Banif returns to profit with a result of 6.5 million – publico

                 

                         
                     

                         

                 

 
                         

In the first three months of the year, Banif put the bills in positive territory. Thanks to an improvement in the banking and the cost reductions, the bank had profit of 6.5 million euros.

                     

                         In the same period last year, Banif had had 37.9 million of dollars of damage and the institution ended the year 2014 with a loss of 295.4 million. The year 2010 was the last in which the bank made a profit.

“This result is a remarkable turning point,” said the institution, in the results disclosure statement, “and is a result of significant efforts that have been carried out for the implementation of a profound transformation of the bank, both in terms of business positioning, both in terms of significant reduction of its cost structure. “

The operating income (the result obtained with revenues such as commissions and interest, discounted some expenses related to banking, such as compensation deposits) grew 21.9%, totaling 89.6 million euros. For this value contributed sales of 42 million euros Portuguese government debt.

At the end of the quarter, loans to customers amounted to 7746 million, a decrease of 2% over the figure recorded at the end the previous quarter, which is explained both by a fall in demand, such as greater risk aversion on the part of the bank. “This reduction reflects not only lower demand for credit associated with the ongoing deleveraging process in the Portuguese economy, but also reducing the bank’s exposure in non-strategic sectors,” said Banif. “It is also apparent from an increasingly demanding analysis process customer credit risk, focusing on lending to lower implicit risk operations.”

It costs decreased 26.7% compared to first quarter of 2014. Personnel costs fell 26.7% (thanks to cutting workers and reducing the number of branches), general and administrative expenses decreased 25.8% and depreciation were reduced by 29.4%.

On 31 March, the equity ratio common equity tier 1 – an indicator of financial health used to assess the creditworthiness of banks – was 8%, within the regulatory limits.