Criteria increase its profit by 35% in 2010 thanks to international investments

Criteria CaixaCorp is the holding company of La Caixa savings bank. Criteria had a profit of 1,529 million euros in September. Profits from investments in foreign financial companies increased by 72%


November 8, 2010 10:48 PM

Barcelona (ACN).- Criteria CaixaCorp unites the main shares in industrial and financial businesses that La Caixa, which was in the first savings bank and third financial institution in Spain in early 2010, holds. In the first three terms in 2010, the holding company had a profit of 1,529 million euros in September. This figure is 35% more than the same period of 2009, in the middle of the economic crisis. Concretely, the companies in which Criteria participates have brought 22% superior profits than those of the year before. They correspond to 1,253 million euros. This increase is due to the positive evolution of Criteria’s business abroad and its international investment. In fact, more than 50% of Criteria’s global results come from shares in foreign banks, mainly in Eastern Europe, Mexico and Asia.

Regarding the sectors where Criteria gets its profit, international banking investments represent 199 million euros. They increased by 72% in 2010 compared to the same period of 2009. Profits in insurance company investments have increased by 29%, reaching 202 million euros. Finally, Criteria’s main asset, investments in the service industry, have shown its strength, bringing 830 million euros of profit to the holding company, which represents 6% more than in 2009. Part of this profit comes from selling shares in Agbar and Adeslas (done last 7th of June) and the results of companies such as Gas Natural Fenosa.

On the 3rd of October, Criteria celebrated its third anniversary of entering into the stock market. In these 3 years, Criteria has invested 8,100 million euros, 80% of which were made in the financial sector. Some of the financial institutions from which Criteria bought shares are The Bank of East Asia, Erste Bank, and GF Inbursa, as well as many insurance companies. The other 20% correspond to investment in the industry and service sectors; the largest one of which is the capital enlargement of Gas Natural.

Now, at the end of the third term of 2010, investment in the financial sector represents 38% of the gross value of the company’s assets. Criteria’s net value on the 30th of September of 2010 reached 16,610 million euros. Its debt was 6,170 million euros.

Rating agency Standard & Poor’s (S&P) judges Criteria’s debt rating as “A” on the long term and with a stable perspective, and as “A-1” on the short term. Besides, last July Moody’s rating agency gave a A2 with a stable perspective to Criteria’s long term debt.