CGD sees €843 million profit in 2022 and is available to make acquisitions

After recording a €843 million profit in 2022, Portugal’s State-owned Caixa Geral de Depósitos (CGD) bank and is now focused on returning capital to the state. However it may make acquisitions, whether large or small, according to its Chairman, Paulo Macedo.

At the press conference of the 2022 results (profits of €843 million), Paulo Macedo was asked about possible mergers in banking in Portugal, especially when there is talk of Novo Banco coming on the market, which should move the sector. According to Macedo, the focus of Caixa Geral de Depósitos (CGD) is to maintain solidity and return to the state the capital it has injected into the bank. “That is what we have been doing and we would like to intensify,” he said. Then, he said, the bank will look at possible purchases.

“Then we may also be available to make acquisitions, whether large or small,” he said. In any acquisition, he added, there has to be “the conviction that the result is superior, of concrete gains” and “feel that there is an advantage for Caixa, for the state.” The manager said that CGD’s aim was to “maintain its leadership, substantially lower its risk, be profitable and continue to be the largest Portuguese bank.

Asked whether to do so it has to do an operation with Novo Banco, for CGD to remain leader, Macedo said that in CGD there is no obsession for leadership, “but it has value to be leader”. “It makes no sense to be a public bank and have a share that does not allow you to intervene in the economy or influence, Caixa clearly influences commissions (by having cheaper), ‘spreads’ (by having cheaper), etc. etc.,” he said.

Original Story: ECO News |News
Photo: Caixa Geral de Depósitos headquarters
Edition: Prime Yield