CGD Group Consolidated Operations

30 Jul 2019

1st half 2019 (unaudited accounts)

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Continued implementation of strategic plan confirms improved profitability and asset quality in the 1st half of 2019.

Highlights

Consolidated net income in the first half year was up 46% by €88 million over June 2018 to €282.5 million, equivalent to ROE⁽¹⁾ (return on equity) of 7.4%;
Core operating income was up by 4.1% year-on-year to €331 million;
Operating costs were down by 5.9% year-on-year;
An amount of €35.5 million from the provision set up in 2017 for the implementation of the employee reduction plan, was recognised in employee costs. This had a nil effect on net income for the half year;
Total operating income was up €19.1 million over first half 2018 to €908.2 million;
CGD’s efficiency level, with a cost-to-income ratio of 48.3%⁽²⁾, continues to progress favourably;
Total domestic activity resources of €73,159 million continue to show customers’ loyalty to CGD;
Customer deposits were up 4.8% (+ € 3,017 million) in 1st half 2019;
The performing credit portfolio, excluding the public sector, recorded a 1.7% growth (+ € 638 million) in the half year;
SMEs credit portfolio up 2.4%, production reaches €1,200 million in first half 2019;
New residential mortgage loans were up 36% by €257 million over the same period 2018;
CGD continued to enjoy a highly favourable liquidity position with €12 billion in eligible assets in the Eurosystem pool and an LCR (Liquidity Coverage Ratio) of 324%;
The quality of CGD’s assets continued to improve with a CGD Group NPL (Non-Performing Loans) ratio of 7.3% and impairment and collateral coverage of 64.3% and 43.6% respectively (total coverage of 107.9%);
The fully loaded CET 1, Tier 1 and Total ratios were 14.8%, 15.8% and 17.1%, respectively, considering the impact of the payment of dividends for 2018 and the adjustment in the Pension Fund discount rate;
CGD was notified by the Bank of Portugal of its MREL (Minimum Requirement for Own Funds and Eligible Liabilities) requirements. The amount of eligible issuances deriving from the fulfilment thereof is fully within CGD’s Funding and Capital Plans.

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⁽¹⁾Current activity ROE = (net income + non-recurring costs + noncontrolling interests) / Shareholders' equity (average of 13 monthly observations and annualized).

⁽²⁾ Excluding non-recurring costs of €50,7M in 2018 and €35,5M in 2019 for staff reduction programs as well as administrative expenses.

Caixadirecta

Caixadirecta

CGD Group Consolidated Operations

1st half 2019 (unaudited accounts)