The financial subsidiary of Telefónica and CaixaBank quadruples profit and incorporates a new director

The Movistar Money consumer loan service grows 20%, but the volume granted falls

MADRID, 30 May. (EUROPA PRESS) -

Telefónica Consumer Finance Establecimiento Financiero De Credito, the financial subsidiary of Telefónica and Caixabank, has incorporated Jaime Grau, the operator's director of Fintech and Insurtech, into its board, after earning 3.97 million euros in 2021, almost four times more than past year.

The full benefit of this company, whose main businesses are the financing of terminals, alarms and consumer loans, will be distributed in dividends equally between the two 50% partners: Telefónica and Caixabank Payments

Grau, who is also part of the board of the operator's finance company with BBVA in Colombia, comes to the board of Telefónica Consumer Finance to replace the firm's former Global Consumer Director, Fabio Bruggioni, who left the Spanish company for the Brazilian bank Itau .

Last December, the company renewed its board and placed Juan Gandarias, CEO of CaixaBank Payments, in charge

Despite the increase in profits, the company has recognized in its management report that the fall in consumption has had an impact on its credit production.

The firm has ended the year with an active portfolio valued at 134 million euros, 26% less than the previous year. However, the drop in income was only 6%, to 19 million euros, due to the fact that the decrease in interest was partially offset by the commission business.

Since the end of June 2021, the company has received income from commercial intermediation for Caixabank Equipment Finance, with which this item has been multiplied by 14.5, to report almost four million euros to the billing of the joint subsidiary.

The production of 2021 has been 90.7 million euros, 29.7% less than the previous year, of which 58.4 million euros have corresponded to the financing of terminals, 12.8 million euros to the alarms and 19.4 million euros to Movistar Money. This consumer credit service is the only one that has improved year-on-year with growth above 20%.

On the other hand, the company has reduced the volume of loans that accumulate defaults of more than 90 days to 2.8 million euros, 33% less than at the end of the 2020 financial year, and the claims received have decreased by 16.88 %, up to 391, although two have been before the Bank of Spain.

Looking ahead to 2022, Telefónica has boosted the sale of mobile terminals in Spain by 85.9% to 153 million euros, and included the alarm service in its rates, which could increase the volume of financing managed by the company .