The Caixa Geral de Depósitos (CGD) recorded losses of 171.5 million euros in 2015, still less than those earned in the previous year, which amounted to 348 million. Total assets now reaches 100,901 million and customer deposits rose to 73 billion.
“The results though still negative recorded strong improvement, despite the framework” of the economic crisis in the sector developed its activity, and are expected to CGD close the year 2016 with profits, he admitted the bank’s chairman, José de Matos. For the CEO of the largest Portuguese bank “the future of the institution in the short term, is safer and stronger” than has been so far.
The accounts of CGD have been in recent years consistently hampered by the need of the bank to constitute provisions and impairments resulting from decisions taken by the previous administration, said the president of CGD. In 2015 the state bank continued to consolidated losses of EUR 171 million (176.5 million less than in 2014). In 2015, provisions and impairments fell by 233.1 million euros (-24.6%), totaling 716.5 million.
Since 2011, when the current administration took office, CGD was required to account for impairments 5,000 million, related to problematic operations and poor old credit.
the CGD’s accounts last year were still penalized by the early retirement plan that was adopted in the public group. “Excluding costs for 2015 of EUR 65 million related to the provisioning of the Horizon Plan, the result before tax and minority interests would have been 43.7 million euros and net profit of 106.5 million euros less . “Matos said that applied to the program, which is aimed at employees who complete 55 years by the end of December 2016 more than a thousand employees, but the output does not reach this value.
the CEO pointed out that although “the CGD is equal to all other banks, it is different because it has a public service obligation”. For example, “took hold open agency in every county, whether profitable” or not and had “an aggressive policy curtailment” above all “a prolonged period of crisis.”
in 2015 the bank has 8410 employees, 448 less (of which 311 for retirement) than in 2014. in terms of agencies, the group has 1253 branches (in 2014 were 1 267), of which 786 in Portugal, which was reduced 22.
900 million debt to pay
Asked to comment on the fact that CGD has not yet paid to the state 900 million of coconuts, the hybrid instruments that pay interest, the banker recalled: “Since 2012, CGD was of Portuguese banks less sought help from the state.” The value was 1650 million, of which 750 million for shares and 900 million in CoCos. BCP asked 3,000 million coconuts, BPI 1500 million, BES did not ask, but eventually collapse and benefit from a 4900 billion injection, and Banif eventually compel the state to come up with 3400 million.
“There were institutions that still asked to increase shareholder capital and paid Coco” to the state, freeing themselves to pay interest to the state, which has a negative impact on the accounts. Now on CGD, said Matos, it was not given this possibility, so that “every year the cash paid to the State some € 90 million in interest.” And he fired, without mentioning the name: “. There is a [New Bank] system failing bank and it arrived after Christmas and distributed an additional allowance by the workers’
Remember that Passos Coelho went on television even as prime minister, criticizing Matos Jose for this has not yet paid the 900 million euros of coconuts to the State, which was interpreted as an open door to the “privatization” of public bank, as steps always defended. The banker noted that the last four years, the bank was acting “in an inappropriate environment” in terms of the state budget.
The structural improvements in the balance of CGD, which Matos Jose equated to a ” difficult to move tanker “were on all fronts, domestic and international. And highlighted three indicators that lead him to be optimistic: “. The rapid recovery of profitability, current comfortable liquidity levels and adequate capital”
The financial margin achieved in 2015 1188 million, up 14.4 %, and operating income grew 17.5% compared to 2014, reaching more than 2000 billion. Already international operations [Macau, Spain, Angola and France] contributed with 161.2 million profit. Unlike other banks, which have been profitable, CGD “does not work as a hedge fund” and “is not dependent on short-term ECB financing,” because its liquidity base “are the customers,” stressed Joseph Matos.
at the end of 2015, the State bank “has once again become a haven for the Portuguese bank,” he said. Last year CGD reduced the total funds raised from the ECB to 2766 million, or 2.7% of total assets of the Group. Customer funds encrypt now at 73,400 million, 3.2% more than in 2014, with the total customer loans to fall 2% to 66.1 billion euros.
in order to mandate that ended in December, José de Matos stressed that despite the difficult environment “throughout the administration, including officers, have pride in the work that was done in the last four years,” but refused to speak in its continuity, or out of CGD.
decisions on the future of the bank “will be resumed by the shareholder when you have time for this and I am sure that as soon as there’s time will be devoted to the issue of governance of the case,” he said.
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