The CGD (CGD) recorded losses of EUR 348 million in 2014, compared with losses of 578.9 million euros in 2013. Although the results remain in the red, the bank public highlights the improvement of about 40% of its profitability over the previous year, in a context “of enhanced liquidity and favorable capital adequacy of levels,” says the institution led by José de Matos in a statement.
In positive terms, stand out in CGD numbers growth of 32% of gross operating income to 410.8 million euros, driven by contributions from international activity and investment banking, which increased by 59% and 40.1%, respectively.
Also net interest income performed well last year, despite the pressure caused by the reduction in Euribor rates, growing 15.7% .
Now the negative, profitability was affected by the recognition of impairment costs associated with exposure to the Espírito Santo Group, the provisioning effort occurred following the exercise of review of asset quality (Asset Quality Review) and the net impact of the cancellation of deferred taxes resulting from the reduction in the corporate tax rate (EUR 85 million).
Despite this provision charges, the costs associated with provisions and impairments decreased by 15.6% in 2014 to 949.6 million euros.
Customer loans continued to decline in 2014, both in net terms as gross, decreasing 4 5% and 3.3%, respectively. CGD points out that “this decrease was not uniform in the various activity sectors, mainly reflecting the significant reduction in credit to the State Business Sector, following a remarkable flow of prepayment” of about 900 million euros. Have to private non-financial companies, excluding construction and real estate, “began to occur more dynamism in credit flows.”
Finally, capital ratios common equity tier 1 (CET 1), calculated in accordance with the rules of CRD IV / CRR were 10.8% (transitional provisions) and 9.7% (final implementation).
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