BPI’s profit rises 9% to €201 million in H1
The banking institution also reported a Non-performing exposure ratio (NPE) of 1.6%, and an impairment and collateral coverage of 145%.
The Portuguese bank BPI reported this Friday a net profit of €201 million in first half of 2022, an increase of 9% compared to the same period last year.
“The activity in Portugal contributed with 85 M.€, which corresponds to an increase of 17% in relation to the same period of 2021, excluding extraordinary items (gains from the sale of non-performing loans and costs with early retirements and voluntary terminations),” announced the bank in a statement sent to the CMVM.
The biggest contribution came from Angola, with BFA contributing €100 million. Mozambique’s BCI contributed €17 million to the bank owned by Spanish group CaixaBank.
This result allowed the bank to reach the end of June with a return on equity of 6.5%, with the bank’s CEO still lamenting the difficulty of the sector in recovering profitability to levels above the cost of capital – this when the parent company estimates costs of between €400 million and €450 million with the introduction of a new tax on banks that the Spanish government announced on Thursday.
Net interest income grew 3% to €234 million, while net commissions increased 11% YoY to €145 million, “driven by growth in investment funds and capitalisation insurance sales, loans and accounts associated banking fees and insurance intermediation fees.” Operating income increased 6% to €393 million.
Mortgage loan portfolio grows 11% YoY to €13.8 billion, and corporate loans 8% YoY to €11 billion.
The banking institution also reported a Non-performing exposure ratio (NPE) of 1.6%, and an impairment and collateral coverage of 145%.
BPI also stressed the “high capitalisation” and solidity, complying “by a significant margin” with the ECB requirements, with a CET1 ratio of 13.6% and total capital ratio of 17.3%.
