The banks’s net interest income decreased 8.4% to 133.5 million, with average interest rates charged falling slightly in mortgage loans (to 1.03%) and corporate lending (2.28%).
Novobanco posted a net profit of €142.7 million in the first quarter, twice the amount (€70.7 million) reported in the same period last year, according to a statement sent to CMVM on Tuesday.
The banks’s net interest income decreased 8.4% to 133.5 million, with average interest rates charged falling slightly in mortgage loans (to 1.03%) and corporate lending (2.28%). Interest bearing liabilities remained at 0.18%.
Fees and commissions increased 9.6% to €68.8 million, driven mainly by a strong performance in payments management (+15.3%), and volume increase in the asset Management & bancassurance (+14.2%).
With these results, the commercial banking income shrank 3% to €202.3 million. Core operating income (commercial banking income minus operating costs) decreased by €7 million to a total of €98.7 million.
Impairments and provisions were also much lower than in the previous quarter, falling from 61.8 million to 21.8 million. The Non-Performing Loans (NPL) ratio stood at 5.7% in March — the same percentage as reported in Q3 — with 70.8% coverage ratio.
Operating costs remained stable at 103.6 million, with the increase in depreciation and administrative costs being offset by a 5.1% reduction in personnel costs, reflecting the departure of employees. The cost to income ratio deteriorated from 49% to 51%.
The CET 1 stood at 10.8% at the end of the quarter, slightly improving from 10.1% at the end of December. The total capital ratio rose to 12.9%.