Corporate Governance

Mission and Strategy

MISSION

CGD’s mission consists of making a decisive contribution to the development of the national economy in a framework of balanced evolution between profitability, growth and financial strength, accompanied by prudent risk management, to enhance the stability of the national financial system.
As a driving force behind the country’s economic development, CGD’s mission comprises the following:

A strengthening of the competitiveness, innovation capacity and internationalisation of Portuguese companies, particularly SMEs, ensuring their respective funding requirements;
Promoting manufacturing activity, particularly tradable goods and services oriented to export or import substitution;
Backing the entrepreneurship and recapitalization process of Portuguese companies;
The provision of solutions to meet the borrowing requirements of Portuguese households at various times in their lifecycles, encouraging savings and national investment.

VALUES

CGD’s activity and its employees’ conduct are governed by the following fundamental values:

Rigour, which includes objectivity, professionalism, technical skill and diligence always geared to achieving higher levels of quality and economic, financial, social and environmental efficiency, based on the adoption of best banking and financial practice;
Transparency of information, namely as regards conditions governing the provision of services and the organisation’s performance, operating with truth and clarity;
Security of investments, with prudent risk management and CGD’s stability and strength as a sine qua non;
Organisational and personal responsibility for own actions, endeavouring to correct eventual negative impacts. This includes socially responsible performance and commitment to sustainable development;
Integrity, understood to mean scrupulous legal, regulatory and contractual compliance and ethical values and operating principles adopted;
Respect for interests which have been entrusted, acting with courtesy, discretion and loyalty, in addition to principles of non-discrimination, tolerance and equality of opportunities.

STRATEGIC PLAN 2017 – 2020

CGD’s capitalisation was designed on the basis of a robust Strategic Plan which has defined the Bank’s strategy up to 2020 and which evidences the rationality and sustainability of CGD’s sole shareholder’s investment decision.
The Portuguese state and CGD are strong believers in the viability of the Strategic Plan, mainly on account of the following:

The plan is based on a prudent macroeconomic scenario, namely with negative interest rates up to 2020;
The plan assumes no fundamental changes in market share or launches of new lines of activity, so there is little dependence on growth assumptions which may be less in control of the management team;
There is significant restructuring of the operational platform, which corresponds to levers under control of the management team;
The restructuring of the international footprint, based on criteria of economic and strategic rationale, will simplify and de-risk CGD's subsidiary portfolio;
The plan includes an enhancement of the Group's risk management practices, aimed at aligning CGD with market best practices;
The evaluation of the loan and securities book will allow for the operation of normalised cost of risk; and
Governance and remuneration conditions have been reviewed to allow for CGD to compete as a market player.

The Strategic Plan includes (i) the macroeconomic context, (ii) a viable restructuring plan that includes major disposals of non-strategic operations, (iii) a detailed profit and loss analysis accompanied by an overview of CGD’s balance sheet with projections of net interest income following the capital increase (iv) an indication of expected returns and (v) the definition of periods for the referred to expected returns.
The goal of the measures contained in the Strategic Plan is to improve the overall performance of CGD in order to ensure its long-term sustainability and the creation of value for its shareholder. As such, it builds on the following principles:

Maintaining CGD's current leading position in the Portuguese market without fundamentally changing its current business model as a global bank;
Increasing the operational efficiency of its domestic operations, combining it with the simplification of the group structure and the restructuring of the international portfolio;
Targeting attractive returns for the shareholder (greater than 9 per cent. as of 2020);
Strengthening the Group's solvency levels to aim to accomplish the requirements defined by the supervisors and market expectations (CET1 above 12.5 per cent.)
Maintaining an independent and accountable governance and management model.

CGD Strategic Plan 2020: 4 pillars

Trust

Strengthen the Group risk management model and governance to improve balance sheet solvency and resilience

Competitiveness

Adjust operational infrastructure (distribution platforms, central areas) and investment in human resources

International coverage

Restructure the international portfolio as a complemente to the domestic operation

Focus on economy

Enhance comercial franchises (retail, businesses, corporates) to ensure sustainability

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Corporate Governance

Mission and Strategy