The entity says that its result is a consequence of legal changes and meets the recommendations of reduction of benefits.
The Caja Gipuzkoa San Sebastián Kutxa obtained in 2010 a profit after taxes of 69.4 million euros, a figure that represents a reduction of 32.7 percent over 2009. The recurrent result of the entity in the past year was of 163 million euros, 11 percent lower than the previous year.
As reported by the Fund in a statement, “the verification of the depth of the economic and financial crisis and the forecast that it is still going to lengthen, accentuates, even more if possible, the great prudence in the management that characterizes Kutxa, which has returned to make a generous voluntary endowments that amount to 204 million euros, which while reducing the result to short, strengthen the structure of the entity.
In this result, the capital gains on the sale of Banco Madrid are not included, since it is pending administrative procedures, but the write-downs made in the same.
The Caja Guipuzcoa has renounced the possibility of generating capital gains through the sale of strategic holdings or sale operations with implicit rent, “which is carried out with the purpose of generating short-term profits, but greater long-term or long-term expenses. to improve solvency. “
The result presented by Kutxa, in addition to being a consequence of the legal changes introduced by the new circular on sanitation of the Bank of Spain, “returns to address the recommendations of reduction of benefits made to the entire sector by the regulator.” Provisions made in 2010 amounted to 204 million, of which 67 correspond to positions derived from Banco Madrid.
The entity has remarked that Kutxa “is one of the most solvent entities of the Spanish financial system and leader among the Savings Banks”. Recently, this indicator that was revealed in the stress tests that were submitted last summer to savings banks and banks, has also been confirmed by the rating agency Fitch.
The economic and financial situation “continues to penalize the margins of all entities and does so, although to a lesser extent than the industry average, in Kutxa.” This is the case of interest margin, which reaches 314.4 million, with a decrease of 6.9 percent over a year before (compared to a reduction of 32 percent in the sector, up to September).
The gross margin, which concentrates all the typical operations of the banking business, was 532.3 million, 8.6 percent lower than in 2009, a decrease also lower than the average for the sector (22% until September).
Also, there is a growth of the loan investment by 1.7 percent and reaches 16.550 million euros. The main quantitative component of the credit investment continues to be in Kutxa the mortgage loan for housing, which last year rose by 4.3 percent to 9,733 million. Loans guaranteed for sure to the private sector, among which are those destined to finance productive investments, increase as a whole by 1.4 percent.
“Driven by the issuance of mortgage bonds that Kutxa placed in the European market in the amount of 700 million euros last November, the resources managed by the entity presented at the end of 2010 an increase of 1.9 percent in relation to the year before reaching 19,622 million, “said the Guipuzcoan entity.
In the second half of last year “began to observe a slight but progressive reduction in delinquency.” Thus, this index was at the end of the year at 3.18 percent of the assets at risk of the private sector, “significantly lower than the average presented by the Savings Banks, an index of 6.12 percent with data at December “
The coverage of doubtful assets is 111.5 percent in Kutxa against the index of 72.95 percent presented by the sector as an average. If the mortgage guarantees are considered, Kutxa’s total coverage of doubtful assets reaches 197 percent at the end of last year.
Revenues from services grew by 7.3 percent in the year-on-year comparison, with a notable intervention in insurance activity. As for the strategic objective of the containment of spending, it decreased by 4.1 percent compared to the previous year.
Finally, Kutxa intends to maintain the budget dedicated to Welfare Projects in 2011. In this regard, sources from the Kutxa Directorate expressed their desire to present to the Board of Directors and the General Assembly, to be held at the end of next March, a budget similar to that of last 2010. The Obra Social de Kutxa developed last year a total of 3,245 activities that had a participation of 2,076,476 beneficiaries.