BCP profits 23.9 million in 2016
The Portuguese bank headed by Nuno Amado ended last year with a 23.9 million euros' profit. It's a significant decrease when compared to 2015, but it is a strong recovery from the nine months' losses.
The Portuguese bank BCP was able to achieve positive net results. The bank headed by Nuno Amado, which has recently concluded a 1.3 billion euros capital increase, ended 2016 with a profit of 23.9 million euros, after, by the end of September, having reached 251.1 million euros’ losses.
“Net income in 2016 amounted to 23.9 million euros compared to 235.3 million euros posted in 2015, reflecting the impact of non-usual items”, which accounted for a 90% decrease in profits. “Excluding this effect, net income would have been positive at 97.6 million euros in 2016, compared to a loss of 22.2 million euros recorded in 2015″, stated the bank. Net interest income was 1,230.1 million euros in 2016, a 3.3% increase when compared to 2015.
Those non-usual items, meaning, non-recurrent,”include the booking of additional impairment charges of 349.5 million euros to increase coverage in 2016, as well as the gains on the sale of Portuguese sovereign debt securities of 279.4 million euros in 2015, compared with €7.9 million in 2016″.
Last year accounts were also influenced by the “devaluation of corporate restructuring funds, which was higher by €140.3 million compared to 2015”, and was “partially offset by the gains related with the purchase of Visa Europe by Visa Inc., in the Bank in Portugal and in Bank Millennium in Poland [which had a 160 million profit], amounting to €49.2 million, and a fiscal impact of €281.2 million”. In addition, the bank suffered the 146.7 million euros impact from restructuring costs.
The Portuguese bank, which provided more than 349.5 million euros in default loans the past year with an impairment which reached 1.6 billion euros, highlights the significant decrease in the credit at risk, but also in non-performing loans. The bank states: “Significantly lower NPEs and NPLs in Portugal, together with increased coverage, both by loan-loss reserves, to 39% from 31%, and total, including guarantees, to 100% from 93%”.
BCP ended 2016 with an estimated Common equity tier 1 ratio of 12.4% on December 31, 2016, which favorably compares to the 12.2% from the previous quarter. “Capital strengthened in early February, allowing for the full repayment of CoCos and bringing the fully implemented CET1 ratio to more than 11%”, the bank states.
