CGD and Novo Banco totalled 340 million euros in losses


Page created: Thursday, 3 August 2017 12:12 GMT | Updated: Thursday, 3 August 2017 13:05 GMT

CGD   Novo Banco  Novo Banco

Major Portuguese banks granted less 6 800 million euros of credit to companies in the first half of 2017

CGD, Novo Banco, Millennium BCP and BPI granted 64 370 million euros of credit to companies, 9.5% less than in the same period last year. CGD and Novo Banco recorded losses of 50 million and 290 million euros, respectively

In the first half of 2017, four of the largest banks operating in Portugal, namely Caixa Geral de Depósitos (CGD), Novo Banco, Millenium BCP and Banco Português de Investimento (BPI), granted 64 370 million euros of loans to companies (loan stock), which is less 6 800 million euros than in the same period last year (-9.5%). The largest contribution to this cut came from Caixa Geral de Depósitos (CGD), with its corporate loan portfolio decreasing from 19 900 million euros in June 2016 to 16 200 million euros in June 2017, which represents a decrease of 3 700 million euros (-18.6%).

According to information released by the Securities and Exchange Commission (CMVM), Novo Banco reduced its losses by 19.9% ​​in the first half of 2017 to 290.3 million euros. According to António Ramalho, current leader of the banking institution, “These results highlight the enormous effort to restructure the bank, both in increasing operating results and in continuing cost reduction.” According to the results of the first half of the year, the number of Novo Banco employees was 5,706, which represents less 309 compared to December 2016 and minus 619 than in June 2016.

As for Caixa Geral de Depósitos, the company went from losses of 205 million euros to 50 million euros in the first half of 2017. As part of the restructuring plan, approximately 300 employees left CGD since January 2017.

Regarding the other banks that have already disclosed their results, the highlight goes to BCP, which went from a negative result of 197.3 million euros in the first half of 2016 to a positive result of 89.9 million euros in the same period of 2017. Also, BPI obtained a positive result of 188 million euros, which represents a 77% increase over the same period of last year.

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