Highlights
- Improved lending activity.
- Significant increase in customer deposits.
- 2015 earnings affected by the absence of the dividend from CNCB.
Financial statements and relevant business indicators
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|
|
Million euros and percentage | ||
|---|---|---|---|
| Income statement | 2015 | Δ% | 2014 |
| Net interest income | 183 | (2.9) | 189 |
| Net fees and commissions | 170 | (9.2) | 187 |
| Net trading income | 125 | (16.5) | 150 |
| Other income/expenses | (6) | n.m. | 209 |
| Gross income | 473 | (35.8) | 736 |
| Operating expenses | (352) | 2.6 | (343) |
| Personnel expenses | (194) | 4.8 | (185) |
| General and administrative expenses | (143) | (2.3) | (146) |
| Depreciation and amortization | (15) | 29.1 | (12) |
| Operating income | 121 | (69.2) | 393 |
| Impairment on financial assets (net) | (4) | (93.3) | (56) |
| Provisions (net) and other gains (losses) | (6) | (61.8) | (16) |
| Income before tax | 111 | (65.4) | 320 |
| Income tax | (35) | (45.8) | (65) |
| Net income | 76 | (70.4) | 255 |
| Non-controlling interests | - | - | - |
| Net attributable profit | 76 | (70.4) | 255 |
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|
|
Million euros and percentage | ||
|---|---|---|---|
| Balance sheet | 31-12-15 | Δ% | 31-12-14 |
| Cash and balances with central banks | 1,031 | n.s. | 198 |
| Financial assets | 1,868 | (63.5) | 5,119 |
| Loans and receivables | 16,377 | 0.6 | 16,277 |
| Loans and advances to customers | 15,579 | 3.2 | 15,101 |
| Loans and advances to credit institutions and other | 798 | (32.1) | 1,176 |
| Inter-area positions | 3,947 | n.m. | - |
| Tangible assets | 42 | (19.3) | 52 |
| Other assets | 360 | (46.8) | 678 |
| Total assets/liabilities and equity | 23,626 | 5.8 | 22,325 |
| Deposits from central banks and credit institutions | 5,364 | (1.5) | 5,443 |
| Deposits from customers | 15,210 | 37.7 | 11,045 |
| Debt certificates | 0 | (5.0) | 0 |
| Subordinated liabilities | 317 | (48.0) | 609 |
| Inter-area positions | - | n.m. | 1.275 |
| Financial liabilities held for trading | 85 | (60.6) | 217 |
| Other liabilities | 1,381 | 6.6 | 1,296 |
| Economic capital allocated | 1,269 | (48.0) | 2,439 |
Financial statements and relevant business indicators
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|
|
Million euros and percentage | ||
|---|---|---|---|
| Relevant business indicators | 31-12-15 | Δ% | 31-12-14 |
| Loans and advances to customers (gross) (1) | 16,143 | 2.2 | 15,795 |
| Customer deposits under management (1) | 15,116 | 38.2 | 10,941 |
| Off-balance sheet funds (2) | 331 | (28.9) | 466 |
| Efficiency ratio (%) | 74.4 |
|
46.6 |
| NPL ratio (%) | 2.5 |
|
3.7 |
| NPL coverage ratio (%) | 96 |
|
80 |
| Cost of risk (%) | 0.02 |
|
0.31 |
Macro and industry trends
In the Eurozone, the fall in oil prices, the ECB’s role anchoring interest rates at very low levels and a monetary policy generally less restrictive explain the increase in domestic demand in 2015 and, in particular, in consumption, in a less favorable external environment. The depreciation of the euro and the fact that 60% of the Eurozone’s sales abroad are with developed countries will contribute to support exports, given the weaker activity in emerging markets.
China continues with its process of moderating growth toward more sustainable levels, after applying extraordinary monetary and liquidity stimuli, while it rebalances its economy to boost the market’s role in allocating resources, services and consumption to the detriment of exports and investment. In the most likely scenario, growth will maintain its soft landing toward rates of around 6%, a process that needs to be managed intelligently by the authorities and understood by the financial markets, given the multiple goals sought. In this scenario, the yuan, after the change in the process for setting its exchange rate in August 2015 and the details provided in December on the basket of currencies to be considered, will continue to depreciate gradually.
Activity
Gross lending to customers is up 2.2% year-on-year, influenced by stronger activity with customers in Asia.
The asset quality indicators have been positive over the year: the NLP ratio has fallen to 2.5% and the coverage ratio has increased to 96%.
Customer deposits under management in the area have increased significantly: up 38.2% year-on-year, due mainly to their rise in Europe.
In earnings, gross income recovered in the last quarter of the year, which explains why this heading shows a decline in its cumulative amount for the year (down 2.9% year-on-year), lower than the figure registered over the first nine months, thanks to the good performance of activity, in an environment of shrinking spreads, reduced fee generation and the difficult situation in the financial markets (which result in lower NTI). This comparison is strongly affected by the payment in 2014 of the dividend from CNCB. Operating expenses have been kept in check and impairment losses on financial assets have fallen significantly. Thus, the net attributable profit generated in 2015 is €76m.