaku Narioka

CaixaBank reported better-than-expected profit for the fourth quarter and announced a share buyback of more than $500 million.

The Spanish lender on Thursday posted net profit of 1.54 billion euros, equivalent to $1.61 billion, for the three months ended Dec. 31. That compared with 1.16 billion euros a year prior and expectations of 1.41 billion euros from a company-compiled consensus.

Net interest income--the difference between what banks earn on loans and pay on client deposits--came in at 2.74 billion euros, 0.3% lower than a year prior, as interest rates declined. Gross income was 15% higher at 4.08 billion euros. Analysts had expected 2.71 billion euros and 3.99 billion euros, respectively.

The bank, Spain's largest by domestic assets, announced a share buyback of 500 million euros, equivalent to $521.1 million. It also declared a final dividend of 28.64 European cents a share, bringing the total payout for the year to 43.52 European cents.

The group ended the year with a common equity tier 1 ratio--a measure of balance-sheet strength--of 12.2%, steady from a quarter prior.

Write to Kosaku Narioka at kosaku.narioka@wsj.com and Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

January 30, 2025 01:26 ET (06:26 GMT)

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