BPI profits plummet 50% to €253 million
Portuguese bank BPI has posted profits of €253.6 million for the first nine months of 2019 – a fall of 52% compared with the same period last year (€529.1 million).
“For the like-for-like period of 2018, the evolution of the consolidated result (-52%) is rather influenced by extraordinary positive impacts recorded in September 2018 (+€160 million), essentially from a windfall from share sales and other activities in Portugal which will not be repeated in 2019,” states a communiqué from the bank on Monday.
According to the institution led by Pablo Forero which is wholly owned by CaixaBank, the result is also down to “a change in accounting classifications at BFA (Banco de Fomento de Angola) at the end of 2018 so that the consolidated result from 2019 reflects the dividends of BFI attributed to BPI when before they reflected the appropriation of BFA results by the equity method.
The recurring net profit of the activity in Portugal was €152.8 million, corresponding to a 7% YoY decrease, explained by €11 million of impairments in participation units in recovery funds held by the bank for a number of years which had been subscribed against the transfer of credits to those funds.
BFA’s contribution to the consolidated net profit in the first nine months of 2019 was €86.4 million, which includes the 2018 net dividends attributed to BPI and a reversal of deferred tax liabilities (€51 million). BCI in Mozambique generated a positive contribution of €14.5 million in the first nine months of 2019.