Consolidated Operations 3rd Quarter 2016

18 Nov 2016

Unaudited financial information

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Caixa Geral de Depósitos S.A. (CGD) posted negative consolidated net income of €189.3 million in the first nine months of 2016.

Net interest income, in the first nine months of this year, was up 6.0% by €48.1 million to €854.7 million.
Total operating income, down €432.8 million year-on-year to €1,182.2 million in September 2016, was penalised by the reduction of €370.0 million in income from financial operations.
Operating costs in the first nine months ended September 2016 were down 3.6% year-on-year, having benefited from containment across all component parts. Excluding the non-recurrent cost of the pre or voluntary early retirement programme in progress (Horizonte plan), the reduction would have been 5.6%.
Net operating income before impairment of €239.3 million in the first nine months of 2016, was down 62.4% by €397.8 million year-on-year, essentially on account of the already referred reduction of €370.0 million in income from financial operations.

CGD Group’s core operating income in the first nine months of 2016 (sum of net interest income and commissions net of operating costs) was up 25.8% year-on-year to €256.5 million, having benefited from the performance of net interest income and operating costs.

Table
(EUR Million)
	Sept15	Jun16	Sept16
Net interest income	807	569	855
Commissions (net)	375	230	345
Income from fin. operations	329	-47	-41
Total operating income	1 615	755	1 182
Operating costs	978	639	943
Core net op. inc. before imp.	204	160	257
Provisions and impairments	493	328	412
Net income	3	-205	-189

The credit impairments recognised in the period of July to September are exclusively due to the accrual of the amounts provided for in the 2016 budget.

Since taking office at 31 August 2016, CGD’s new board of directors, in the context of the recapitalisation plan, with knowledge of the regulatory authorities, is revaluating CGD’s assets, potential contingencies and the corresponding impairments needs. This exercise is due for completion before the closing of the December 2016 accounts and will be accounted for in the 2016 financial statements.

The recapitalization plan includes a capital increase of up to €2,700 million euros to cover the needs of the referred impairments.
Income before tax and non-controlling interests and net income for the first nine months of 2016 were a negative €143.4 million and €189.3 million, respectively.
CGD Group had consolidated net assets of €98,234 million at the end of September 2016 (down 1.3% year-on-year).
Customer resources at the end of September totalled €71,648 million (up 0.8% by €581 million year-on-year).
Gross loans and advances to customers (including loans with repurchase agreements) totalled €69,938 million last September (down 2.1% over September 2015).
Credit at risk in September 2016 was 12.2% of the credit portfolio. The level of coverage of credit at risk by provisions and impairments was 63.8% (46.6% for loans to individual customers and 74.6% in the case of corporate credit).
The loans-to-deposits ratio in September 2016 stood at 90.0% against 93.1% in September 2015.
CGD Group’s total financing from the ECB at the end of September 2016 stood at €3,577 million (up €762 million over September 2015).
The LCR (liquidity coverage ratio) of 170.8%, was above regulatory requirements.
The common equity tier 1 (CET 1) phased-in and fully implemented ratios, calculated under CRD IV/CRR rules, were 10.2% and 9.3%, respectively in September 2016.

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Caixadirecta

Caixadirecta

Consolidated Operations 3rd Quarter 2016

Unaudited financial information