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Kutxabank closes the third quarter with 160 million benefits, 40.1% less, but allocates 277 million to endowments

The group Kutxabank has obtained at the end of the third quarter of 2020 a net profit of 160 million euros. This is 40.1% less than in the same period of 2019, but in the first nine months of the year, the group has allocated to endowments 277.4 million euros, 146 million more than in the same period in 2019 to be covered before the “scenario of uncertainty generated by the pandemic.”

According to the entity, the banking business environment continues to be conditioned by the “consequences of the health crisis, which has meant an unprecedented collapse in terms of GDP and employment rates. The high level of volatility and instability have a strong impact on financial markets, while interest rates continue to fall, with a negative forecast for a long time “.

In this adverse context, Kutxabank indicates that “has confirmed the trend towards recovery that was seen in banking activity“once the de-escalation has started.

In this sense, they indicate that the commercialization of the main banking products has registered in this last quarter a “clear positive, historical evolution in certain epigraphs, surpassing the good prospects that Kutxabank managed “.

Among these headings of positive evolution are the mortgage loans, in which Kutxabank has set a “quarterly record” by allocating a total of 1,015 million euros, representing an increase of 39.6% over the same quarter of last year. Furthermore, in the month of July it exceeded the historical monthly figure reached in May 2019. These data place the evolution of this heading in line with the pre-Covid objectives set by the entity at the beginning of the year.

It also highlights the “quarterly evolution of the consumer loans“, what have increased almost 3% compared to the same period in 2019, while the income derived from the sale of insurance has grown by 4%.

Productive credit investment was another of the headings that registered a significant year-on-year increase of 4.5%, driven by corporate and institutional banking.

In the first nine months of 2020, the The business area has increased long-term financing by 40%, mainly under the protection of more than 600 million euros granted within the lines of Elkargi and ICO. Additionally, to meet your needs in this complex context.

With these data, Kutxabank considers that it has a “starting situation, capacities and a robust management model to face the potential consequences of the health crisis”.

In addition, it has developed specific action strategies, adapted to different segments, groups and sectors, updating risk policies and processes to mitigate the impact of the crisis.

The financial institution highlights that its portfolio has “one of the lowest rates of exposure to default, specifically 50% lower than the average for the financial sector”. In relation to the outstanding balance at the end of the quarter, the volume of arrears only represents 1.7% of the total portfolio.

At the same time, the Group’s total solvency ratio and the Core Tier I ratio, which are consolidated at the top of the Spanish financial sector, continue to improve, with 17.5%.

Moreover, it continuously improves its delinquency rate, which has been fixed on 2.5% at the end of the third trimester. This is one of the lowest ratios, after improving 45 basis points since the beginning of 2020. All this confirms the level of its credit quality, which is above the average for the financial sector.

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