CGD Group Consolidated Operations

10 May 2018

1st Quarter 2019^(*) (unaudited accounts)

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First quarter 2019 results confirm progress in terms of profitability and asset quality, allowing to resume the payment of dividends.

Highlights

Consolidated net income was up €58 million, an increase of 85% over March 2018 to €126.1 million, equivalent to ROE¹ (return on equity) of 6.6%;
Core operating income was up 11.5% a year-on-year change, to €126 million;
Income from services and commissions was up 4.8% over the preceding year;
Operating costs were down 5.3% over the same period 2018;
Total operating income was up €18.7 million over first quarter 2018 to €455.9 million;
CGD’s efficiency level, with a cost-to-income ratio of 48%², continues to make favourable progresso;
The maintenance of positive trend in quality of CGD’s assets with a CGD Group NPL (non-performing loans) ratio of 7.8% and impairment and collateral coverage of 62.8% and 40.2% respectively (total coverage of 103.0%). Cost of credit risk was 0.06% in first quarter;
Total resources continue to show the loyalty of CGD’s customers, with a total amount of €72,874 million in domestic activity;
Performing loan book, excluding public sector, with growth in the quarter;
There was a 58% increase of €165 million in new residential mortgage loans over the same period 2018;
CGD continued to enjoy a highly favourable liquidity position with €12.0 billion in assets eligible for the Eurosystem pool and an LCR (liquidity coverage ratio) of 304%;
The fully loaded, CET 1, Tier 1 and Total ratios, at 15.0%, 16.1% and 17.4%, respectively, easily met the capital requirements currently in force for CGD. CET1 ratio thus registered an increase of 2.9% after the recapitalization;
Employee costs registered €55 million against the usage of a provision that was put in place in 2017 to account for the Staff Reduction Plan, with a neutral impact in the quarter’s results;
The General Meeting will decide upon a proposal to distribute €200 million dividends over the 2018 net income;
All regulatory costs for 2019 were fully recorded in the first quarter.

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 of M€ 58.5 in 2018 and M€ 55.9 in 2019 for staff reduction programs as well as administrative expenses.

^(*) 2018 accounts have been restated, considering Banco Comercial do Atlântico (BCA) as a non-current asset held for sale.

Caixadirecta

Caixadirecta

CGD Group Consolidated Operations

1st Quarter 2019^(*) (unaudited accounts)

CGD Group Consolidated Operations

1st Quarter 2019(*) (unaudited accounts)

1st Quarter 2019^(*) (unaudited accounts)