NOVO BANCO Group’s 1st quarter 2017 results reflect the operational consolidation effort pursued since 2016, with a €130.9 million loss comparing favourably with the €249.4 million loss reported in March 2016.
Commercial banking income net of operating costs reached €59.6 million, having grown by 7.0% comparing with the 1st quarter of 2016.
Banking income totalled €180.8 million, reflecting a 22.8% YoY decrease, although underpinned by the positive contribution of fees and commissions, which were up by 8.2%.
Operating costs were reduced by €20.0 million (-12.9% YoY), to €135.2 million, confirming the downward trend observed since the creation of NOVO BANCO.
The provision charge in the period, €137.4 million, was €210.8 million lower than in the 1st quarter of 2016 (-60.5%), when it included €109.6 million for restructuring costs.
Credit impairments amounted to €119.3 million, which compares with €185.5 million a year earlier (-35.7%).
Customer loans were down by €0.3 billion in the 1st quarter of 2017, which is in line with the deleveraging process still under way.
Customer deposits increased to €25.2 billion, from €25.1 billion in the 1st quarter of 2016.
The estimated regulatory capital ratio Common Equity Tier 1 (CET1) for 31 March 2017 was 10.8%, which compares with 12.0% in December 2016.