Friday, December 3

70% of those affected by the CaixaBank ERE will leave before April


Gonzalo Gortázar, CEO of CaixaBank, confirmed this morning that 70% of those affected by the entity’s ERE will have left before April. The manager highlighted that next Monday the first 1,200 workers who have voluntarily joined the ERE will begin to leave the entity. “Twelve months after the merger (between CaixaBank and Bankia) 70% of the people who have voluntarily accepted will have left “, has underlined. Gortázar recalled the agreement with the unions for 6,452 people to leave the bank, about 1,839 less than those initially planned by the bank. Another 2,000 workers asked to join the ERE without success. “The ERE is very advanced. A part of the people who wanted to go will not be able to do so” because 6,452 exits have been agreed, he pointed out.

The CEO of Caixabank this morning reported the results of the entity for the third quarter. CaixaBank obtained in the first nine months of the year a net profit of 4,801 million euros, almost seven times more than in the same period of 2020, when it earned 726 million, due to the extraordinary impacts associated with the merger with Bankia.

These non-recurring impacts, which raise the bank’s profit by 2,779 million, include a accounting contribution of 4,300 million of negative goodwill and the net cost of 1,521 million of the ERE for more than 6,000 employees agreed with the unions and other expenses associated with the integration.

Without these extraordinary items, CaixaBank’s adjusted profit stands at 2,022 million, almost three times more than in the previous year, which was affected by the high provisions to face the coronavirus pandemic, as reported by the group to the CNMV, the stock market supervisor.

The increase in recurring profit, explained CaixaBank, responds to the intense commercial activity of the group and to the lesser endowments.

Core revenues, those derived from the banking business, increased by 25.2% at the end of September, to 7,708 million, with an interest margin that totaled 4,416 million (+21%) and net commissions that grew by 36.7%, to 2,604 million.

The gross margin stood at 7,711 million (+23.2%), while that of exploitation fell by 51.8%, up to 1,337 million, for the costs of the merger.

Allowances for bad debts were reduced to 616 million euros, compared to the 2,406 million for the same period of 2020, which included the registration of an endowment for 1,611 million anticipating future impacts associated with the pandemic.

Total customer funds amounted to 607,331 million euros as of September 30, 46.2% more after the incorporation of Bankia, while resources on the balance sheet totaled 441,278 million (+ 5.5%) and assets under management reached the 153,223 million (+ 12%).

The assets managed in investment funds, portfolios and sicav stood at 106,521 million (+ 14.2%) and the pension plans, of 46,701 million, 7.5% more.

On the other hand, gross credit to customers stood at 355,929 million euros, with a growth of almost 46% in the year after the fusion with Bankia.

CaixaBank, with a principal capital ratio CET1 which reached 13% at the end of September, contains in the quarter the balance of doubtful assets and the non-performing loan ratio, which was 3.6%, the same level at which it was last June, but three tenths higher than in December 2020 for integration.

Doubtful balances totaled 13,955 million euros, 50 million less than at the end of the previous quarter, and the NPL coverage ratio was 64%.

Regarding the total moratorium on mortgages and loans granted by the group to its clients during the pandemic, 5,034 million euros were still in force as of September 30, and practically all of them expire before the end of the year.

“The moratoriums maintain a good payment behavior and delinquent balances represent only 0.5% of the loan portfolio“, points out CaixaBank.

In a note, the bank’s CEO, Gonzalo Gortázar, makes a very positive balance for the first nine months of the year and highlights as relevant aspects “the good evolution of the banking and insurance business in a still complex environment, and the integration process that runs quickly, adequately and in line with what was planned “.

“Once again we achieved a good result in an environment of interest rates that exerts great pressure on margins when keep income stable due to our business model, highly diversified, with intense commercial activity and on a larger scale, “says the manager.

Regarding the merger process, Gortázar affirms that “the entire organization is very focused on the final execution of the integration after six months in which decisive progress has been made in three key areas: the integration of people, the business model and the systems “.

And it is that, with the labor front closed, the merger between CaixaBank and Bankia now faces the last key step to complete the process: technological integration, which will be a reality on November 12.

Also from that day on, the account numbers (WERE GOING) of clients from Bankia.

On July 1, CaixaBank’s management and unions reached an agreement on the ERE derived from the merger with Bankia, the largest in the history of the company. Spanish banking, with more than 6,000 voluntary departures of employees in Spain.

The entity has received a total of 8,246 applications for ERE membership, although at the moment it has accepted the departure of 6,058 employees, while it continues to “analyze possible solutions” for another 2,000 workers.

CaixaBank, on the other hand, recalled that it has activated a support program to help alleviate the effects of the La Palma eruption on families and companies, paralyzing financial payments for the next twelve months.

It has also approved a line of 100 million euros to anticipate the compensation of the Insurance Compensation Consortium and 50 million euros for self-employment and entrepreneurship after the disaster


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