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NCG Banco, S.A.

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NCG Banco, S.A.
IndustryFinancial services and insurances/Banking
PredecessorNovacaixagalicia
FoundedSeptember 14, 2011 (2011-09-14)
Area served
Spain
Key people
José María Castellano (Executive president) César González-Bueno (Chief executive officer)
BrandsNovagalicia Banco EVO Banco
Number of employees
5,946
Websitewww.ncgbanco.es

NCG Banco, S.A. is a financial institution founded in Galicia on September 14, 2011, as a result of Novacaixagalicia banking activity spin-off.[1]

With €70.269 million in assets, 5.946 professionals, 2.7 million customers and a commercial structure made up by 919 branches spread all around the Spanish country and eleven countries of Europe and the Americas,[2] NCG Banco, S.A. is the head of one of the leading Spanish financial groups.

NCG Banco, S.A. operates as Novagalicia Banco in Galicia, Asturias and León and as EVO Banco in the rest of Spain.

The Singular Assets Management Unit closes the corporate structure, taking charge of distressed and non strategic assets, non-performing, substandard, repossessed assets and buildings for own use. And also, the wholesale business manages corporate banking, operations in financial markets and treasury management.[3]

Moreover, NCG Banco, S.A. takes part as a shareholder in more than 220 businesses,[4] through its industrial section NCG Corporación.

History

NCG Banco, S.A. comes from the banking entity Novacaixagalicia that came from the merger of the saving banks Caixa Galicia and Caixanova on December 1, 2010. The financial requirements, set out in the Royal Law decree 2/2011,[5] bring about the transformation of Novacaixagalicia into a bank as a way to enable its market capitalisation.[6]

NCG Banco, S.A. was born on September 14, 2011. In this new period, José María Castellano becomes the executive president of the entity and César González-Bueno Mayer[7] the chief executive officer. NCG Banco, S.A. appears as the first institution[8] in the financial history of Galicia that uses the Galician language for its foundational deed.[9]

On October 10, 2011, the Fund for Orderly Bank Restructuring[10] (FROB II) bought 2.465 million in NCG Banco, a 93% stake.[11] The new funds were added to the €1.714 million provided by Novacaixagalicia, resulting a €4.180M total equity, €5.275M core capital and 10.45% risks weight assets (RWA), with 15.67% solvency rate.[12]

On October 19, 2011, NCG Banco, S.A. launched its new commercial brand Novagalicia Banco under the advertising slogan “A new bank with lifetime clients”.[13]

As of November 14, it started to work with two different commercial brands and two specialized business models:[14] Novagalicia Banco, in Galicia and the international market, and NGB, in the rest of Spain. This strategic turn encloses the creation of two new business areas: one specialized in the corporate banking; and another as a Singular Assets Management Unit, specialized in distressed and non strategic assets.

On January 12, 2012, 17 Galician investors took a stake in the bank, buying 2.59% in equity. Thereafter, bank shareholders are the Fund for Orderly Bank Restructuring with a 90.57%, private investors with a 2,59% and Novacaixagalicia with a 6,84%.[15]

On March 12, NCG Banco, S.A. started to operate outside Galicia under the commercial brand EVO Banco.[16] During the first running-in four weeks it gained 8.920 customers and €70 million.

On March 22, NCG Banco, S.A. and its union representatives came to an agreement to avoid forced layoff. .[17]

July 12, 2012, NCG Banco, S.A. released an advertising campaign in media in which it apologizes to clients for past mistakes.[18]

Banking brands

Head office

NCG Banco S.A. has two operating head offices. The social and tax address is located in A Coruña and the institutional and business address is in Vigo.

Staff

The company staff is made up of 5,946 professionals.

Branches

NCG Banco, S.A. has a retail network of 919 operative offices[19] spread in the following manner:

  • Spain: 900
    • Novagalicia network: 680
    • EVO/NGB network: 220
  • Global environment (Europe and Americas): 10
  • Global environment delegations (Europe and Americas): 9

It also has 1,494 ATMs and 36,913 point-of-sale terminals.

Financial report

income statement 1st half 2012 (EUR Million)
net interest income 430,1
net fee income 120,1
basic margin 550,3
dividends 14,3
results from financial operations 101,1
income from equity consolidated by participation method (41,0)
others (11,6)
gross margin 613,1
operating expenses (443,9)
impairments provisions (1.638,4)
others (12,6)
attributable gain (losses) to the group (1.339,6)
business magnitudes 1st half 2012 (EUR Million)
total assets 70.269
securities portfolio 14.241
O/W equities 1.778
customer loans 45.169
customer deposits 43.984
debt securities 7.008

Capital stock ownership

shareholders stake
The Fund for Orderly Bank Restructuring (FROB) 90.57%
Novacaixagalicia 6,84%
Private investors 2.59%

Customers

NCG Banco, S.A. has 2.7 million customers: 338,000 are companies and self-employed workers (data last updated: December 2011) and 2.367.051 are families. In 2011, 171,271 people became active customers. Detail of the customers base:

  • Outstanding companies: 3.802
  • Public service: 2.597
  • Small and medium-sized enterprises: 32.098
  • Micro, small and medium-sized enterprises and associations: 115.698
  • Self-employed: 183.450
  • Families: 2.367.051

Government bodies

Board of directors

director position
José María Castellano executive president
César González-Bueno chief executive officer
Roberto Tojeiro independent
Carlos González independent
José Manuel Gabeiras independent
Jaime Trebolle independent
Xabier Alkorta independent
Pilar Cibrán nominee (Novacaixagalicia)
Gonzalo Ortiz nominee (Novacaixagalicia)
FROB nominee
Francisco Serna secretary (non-director)
José Eduardo Álvarez-Naveiro vicesecretary (non-director)

FROB: 1 director with 2 dealers: José Borrue and José Antonio Portugal

committees supported by the Board of directors and president
executive committee José María Castellano
board risk committee Xabier Alkorta
appointments and remunerations committee Jaime Trebolle
audit and compliance committee Carlos González

Investment portfolio

sector company stake
Financial Banco Gallego 49,84%
Banco Etcheverría 44,73%
Ahorro Corporación 6,38%
Automotive Grupo Copo 21,1%
Insurances Caser 10,31%
Energy CLH 5%
Eólica Galenova 100%
Food Sogevinus 100%
Infrastructures Itinere 23,76%
Elecnor 5,05%
Textile Adolfo Domínguez 5,05%
Grupo Tavex 5%
Tourism NH Hoteles 2,71%
Technology Tecnocom 20,05%
Real Estate Quabit 3,19%
Industrial General de Alquiler de Maquinaria 4,95%
Transports Transmonbús 33,96%
Maritime Naviera Elcano 12%

See also

References

  1. ^ "Castellano sets an initial goal of a €700M investment for NCG". La Voz de Galicia. 2011-09-15.
  2. ^ "NCG Banco rushes its adaptation to new regulation with €1.638M in impairment provisions". NCG Banco Press Office. 2012-08-31.
  3. ^ "Corporate Government Report 2011" (pdf) (in Spanish). NCG Banco. 2011: 29. {{cite journal}}: Cite journal requires |journal= (help)
  4. ^ "NCG Banco renews advisors in 130 investees". Expansión. 2012-02-27.
  5. ^ "Royal Law Decree 2/2011, February 18th to strengthen the financial system" (pdf). BOE. 2011. {{cite journal}}: Cite journal requires |journal= (help)
  6. ^ "The reform of Spanish savings Banks. Technical note" (pdf). International Monetary Fund. May 2012. {{cite journal}}: Cite journal requires |journal= (help)
  7. ^ "Position in board of directors". NCG Banco.
  8. ^ "NCG Banco Statutes". NCG Banco.
  9. ^ "NCG Banco, the first bank that uses the Galician language for its foundational deed". NCG Banco Press Office.
  10. ^ Miguel Fernández Ordóñez, ex-Governor of the Bank of Spain (2012-04-18). "Financial crises – impact and challenges for Spain. Opening speech at the "XIX Encuentro del sector financiero", organised by Deloitte-ABC" (pdf). {{cite journal}}: Cite journal requires |journal= (help)
  11. ^ "Governing Committee of the FROB approves three recapitalization processes". FROB.
  12. ^ "Novacaixagalicia achieves €4.150M in equity after FROB partial hold". NCG Banco Press Office.
  13. ^ "From NCG to Novagalicia Banco". La Voz de Galicia.
  14. ^ "Novagalicia's makeover: two new commercial brands while isolates impaired assets". La Voz de Galicia.
  15. ^ "17 galician investors get a stake in the bank". La Opinión de A Coruña.
  16. ^ "Novagalicia already operates outside Galicia with EVO Bank brand". Cinco Días.
  17. ^ "NCG closes its first agreement with unions". ABC.
  18. ^ "Spain's bailout forces mountain of losses on bank clients". Financial Post.
  19. ^ "NCG Banco acelera su adaptación a la nueva normativa, con saneamientos por 1.638 millones". NCG Banco Press Office.