State-owned bank CGD’s profits rise 4 million euros to 893 million in the first semester
CGD said that this half-year result was four million euros higher than in the same period of 2024, benefiting from “a 9 billion-euro increase in turnover and a lower-risk balance sheet”.
State-owned bank Caixa Geral de Depósitos (CGD) posted a net profit of 893 million euros in the first half of the year, similar to the same period in 2024 (up 4 million), it announced on Wednesday.
In a statement sent to the Portuguese Securities Market Commission (CMVM) today, CGD said that this half-year result was four million euros higher than in the same period of 2024, benefiting from “a €9 billion-euro increase in turnover and a lower-risk balance sheet”.
Net interest income declined by 10% (143 million euros) compared to the same period last year, to 1.283 billion, due to “the context of falling interest rates, but shows stabilisation compared to the first quarter,” the state-owned bank said.
Consolidated turnover reached 169 billion euros, driven by growth of 9 billion in Portugal compared to June 2024.
Regarding commission income, CGD explains that this increased by “only 0.4%”, below the 5% growth in turnover because, “as in the previous two years, it maintained its pricing and applied exemptions to various operations in Portugal.
In the first half of the year, the customer loan portfolio increased by 2.3 billion euros with “robust growth” in both corporate and institutional (1 billion) and private customers (1.3 billion), around 1.2 billion euros in mortgage loans and 100 million euros in consumer loans.
The bank also reports that new housing loans reached 2.6 billion euros in the first half, surpassing the figure for the same period last year by more than 1 billion, a growth of 63%.
During the period, CGD recorded a recurring cost-to-income ratio of 29%, with provisions and impairments for credit risks decreasing by 4 million euros, while other provisions fell by 138 million euros, influenced by the 127 million reinforcement in 2024 associated with the compensation mechanism for the transfer of the Pension Fund.
“The macroeconomic context and the low value of overdue loans continued to provide conditions for a decrease in provisions and impairments in the period,” the statement said.
The public bank also highlights that it paid an 850 million euros dividend in May of last year, “the highest ever”, bringing the total dividends distributed since 2017 to 3.35 billion euros
At the end of June, CGD had capital ratios of 20.9% (CET1) and 21.0% (total), including net income for the period less the dividend for 2024 and the payout calculated for the first half of 2025.
Of particular note is the organic capital generation of €6.85 billion since recapitalisation, “equivalent to 1.7 times the amount received from the shareholder”.
The NPL (non-performing loans) ratio stood at 1.47% in the first half, “as a result of the sustained reduction in overdue loans and the focus of new lending on the best risk ratings”.
The credit risk cost was 0.32%, “reflecting the favourable evolution of credit quality due to the improvement in the macroeconomic scenario”, and exposure to non-core assets (NPLs, real estate and restructuring funds) fell by 84 million euros in the half-year.
CGD’s consolidated recurring structure costs increased by 27 million euros (+6%) compared to June 2024.
The company cites investment in technological transformation and improving customer service as the reason for the increases in both general administrative expenses (23 million euros) and depreciation and amortisation (4 million euros).
Recurring personnel costs rose by 800,000 euros (+0.3%) compared to the previous year.
