The entities associated with CECA achieve a net attributed result of 3.426 million in the fiscal year 2019
The progressive improvement in the quality of the balance sheet continues as credit delinquency decreases to 4.2% in December, which is 1.5 percentage points lower than the figure at the end of the previous fiscal year.
The results of the entities in the CECA sector are impacted by extraordinary costs resulting from labor adjustments.
The entities associated with CECA have collectively achieved a net attributed result of 3.426 million euros in the year 2019, which is an 8.8% decrease compared to the previous fiscal year. This decline is mainly explained by the allocation of extraordinary expenses to cover labor adjustments. Without these one-off costs, the overall result would have risen to 4.110 million, a 9.4% increase compared to the results in 2018.
On the income side, the interest margin has remained practically stable while net commission income has grown by 2%, thanks to business momentum and the recovery of financial markets at the end of the year.
However, the increase in recurring income has not been able to compensate for the decline in financial operating results (ROF) and income from participations, resulting in a reduction in the gross margin of 3.3%.
On the expense side, the almost 10% increase in operating expenses stands out, due to the rise in personnel costs already mentioned. This is in addition to higher write-offs and provisions, which have increased by 22% compared to those recorded in the previous year.
In the fiscal year 2019, the progressive improvement in the quality of the balance sheet has continued, as credit delinquency in the CECA sector decreased to 4.2% in December, which is 1.5 percentage points lower than that recorded in December 2018.
The return on equity (ROE) stood at 5.8% in December 2019, but it is estimated at 7% without the impact of the mentioned extraordinary operating expenses.
Likewise, entities in the sector have improved their solvency in this fiscal year, achieving an average CET 1 ratio of 13.5% in December 2019, which represents an improvement of 40 basis points compared to the figure reported at the end of 2018.
