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LISBON, March 6 Portugal's second-largest bank
Millennium bcp posted a sharply lower 2016 net profit
on Monday, but remained in the black for the second year running
despite hefty losses last year due to massive provisions for bad
It also said the pace of new bad loan entries fell
significantly last year, while the coverage strengthened, and
the share of non-performing loans and risky loans fell after it
took loan impairment charges of over 1.1 billion euros ($1.16
billion), 37 percent higher than in 2015.
"There was a very positive and consistent evolution of the
consolidated operating result before provisions," Chief
Executive Nuno Amado told a news conference, citing an operating
income of over 1 billion euros and adding that there was "a
clear reduction in non-performing exposures".
For 2016, it reported a net profit of 23.9 million euros
after a profit of 235 million euros in 2015, with net interest
income - the difference between interest charged on loans and
interest paid on deposits - rising 3.3 percent to 1.23 billion
It did not announce its fourth-quarter result, but it had
previously reported a nine-month net loss of 251 million euros.
The bank said its core net income rose 8 percent last year
reflecting the higher net interest income and a 5 percent fall
in operating costs after cutting staff and branches.
Its key solvency ratios strengthened in the last quarter of
2016, before an early February capital increase, which helped it
repay expensive state loans and achieve a fully-loaded core Tier
1 ratio of over 11 percent, up from 10.2 percent at the end of
The capital increase that gave a bigger stake to BCP's key
shareholder, China's Fosun, has helped ease some investor
worries about Portugal's fragile banking sector, which is still
reeling after two bank rescues by the state in 2014 and 2015.
($1 = 0.9451 euros)
(Reporting By Sergio Goncalves and Andrei Khalip; editing by