Caixa Geral de Depósitos (CGD) made a consolidated profit of 486 million euros in the first half of the year, up 65% from 294 million euros recorded in the same period last year, the bank said this Friday.
“This evolution reflects the lower cost of credit risk since the most acute phase of the Covid-19 pandemic and the sale of some “non-core” assets. [não estratégicos]as well as the contribution of international activities to the Group’s net income of 109 million euros, about 22% of the total, an increase of 77% compared to the first half of 2021,” the group said in a statement. submitted to the Securities Market Commission (CMVM).
Between January and June this year, commercial performance supported turnover, which rose by 2%, an increase of 3.2 billion euros compared to the end of 2021.
The State Bank recorded a reduction in provisions and impairments of EUR 334.7 million, while loan impairment decreased by EUR 197 million.
In the first six months of the year, net interest income rose by 21% to €591m, driven by the international business (+€47m), the European Central Bank’s TLTRO program (+€29m) and the global product. activity grew from 875 million euros to 1026 million euros.
After deducting one-off effects, the return on equity (ROE) was 10.6%.
Between January and June this year, commercial performance supported turnover, which rose by 2%, an increase of 3.2 billion euros compared to the end of 2021.
Thus, in the first half of the year, CGD recorded an increase in loans by 2.3% to 45,755 million euros, both for individuals (25,963 million euros) and for companies and SPAs (19,792 million euros).
The State Bank indicates that in the retail business sector in Portugal, the issuance of mortgage loans increased by 10.1% in half a year compared to the same period last year, reaching 1,731 million euros, while consumer credit “benefited from initiatives to reduce deadline for approval and disbursement of funds”, with a 47.1% increase in production compared to the first half of 2021.
Client deposits in Portugal rose 3.8%, with CGD spinning off the corporate (+4.2%) and retail (3.8%) segments, continuing to negatively impact the bank’s accounts by around 26bps.
The current cost-to-income ratio has fallen to 43.4%, with the financial institution explaining that it reflects “increased levels of efficiency and improved revenue.”
“Asset quality has improved due to the lower NPL ratio. [sigla em inglês para ‘non-performing loans’, créditos em incumprimento] to 2.6%, while NPLs excluding general impairments remained at 0% (zero). Real estate for sale fell by 15% to 339 million euros, which is the lowest value since 2008,” he says.
Tier 1 and total volume ratios were 18.5% and 20.0%.
Author: Lusa
Source: CM Jornal
