Portuguese bank BPI posts profit but BCP posts loss of 740 million euros in 2013

5 February 2014

Portuguese bank BPAI posted a net profit in 2013 of 66.8 million euros, which was a drop of 73.2 percent against the 249.1 million euros posted in 2012, said the bank’s chief executive.

Cited by the Portuguese press, Fernando Ulrich said that business in Portugal had fallen back drastically and led to a loss of 28.3 million euros, which was offset by profit of 95.2 million euros in its foreign business, which grew by 10 percent.

This quarter the bank plans to pay off another 500 million-euro tranche of the 1.5 billion euros provided to it by the State as part of a programme to recapitalise banks. This will leave a remaining debt of 420 million euros.

Portugal’s largest private bank, BCP, in 2013 posted a loss of 740 million euros, which compares to a loss of 1.2 billion euros in 2012.

According to BCP results in 2013 were affected by the cost of the early retirement and negotiated redundancy programme, in the amount of 126 million euros.

The bank’s board of directors plans to put in place a cost-cutting plan in the first half of 2014, which will include reducing salaries as well as the structure of the bank itself. (macauhub)