BPG in Chinese group selloff

Banco Português de Gestão, a small bank belonging to the foundation Fundação Oriente, which posted debts of €6 million in 2023, is to be sold to the Chinese group Vcredit.

Although the Banco Português de Gestão (BPG) reported a financial margin of 14% to €1.2 million, its performance was not enough to offset a fall in bank product of 47.7% to €1.3 million. The bank’s product fell because of losses from financial operations.

On the other hand, operational costs also increased 7.2% to €7.6 million in marked contrast to the banking sector’s record profits in 2023 on the back of high interest rates.

In recent years the BPG underwent an extensive restructuring by offloading Non-Performing Loans as well as receiving successive cash injections from the main shareholder Oriente Foundation of almost €40 million to offset the impact of capital ratio losses. NPLs fell to 5.5% at the end of last year, 10% down on 2022.

BPG closed 2023 with a credit portfolio worth €33 million with deposits up 6.8% to €115.7 million, leaving the bank in a much better position of liquidity but under pressure to improve its 28.5% transformation rate.

Since 2019, the Oriente Foundation has injected €38 million into the bank which will now be sold off for €20 million. The Chinese buyer sees the bank as a gateway to the European market.