Banco Montepio reported a profit of 68.7 million euros in the first half of the year, recovering from losses of 48.3 million euros recorded in the same period last year, it announced to the market on Friday.
According to the statement sent this morning to the Securities Market Commission (CMVM), this year-on-year evolution is “reflected in the increase in banking income (+11.1% year-on-year) and the reduction in impairments and provisions (-11.6% year-on-year)”.
The bank’s operations in the first six months of last year were affected by the sale of Finibanco Angolawhich had a negative impact of 116 million euros on Montepio’s results.
The financial margin, which is the difference between the interest charged on loans and the interest paid on deposits, increased by 2.2% to 198.6 million euros, contributing to the 11.1% increase in Banco Oficial’s income.
In the period under review, the bank’s net commissions fell by 3.5% to 63.1 million euros.
Meanwhile, operating costs increased by 6.9% to €133.6 million, personnel costs increased by 0.1% to €77.4 million, and general administrative expenses increased by 10.1% to €34.6 million.
At the end of June, Banco Montepio had 2,873 employees and 226 branches, a year-on-year decrease of 95 people and 10 branches. In 2020, the bank began a program to let go of hundreds of workers through agreed layoffs and early retirements, which it says will be completed in 2023.
Depreciation and amortization amounted to €21.6 million, up 20.0%, while credit impairments fell by 13.8% to €7.3 million.
On the balance sheet side, Banco Montepio’s gross loan portfolio remained virtually unchanged year-on-year, increasing by two million euros to 11,877 million euros. The non-performing loan (NPE) ratio was 2.8% in June, compared to 3.2% in December and 4.5% in June 2023.
Customer deposits grew by 10.5% compared to the end of June last year, reaching 14.212 billion euros, of which 72% were held by individuals. According to the bank, this growth was “supported by the positive evolution of deposits from individual clients of 877 million euros and from the corporate segment of 469 million euros.”
As for solidity indicators, the CET1 capital ratio stood at 16.1% in June, up from 14.4% a year earlier.
Source: Observadora
