Key strategies / Actively manage capital

ASSET QUALITY

On-going reduction in lending to developers

  • Exposure to the real estate development sector fell by 30.2% in 2015 (–33.6% organically, not including the balances held by Barclays Bank, SAU). The weight of financing for the development sector fell by 237 basis points to 5% of the total loan portfolio.
  • Finished homes account for 66.5% of the portfolio.
  • Specific coverage for problem assets (non-performing and substandard) in this segment stands at 48.8%.
-33.6%
Organic reduction in lending to developers
Change in lending to real estate developers
In million €
estructura
estructura
For additional information
estructura

Containment of growth in the portfolio of foreclosed assets with intensive commercial efforts

  • The underlying principle guiding CaixaBank’s management of problematic assets is to help borrowers meet their obligations. When it no longer appears reasonable that the borrower will be able to fulfil these obligations, foreclosure proceedings are initiated.
  • The net carrying amount of available-for-sale foreclosed assets stands at €7,259 million (€6,719 million in 2014), with coverage of 57.6%, including initial write-downs and subsequent accounting provisions reported after taking possession of the real estate assets (+2.6 percentage points on 2014).
  • In addition, real estate assets held for lease stood at €2,966 million, net of provisions. The occupation rate for this portfolio is 93%.
  • Total properties sold or rented amounted to €2,077 million in 2015. The composition of the portfolio of available-for-sale foreclosed real estate assets, 56% of which are finished homes, is a unique factor aiding in the sale of these properties on the market.
estructura
estructura