- In the first half of 2013, the granting of loans became dynamic, achieving an increase of 66% compared to the last six months of 2012.
- Within this semester, we must highlight the acceleration of the last three months, in which 85% more has been granted than the volume lent in the first three.
- 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 net profit for the first half 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. We must highlight the positive and growing evolution of the granting of loans so far this year, which has meant an increase of 66% compared to at the last semester of 2012. This increase in the volume of concession was shown especially in the second quarter of this year, mainly during the months of May and June, during which a total of 2,000 million euros were distributed.
These loans were used to finance investment projects and liquidity needs of more than 64,000 Spanish companies and freelancers, with an average amount of 64,950.94 euros. The fact that 46.23% of loans granted to SMEs corresponded to operations amounting to less than 20,000 euros stands out.
Of the total formalized operations, 3,883 million euros were distributed through the ICO-Companies and Entrepreneurs Line, aimed at financing investments in Spain and liquidity needs.
Likewise, loans were granted through the ICO-International and ICO-Exporting Short-Term Lines for an amount of almost 250 million euros to finance the external 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 that foreign demand is growing steadily. Through these two lines for internationalization, more than 1,500 companies obtained financing for both investment and liquidity.
Together, 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 credit granted by the ICO accounted for 11.4% of the total credit to companies with a term exceeding one year granted in Spain.
As for the liability, 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 stressed that the ICO is financed in capital markets since it does not depend on the General State Budgets. In this regard, it is worth highlighting the important global component in its financing, given that 52% of the investment base has been international in 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 tax 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 increased from 8.14% in June of the year 2012 at 5.38% in June of this year.
During this period the main indicators maintained a positive trend. The solvency index corresponding to this first semester rose to 17.28%, compared to 11.94% last year. On the other hand, late payments stood at 5.53%, remaining well below the sector average.
Expand resources and instruments for business financing
The 2013 ICO has defined two main areas of action: to strengthen both the financing of investments and liquidity of the companies, and to boost 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.