CatalunyaCaixa earned 109.1 million euros in 2010, resulting from a profit of 76.6 million euros (30.6% less than the previous year) plus a fiscal effect of 32.5 million, corresponding to the recovery of taxes for the reinvestment of the capital gains obtained from the sale of Abertis in 2008, has reported the cash generated by the merger of Caixa Catalunya, Tarragona and Manresa, which has allocated almost 3,000 million to endowments.
Last year, the box managed by Adolf Todó reduced all its margins, specifically 33.4% on interest -which includes the non-renewal of largely syndicated loans-, 26.5% on business, 29.4% the gross margin and 27.5% the operating margin.
Customer funds fell by 1.9% to 68,922 million for the year as a whole, although they have grown since the merger was launched on July 1.
On the other hand, the volume of loans to clients closed 2010 at 60,082 million, 3.2% less -with an 11.1% drop in personal loans-, and delinquency stood at 5.41% in 2010, 0.25 points above 2009, with a doubtful balance of 4,019 million (+ 0.7%) and a total of credit risks of 74,325 million, 4% less- Mtocosplay.
The liquidity totals 11,168 million, which covers the maturities of wholesale issues until 2013 (said year included), the entity said, which after the sale of Repsol YPF in January has a core capital of 6.9% (6.7%). % according to the Basel III criteria), one more point than in 2009.
CatalunyaCaixa sold 1,900 homes in 2010, with an average discount of 22% over the purchase price, and rented 2,500, reducing the amount of doubtful and foreclosed assets by 258 million euros.
With 7% of doubtful loans and imminent risk over total loans, the bank has worsened its position with respect to other entities because it has chosen to allocate assets instead of refinancing, which it has defended in order to value these assets.
Restructuring by the merger in June
This first half of 2011 will complete the restructuring of the workforce (with 1,300 fewer employees) and offices (with 395 fewer branches, 25% of the network), as well as computer integration, said Deputy General Manager Jaume Masana.
Todó stressed that CatalunyaCaixa is paying the FROB since the merger began in July 2010 – it has already paid 42 million interest until December – and added that “the FROB is a temporary solution”, so entities must Shape their own foundations for the future. For this 2011, the cashier expects an evolution of the results similar to 2010.
All open ways to recapitalize
Regarding the recapitalization that the entity must now face complying with the new Spanish financial regulations (which requires a ‘core capital’ of 8 or 10%), Todó has insisted that “all options” are being studied, with the help from Goldman Sachs, with the objective of “maximizing” the interests of the current members of the fund and maintaining and strengthening the social work, which in 2010 had a budget of 52.5 million, a figure that will be similar for 2011.
However, it has recognized that the option to go public “would not be the one that would have more possibilities”, and it is more likely that it seeks to attract capital among customers, combining this option with others.
“We will choose the option that makes our life more comfortable, having a shareholder in a bank or two or the FROB will not be a problem because there will always be a professional management team, I have never had any political pressure, nor now,” he asserted. , at the same time that has pointed to the summer to know the details about the future of the organization of the box.
In any case, it has considered that if the Government enters entities to capitalize them, it does not mean that it intervenes, because it will not separate the management team of the entity to put another. The CEO of CatalunyaCaixa stressed that his “confidence and optimism in this project is very important”, while the chairman of the box after the resignation of Fernando Casado, Manel Rosell, has indicated that the entity is carrying out the restructuring process ” with little noise, with efficiency and care, and to maintain the connection with the territory “.
Need between 500 and 1,700 million euros
The solvency needs of CatalunyaCaixa are 500 million if it is required 8% of ‘core capital’, and between 1,500 and 1,700 million if 10% is required, according to the estimates of the entity.
In this sense, Rosell explained that to recapitalize and adapt to the solvency standards that the Government has foreseen, 2011 presents the challenge of “doing in nine months what we expected to do in nine years, according to Basel III-“.
“At the moment we have decided to create a bank, but the ways of capitalization are currently fully open”, he assured, to face the “terrible demands” of the Spanish Executive.
This opening to all options does not rule out that CatalunyaCaixa can lose cash status and become a foundation if the capital needs so require, in the event that it can not keep the majority (51%) of the bank through which it will convey the financial activity.
After the process of mergers of boxes in Spain in 2010, CatalunyaCaixa does not contemplate now re-engage in a new process of integration, according to Rosell, and Todó has considered that the map of current boxes in Spain is already “fairly stable.”
Regarding the announcement of Qatar to invest 300 million in Spanish savings banks, Todó has considered that “any investor will be welcome”, but with this figure, it is not a relevant actor in the recapitalization of the savings banks.
CatalunyaCaixa does not foresee to sell more shares at the moment, currently led by Gas Natural, and a long way from Cedinsa and Applus, although they are not strategic assets because the financial institution is focusing on the retail business.
“Gas Natural is not at an adequate price to provide us with anything significant and we do not need it either, so it is not expected to sell, and Cedinsa and Applus are very small, so they would not contribute anything material,” Todó has argued.