CGD Consolidated Operations

8 Nov 2019

3rd Quarter 2019
(unaudited accounts)

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Profitability (ROE 8.2%) and asset quality continue to show improvement; closer to investment grade by all agencies; progress achieved in meeting the strategic plan’s objectives on international assets.

Highlights

Consolidated net income for the first nine months was €640.9 million, up €272 million over the same period 2018. Recurrent consolidated net income was €112 million up 30% over the same period 2018 to €481.4 million, equivalent to a ROE⁽¹⁾ of 8.2%;
October saw the completion of the sale of Banco Caixa Geral (Spain) and approval of the South African authorities for the sale of Mercantile concluded on November 7, complying with the objectives of the strategic plan. This evolution led to a €159 million reversal of impairments resulting from the sales price achieved in the negotiating process;
The September accounts still include BCG and Mercantile, as its deconsolidation only occurs on the closing date of the sale;
Core operating income on a recurring basis was up year-on-year by 1.6% to €564 million;
Operating costs were down year-on-year by 3.7%;
Commissions increase 1.4% in domestic activity and 2.0% in consolidated activity;
An amount of €38.1 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;
CGD’s efficiency level, with a cost-to-income ratio of 47.2%, continued to progress favourably⁽²⁾;
Total customer resources, comprising an overall amount of €72,010 million from domestic activity continue to increase. Customer deposits were up 3.3% with individuals deposits growing 4,5% year on year;
There was a 35% increase of €385 million in new mortgage loans over the same period 2018;
Loans to corporates (excluding construction and real estate) increases 5.5% in the first nine months of 2019;
CGD continued to enjoy a highly favourable liquidity position with €11.9 billion in the Eurosystem pool of eligible assets and an LCR (liquidity coverage ratio) of 325%;
CGD’s asset quality continued to trend to improvement with a CGD Group NPL ratio of 6.6% and impairment and collateral coverage of 68.2% and 41.1% respectively, to a total coverage ratio of 109.3%. The NPL ratio (net) was 2.2%;
The fully loaded, CET 1, tier 1 and total ratios of 15.6%, 16.6% and 18.0%, respectively, easily met CGD’s capital requirements;
Fitch Ratings upgraded its rating on CGD to BB+ in October. This was the second upgrade by this agency since the strategic plan was implemented.

Press Release - Read or Download here the full version.
Presentation - Read or Download CGD Consolidated Results presentation.

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⁽¹⁾ Current activity ROE = (net income + non-recurring costs + non-controlling interests) / Shareholders' equity (average of 13 monthly observations and annualized).
⁽²⁾ Excluding non-recurring costs for employee redundancy programmes and general administrative costs of €44.3 million in 2018 and €38.1 million in 2019.

Caixadirecta

Caixadirecta

CGD Consolidated Operations

3rd Quarter 2019
(unaudited accounts)

CGD Consolidated Operations

3rd Quarter 2019(unaudited accounts)

3rd Quarter 2019
(unaudited accounts)