The entities affiliated with CECA achieved a consolidated result of 3,088 million in the first half of 2014

The reduction of operating expenses has allowed for an improvement of 4 points in the efficiency ratio over the last 12 months, standing at 46% in June.

The consolidated result of the sector of entities affiliated with CECA has remained stable over the last 12 months, reaching 3,088 million in the first six months of the year.

The achievement of the consolidated result has been marked by the sustainability of the recurring banking business (interest margin and commissions), the significant decrease in operating expenses, and the normalization of the pace of provisions for asset impairment.

In the interest margin, there continues to be a notable reduction in financial costs relative to financial income. This allows for moderation in its decline in absolute terms, a -2.7% compared to June 2013, as well as an advance in percentage on average balance of 8 basis points in the same period, standing at 1.05%.

The entities affiliated with CECA continued in 2014 the process of expenditure rationalization driven by sector consolidation and restructuring. Thus, the Savings Banks and Banks created by Savings Banks have accumulated a reduction of operating expenses of 17 basis points, down to 0.96% of average total assets, and a 24% drop in absolute terms. The decline is primarily located in personnel expenses.

The normalization of the pace of provisions for asset impairment is due not only to the conclusion of extraordinary regulatory requirements but also to the decrease that has been recorded in doubtful assets of the sector entities since January 2014. The provisions for impairment of financial assets now represent 0.64% of average total assets, 29 basis points less than in the first half of 2013, and the decline in doubtful credits is quantified in the first six months of the year at -6.4% (-2.7% year-on-year).