[ad_1]
Consolidated net profit reached 392 million (342 million on a recurring basis). All because the “preventive strengthening of impairments” had a significant impact on the results. Total net adjustments of € 220 million include unallocated write-downs resulting from the downward revision of the macroeconomic scenario in the context of the pandemic.
In the year of completion of the Strategic Plan, the State Bank recorded a consolidated net profit for the third quarter of 2020, down by 39% compared to the same period of 2019, which compares with the 249 million obtained up to June. The results for the first nine months put the profitability (ROE) of CGD at 6.6% (down by 4.2 pp compared to the same period). The management target for 2020 was above 9%.
The recurring net result was 342 million, with a reduction of 29% compared to the same period last year and corresponding to a ROE of 5.8%, given that the result includes a positive impact of 51 million (net of taxes ) deriving from the actuarial gains and extraordinary liabilities for post-employment benefits.
The cost of credit risk reached 0.29%, due to the strengthening of write-downs and provisions for 220 million euros in anticipation of the effects of the Covid-19 pandemic, says the bank led by Paulo Macedo.
The bank says most of the Covid-19 impairments were formed in the second quarter. In June it was 156 million and in September it was 220 million euros, which corresponds to an increase of 64 million euros.
International business contributed 37% less (with 83 million) to the consolidated results of the CGD Group.
In September 2020, the revenues, the interest margin decreased by 76.5 million euros (-9%) compared to the same period last year, given the current interest rate environment, and in particular the high prepayments of the credit from institutions in 2019, given the low cost of state financing, explains CGD.
As regards commissions, there was a decrease of 1.1 million euros (-0.3%) compared to the same period last year and the financial management result (ROFs) recorded a value of 38.8 million euros. euro, which translates into a favorable evolution of 20.8 million euro compared to 18 million in the nine months of 2019.
Recurring overhead costs show a 6% reduction compared to the first nine months of 2019 with the report cost-to-income recurring with a slight increase to 49% of domestic activity (50% in the consolidated), because the banking product fell more than the reduction in costs. Management targets were 43% by the end of this year.
Overheads amounted to € 620.9 million in the first nine months of 2020, which translated into a 10.2% reduction compared to the first nine months of 2019. This evolution was particularly significant in the decrease in 47.7 million euros in personnel costs (-11.0%). These costs include, in the first nine months of 2020, a non-recurring charge of 75.7 million relating to early retirement and termination of the relationship by mutual agreement and a positive impact of 70.7 million, relating to the actuarial calculation of the liabilities for post-employment benefits. Excluding these non-recurring results, there was a 3.7% decrease in personnel costs.
It should be remembered that all the regulatory costs for the year had been recorded in the accounts for the first half of the year, i.e. those relating to the contributions to the Supervisory and Resolution Bodies, including the Deposit Guarantee Fund, as well as the new additional tax for the banking sector.
Relationships fully implemented CET 1, Tier 1 and Total stood at 17.2%, 18.4% and 19.8%, above the average of Portuguese and European banks, “demonstrating the solid and adequate capital position of CGD”, says the Bank.
The customer loan portfolio is equal to 48,314 million euros in net terms, which corresponds to a reduction of 1.8% compared to the end of September 2019, due to the reduction in loans to public bodies and the sale of loan portfolios deteriorated recorded. in the last quarter of 2019. It should be noted that the adverse context that has been felt since the end of the first quarter of the year has slowed down the growth rate of new credit production, having in any case recorded a positive evolution compared to the period homologous. During the first 9 months of 2020, 14,033 mortgage loans were contracted with CGD Portugal, for a total amount of 1,554 million euros, corresponding to an increase of 59 million euros in the contracted amount (+ 4.0%) compared to the period homologue. Of particular note is the growth in loans to businesses in Portugal of 3.4%, + 467 million euros in September 2019, which reflects CGD’s commitment to support the most dynamic sectors of the national economy, especially in the current context.
In the balance sheet items, it should be noted that the stock of the customer loan portfolio is equal to 48,314 million euros in net terms, which corresponds to a reduction of 1.8% compared to the end of September 2019, due to the reduction in credit to public entities and the sale of NPL portfolios registered in the second half of 2019.
The bank highlights the expressive growth in new credit transactions, strengthening support for companies and families.
During the first nine months of 2020, 14,033 mortgage loans were contracted with CGD Portugal, for a total amount of 1,554 million euros, corresponding to an increase of 59 million euros in the contracted amount (+ 4.0%) compared to homologous period. Of particular note is the 3.4% growth in loans to businesses in Portugal, + 467 million euros in September 2019, “which reflects CGD’s commitment to support the most dynamic sectors of the national economy, especially in the current context. “.
“In the production of mortgages, CGD maintained the trend of increasing its production quota, which reached 21% between January and August and 24% if we consider only the month of August, with an annual growth of 4% compared to the previous year. homologous period of 2019 ”, says the bank that today presented the results for the third quarter.
Customer deposits increased by € 5.3 billion in the first nine months, an evolution substantially justified by the deposits of CGD Portugal, driven by the increase in the savings rate
The bank highlights the improvement in asset quality, with a ratio of bad loans reduce to 4.2% which, together with the strengthening of the write-downs, makes it possible to reach an NPL ratio net of write-downs of 0.5% (if all write-downs are considered);
The management targets for 2020 in the NPL report were below 5%, so the bank has already met the target.
The amount of impaired loans fell by 1.9 billion euro (-39%), as a result, in addition to the positive evolution of the healing component, sales and recoveries, which were also favorable. Its coverage for specific write-downs and collateral at 30 June 2020 was 62.3% and 29.2% respectively. If we consider the global volume of write-downs, we have reached a coverage ratio of 89.2% (total coverage of 118.4%), placing the NPL ratio net of adjustments at 0.5%. This evolution also reflects the preventive strengthening of credit write-downs carried out in 2020.
In terms of properties for sale, the bank announced that it has a balance of 500 million euros in stock to sell, compared to 560 million euros of properties at the end of 2019. The coverage for write-downs was 47% in December 2019 and it is now at 51%.
This year he estimates a turnover of 100 million euros of real estate and expects to end the year with a stock of 460 million euros, said Paulo Macedo.
CGD’s chief executive also answered the question about the bank’s exposure to restructuring funds. The bank has an exposure to these funds of 470 million and after suffering a devaluation in the second quarter, it has reinforced the writedowns this quarter by 36 million euro.
News updated at 17:45
[ad_2]
Source link
