Banif recorded a net loss of 295.4 million euros last year, an improvement from a loss of 470.3 million euros established in 2013, the bank said led by George Thomas.
“This figure was heavily penalized by the net income recorded in the fourth quarter of 2014, amounting to -140.5 million, which includes factors related to non-current activity amounted to -163.4 million euros,” Le- in the statement issued by Banif.
Within these non-recurring income, there are the losses in real estate assets, which amounted to -135.5 million. Here are them the impairment on exposure to the Espírito Santo Group (GES), 80.4 million euros, the devaluation in FINPRO participation (-30.5 million euros) and restructuring costs (-28.8 million).
On the positive side, note for the profit of EUR 3.5 million obtained by Banif in sales transactions of Portuguese public debt, which also includes the list of non-recurring income.
With regard to the activity, the bank pointed to the “sharp recovery of operating income”, which grew 48% year on year to 208 million euros, “a result of the improvement in net interest income, net commissions and the results from financial operations “. Net interest income rose 3.2% to 84.5 million euros
As for costs, there was a 4.7% decrease compared to 2013, to 202.3 million euros, due to the rationalization of the seat structure. “Excluding the costs related to the termination of the program by mutual agreement, operating costs decreased by 10.5% (-20.3 million euros), highlighted the financial institution.
The bank also stressed the “significant improvement in operating income,” which stood at 5.7 million euro in 2014, which compares with -71.6 million euros last year. “This reflects the recovery of operating income and the reduction overhead costs, “said the Banif.
Banif also pointed to” the favorable evolution in loan impairment, which fell 124.1 million euros compared to 2013 “, for 171.8 million of euros. He explained that, excluding non-recurring impairment related to exposure to GES, the loan impairment stood at about 31% of the registered in 2013 (from 295.9 million euros to 91.8 million euros ), representing about 1% of the average gross loans granted.
The bank also noted the improvement in the transformation ratio of deposits in credit, which stood at 105.5% at the end of last year, when amounted to 126.4% in December 2013. The ratio common equity tier Banif 1 was the end of 2014 at 8.4% (according to the transitional arrangements for the new European rules).
Less 463 workers
Last year, Banif accelerated the implementation of measures envisaged in its restructuring plan, reducing the staff of 463 employees and closed 72 branches last year, the bank said. “As part of the ongoing transformation process, the year 2014 was characterized by strong acceleration of measures under the restructuring plan, notably through the anticipation of agency closure plans and reorganization of the central services and commercial intermediary structures” indicated the institution.
Banif noted that “despite the negative impact in terms of restructuring costs recorded in 2014, these measures were considered critical to enabling the adjustment of the bank’s business model, in account the current regulatory and economic, and that will constitute the strengthening of cost reductions from 2015, including “. As regards the number of bank branches in Portugal, there was a decrease of 72 agencies between December 2013 and December 2014.
Now with regard to its staff, the number of employees group in December 2014 stood at 2733 employees, a figure that compares with 3,196 employees in December 2013, ie an annual reduction of 14.5%. In terms of Banif SA, that is, the domestic operations of the bank, the reduction was even more significant, and ended the year 2014 with 1,935 employees, compared to 2,328 that had in December 2013, ie a reduction of 17% . “To achieve this objective was essential to operation of a voluntary severance program, early retirement and early retirement which involved about 400 employees,” the bank
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