Activity and Results for 3Q14: ICO confirms the growing trend in international activity of Spanish SMEs

Activity and Results for 3Q14: ICO confirms the growing trend in international activity of Spanish SMEs

ICO Exporters short-term facilities grew by more than eight times the amount granted in 2013, exceeding the 415 million euros granted in September 2013 to 3,434 million euros in the same period of 2014.

The loans granted through this facility already represent 22.4% of the total volume granted through all ICO facilities in 2014. This percentage would reach 24.5% if the international investment facility is included.

During this same period, ICO granted 15,329 million euros through all its second-floor facilities. This represents an all-time record and a 93% increase compared with the same period of 2013.

Profit after tax amounted to 55.3 million euros, up 5.9% on 2013.

5 November 2014.- ICO confirms the growing importance that these credit facilities have in supporting the international activity of Spanish SMEs. This also became clear in the analysis of ICO's results and balance sheet for the third quarter of 2014.

It has been verified that the trend which began in 2013 has continued through the various ICO facilities to promote the internationalisation of Spanish companies. A growing international recognition of Spanish SMEs has been observed, with significant growth in ICO Exporters short-term facilities, which increased by eight times the figure granted in 2013, and with a notable increase in ICO International facilities, aimed at financing investors. This last facility virtually doubled the amount granted in 2013 from 171 million euros to 316 million euros. This is an 85% increase on the same period of 2013. The number of transactions arranged through this ICO International facility increased from 461 to 642 transactions.

Managed lending activities

It should also be noted that lending activities managed by ICO during these first nine months of 2014 reached 170,675 million euros, up 21% on the same period of 2013. The total activity managed by ICO includes, in addition to the loans and receivables recognised on ICO's balance sheet, the management of State funds (CARI, FIEM), the Suppliers Payment Fund, etc., i.e. all financial instruments that ICO manages on behalf of third parties and that also contribute to improving the financing conditions of the economy.

Lending activities: second-floor facilities

With regard to lending activities through second-floor facilities from financial institutions up until the third quarter of 2014, ICO granted 15,329 million euros in more than 208,000 loan transactions to self-employed individuals and SMEs. The volume granted this year represents a 93% increase compared with the same period of 2013.

These figures represent a record number of ICO loans granted in comparison with the same period in previous years, and consolidate the important role that ICO plays in reactivating lending activities and the Spanish economy.

Among ICO's main second-floor facilities, the SMEs and Entrepreneurs Facility, the purpose of which is to finance investment and liquidity, is noteworthy of mention. A total of 11,506 million euros were granted in loans through this facility, up 57% on the same period in 2013.

The ICO SGR/SAECA Facility, which also experienced notable growth, reached a total of 58 million euros, up 32% compared with the 44 million euros in the same period in 2013.

Income statement and balance sheet for 3Q14

ICO generated 79 million euros in pre-tax profit and 55.3 million euros in net profit, which represents a 6% and 5.9% increase, respectively, compared to the previous year. ICO, as a government-owned bank, looks to international capital markets for financing rather than depending on the State Budget (PGE), and acts under the principle of financial equilibrium to comply with the functions assigned thereto as a State Financial Agency and government-owned bank.

With regard to ICO's balance sheet, equity increased by 17% compared to 2013. ICO's main management indicators performed positively in 2014.

The solvency ratio increased from 22.49% to 17.33% and the coverage ratio is still very high at 150%. The NPL rate was 6.03%, well below the Spanish banking sector average.