CGD profits at €285 million in Q1

State-owned bank Caixa Geral de Depósitos made €285 million in profits for the first quarter of the year, almost double on the €146 million it made like-for-like in 2022.

The result was driven by its financial margins in its domestic market in Portugal: The difference between interest charged on loans and interest paid on deposits almost tripled, going from €158 million to €478 million.
In the bank’s international activity growth was less, but even so was positive, going from €108 million to €134 million (+23.9%9).
The banks’ financial margins have benefitted from an increase in interest rates because the banks have taken their time in increasing the interest on savings deposits.
All told, the consolidated margin increased €266 million to €611 million. In Portugal the net result improved from €108 million to €232 million while international activity improved from €38 million to €53 million.
In presenting the results, the CEO, Paulo Macedo highlighted the improvement in the bank’s profitability and confirmed the “biggest dividend ever” of €352 million to which will also be added the revues accrued from the sale of its headquarters on Avenida João XXI for an expected €300 million.
The building was owned by the bank’s pension fund which was wound up and transferred to the bank proper for around €270 million. Macedo confirmed that all told the dividend that it will hand over to the State will be around €700 million.

Photo: Lusa: António Cotrim