CGD profits up 85%

 In Banks, News

Net profits at Portuguese state-owned bank Caixa Geral de Depósitos stood at €126.1 million for the first three months of 2019.

The liquid result represented an 85% growth on the same period in 2018 (€68 million). The result is equivalent to an own capital return on equity of 6.6%.
“In the first quarter of 2019 the financial margin was €283.4 million, a variation of €-8.0 million (-2.8%) compared to the previous year given collective interest rates and their impact on the financial assets and credit portfolios,” states the Portuguese securities commission CMVM.
“In turn, results from financial operations were positive, netting €13.8 million in the first three months of the year, €13.4 million beyond the amount registered in the same period in 2018.”
The positive results were improved by the sale of a Caixa Geral property in Rua do Ouro, Lisbon close to the city’s famous Terreiro do Paço Square.
The building, which occupies an entire seven-floor block covering an area of 13,810 m2 with each above ground floor having around 2,000 m2.
The results were also helped along by the sale of other property assets (€50 million) netting the bank €36 million.
In the first three months of the year, CGD bank’s product garnered €455.9 million, an equivalent of an 18.7% increase on Q1 in 2018.
This growth was largely down to service charges and commissions totalling €120.2 million, a growth of €5.5 million (+4.8%) compared with March 2018. This figure was also aided by improved structure costs bringing in €277.7 million in Q1 of 2019.
Total customer credit conceded stood at €50,905 million (-4.6% on Q1 2018) while customer deposits increased €3.317 million (+5.4%).