Eurobic set for historic results

 In Banks, News

Despite ongoing uncertainties in its shareholding structure, the Portuguese bank Eurobic is set for a year of record financial results after the institution doubled its profits for the first half of 2023.

Its profit of €48.4 million was achieved in part on the back of high interest rates, 20% more than its best year in 2019 since it was founded in 2008.
Nevertheless, the bank’s administration has set a prudent course and has avoided trumpeting its record results.
The H1 results were a 95% increase on the same period in 2022 according to its first half results to June.
The bank’s financial margin increased 130% in the first six months of the year, reaching €117.2 million.
With this performance, the bank led by José Azevedo Pereira, is on course for historic results for 2023 wit results 20% up on its best year since it was founded in 2008 just before the Luanda Leak broke in early 2020 centred around its shareholder Isabel dos Santos who held a 42% stake in the bank.
At that time, Eurobic was the target of searches by the Portuguese Judicial Police (PJ) ordered by the Public Ministry with documents being seized after allegations that around €100 million had been syphoned off Angola’s State oil company Sonangol.
In 2019 the bank’s profits were €61.1 million. In the first half of 2023 Eurobic had made 80% of the 2019 result and has another six months to make the 20% needed to break that 2019 record.
Eurobic has remained tight-lipped over its expected sale. There is an agreement on the table to sell the bank to the Spanish bank Abanca. Novobanco has also shown an interest in acquiring Eurobic.
Jornal Económico believes that the sale of the bank will go ahead in two tranches: a first tranche of 57.5% of the capital, including the shareholding of Fernando Teles; and afterwards a second tranche of 42.5% regarding the shareholding of 42.5% held by Isabel dos Santos.