Liberbank earns 84 million until June, 39.3% more

Liberbank recorded a net profit of 84 million euros in the first half of this year, representing an increase of 39.3% over the same period of the previous year, as reported by the entity on Monday.

Between January and June, Liberbank achieved a growth of all the margins of the income statement and intensified the improvement of the typical banking business activity, reflected both in the increase in customer funds by 2.8%, to 29,517 million, as in the growth of the outstanding credit balance in all segments of activity, which increased by 8.8% to 21,867 million.

Specifically, net interest income increased by 9.3% to 221 million euros, while gross margin increased by 2.7% to 363 million euros.

On the other hand, the operating margin grew by 17%, to 160 million, due to the continuity of the policy of containment of expenses, which registered a decrease of 5.1% due to the reduction of personnel costs of 1, 9% and administrative expenses of 10.5%.

Net commission income grew by 3.6% in the first six months of the year, to 93 million euros, with an increase of 4.8% in recurring commissions, driven by the increase in commissions for non-financial products. banking.

The new credit production registered a growth of 51.6%, with a total figure of 3,292 million euros.

In the segment of credit to the private sector, in the first half of the year the formalization of new financing contracts for self-employed workers stood out, as well as new mortgages, which increased by 27.6%, with amounts that in 94% of operations are less than 80% of the value of the guarantee.

On the other hand, the new consumer credit also maintained a high rate of formalization, with the growth of 14% percent in year-on-year terms.




Liberbank continued during the first semester the asset quality improvement strategy developed in 2017, which has allowed it to reduce the default rate by 4.5 percentage points in one year, down from 11.3% in June of last year. up to 6.75%.

The volume of doubtful credit decreased last year by 972 million euros and during the second quarter of 2018 the exit of doubtful due to the collection, regularization or sale of guarantees accelerated, up to a rate of four times the entry of default risk.

According to the entity, the improvement in the quality of assets is also seen in the evolution of foreclosures, which were reduced in the last twelve months by 27.7%, in such a way that the ratio of unproductive assets (foreclosed most doubtful) ) has been placed at 15%, 7.1 percentage points less than a year ago.

The portfolio of refinanced loans stood at 895 million at the end of the quarter, of which 76%, by application of a prudential policy, are classified as doubtful assets.

In year-on-year terms, refinanced loans have been reduced by 727 million, so the proportion of refinanced credit over the total decreases to 3.8%.

Liberbank reached at the close of the first half of 2018 a level of capital of maximum quality (CET 1 Common Tier1) of 13.4%, a capital ratio Level 1 of 13.9% and a ratio of Total Capital of 15.4 %.

The fully loaded CET 1, taking into account the conversion of convertible bonds (COCOS) for the month of July and the result of the year, stands at 12.2%, while the Tier 1 Capital ratio remains at 12.2%. % and Total Capital at 13.7%.