In 2015, the New Bank reported a loss of 981 million euros, but the expectation is that the bank can return to profitability at least in 2018. On the positive side notes to increase the Core Tier 1 to 13.6%, which benefited from the decision of the Bank of Portugal to remove toxic assets from the perimeter of the financial institution.
the information was given in the late afternoon of Wednesday, during disclosure of the annual accounts 2015, with President Eduardo da Cunha Stock to ensure that, after a gap of nearly two years, the New Bank will return to “normality” and “re-submit quarterly results”. The meeting with the media came after the Bank of Portugal (BoP) announced in mid-January, which would kick-start the sale process of the institution and in a context arising meetings between supervisor and the New Bank.
in this context, the banker drew attention to the fact that there is a gap, until August 2017, to close the file, and will work with the same objectives – to ensure good levels of liquidity, capital and profitability – regardless of the decision that will be taken. “What we are now doing is preparing the future,” the bank said.
A response to a request for comment on the proposal of the New nationalization PCP Bank, which was formalized on Tuesday. And one way that Vítor Bento, the former president of BES and New Bank, advised the Government to equate. The economist of the social democratic sphere admits the setting for two reasons: there is no private capital in Portugal; the bank consolidation movement is defining the future of the country.
The reaction to the idea of keeping the bank in the public sphere came the voice of Deputy João Galamba that showed opening of PS to think about the topic, even for existing time to equate various solutions. But gave no guarantees. Especially because there are restrictions of various kinds to a takeover, notably European. And it would have to determine what impact the public budget of the measure and that means the state has to meet current and future capital calls. And the government has another complicated dossier to solve: the capitalization of CGD also subject to negotiations with Europe. By late afternoon, the former Prime Minister, Pedro Passos Coelho, came to say that the discussion around the New Bank nationalization will “weaken” the country’s image abroad.
In the comments to the accounts, Stock da Cunha stressed that “strengthening the balance sheet, both in terms of improvement of the assets or capital, led to an increase in the Core Tier 1 to 13.6%.” But he admitted that evolution “was influenced” by the BDP’s decision to withdraw the perimeter of the New Bank to the BES, toxic assets. He also pointed out that the high amount of impairments cleared, 1057 million, are largely the result (592 million) of inherited operations of BES: exposure to 50 large customers and provisions for real estate. also advanced to the 980.6 million of losses incurred in 2015, 78% come from the business model adopted by the Ricardo Salgado team. What is reflected in the deterioration of the loan portfolio, the credit risk to be 22.8% and overdue loans of 15.5%.
On the positive side, Stock da Cunha pointed out the results operating (activity) which reached 125 million, but still insufficient for an institution the size of New Bank. Also highlighted the reduction of personnel costs by 8.2% to 397.6 million including 22.8 million for early retirements. In 2015, 411 employees left the group, and the staff of 7311 people (740 abroad). And 40 branches were closed, telling the commercial network with 635 branches (39 out).
About imbroglio open tender to dispose of the New Bank Cape Verde, Stock da Cunha matched the sale of a credit institution to a shopping center, this to justify the actions of his team “was diligent “for treated it is a marginal asset to the group and to divest. Stock da Cunha was available to dispose of the Cape Verde operation to an office-company football manager José Veiga, earlier this month in custody for tax evasion, crime that had already been accused on other occasions.
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