Main highlights
- The Net Income of Grupo Crédito Agrícola in the first nine months of 2022 amounted to 93.8 million euros, corresponding to a Return on Equity (ROE) 6.3% and reflecting the positive performance of its main business units (banking, life and non-life insurance and asset management).
- The YoY change in Net Income is influenced by non-recurring net gains in the amount of 56.7 million euros, obtained in the first nine months of 2021 (51.3 million euros in 1Q21), and by retroactive interest income from 2020, received during 1Q21, within the scope of the ECB’s funding program – TLTRO – in the amount of 8.0 million euros. In addition to the 28.1 million euros contribution from intermediation commissions related to the banking business, the insurance businesses booked a 5.5 million euros Net Income from CA Seguros and 33.0 million euros from CA Vida.
- The continued support lent by Grupo Crédito Agrícola to the Portuguese economy is reflected in the 2.2% YoY growth in the Group’s (gross) loans and advances to customers portfolio1 to 11.9 billion euros, corresponding to an increase of 262 million euros, to non-financial institutions, entrepreneurs, households, social sector and public sector. Grupo Crédito Agrícola‘s market share in terms of gross loans granted to customers, was stable YoY, at 5.6%2.
- The gross Non-Performing Loans (NPL) ratio continued to improve, standing at 5.9% of the loan book (678.7 million euros), with a positive evolution of 1.4 p.p. in comparison to 7.2% at the end of 2021 (819 million euros), evidence of the continued improvement in quality of the Group’s credit portfolio. NPL coverage by NPL impairments and collateral (FINREP)3 increased to 89.6%, or 1.9 p.p. above the level of December 2021.
- At the end of 9M22, real estate held for sale by the CA Group had declined by 14.5% to 330.0 million euros (direct and indirect exposure).
- At the end of 9M22, the CET1 and total own funds ratios amounted to 18.1% (excluding Net Income for the period), the leverage ratio was 6.4%, the liquidity coverage ratio (LCR) was 494.3% and the net stable funding ratio (NSFR) reached 162.0%.
- New customers continued to place their trust in Grupo Crédito Agrícola during 9M22, leading to net growth in new Corporate customers, as well as in new Individual customers, underpinning the continued acceleration of YoY growth, which reached 3.6% in the case of the Corporate customer base, and 7.2% in Individual customers.
- The execution of Grupo Crédito Agrícola’s strategy of digitalization and investment in its digital channels and experience continues to drive increased usage and penetration of the customer base. By September 2022, the weight of customers with an active online subscription had increased YoY by 2.5 p.p. in Individual customers (41.8% penetration) and by 1.8 p.p. in Corporates (increasing penetration to 73.5%).
- At the end of 3Q22, the Group created an autonomous department dedicated to Sustainability (spin-off of an existing department). A head of department with proven experience in this field was hired, enabling the consolidation of the Group’s ambition to become a reference in Sustainability in Portugal, as well as accelerating the transformation of its business model.
- The CA Group bolstered its human resources policy to invest in its employees, by attributing a non-recurrent payment between 250 euros and 750 euros to all employees, with the aim of mitigating the effects of the rising inflation rate and subsequent loss of purchasing power. The payment will be made during 4Q22.
1 Including commercial paper in the amount of 400 million euros in the end of September 2022, which compares with 360 million euros in September 2021.
2 Including the public sector.
3 Applying haircuts and recovery costs, limited by the exposure of each contract.
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