EuroBic posts €5 million loss for 2020

 In Banks, News

EuroBic closed 2020 with a €5 million loss because of the Covid-19 pandemic.

Luanda Leaks also affected the business with the bank setting aside €5 million to deal with cases linked to the scandal involving its suspended shareholder, Angolan tycoon Isabel dos Santos who technically holds just over 40% of the bank.
The money was set aside to cover legal and administrative costs from Luanda Leaks, but no provision has been set aside for possible fines from the regulator, the Bank of Portugal over matters related to capital laundering.
In relation to the sale of the bank, due diligence checks are currently in an advanced “fine-tooth comb” stage by possible buyers with a view to making binding offers.
EuroBic has revealed that Neotil, owned by entrepreneur Roger Tamraz who had shown an interest in buying Isabel dos Santos’ share in the bank, has not shown further interest in a potential acquisition since the start of the year.
In the end of year accounts for 2020, EuroBic which is led by José Azevedo Pereira (a formal director-general of taxes), said that the controversy surrounding Luanda Leaks which in January 2020 exposed the origins of the fortune accumulated by the Angolan shareholder in the bank, resulted in a significant reduction in the bank’s business with Angola and with “a significant number of clients” in high-risk geographies.
Moreover, according to the bank, this decision had an impact “on the turnover of profits associated with trade finance operations in these high-risk geographies,” losses that are expected to be recovered in the future.
Clouds of uncertainty have also forced the bank to set aside money for a rainy day to cover possible storms in the future.
“It is important to also mention in this domain the increase in provisions to cover risks and liabilities regarding legal and administrative costs of around €5 million,” states EuroBic in its report.
Other shareholders in the bank, representing some 52.5% of the capital include Fernando Teles who is currently in the process of offloading his position through an organised market competition.
Banks said to be interested parties in acquiring a share in EuroBic include Novo Banco and Banco CTT.