MicroBank social financing exceeds €1 billion for the first time, following 6.5% growth

Annual summary 2022

• Support to vulnerable families accounted for 63% of the volume financed by MicroBank in 2022, totalling €636 million.
• Last year, CaixaBank's social bank issued 13,118 microloans worth €171 million to entrepreneurs, self-employed workers and micro-enterprises.
• MicroBank’s specific credit lines for social impact sectors contributed to the creation of 5,220 projects in Spain, with a total volume of €208 million.
• “In 2022, we reached €1 billion issued in social financing, a milestone that we achieved after a 15-year effort, and one that encourages us to continue with our activity to promote the economic development and well-being of society", explains Juan Carlos Gallego, the president of MicroBank.

MicroBank, CaixaBank's social bank, closed out 2022 by hitting a new record number for social financing, exceeding €1 billion for the first time. MicroBank signed 100,323 contracts in Spain worth a total of €1.02 billion, 6.6% higher than 2021.

Lending to vulnerable families is the area that experienced the most growth in 2022, with 81,985 microloans issued in Spain. Financing set aside so that groups with few resources can afford specific needs reached €636.5 million last year, this is an increase of 16.4% on the previous year. The average value of these microloans was €7,764, 23.3% more than in the previous year. This segment accounted for 63% of the total volume financed by CaixaBank's social bank.

MicroBank is also focused on the financing entrepreneurs, self-employed workers and micro-enterprises to start up or consolidate small businesses. In total, MicroBank granted 13,118 loans to these groups (a lower figure than in the previous year as a result of the drop in microloans set aside to mitigate effects of the Covid crisis), worth a total of €171.1 million. The average amount of these microloans was €13,046, slightly above the €12,870 of 2021.

“In 2022, we reached €1 billion in financial loans issued, a milestone that we wanted to achieve after a 15-year effort and that encourages us to continue with our activity to promote the economic development and well-being of society", explains Juan Carlos Gallego, the president of MicroBank.

Cristina González Viu, MicroBank's Managing Director, notes that “yet again this year, in a highly complex environment, we focused our efforts on those who need it most, as we work to achieve financial inclusion".

Support for social impact financing

On top of SME lending and supporting vulnerable families, MicroBank is also focused on lending to sectors with a social impact. Last year, MicroBank helped materialise 5,220 projects in Spain, an increase on the 5,142 of the previous year, worth a total of €208.2 million, consistent with the volume contributed in 2021. These lines, targeted at social economy, education, enterprise, innovation and health projects that create a positive impact on society, account for 20.5% of the capital issued by the bank. In this regard, worth mentioning is the 18.5%-increase in the EaSI line, aimed at social economy enterprises, and the good reception of the Skills & Education loans for both students and companies.

Sustainable banking

MicroBank offers solutions to different segments of the population whose financial needs are not sufficiently met. It has a crucial role in the Sustainable Banking Plan, which is part of CaixaBank's new Strategic Plan, which entrusts it with promoting financial inclusion by providing vulnerable groups access to loans, as well as with enhancing its commitment to the country's socio-economic development.

As the sole shareholder of MicroBank, CaixaBank has supported its social bank since its creation by giving it the funding required to grow its lending activity while marketing MicroBank products through CaixaBank's extensive commercial network, with the aim of offering customers its entire range of products with the highest possible quality of service and the best possible relationship.

More than 290 entities throughout Spain actively collaborate in the granting of loans, entities that provide knowledge on the recipients of the loans, and that also advise and follow up on the projects.

MicroBank also relies on the support of Europe's leading institutions when it comes to promoting enterprise and microfinance, namely the European Investment Fund (EIF), the Council of Europe Development Bank (CEB) and the European Investment Bank (EIB).