Loss for the Montepio more than doubled to 68 million euros in the first half – Express

The Caixa Económica Montepio Geral (CEMG) recorded a net loss of 67.6 million euros between January and June, more than double compared to losses of EUR 28.9 million in the same period 2015.

“Excluding non-recurring items, net income was positive at 22.5 million euros,” said Lusa José Félix Morgado, president of the mutual bank, specifying that at issue net specific impact of 90.1 million euros.

First, the restructuring costs with the process of streamlining the operational structure amounted to 32 million euros.

“the rationalization process is closed and the final costs recorded in the first half accounts, “said the manager, noting that these costs are not repeated in the second half of the year.

After the six-month result of Montepio reflects” the cross-cutting impacts the sector, “according Félix Morgado, pointing to the contribution of the banking sector, for the resolution of the Single Fund and the National Resolution Fund, which totaled 26.4 million euros, against 12.9 million euros in the first half of 2015.

the mutual bank also felt the impact in “specific investments” amounting to 52.2 million euros, among which is considered the devaluation of financial assets in the telecommunications sector, in particular, the Brazilian operator Hi . the value this adds to the tax effect of 20.5 million euros.

“Excluding the non-recurring effects, there is a positive trend, as evidenced by the rise in net interest income (1% to 127, 3 million), net commissions (0.35 to 49.3 million) and the reduction of operating costs, “said Félix Morgado.

” net interest income recorded an annual growth of 1.0%, reaching 127.3 million euros, to which it contributed the application of a strict ‘repricing’ policy and the reduction of debt issued to be replaced by less expensive funding sources, “explained Montepio in the statement sent to the Portuguese Securities Market Commission (CMVM).

According to the organization, “these positive signs have been confirmed in the 2nd quarter of the year, where net interest income amounted to 66.7 million euros, representing an increase of 9.9% over the previous quarter. “

the Montepio also pointed out that” these increases are recorded in a context of historically low interest rates, which continues to condition the performance of intermediation financial “.

Since the operating costs 1st half 2016, excluding costs with the rationalization of operational structure process, showed an annual reduction of 5.5%, reaching 163.9 million of euro, to which it contributed a decrease of 4.5% to the level of domestic activity.

Félix Morgado also highlighted the comfortable “liquidity position” and the reinforcement ratio ‘common equity tier 1′ (CET1 ) of 8.8% in December 2015 to 10.3% (according to the transition criteria for the new European rules) and from 6.7% to 8.3% with the full implementation of the new rules.

it also pointed to growth of 1.9% of deposits.

“customer deposits, with a significant increase of 236.4 million euros in the 2nd quarter 2016 (+ 1.9% and -2.2% compared to December 31, 2015), continued to be the main source of ‘funding’ [funding], now representing 59.3% of total funding sources ” the bank said.

in addition, “confirmed the consolidation of deposit base of private clients, with corporate and institutional recorded a significant growth of 8.5% over the previous quarter” .

with regard to the domestic distribution network in the last twelve months (between June 2015 and June 2016), Montepio reduced the number of employees by 259 people to 3,647 and closed 104 branches to 332 .