Demolishing article yesterday in the Confidential in which it was indicated that the Good Finance Bank had entered into an urgent sale phase to prevent bankruptcy due to the bank’s client’s bank leakage, which according to Good Lender amounted to 6,000 million in January . The article was quickly answered by the Bank via Relevant Fact that denied the published information.
The Relevant Fact Relevant Fact of the Good Finance basically denies 4 points of the article:
– That the urgent sale of the Bank has been commissioned.
-That there is a bankruptcy risk of the Bank.
-That the Chairman of the Board of Directors has communicated to other financial entities the imminent need for funds in the event of a massive leakage of deposits.
-And it is also false that there are data from the Good Banking Association that show that the bank lost 6,000 million euros of deposits in the month of January.
Obviously how it usually happens in all official communications and that may have a possible legal impact, the devil is usually in the small details and in this case the HR denies that 6,000 million were lost in customer deposits but does not explicitly deny that it is not producing an outflow of deposits.
Is there a leakage of deposits at the Good Finance?
Knowing if there is a leakage of deposits in the Good Finance is in theory relatively simple, we should only compare the evolution of the deposit data published by the bank at 12.31.2016 and at the end of the first quarter of 2017 (with the caution that you can have knowing that the quarterly data is not audited, although also understanding that a new management team that has just landed would be kamikaze if it expressly published some data that it knew were completely correct for us).
In the last 3 months , Good Finance customer deposits have fallen from 82.84 billion to 77.63 billion . Deposits actually fall by a little more than 4 billion in the last three months but it does not seem that they are making them at the rate indicated in the article of Good Lender. In addition, the bulk of the drop in deposits has not occurred in retail customers, which is what we can have in mind but in the Deposits of Central Counterparties.
Where there is also a certain “leak” is in other resources managed in Balance that are also reduced, which makes the total figure of “leak” in these three months is close to 6 billion . A reduction similar to that which occurred in the last 9 months of 2016 but now concentrated in a quarter.
Reduction in deposits
In short, if there is a reduction in deposits. If it seems that for the first time in a long time in the first quarter of 2017, the deposits of “traditional or retail” clients of the bank are reduced, a segment that had endured enough in 2016 when deposits of other types of customers were already beginning to be reduced.
It does not appear that the withdrawal figures have the magnitudes indicated or suggested in the article.
We have no idea if the management has ordered the accelerated sale by way of urgency or how eminent can be the bankruptcy of the Good Finance, taking into account that for liquidity problems there is always the GFI to support it.
Our opinion on Good Finance remains the same as we already gave you when you made the capital increase in 2012. Its value is close to zero.
Good Finance Bank. Capital increase. Do not enter an office the next few days