Box with losses of 189,3 million euros up to September – Express

The Caixa Geral de Depósitos (CGD) has closed the first nine months of the year with losses of 189,3 million euros, announced the bank on Friday in a statement sent to the Commission for the Securities Market (CMVM).

This result is better than the losses of 205 million for the first six months of the year, but far worse if compared with the earnings of 3.4 million euros recorded in the same period of 2015.

To justify these losses is, on the negative side, the reduction of the activity the domestic, and, by the side she proved positive as well, the improvement of the international activity that helped that the accounts were not the worst.

Thus, according to the document published on Friday-the beast in the night by the bank, the activity of domestic registered losses of 348.1 million, far above the loss of 81.3 million euros in the same period of 2015. In the cause, explains the CGD, is, among others, the “reduction of the results of financial operations in 353,8 million euros and commissions net”.

as for the international activity recorded a profit of 158.8 million euros in the first nine months of the year, “above 117,2 million of the semester and of the 84.7 million positive recorded a year ago”.

“The net income achieved by the international activity in the first nine months of 2016 had the largest contributors to the Branch of France (62.1 million euros, including the impact of that advantage non-recurring), BNU Macau (45.2 million euros), the BCG Angola (18.9 million euros), the BCG Spain (15.7 million euros) and the BCI Mozambique (9.8 million euros)”, can be read in the statement.

Another factor that may have led the bank to take these losses with respect to a dimuinuição of banking product amounted to, which was 1.182,2 million in September 2016, that is, less 432,8 million euros compared with the same period of 2015. This was due "to the reduction of 370 million euros in the results of financial operations".

net commissions fell to 344,7 million euros up to September, less by 8.1% year-on-year.

THE CGD, since August 31 is led by tony wright, former administrator of the BPI (a private bank), decided not to submit these quarterly accounts the value of the impairment, but explains why.

“Since the beginning of office on 31 August 2016, the new administration, in the context of the recapitalisation plan and with knowledge of the regulators, has in the course of the reassessment of the value of the assets and potential contingencies of the CGD and the needs of impairment losses corresponding to, for not being complete, is not reflected in the accounts now disclosed. This exercise should be completed before the closure of the accounts for the 31 December 2016 and will be reflected in the financial statements referring to the year 2016″, can be read in the statement sent to the CMVM.

Now, knowing this value is relevant because the capital increase that the Box is to take the cable is to cover these same impairments.

For already, and the second it was announced on Friday by the Government, it is known that the maximum of the recapitalisation will be 2.7 billion, a given that the Box itself adds in your accounts. “The plan of recapitalization provides for a capital increase of up to 2,700 million euros to cover the needs of impairments referred to,” the statement said.

The plan of recapitalization of the Box is one of the goals of this Government, but it has been overshadowed by the controversy of the presentation of the declarations of assets and income of the new managers, who until now refused to do so, even after the Constitutional Court has already stated that they are obliged to do this.