1H2024 Results

31 Jul 2024

Caixa Geral de Depósitos releases its 1H2024 consolidated results

CGD achieves net profit of €889 million in the first half of 2024 and distributes dividends of €825 million
Evolution of CGD’s results allows payment of an additional dividend of €300 million to the €525 million already paid, fully reimbursing the public recapitalization in cash carried out in 2017, following the 100% repayment of the private debt component
In 2024, CGD will pay to the Portuguese State €1,248 million in dividends and income tax related to 2023, and will make €417 million in payments pertaining to income tax to be withheld in the current fiscal year, in a total income tax of €840 million and a total payment of €1,665 million
CGD’s international business entities made a net profit of around €100 million in the half year
Commissions earnings in Portugal, down 2% over first half 2023, reflected CGD’s decision to leave its bank charges unchanged together with the application of exemptions
Efficiency ratio positive at historic levels, as a result of the evolution of core income and efforts to contain costs, despite the inflation above ECB reference levels

Capital ratios reach 21.0% (CET1) and 21.3% (Total), after the distribution of the dividend of €525 million. After the payment of the additional dividend of €300 million, the estimated impact on capital ratios is approximately -65 bps, remaining above 20%
Shareholders’ equity, based on the generation of organic capital, is still more than €10 billion. Capital of €5,203 million, generated since 2017, is 1.3 times higher than the public investment of €3,944 million in CGD’s recapitalisation plan
CGD once again leads the ranking of Portuguese banks in terms of capitalisation as the only Portuguese bank on the list of the world’s 200 largest banks in terms of tier 1 capital - The Banker 2024

CGD continues to be the national leader in terms of business turnover with a €4 billion first half increase to €142 billion
Deposits in the first half year were up €2.7 billion, a growing of 6% year on year, reaching €73 billion in Portugal and maintaining the lead in terms of customer resources
There was a year-on-year increase of €447 million (up 39%) in mortgage lending to more than €1.5 billion. CGD is the market leader with a share of 25.1%
Loans and advances to companies and the public sector were up 3.7% by €730 million in the first half to a market share of 17.0%.
CGD maintained its digital leadership with more than 2.3 million digital customers in Portugal, of which 1.8 million were mobile customers, comprising growths of 56 thousand and 97 thousand respectively over December 2023

First half 2024 witnessed a spread reduction on 2,745 mortgage loans for an amount of €260 million (totalling 23,475 operations worth €2,376 million since 2022) with the transfer of 9,671 agreements worth €1,036 million to a fixed rate (totalling 26,938 operations worth €3,093 million since 2023)
Customer support was also extended to 883 operations for an amount of €94 million, based on the fixing of the amount of loane epayment instalments for 2 years under decree law 91/2023
Leadership in competitive deposit remuneration in Portugal
In 2024, as in 2023, CGD did not increase its fees and exempted several operations in Portugal from charges

NPL(1) ratio of 1.66% at the end of June, down by a year-on-year 2.48% and less than the European average of 1.9%
The cost of credit risk reflects the favourable evolution of credit quality and improved macroeconomic scenario, compared to the previous one
Exposure to non-core assets − real estate and restructuring funds − down €57 million in the first half

Following its September 2023 upgrade, Fitch Ratings also upgraded its outlook on CGD to "Positive" in July 2024. This review now gives CGD a “Positive” outlook from both the Fitch and DBRS rating agencies

CGD achieved an A rating in the MSCI ESG Rating that assesses companies' resilience to ESG risks. This evaluation highlights CGD’s management of environmental risk

CGD is the most valuable banking brand in Portugal by Onstrategy
CGD was recognised by the international Euromoney magazine as the "Best ESG Bank in Portugal". CaixaBI, in turn, was distinguished as the "Best Investment Bank in Portugal"
CGD was also distinguished by several reputable entities in categories such as: brand, financial strength, human resources, digital, ESG, investment banking and asset managemen

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¹ NPL – Non-Performing Loans: Ratios according to EBA Risk Dashboard

The financial statements have been prepared based on the International Financial Reporting Standards (IFRS) as adopted in the European Union in accordance with Regulation (EC) No. 1606/2002 of the European Council and of the Parliament of July 19 and provisions of Decree-Law No. 35/2005 of February 17. The financial information reported is unaudited.
The financial metrics in this presentation refer to June 30,2024, unless otherwise stated. They may be estimated values, subject to change when they are definitively determined. Solvency ratios include the net income for the period, excluding the maximum distributable amount according to dividend policy, unless where otherwise noted.
This document is only intended to provide general information and does not constitute investment advice or professional advice, nor can it be interpreted as such.
This document is an English translation of the Portuguese language document “Resultados Consolidados 1S 2024”. In the event of any inconsistency, the original version prevails.