• In the first half of 2013, the granting of loans became more dynamic, achieving an increase of 66% compared to the last six months of 2012.
  • Within this semester, it is worth noting the acceleration of the last three months, in which 85% more than the volume lent in the first three has been granted.
  • On the other hand, the main management indicators of the ICO maintain their positive evolution, highlighting the improvement in the solvency ratio, which rises to 17.28%.
  • Finally, the first half net profit amounted to 34.3 million euros, almost double that corresponding to the same period last year.

The Official Credit Institute granted 4,384 million euros in loans to companies in the first half of 2013. It is worth noting the positive and growing evolution of the granting of loans so far this year, which has meant an increase of 66% compared to in the last semester of 2012. This increase in the volume of concessions was especially evident in the second quarter of this year, mainly during the months of May and June, in which a total of 2,000 million euros were distributed.

These loans were used to finance the investment projects and liquidity needs of more than 64,000 Spanish companies and freelancers, with an average amount of 64,950.94 euros. It is worth highlighting the fact that 46.23% of the loans granted to SMEs corresponded to operations for less than 20,000 euros.

Of the total transactions formalized, 3,883 million euros were distributed through the ICO-Companies and Entrepreneurs Line, intended to finance investments in Spain and liquidity needs.

Likewise, short-term loans were granted through the ICO-International and ICO-Exporter Lines for an amount of almost 250 million euros to finance the foreign expansion of Spanish companies. This figure represents an increase of 57% with respect to the volume of financing granted for the same purposes in the same period last year.

All this shows the Institute's commitment to the internationalization of Spanish SMEs, as well as the fact that foreign demand is growing steadily. Through these two lines for internationalization, more than 1,500 companies obtained financing for both investment and liquidity.

Overall, this financing activity has allowed the ICO to continue increasing its weight in Spanish financial institutions. Until May, the last available data, the amount of the credit granted by the ICO represented 11.4% of the total credit to companies with a term of more than one year granted in Spain.

Resources catchment

As for liabilities, the ICO has issued until June 30 in the international capital markets a total of 6,292 million euros to finance its activity. It should be underlined that the ICO is financed in the capital markets since it does not depend on the General State Budgets. In this sense, it is worth noting the important global component in its financing, given that 52% of the investment base has been of an international nature. This shows the confidence that these investors place in the ICO and the positive evolution of the Spanish economy.

Main management indicators

The ICO obtained a profit after taxes of 34.3 million euros in the first half of 2013, which is double that of the same period last year. This benefit is a consequence of the cost reduction derived from the austerity policy implemented in the Institution, which has achieved a considerable reduction in operating expenses and an improvement in efficiency, which has gone from 8.14% in June 2012 at 5.38% in June this year.

During this period, the main indicators maintained a positive trend. The solvency ratio for this first semester rose to 17.28%, compared to 11.94% last year. On the other hand, non-performing loans stood at 5.53%, remaining well below the sector average.

Expand resources and instruments for business financing

The ICO has defined two main lines of action for 2013: promoting both the financing of investments and liquidity of companies, and promoting their internationalization.

In line with these objectives, the Institute has designed and launched for the first time a comprehensive catalog of products for internationalization, in order to cover all the needs that companies may require internationally. From investment, liquidity, capital or quasi capital and guarantees.

Thus, three basic lines are contemplated within the international program: the financing of investments made by companies abroad, the financing of exports in the short and long term and a guarantee program for companies that attend international tenders or awards.

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