CGD Group Consolidated Operations – 31 March 2016

Summary of evolution in 1st quarter (unaudited acounts)

Results

CGD Group’s net interest income, in first quarter 2016 was up 9.8% by € 25.3 million over the same quarter 2015 to € 282.0 million.
As was the case in 2015, this quarterly growth of net interest income greatly benefited from the 20.7% reduction of € 107.1 million in funding costs which surpassed the reduction which was also felt in interest on lending (down 10.6% by € 81.8 million).
In the quarter, the contributions by net commissions (€ 115.6 million) and income from financial operations (down € 97.3 million) reflected, in the former case, the strong competitive and statutory pressure on commissions charges and, in the latter case, the climate of instability in international financial markets.
CGD’s total operating income for the quarter was therefore down € 196.3 million over the same quarter 2015 to € 305.6 million, strongly influenced by the negative change of € 191.2 million in income from financial operations.
CGD’s operating costs for the quarter were down 5.5%, having benefited from the containment of employee costs (down 4.7%), in which the initial impact of the Horizonte plan is already visible, in addition to the 5.2% reduction of administrative expenditure and 12.3% reduction of depreciation.
Net operating income before impairment in 1st quarter 2016 therefore totalled € 1.9 million, reflecting the impact of income from financial operations.
Nevertheless, the core operating income (sum of net interest income and net commissions, deducted by operating costs) increased 52.0% in the period to € 93.9 million, influenced by the positive evolution of net interest income and operating costs.
Provisions and impairment were down 25.4% by € 28.6 million across the period to € 84.2 million.
Income before tax and non-controlling interests and net income for the quarter were negative (down € 77.8 million and € 74.2 million, respectively).

Balance Sheet

CGD Group’s total assets at the end of March 2016 amounted to € 100,638 million, down 0.3% over December 2015.
Customer resources of € 73,935 million in the 1st quarter, represented a positive evolution of € 3,909 million over 1st quarter 2015.
Gross loans and advances to customers (including credit with repurchase agreements) of € 70,636 million in March last, reflected the strong progression of new sales in the quarter but were insufficient to offset portfolio repayments.
Credit at risk, in March 2016, was 11.9% of the credit portfolio, with a level of provisions and impairment coverage of 62.8%. The level of coverage of credit at risk was 46.8% for credit to individuals and 70.3% for corporate customers.
The loans-to-deposits ratio of 88.5% reflected CGD’s strong resource-taking capacity, in addition to the still limited recovery of demand for credit..

Liquidity and solvency

CGD’s funding from the Eurosystem at the end of March 2016 totalled € 2,776 million, a change of € 10 million over December 2015 and € 211 million over March 2015, currently representing 2.8% of total assets.
CGD’s liquidity remained at a highly comfortable level with an LCR (liquidity coverage ratio) of 159.1%, far higher than regulatory requirements.
The Net Stable Funding Ratio (NSFR) has improved to 134.3% over the same quarter 2015.
The phased-in and fully implemented Common Equity Tier 1 (CET 1) ratios, calculated according to CRD IV/CRR rules were 10.4% and 9.6%, respectively in March 2016, confirming the current position regarding CGD’s capital.

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Caixadirecta

Caixadirecta

CGD Group Consolidated Operations – 31 March 2016

Summary of evolution in 1st quarter (unaudited acounts)