[0] Espirito Santo Financial Group Announces 2001 Half Year Results.Business Editors LUXEMBOURG Luxembourg, province, Belgium Luxembourg, Du. Luxemburg, province (1991 pop. 232,813), 1,706 sq mi (4,419 sq km), SE Belgium, in the Ardennes, bordering on the Grand Duchy of Luxembourg in the east and on France in the south. & LISBON Lisbon (lĭz`bən), Port. Lisboa, ancient Olisipo, city (1991 pop. 677,790), W Portugal, capital of Portugal and of Lisboa dist., on the Tagus River where it broadens to enter the Atlantic Ocean. , Portugal--(BUSINESS WIRE)--Sept. 20, 2001 Espirito Santo Santo, New Hebrides: see Espíritu Santo. Financial Group(NYSE NYSE See: New York Stock Exchange :ESF (1) (Extended SuperFrame) An enhanced T1 format that allows a line to be monitored during normal operation. It uses 24 frames grouped together (instead of the 12-frame D4 superframe) and provides room for CRC bits and other diagnostic commands. ): - Strong Net Interest Income growth achieved - Strong increase in insurance market share - Results negatively affected by market conditions and taxation Espirito Santo Financial Group ("ESFG") (NYSE:ESF) announced today consolidated unaudited net losses of 6.1 million Euros, for the first six months of 2001, against a profit of 43.1 million Euros in the first six months of the previous year. A substantial increase in consolidated net interest income was not sufficient to compensate for the effect of negative capital market conditions on the results of trading and investment banking activities and on the securities portfolio of ESFG's insurance subsidiary, as well as the increased taxation at the level of some of the Portuguese subsidiaries. A 25.3 per cent increase in the volume of ESFG's consolidated loans and advances to customers to reach 25.6 billion Euros, principally resulting from the activities of ESFG's Portuguese subsidiary Banco Espirito Santo ("BES") and its group (level of consolidation 31.0 per cent), principally in mortgage and corporate lending, more than compensated for the slight decline in lending margins and resulted in an increase of 26.8 per cent in consolidated net interest income at the level of ESFG. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the above mentioned lending growth in Portugal Portugal (pôr`chəgəl), officially Portuguese Republic, republic (2005 est. pop. 10,566,000), 35,553 sq mi (92,082 sq km), SW Europe, on the western side of the Iberian Peninsula and including the Madeira Islands and the Azores in the , both total gross non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. and gross non-performing loans over 90 days at BES declined as a percentage of total gross loans, from 2.12 per cent in June June: see month. 2000 to 1.86 per cent in June 2001 and from 1.85 per cent in June 2000 to 1.67 per cent in June 2001, respectively. In the same period, BES' coverage of total non performing loans by provisions grew from 127.0 to 135.8 per cent and coverage on non-performing loans over 90 days increased from 145.8 to 152.0 per cent. Also in the same period, the Banco de Portugal The Banco de Portugal is the central bank of the Republic of Portugal. Established by a royal charter of 19 November 1846 to act as a commercial bank and issuing bank, it came about as the result of a merger of the Banco de Lisboa and the Companhia de Confiança Nacional, an solvency ratio Solvency Ratio One of many ratios used to gauge a company's ability to meet long-term obligations. Notes: Derived by taking a company's net worth and dividing by total assets. See also: Asset, Asset Valuation, Balance Sheet, Fundamental Analysis, Income Statement of BES and its group improved from 9.5 to 10.0 per cent, whilst the BIS Tier I ratio improved from 6.3 to 6.7 per cent and the BIS ratio from 10.9 to 11.3 per cent. ESFG's consolidated fee and commission income increased 5.0 per cent in June 2001 compared with the same period in the previous year, to reach 145.5 million Euros. This is a significant result, taking in consideration that in the first half of 2000, fees originating from investment banking activities had reached a very high level, and also that conditions in the capital markets in Portugal were considerably worse in the first half of 2001, than they were in the same period of the previous year. Difficult conditions in the Portuguese and international capital markets also affected ESFG's consolidated results of trading in securities and derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. . This is highlighted in the items " net trading results on trading and investment securities" and "net gains on foreign currency transactions and derivatives" in ESFG's consolidated statements of income, which suffered declines of over 80.0 per cent each, when compared to the first half of 2000. ESFG's consolidated insurance revenues increased 22.5 per cent in the first half of 2001, when compared with the corresponding period in the previous year, to reach 718.3 million Euros. Indeed, growth at ESFG's Portuguese insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. Companhia de Seguros Tranquilidade Tranquilidade (tranquility in english) is a Portuguese insurance company, founded in Oporto in 1871. It is part of the Portuguese economic group "Grupo Espirito Santo". ("Tranquilidade") (level of consolidation 66.7 per cent) was substantially above the 5.3 per cent growth experienced by the Portuguese market as a whole. As a consequence, Tranquilidade<180>s total market share increased from 15.5 to 17.2 per cent in the same period, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Associacao Portuguesa Portuguesa, Portuguese for something which is Portuguese and Female, may refer to:
As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the bancassurance Bancassurance A French term referring to the selling of insurance through a bank's established distribution channels. Notes: The result is a bank that can offer banking, insurance, lending, and investment products to a customer. strategy, accounted for 93.0 per cent of the total sales of such products. The same network was also determinant determinant, a polynomial expression that is inherent in the entries of a square matrix. The size n of the square matrix, as determined from the number of entries in any row or column, is called the order of the determinant. in securing a 34.5 per cent market share in individual pension plans marketed by Tranquilidade and managed by the group's fund management subsidiary ESAF ESAF Enhanced Structural Adjustment Facility ESAF Escola de Administração Fazendária (Brazil) ESAF Electric Safe Arm and Fire and by BES. The increase of 29.9 per cent in ESFG's consolidated salaries and benefits results mainly from the consolidation of Via Banque (level of consolidation 98.5 per cent) which was acquired by ESFG through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. ESFIL in several stages starting in the second half of 2000 and therefore did not affect the results of the first semester se·mes·ter n. One of two divisions of 15 to 18 weeks each of an academic year. [German, from Latin (cursus) s of 2000 and to the 19.3 per cent growth in costs originating at BES and its group. In turn, the latter resulted largely from additional units in the BES consolidation scope. This reflected in the growth of BES' total cost to income ratio from 43.6 per cent in June 2000 to 57.7 per cent in June 2001; however if trading results were excluded, the cost to income ratio would have grown only from 59.9 per cent in June 2000 to 60.1 per cent in June 2001, as the contribution of trading results in the first semester of 2001 was lower than in the corresponding period in the previous year. BES' cost to income ratio (excluding trading) declined from 62.1 per cent in the first quarter of 2001 to 58.2 per cent in the second quarter. The restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan announced by BES is expected to contribute to an overall cost reduction of 154 million Euros over ten years. It includes the reduction of 790 employees, the integration of BES' and its group's IT banking platform by the third quarter of 2001, a wider usage of an e-procurement (Electronic-PROCUREMENT) Purchasing online. E-procurement systems are used to obtain materials and parts via the Web or using traditional EDI standards either for internal manufacturing (direct procurement) or office supplies and equipment (indirect procurement). platform and the integration of the various operating platforms by concentrating the logistics and information systems support of the various units of the BES group under a single operation. ESFG's consolidated insurance underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and related expenses increased 110.1 per cent over the same period in the previous year. Much of this increase corresponds to the provisions made necessary by the unrealised capital losses in Tranquilidade's investment portfolio, during the first half of the year. Indeed, Tranquilidade's portfolio was negatively affected by the depressed conditions in international and the Portuguese stock markets. In the latter, the PSI-20 index declined 20.5 per cent in the first six months of the year (9.08 per cent in June 2001 alone). This resulted in approximately 54.9 million Euros in unrealised capital losses in Tranquilidade's investment portfolio which were fully provided for, causing Tranquilidade to post a net loss of 45.2 million Euros in June 2001. Tranquilidade is not involved in insurance or re-insurance RE-INSURANCE, mar. contr. An insurance made by a former insurer, his executors, administrators, or assigns, to protect himself and his estate from a risk to which they were liable by the first insurance. 2. It differs from a double insurance (q.v. business connected with the recent disaster at the World Trade Center in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . The ratio of ESFG's tax liability over income before taxes and minority interests increased substantially in the first semester of 2001 compared with the corresponding period in the previous year, due to taxation effects at the level of its subsidiaries Tranquilidade and BES. In the case of Tranquilidade, taxes were levied on operational results (which were positive) prior to the provisions mentioned in the preceding paragraph. This accounts for much of the increase in ESFG's effective income tax rate from June 2000 to June 2001. In the case of BES, the taxation of generic provisions introduced by the Portuguese government at the end of 2000 had considerable effects. As BES' credit portfolio grew so did the compulsory Wikipedia does not currently have an encyclopedia article for . You may like to search Wiktionary for "" instead. To begin an article here, feel free to [ edit this page], but please do not create a mere dictionary definition. generic provisions, resulting in additional tax liability. During the first semester of 2000 ESFG (through its wholly owned subsidiary ESFIL) continued to pursue further acquisitions of the share capital of Via Banque, which had started in October October: see month. 2000, with the purchase of 59.94 per cent of the shares from BNP Paribas BNP Paribas (Euronext: BNP, TYO: 8665 ) is one of the main banks in Europe and France. It was created on 23 May 2000 through the merger of Banque Nationale de Paris (BNP) and Paribas. . In May/June 2001 an offer for the final 25.9 per cent of the shares of Via Banque was announced and, by mid July July: see month. , ESFG achieved full indirect control of Via Banque. The full integration of Via Banque with Banque Espirito Santo et de la Venetie is now in progress. ESFG's banking group continues to report good progress in the integration of the newly acquired Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. brokerage and portfolio management operations, whilst the levels of crosselling achieved in the bancassurance operations continue to grow, providing Tranquilidade with an exceptional base for the expansion of its life and, to a lesser extent, non-life In the physical sciences, non-life is an umbrella term set to distinguish or characterize those inanimate chemical precursors found in the primeval soup of the early years of planetary evolution from which life, theoretically, evolved or came into existence. activities. Meanwhile, the electronic banking indicators continue to show a good performance: BES achieved 235,000 subscribers in its on-line personal banking platform, whilst some 7,000 companies already use its BESNet Negocios service. In terms of new initiatives, Banco Best was launched in late June 2001 and BEStv, a pioneering interactive TV service is being activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. soon.
ESPIRITO SANTO FINANCIAL GROUP SA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Unaudited Unaudited Audited
30-Jun-01 30-Jun-00 31-Dec-00
ASSETS
Cash and due from banks 1,286.5 1,319.8 1,699.5
Interest-earning deposits
with other banks 2,154.1 2,664.0 2,183.6
Trading account securities 741.6 565.0 623.3
Investment securities 10,235.0 6,882.8 7,676.2
Loans and advances to
customers 25,558.6 20,400.9 23,626.9
Allowance for loan losses (639.6) (567.0) (625.6)
Accrued interest income 297.3 238.8 271.5
Property and equipment 531.1 511.7 540.7
Other assets 1,481.5 1,335.0 1,386.0
TOTAL ASSETS 41,646.1 33,351.0 37,382.1
LIABILITIES
Deposits from banks 4,846.1 5,160.1 1,885.0
Demand deposits 5,459.7 4,423.0 6,095.1
Time deposits 11,911.1 11,020.9 11,722.8
Securities sold under
repurchase agreements 653.5 319.6 699.5
Other short-term borrowings 2,045.3 1,694.4 2,229.7
Insurance policy reserves 4,240.0 3,436.2 4,011.4
Accrued interest and other
liabilities 1,600.6 920.9 896.2
Corporate borrowings and
long-term debt 8,983.3 4,420.9 7,945.3
TOTAL LIABILITIES 39,739.6 31,396.0 35,485.0
MINORITY INTERESTS 1,771.7 1,588.5 1,727.8
SHAREHOLDERS' EQUITY
Common stock, EURO 10
per value: 479.1 479.1 479.1
Treasury stock, at cost (57.3) (59.4) (72.8)
Revaluation reserve 0.0 13.4 3.0
Retained earnings (300.7) (80.1) (233.3)
Accumulated other
comprehensive income 18.7 13.5 (6.7)
TOTAL SHAREHOLDERS'
EQUITY 139.8 366.5 169.3
TOTAL LIABILITIES and
SHAREHOLDERS' EQUITY 41,651.1 33,351.0 37,382.1
ESPIRITO SANTO FINANCIAL GROUP SA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Unaudited Unaudited Audited
30-Jun-01 30-Jun-00 31-Dec-00
Interest income
Interest on loans 835.8 582.5 1,267.0
Interest and dividends
on securities
Trading securities 12.3 5.1 11.7
Investment securities 139.5 91.5 266.4
Other interest income 69.0 107.5 200.3
Total interest income 1,056.6 786.6 1,745.4
Interest expense
Interest on deposits 430.4 343.6 705.6
Interest on securities
sold under repurchase
agreements 16.0 5.1 22.7
Interest on short-term
borrowings 53.3 44.0 116.3
Interest on corporate
borrowings and
long-term debt 179.6 96.4 255.1
Total interest expense 679.3 489.1 1,099.7
Net interest income 377.3 297.5 645.7
Provisions for loan losses (70.0) (55.9) (135.2)
Net interest income after
provision for loan losses 307.3 241.6 510.5
Other income
Fee and commission income 145.4 138.5 315.3
Net trading result on
trading and investment
securities 3.2 23.5 62.7
Insurance revenues 718.3 586.5 1,525.2
Net gains on foreign
currency transactions
and derivatives 11.0 75.8 113.1
Other operating income 73.2 49.6 119.2
Total other income 951.1 873.9 2,135.5
Other expenses
Salaries and benefits 198.2 152.6 361.3
Occupancy cost 19.6 18.9 62.6
Insurance benefits and
claims 586.3 498.6 1,302.5
Insurance underwriting
and related expenses 91.6 43.6 77.6
Depreciation 30.4 27.7 59.0
Amortization 39.2 34.1 70.9
Other expenses 187.6 145.6 355.0
Total other expenses 1,152.9 921.1 2,288.9
Income before income
taxes and minority
interests 105.5 194.4 357.1
Income taxes (39.9) (43.2) (74.6)
Minority interests in
income of consolidated
subsidiaries (71.2) (107.5) (177.9)
Earnings in Equity
subsidiaries (0.5) (0.6) 1.7
Net income (6.1) 43.1 106.3
Net income per share (0.14) 0.97 2.42
Weighted average number
of shares
outstanding: 44,525,638 44,245,950 43,943,526
--30--fap/ad/ac/ny*
CONTACT: Espirito Santo Financial Group
Manuel Villas-Boas, +44-20-7332-4350
or
Taylor Rafferty, London
Bernard Compagnon, +44-20-7936-0400
or
Taylor Rafferty, New York
Dana Johnston, 212/889-4350
KEYWORD: LUXEMBOURG PORTUGAL INTERNATIONAL EUROPE
INDUSTRY KEYWORD: BANKING EARNINGS
SOURCE: Espirito Santo Financial Group
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