Economic and Financial Performance - Consolidated
Total Assets, Liquidity Investments and Loan Operations
Consolidated total assets stood at R$ 9.7 billion. Current assets reached R$ 5.3 billion, 54.8% of total assets, compared 57.4% in the previous year. Short-term liabilities totaled R$ 2.6 billion, 48.4% of current assets, compared to 49.7% in 2016.
Interbank investments and real estate securities amounted to R$ 2.2 billion and are equivalent to 23.1% of total assets. Securities classified as held-to-maturity securities amount R$ 8.6 million, for which the Bank has the intention and financial capacity to hold to maturity.
Loan Operations stood at R$ 6.0 billion, compared to R$ 6.5 billion in December 2016. The operations classified in the lower credit risk ranges, from “AA” to “C”, represent 76.4% of the total credit portfolio, compared to 76.3% in December 2016. The provision for credit operations risk stood at 11.5%, compared to 11.8% in December of the previous year. More detailed information can be obtained in explanatory note nº 07.
The existing resources were raised in both the domestic and foreign market, amounting to R$ 8.1 billion, of which R$ 5.9 billion came from Time Deposits.
Regarding funds from abroad, R$539.9 million are recorded as Subordinated Debt (raised in 2010, due in 2020), of which R$ 205.4 million are being used in the composition of the Level II Reference Equity for purposes of capitalization levels, as allowed by CMN Resolution nº 4.192/2013.
Funding through Financial Bills totaled R$ 429.1 million, including subordinated Financial Bills accounted for under the Liability caption “Debt Instrument Eligible for Capital,” which is addressed by CMN Resolution nº 4,192/2013, in the amount of R$ 212.9 million, with maturities in the period from 2023 to 2025. Of this amount, R$ 183.3 million are being used in the composition of the Level II Reference Equity for purposes of capitalization levels.
Dividends, Shareholders' Equity and profit or loss
In the year, dividends to preferred shares were declared, in the form of interest on own capital, in the amount of R$ 13.2 million, corresponding to a net income tax of R$ 11.2 million, with preferred shares being R$ 0.5640 per share, also net of income tax. Dividends are in accordance with the statutory and legal provisions in force.
Shareholders' Equity stood at R$ 766.3 million. The Managed Shareholders' Equity is R$ 810.4 million and the Reference Shareholders' Equity is R$ 980.0 million. Net income reached R$ 26.2 million.
Revenues from Financial Intermediation reached R$ 2.8 billion, a decrease of 12.2%. Revenues from Loan Operations and revenues from Sales Operations or Transfer of Financial Assets excelled, totaling R$ 2.5 billion.
Financial Intermediation Expenses stood at R$ 1.5 billion, a decrease of 24.7%. They represent 53.5% of Financial Intermediation Revenues, compared to 62.5% in 2016. It can be seen that there was a 29.9% decrease in expenses with Funding Operations in the Market and 55.6% in expenses with Sales Operations or Transfer of Financial Assets.
Expenses with Provision for Loan Operations Risk stood at R$ 684.3 million, compared to R$ 802.1 million in 2016, a reduction of 14.7%. They represent 24.2% of Financial Intermediation Revenues, compared to 24.9% in the previous year.
The Gross Income from Financial Intermediation stood at R$ 1.3 billion, compared to R$ 1.2 billion in 2016. It represents 46.5% of Financial Intermediation Revenues, compared to 37.5% in 2016, with an important gross margin gain in the last twelve months.
Revenues from Service Provision reached R$ 268.1 million, compared to R$ 244.0 million in 2016, reflecting the significant growth of R$ 24.1 million, a result of the service repricing e.ort in the last twelve months.
Personnel Expenses stood at R$ 410.8 million, compared to R$ 404.1 million in 2016, a nominal growth of 1.7% in the last twelve months. It is worth mentioning that the two most relevant items, employees’ earnings and social charges, which totaled R$ 265.5 million, compared to R$ 277.7 million in the previous year, decreased by 4.4%, compared to an adjustment of 2.75% of the banking category in a similar period, denoting a significant gain in productivity.
Administrative Expenses totaled R$ 647.7 million, compared to R$ 560.9 million in 2016, a growth of 15.5%. Excluding expenses originating from Payroll-Deductible Loan of R$184.6 million (R$ 98.9 million in 2016), there is a nominal progress of other Administrative Expenses by 0.3% in 2017, well below the inflation of 2.95% during the same period.
Also, on Administrative Expenses, there is a cost reduction in the captions of lease of goods, Communications, third-party services and financial system services, totaling R$ 20.1 million. More detailed information can be obtained in Notes nº 18.