Cumulative impairment losses on financial assets through March 2014 have fallen significantly with respect to the average quarterly level in 2013. Among the reasons behind the decline are the reduction in non-performing balances due to a lower level of additions to NPA and an increase in the volume of recoveries, basically in Spain. As a result, the Group’s risk premium in the quarter was 1.27%, 32 basis points below the cumulative figure for 2013.
Impairment losses on financial assets
(Million euros)
Provisions include early retirement costs, provisions for contingent liabilities, and contributions to pension funds. This heading posted a net figure of €144m for the quarter, similar to the same period last year (down 2.3% at constant exchange rates).
Other gains (losses), which basically includes provisions for real estate and foreclosed or acquired assets in Spain, also improved due to lower requirements of provisions for real estate and the inclusion of a capital gain from the sale of 7% of the stake in Tubos Reunidos.
As a result of the above, net income from ongoing operations increased significantly in the last 12 months, with a rise of 76.1% at constant exchange rates and 18.7% at current rates.
Finally, no transaction has been recorded this quarter under the heading of results from corporate operations. It should be noted that in the same period of 2013 this heading included the following items: the reinsurance operation of the individual life-risk portfolio in Spain; the earnings of the Group’s pension business in Latin America, including the capital gains from the sale of the Afore pension manager in Mexico; and finally, the equity-accounted income excluding dividends of China Citic Bank (CNCB).
Net income from ongoing operations
(Million euros)
