Grupo Cajamar registered a consolidated profit before taxes of 32.9 million euros and a consolidated net profit of 29.5 million euros in the first quarter of the year, 110.1% more than in the same period of 2021, according to The entity has informed today through a statement.
The banking group has highlighted the growth in commercial activity in the first three months of the year, which has generated a “positive” impact on its margins, adding to a “notable reduction” in irregular assets, which contributes to the improvement of balance sheet, increased coverage and provisions, and increased solvency.
In this sense, the bank has indicated that the net irregular asset ratio stood at 2.9% at the end of the quarter, after registering a year-on-year reduction of 1.6 percentage points, to which the decrease of 373 million euros contributed. of doubtful assets, which fell by 23.8% compared to the same period of the previous year. Thus, the delinquency rate fell by 1.2 points, standing at 3.2% at the end of March.
Cajamar has also highlighted the reduction in net foreclosed assets by 374 million euros, 34.3% below the first quarter of 2021.
In this way, the irregular asset coverage rate rose to 67.3% in the first quarter of the year, including the haircuts produced in the foreclosure process.
Likewise, the coverage of the different components of irregular assets has also been reinforced in the last twelve months. Specifically, the non-performing loans coverage rate increased by 3.1 percentage points, to 72.6%, and the foreclosed assets coverage rate by 2.1 percentage points, to 64.1%.
Cajamar registered a gross margin of 358.4 million euros in the first quarter, 49.1% less than in the same period of 2021, while the interest margin decreased by 14.5%, to 161.2 millions of euros.
However, the efficiency ratio rose to 41.4%, compared to the rate registered in the same period of 2021, when it stood at 20.2%.
The development of commercial activity has meant a year-on-year increase of 8.9% in total assets, up to 59,666 million euros, while the total volume of managed business reached 95,160 million euros.
Retail funds under management increased by 4,535 million euros, 10.9% more year-on-year, to 46,220 million euros, mainly due to the 16.4% increase in demand deposits and the managed assets of investment funds by 23.7%, despite the uncertainty experienced in the markets due to geopolitical instability, which has affected the valuation of both investment fund assets and consolidated pension plan rights.
Credit to healthy retail customers grew by 1,820 million euros, 5.6% more than in the same period of the previous year, and reached 34,164 million euros, highlighting the increase in new financing of 4,178 million euros, granted especially to companies, the agri-food sector and families.
In this way, Cajamar would have increased its national market share in investment, up to 2.9%, and in deposits, up to 2.5%, placing it in ninth position in the ranking by business volume and sixth by gross margin. among the ten significant entities of the Spanish financial system.
In relation to financial solutions and payment flexibility aimed at those customers who have had temporary difficulties as a result of the pandemic, practically all of the moratoriums granted amounting to 988 million euros have completed their deficiency, specifically 986 million, being doubtful only 4.3% of them.
Likewise, the outstanding balance of ICO-guaranteed loans decreased to 1,691 million euros and reduced their weight, which represents only 4.7% of the total gross credit investment.
SOLVENCY AND LIQUIDITY
Cajamar’s solvency ratio improved by 0.2 percentage points and rose to 15.6%, highlighting the year-on-year growth of its computable equity of 7.5%.
For its part, the ‘phased-in’ CET 1 ratio stood at 13.1% and the ‘fully loaded’ ratio, at 12.9%, “comfortably” meeting the regulatory requirements, which show an excess in compliance ‘phased-in’ of 1,175 million CET1 and 686 million T1, as well as an excess in solvency of 636 million.
In the third quarter of 2021, the Cajamar Group carried out a senior preferred debt issue, for 500 million, which has contributed to the MREL ratio standing at 18.2%, exceeding the requirements of 1.7 percentage points. MREL set by the supervisor for January 1, 2022.
On the other hand, customer deposits continue to grow and favor a further improvement in the Loan To Deposits (LTD) ratio, which stands at 84.1%, 3.7 percentage points lower than that registered in the same period of the year. last year.
Likewise, Grupo Cajamar has highlighted that it maintains a “comfortable” liquidity position with an increase in the volume of available liquid assets and totals 13,262 million euros, including both high-quality liquid assets (HQLA) and other discountable liquid assets and deposits in central banks.
It also has a capacity to issue mortgage bonds of 4,472 million euros. With this, it also complies with the limits required by the European Banking Authority (EBA), with a liquidity coverage ratio (LCR) of 204.4% and a net stable funding ratio (NSFR) of 139.5%.
The entity indicates that in the last twelve months it has added nearly 100,000 people and companies as partners, so that it already has 1.6 million partners and more than 3.6 million customers.
In addition, it has a workforce of 5,314 workers and a network of 870 branches, 158 agencies and 1,511 ATMs, of which 30% are in municipalities with fewer than 5,000 inhabitants.
Likewise, it has six mobile offices –that is, itinerant vehicles– that provide financial services in rural areas to 42 towns with less than 1,500 inhabitants.
The group highlights that it has 970,000 digital customers, 11.7% more than in the same period of the previous year, of which 832,000 are mobile banking users, 20.9% more.
Finally, it has highlighted its position as a “reference entity” for the agri-food sector, with a market share of 15.5% in the primary sector in Spain.