Liberbank leaves behind dark times at the end of last year when he had to resort to a capital increase 500 million to clean up the poor quality brick acquired during the crisis. The Asturian entity recorded a net profit of 108 million euros in the first nine months of the year, against the losses of 270 million euros that it accounted for during the same period of one year before, when he had to make a large allocation of additional provisions to undertake his plan to reduce unproductive real estate assets and strengthen his balance. With the new money, Liberbank has sold portfolios of bad debts so that the volume of doubtful credit decreased in the last year at a rate of five times the entry of new risk in default.
This improvement is reflected in the account, which has experienced a positive evolution of all the margins of the income statement and "the consolidation of the typical banking business, as well as the greater commercial dynamism and the improvement of asset quality", adds the entity.
Net interest income increased by 10.9%, while gross margin rose by 4.6%, despite the decrease in the results from financial operations of 40%. The operating margin grew by 24.2% due to the containment of expenses. On the revenue side, those of the commissions rose, and the provisions to cover the defaulters fell by more than 90%. The ratio of unpaid loans fell to 6.15% with a reduction of 4.37 percentage points in one year. The coverage levels of non-productive assets remained at 50%.
Regarding solvency, the capital ratio of maximum quality CET 1 Fully loaded, including the results of the year, stood at 12.1%.
The outstanding balance of productive loans increased by 10.6% to 21,906 million, and consolidated its fifth consecutive quarter of improvement, with growth in all business segments, from productive activities (+ 13.3% to 5,723 million) , consumer credit (+ 5.7%, up to 776 million) and even mortgage financing (+ 3.9%, up to 13,311 million).
In the segment of credit to the private sector, the formalization of new financing contracts for productive activities (self-employed and companies) and new mortgages stood out, with an average amount of 71% of the value of the guarantee (LTV). The new contracts for financing companies and public administrations reached 2,913 million euros, up 58.2%.
Finally, Liberbank has indicated that the tendency to concentrate the management of customer funds, in the current environment of low interest rates, investment funds and demand deposits, has been consolidated during the third quarter of 2018 .