Grupo Cooperativo Cajamar recorded a net profit of 24.7 million euros, a 81.2% increase

• The recurring gross income, which increased by 10%, and total expenses, which fell by 5.5% mostly through keeping personnel and general costs down, have contributed to an improvement in the recurring cost-income ratio, which showed a 10.55 p.p. drop.

• The net interest income ex carry trade grew by 6.6% year-on-year up to 140 million euros, thanks to the sound management of the front book interest rates. In addition, commission income from mutual funds, insurance, pension plans and consumer finance increased by 29%.

• The NPL ratio fell by 2.18 p.p. with respect to the same period last year, with an 18.6% year-on-year drop in the figure of non-performing loans.

• Commercial management of foreclosed assets evolved positively with a 46.5% reduction in registrations of gross foreclosed assets and a 56.8% increase in the sales of these assets.

• Solvency and capital have risen above supervisory requirements, with a capital ratio of 12.93% and a CET1 ratio of 11.34% respectively.

• Performing loans to customers exceeded the volumes of the previous year, growing by 0.4% to 27,092 million euros, with an improvement in the granting of credit to the following strategic sectors: agro-food and small and medium-sized companies.

Income statement

Grupo Cooperativo Cajamar achieved a consolidated net profit of 24.7 million euros in the first quarter of 2017, 81.2% more than the same period last year, thanks to the net interest income, excarry trade, which went up to 140 million euros, a 6.6% growth year-on-year, on the back of a sound management of the front book interest rates that has allowed for funding costs to remain low amidst a challenging environment, with a interest rates at all-times low and weak credit demand.

This comes in addition to the positive evolution of commission income from mutual funds, insurance, pension plans and consumer operations, which reported a 29% growth and offset the decrease in commissions for basic services to customers, which has continued to fall.

The sound evolution of results from the strategic agreements reached with Generali and TREA which are boosting the growth in new life insurance products (9.2%), pension plans (100.8%) and investment funds (74.3%), as well as the consumer credit agreement initiated last year with CETELEM and which has already begun to bring results, should be highlighted under this heading.

The recurring gross income, i.e. the gross income without the extraordinary results, included in the item gains(losses) on financial transactions, and without mandatory transfer to Education and Promotion Fund regulated by co-operative banking, has gone up by 10% to 25.3 million euros; which, together with the 5.5% fall in operational costs, mostly through keeping personnel and general costs down, has contributed to an improvement in the recurring cost- income ratio, which falls by 10.55 p.p. to 65.91%, and a 59.3% year-on-year increase in the recurring net income before provisions. This way, return on equity (ROE) grew by 1.4 p.p. to 3.35%.

The 51.1% reduction in the impairment losses and provisions has contributed to the achievement of these results.

Grupo Cooperativo Cajamar continues to progressively reduce the NPL ratio, with a 2.18 p.p. year-on-year fall to 13.18%; impaired assets, which show a drop of 1,173 million euros for the last four quarters and a year-on-year fall of 940 million euros in the doubtful assets figure - 18.6% less. The commercial management of foreclosed assets likewise evolved positively with a 46.5% reduction in registrations of gross foreclosed assets and a 56.8% increase in the sales of these assets.

Higher solvency and comfortable liquidity

In the first quarter of 2017 Grupo Cooperativo Cajamar raised its solvency position and maintained its comfortable liquidity position. Thus, the phased-in solvency ratio stood at 12.93%, 1.48 p.p. higher than in the first quarter of last year. In addition, the phased-in CET1 ratio, which includes the company's highest quality of equity, went up to 11.34% and the fully loaded ratio stood at 11.09%. In this way, the Group has exceeded the SREP capital requirements imposed by the supervisor, with a surplus of 1.18 points in total phased-in capital and 3.09 p.p. more in CET 1phased-in, and has even met these requirements under fully-loaded terms.

Similarly, Grupo Cooperativo Cajamar maintains a comfortable liquidity position, with maturities covered for coming years, open access to wholesale markets and high volumes of available eligible collateral in central banks. This allows for wide compliance with liquidity ratios, standing the liquidity coverage ratio (LCR) at 436.43% and the net stable financing ratio (NSFR) at 114.41%.

Growth of performing loans to customers

Performing loans exceeded the volumes of the previous year and grew by 0.4% to 27,092 million euros and further improving the granting of loans to strategic sectors -agro-food and small and medium-sized enterprises-. This helped the Group to continue to maintain its leadership in the agro-food sector, consolidating a market share above 13%, thanks to its wide range of services and financial products linked to the agriculture sector and its specialized knowledge of agro-food companies' needs. In addition, it continues to boost the promotion of new services with high added value for SMEs -an international platform, retail business platform, public help and franchise platform- and tailor-made products -Credinegocio, Credipyme, Crediagro and Agropymes-, offering quality of service, customer knowledge, and proximity through its broad commercial network  its 1,120 branches and its 6,020 employees.

Grupo Cooperativo Cajamar continues with its strategy of opening branches in territories in which there is a strong development in the agro-food sector and SMEs, and thus in the first quarter of 2017 it opened a new branch in Breña Alta (Santa Cruz de Tenerife), in addition to those opened in 2016 in Mérida (Badajoz), Úbeda (Jaén), Alcázar de San Juan and Tomelloso (Ciudad Real), Olot (Girona), Osuna (Sevilla) and Port d´Alcudia (Majorca).

Total assets went up by 0.2% to 39,594 million euros. Moreover, on-balance-sheet retail resources recorded a year-on-year increase of 1% which, added to the 31.1% year-on-year increase in off-balance sheet resources, has enabled us to achieve a figure for managed retail resources in excess of 29,208 million euros.

All this has allowed Grupo Cooperativo Cajamar to improve its competitive position within the Spanish financial system, putting it in 12th position for in terms of business volume and 11th in terms of gross income, while increasing its nationwide market share to 2.6% and to 2.23% for deposits.

The customer at the core of the business and launch of Wefferent

Grupo Cooperativo Cajamar has consolidated its position as fifth in the net promoter score ranking -those willing to recommend the company-, and its position as first in the ranking for committed clients, according to data from the Stiga Client Satisfaction Survey for the first quarter of 2017. The best scores are recorded by the company’s knowledge of customers, closeness, transparency in the interaction with customers and quality of service. This is reflected in a greater connection to the clients.

Moreover, Grupo Cooperativo Cajamar has started Wefferent, its new service aimed at being a new relationship model available to its members and customers. It is a sight account with no fees nor commissions and with a debit card, also free of charge, for those customers with a more independent profile, who do not need to be attended in branches and prefer to manage their relations with the company themselves by carrying out their operations directly, with the support of a remote manager, through self service areas made available to them, or via online banking or the new, simple, efficient, secure Wefferent mobile app with more functionalities.