Between January and March 2016, the New Bank had losses of 249.4 million euros, according to a statement from the bank sent this Friday to the CMVM. In the same period in 2015, the figure was 117.8 million euros.
According to the document, the provision for restructuring costs and contribution of the banking sector weighed negatively. “Without these effects, the result for the quarter was negative at 140.1 million euros,” it reads.
In terms of results, the New Bank highlights a positive operating result 78.9 million euros (more 152.1% compared to the quarterly average of 2015), “which represents 63% of the value achieved throughout the 2015 fiscal year, demonstrating the resilience of the activity of the New Group Bank.”
Conversely, operating costs, amounting to 155.2 million euros, “show a strong decrease of 17.8% over the quarterly average of 2015, reflecting the cost reduction efforts undertaken by the Group, particularly through simplification and process improvement and optimization of the operational and commercial structure. “
New release the Bank, which is the third largest bank in assets operating in Portugal, says an asset of about 56 billion euros at the end of the first quarter of 2016, which shows a reduction of 1.6 billion euros (2.7%) compared with December 2015, “in line with the continued deleveraging of the balance sheet”.
in the first quarter of 2016, loans to customers fell by 2.2 billion euros “without impacting in particular support for small and medium-sized exporting companies” while credit to private production registered a growth of 36% compared to the monthly average of 2015. production in mortgage loans, the average monthly production increased 53%.
Less deposits of large customers
the statement also points out that deposits of individual customers continued to increase (44 million euros), “strengthening the signal of confidence in the Group, despite the decline to historically low levels of household savings, remaining at the highest level since the creation of the New Bank (18 100 million). “
However, overall customer deposits declined by € 2.2 billion (-8.1%),” reflecting the decrease in deposits large companies and institutions influenced by the price reduction policy which made the offer in this less competitive segment and the impact of retransmission five senior emissions to the perimeter of the BES. Following this decision the Moody’s rating agencies and DBRS decided in early January 2016, making the downgrade of new long-term deposits ratings Bank which caused a reduction in deposits of some large institutional and corporate clients. ”
credit risk is 23%
in terms of asset quality, the release of the New Bank states that the overdue loans ratio for more than 90 days was 15.1 % of total loans, with the respective coverage ratio of provisions to stand at 110.8%. The credit coverage to customers by provisions was 16.7%. The credit risk represented 23.0% of the total loan portfolio and coverage increased to 72.6%.
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