The CGD had a loss of 348 million euros in 2014, representing an improvement of 40% compared to 2013 (loss of 578.9 million). Exposure to the Espírito Santo Group, the European Central Bank’s assessment requirements (ECB) and the cancellation of deferred taxes were determining factors in the deterioration of the balance in the last quarter of last year.
“The Portuguese economy” digested “quickly” the impact of BES-GES earthquake and the crisis in the PT, although they are concerned &# 8220;situations that were not good for the country or to the perception that markets have the country”, considered the president of CGD. José Matos, who was speaking on Wednesday during the presentation of the accounts press conference 2014, acknowledged that came to be “any bad reaction,” but “the positive aspects overlapped. And that is seen in prices and government bond rates and rates of the interbank market. “Matos has also recognized that the solution to” solve “BES” has a risk to the balance “of Portuguese banks and argues” that the sale [of New Bank] should minimize “the negative impact.
In the first nine months of 2014, the CGD had calculated a 55.5 million profit, but just close with losses of 348 million euros, still emqueda 40%. The improvement was due to the increase in banking income, a reduction in operating costs and provisions and impairments and even the sale of the insurance business (Caixa Seguros) to Chinese Fosun. This business contributed 287 million euros.
In the 2014 balance sheet, CGD trevela that impairments and provisions totaled 949.6 million euros, 15.6% less than what was recorded in the previous year. Of this amount, more than 400 million relate to losses associated with exposure to holdings of the GES, “the provisioning effort arose from” the valuation of assets of banks by the ECB as well as the impact Net cancellation of deferred taxes “resulting from reduced corporate tax rate” at EUR 85 million. The remainder of the 949.6 million are impairments associated with normal bank activity. José Matos noted that despite various constraints, CGD reached in December with a situation of adequate capital “with a ratio common equity tier 1 9.7% higher than the 7.6% recorded in 2013.
José Matos refused to reveal CGD’s exposure details to GES, which he inherited from previous administrations, noting only that “the value is significant” and that “by July,” when the business world Holy Spirit said the collapse, “there had been no breach and interest were to be paid “within the established deadlines. It is believed that exposure to CGD ball GES (companies and holdings ) was of the order of 300 million, and that losses may be between 150 and 200 million. This is because the loans were partly secured with particular real estate assets.
“We will try to speed up the curtailment process through early retirement,” announced the president of CGD, whose workforce recorded in 2014, an decrease of 232 workers, largely through early retirement. And said that the expectation is “still have downsizing because it is needed. Will be made with great tranquility. “At the same time, CGD proceeds to the closure of agencies (February 21 will close) to keep operating with a sales network of 726 units.
Losses shrink
The reduction of losses by the state bank is in line with the data already revealed by BCP, which could also shrink significantly the volume of losses last year. I went from BPI profit in 2013 to a loss of 162 million euros in 2014. Santander Totta, which consolidates accounts with the parent company in Spain and, therefore, its results are not directly comparable with the Portuguese counterparts, nearly doubled profits in last year.
BPI’s case was what surprised most market by presenting a loss of around EUR 162 million. The bank led by Fernando Ulrich had to incorporate the results of domestic operations and costs non-recurring losses of around EUR 246 million -. without this impact, would have lost apena 23 million in internal operation
International operations turned out to cushion the fall, generating a profit of about 126 million euros. This growth of 32.5% is mainly related to activities in Angola.
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