Banco Portugues Do Atlantico; Net Income Up 39.2% to Eur 68 Million - PTE 13.6 Billion - in the First Half of 1999.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)--July 14, 1999-- Banco Portugues do Atlantico (BPA BPA British Paediatric Association. ) today reported net income for the first half of 1999 of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 68 million (PTE PTE The ISO 4217 currency code for the Portugese Escudo. 13.6 billion), an increase of 39.2% over net income of EUR 48.8 million in the same period of the previous year. The strong growth of net income more than compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for the dilutive impact of the share capital increase from EUR 549 million to EUR 629 million in October October: see month. 1998. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. increased 21.4% - from EUR 0.44 to EUR 0.54 (PTE 108.0) -, and ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. increased from 13.1% to 15.8% between the first half of 1998 and 1999. Net income for the first half of 1999 was 15.4% higher than pro-forma net income of EUR 58.9 million (PTE 11.8 billion) for the same period of the previous year (corresponding to statements of income produced as if the changes in the consolidation perimeter The boundary of a system or network, which defines the inside and outside. It is typically determined by firewalls and addresses. See DMZ. which took place in the second quarter of 1998 had occurred on January January: see month. 1, 1998). "Banco Portugues do Atlantico achieved an excellent performance in the first half of 1999. Operating in an environment characterised by the robust expansion of private consumption and investment in housing and equipment, by the sustained growth of loan demand by corporates and individuals and by changing expectations about the future trend of interest rates", commented Mr. Jardim There are many things that have the name Jardim (Portuguese for garden): Places In Brazil, South America
tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of our business objectives and profitability targets shows the impact of our strengthened involvement with our customers based upon systematised cross-selling Cross-selling is the term used to describe the sale of additional products or services to a customer. Less frequently it is used to describe the sale of services to additional business units at an account or to different geographic units of a customer. campaigns, the expansion of our business base through a focused approach to selected markets with attractive potential, effective management of innovative and complementary distribution channels and transactional platforms, and the reconciliation of the commercial dynamism with rigorous risk appraisal and pricing policies in the identification of business opportunities". PROFITABILITY INDICATORS 1st Half 99 1st Half 99 1st Half 98 Change PTE EUR EUR (99/98) Net income (PTE billion/EUR million) 13.620 67.935 48.802 39.2% Earnings per Share 108.0 0.54 0.44 21.4% ROE 15.8% 13.1% ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). 0.7% 0.5% The improvement of Banco Portugues do Atlantico's Net Income was mainly influenced by: the upward trend of net interest income as a result of the combination of strong expansion of the volume of interest-earning assets and the improvement of net interest margin; the strong increase of income from equity-accounted associated companies associated company associate n → Partnerfirma f associated company n → società collegata ; significant growth in net commissions as a result of the diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of Atlantico's product range and the increase in net trading gains, reflecting the adjustment to new investment opportunities following the changeover (programming) changeover - The time when a new system has been tested successfully and replaces the old system. to the euro. The impact of these factors more than offset the increase of operating costs operating costs npl → gastos mpl operacionales in nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. terms arising from the expansion of retail distribution networks, as well as the increase of provisions for loan losses as a consequence of the expansion of loan guaranties and BPA's ongoing strategy of prudent risk coverage. There was an increase of Loans and Advances to customers by 47.7% to EUR 5,306 million (PTE 1,064 billion) as at June June: see month. 30, 1999 (even though this does not include mortgage loans, leasing and factoring originated in Atlantico and Expresso Atlantico which continued to show a dynamic performance). This shows the strengthening of the relationship with the traditional individual customer base, the increased role in financing investment projects of leading Portuguese companies
1. an imprecise term denoting the formation of a viable zygote.concep´tive 2. concept. con·cep·tion n. 1. and launch of new products and the successful penetration of segments with a higher propensity for borrowing (such as young people, self-employed self-em·ployed adj. Earning one's livelihood directly from one's own trade or business rather than as an employee of another. self professionals, individual entrepreneurs and small companies). VOLUME INDICATORS 1st Half 99 1st Half 99 1st Half 98 Change PTE EUR EUR (99/98) Total Assets 3,494 17,428 18,666 -6.6% Total Customers' Funds (1) 2,724 13,588 12,945 5.0% Loans and Advances to customers 1,064 5,306 3,593 47.7% (1) Customers' deposits, certificates of deposit, assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper insurance (PTE billion and EUR million) Total Customers' Funds (including customers' deposits, certificates of deposit, assets under management and capitalisation insurance) were up 5.0% to EUR 13,588 million (PTE 2,724 billion) at June 30, 1999. This performance was achieved in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the reduced saving as a consequence of historically minimum nominal interest rates Nominal Interest Rate The interest rate unadjusted for inflation. Notes: Not taking into account inflation gives a less realistic number. See also: Inflation, Interest Rate, Real Interest Rate Nominal interest rate , a social and economic environment which stimulates immediate consumption, the persisting per·sist intr.v. per·sist·ed, per·sist·ing, per·sists 1. To be obstinately repetitious, insistent, or tenacious. 2. contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of emigrants' remittances
Remittances are transfers of money by foreign workers to their home countries. , households' preferences for investing in non-financial assets Non-Financial Asset An asset with a physical value such as land, property, or some type of object. Notes: Unlike financial assets such as stocks and bonds, which are intangible, non-financial assets are physical and have values based upon their physical properties. and a temporary halt in financial securitisation due to falling equity prices and turnover levels on the Portuguese Stock Market. Notwithstanding the significant growth of Loans and Advances to Customers, Total Assets stood at EUR 17,428 million (PTE 3,494 billion) on June 30, 1999, which represents a slight decrease on Total Assets of EUR 18,666 million at the end of the first half of 1998. This decrease was mainly due to a lower exposure to interbank markets Interbank market Financial institutions exchange of currencies between and among themselves. , arising from Atlantico's proactive liquidity management stance and its role as the unified treasury platform for the whole BCP/Atlantico Group. Funds gathered by the divestment divestment to strip one's investment from an entity. of a shareholding in BSCH BSCh abbr. Bachelor of Science in Chemistry , the issuance of preference shares and the recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. to an EMTN EMTN Euro Medium-Term Note programme influenced Atlantico's liquidity requirements in the second quarter of 1999 and had a relevant impact on its balance-sheet. OPERATING INDICATORS 1st Half 99 1st Half 98 Net Interest Margin 1.5% 1.3% Other Income/Total Income 52.5% 49.7% Operating Costs/Total Income 63.3% 69.0% Net interest margin increased from 1.3% to 1.5% between the first half of 1998 and the first half of 1999, benefiting from the changes in the asset-structure, in particular the smaller volume of deposits with other credit institutions and the pronounced expansion of the loan portfolio, which more than offset the impact of shrinking spreads induced induced /in·duced/ (in-dldbomacst´) 1. produced artificially. 2. produced by induction. induced, adj artificially caused to occur. induced induction. by increased competition in the segment of individuals, small and medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized companies. These positive effects were countered by the sharp deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of spreads on demand deposits induced by the expressive fall of interest rates on money markets between June 30, 1998 and 1999, and to a lesser degree by narrowing spreads of time deposits, as well as, by the change in the structure of Customers' Funds, in particular the continuing decrease of emigrants' deposits. The proportion of Other Income to Total Income stood at 52.5% in the first half of 1999 (49.7% in the first half of 1998), consolidating the upward trend seen in previous years. Income from securities grew favourably Adv. 1. favourably - showing approval; "he reviewed the play favorably" favorably favourably U.S. favorably adverb 1. , reaching EUR 31.0 million in the first half of 1999 as a result of improved profitability levels of associated companies and of the reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet of their shareholding structure which took place in the second quarter of 1998; net commissions increased from EUR 36.5 million to EUR 47.5 million as a result of the strong performances of the card business and the cross-selling of products and services from associated companies. These changes offset the decrease in commissions on securities. Net gains on trading securities increased to EUR 31.8 million, benefiting from capital gains earned on securities. Even though Operating Costs increased by 12.3% over the same period of the last year, the efficiency ratio consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: the improvement profile seen in previous years, decreasing from 69.0% to 63.3% between the first half of 1998 and the first half of 1999. This performance was explained by the emphasis on operational rationalisation Noun 1. rationalisation - (psychiatry) a defense mechanism by which your true motivation is concealed by explaining your actions and feelings in a way that is not threatening rationalization and cost control, as well as by economies of scale due to the expansion of business volumes. The increase of operating costs can be explained by the increase in the number of transactions and the increased commercial and operating support structures, as well as by investments in marketing campaigns aiming to capitalise Verb 1. capitalise - supply with capital, as of a business by using a combination of capital used by investors and debt capital provided by lenders capitalize on Atlantico's 80th anniversary and the recruitment and integration of employees and investments made in the expansion of the Atlantico and Expresso Atlantico networks. LOAN QUALITY INDICATORS 1st Half 99 1st Half 98 Loans more than 90 days overdue/Total Loans 1.4% 2.7% Total past due Loans/Total Loans 1.6% 2.9% Provisions/Loans more than 90 days overdue OVERDUE. A bill, note, bond or other contract, for the payment of money at a particular day, when not paid upon the day, is overdue. 2. The indorsement of a note or bill overdue, is equivalent to drawing a new bill payable at sight. 2 Conn. 419; 18 Pick. 177.7% 158.6% Provisions/Total past due Loans 153.7% 144.8% Past due loans decreased 19.0% from EUR 107.8 million (PTE 21,618 million) to EUR 87.3 million (PTE 17.5 billion) between June 30, 1998 and 1999, in line with a decrease in the proportion of past due loans more than 90 days overdue to total loans from 2.7% to 1.4%. The coverage of past due loans more than 90 days overdue by provisions increased from 158.6% to 177.7% between the first half of 1998 and the first half of 1999. "The improved asset quality and the favourable performance of BPA's profitability indicators - reflecting increased benefits flowing from relaunched commercial activities, as well as investment in 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). operating platforms - have reinforced re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. Atlantico's asset structure and financial soundness, as recognised by the international agencies which have upgraded Atlantico's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. ratings", said Mr. Jardim Goncalves, adding: "BPA will play an important role in the consolidation process in the domestic market, either through building on its competitive capacities and increasing its market share or by participating in the concentration process being driven by the Group".
BANCO PORTUGUES DO ATLANTICO
Consolidated Balance Sheet as at 30 June, 1999 and 1998
1999 1999 1998
------------- --------------- ---------------
Assets (Thousands (Thousands of Escudos)
of Euros)
Cash and deposits
at central banks 233,755 46,863,597 35,171,189
Loans and advances
to credit institutions
Repayable on demand 211,322 42,366,293 28,837,831
Other loans and
advances 7,072,532 1,417,915,300 1,962,509,725
Loans and advances
to customers 5,305,811 1,063,719,605 720,329,933
Securities 3,078,315 617,146,819 684,375,266
Investments 233,152 46,742,694 39,648,000
Intangible assets 49,877 9,999,511 11,514,046
Tangible assets 228,563 45,822,841 38,814,137
Other debtors 331,217 66,402,948 44,301,183
Prepayments and
accrued income 683,021 136,933,407 176,726,093
=========== =============== ===============
17,427,565 3,493,913,015 3,742,227,403
=========== =============== ===============
Liabilities
Amounts owed to credit
institutions
Repayable on demand 193,404 38,773,957 64,350,640
With agreed maturity
date 7,610,766 1,525,821,502 1,676,224,747
Amounts owed to customers
Repayable on demand 2,293,152 459,735,771 405,683,654
With agreed maturity
date 5,016,193 1,005,656,477 1,117,118,046
Debt securities 9,976 2,000,000 7,078,924
Other liabilities 140,668 28,201,387 40,886,590
Accruals and deferred
income 602,300 120,750,079 144,364,904
Provision for liabilities
and charges 116,312 23,318,391 23,947,933
Subordinated debt 521,235 104,498,333 104,501,872
----------- --------------- ---------------
Total Liabilities 16,504,006 3,308,755,897 3,584,157,310
----------- --------------- ---------------
Shareholders' Equity
Share capital 630,500 126,403,901 110,000,000
Share premium 142,686 28,605,997 -
Reserves and retained
earnings 138,065 27,679,605 46,380,650
----------- --------------- ---------------
Total Shareholders'
Equity 911,251 182,689,503 156,380,650
----------- --------------- ---------------
Minority interests 12,308 2,467,615 1,689,443
----------- --------------- ---------------
Total Minority
Interests 12,308 2,467,615 1,689,443
----------- --------------- ---------------
=========== =============== ===============
17,427,565 3,493,913,015 3,742,227,403
=========== =============== ===============
Official exchange of Euro as at 30 June 1999: 200.482
BANCO PORTUGUES DO ATLANTICO
Consolidated Statement of Income
for the six months ended 30 June, 1999 and 1998
1999 1999 1998
----------- --------------- ---------------
(Thousands (Thousands of Escudos)
of Euros)
Interest income 425,919 85,389,088 100,389,388
Interest expense 303,621 60,870,548 79,154,577
----------- --------------- ---------------
Net interest
income 122,298 24,518,540 21,234,811
Provision for loan
losses 26,331 5,278,829 3,646,050
----------- --------------- ---------------
Net interest
income after
provision for
loan losses 95,967 19,239,711 17,588,761
----------- --------------- ---------------
Other operating income:
Income from securities 31,004 6,215,704 4,234,689
Commissions 51,377 10,300,135 8,187,715
Profit arising from
trading activity 90,616 18,166,907 21,262,359
Other income 32,708 6,557,354 6,921,999
----------- --------------- ---------------
205,705 41,240,100 40,606,762
----------- --------------- ---------------
Other operating expenses:
Commissions 3,913 784,500 867,938
Losses arising from
trading activity 58,842 11,796,842 16,377,626
Staff costs 70,864 14,206,875 13,044,928
Other administrative
costs 74,951 15,026,326 12,797,720
Depreciation 17,078 3,423,852 3,247,276
Other provisions 2,852 571,789 (424,245)
Other expenses 7,890 1,581,640 2,418,822
----------- --------------- ---------------
236,390 47,391,824 48,330,065
----------- --------------- ---------------
Income before
income taxes 65,282 13,087,987 9,865,458
Income taxes 255 51,220 426,339
----------- --------------- ---------------
Net income 65,027 13,036,767 9,439,119
Minority interests (2,908) (582,993) (345,202)
=========== =============== ===============
Net income for
the year
attributable
to the Bank 67,935 13,619,760 9,784,321
=========== =============== ===============
Official exchange of Euro as at 30 June 1999: 200.482
BANCO PORTUGUES DO ATLANTICO
CONSOLIDATED STATEMENT OF INCOME
UNAUDITED
(Amounts expressed in million)
Accumulated
EUR PTE
30/06/9 VAR. 30/06/99 30/06/98
Interest income 425.9 -14.9% 85,390 100,389
Interest expense 303.6 -23.1% 60,871 79,155
Net interest income 122.3 15.5% 24,519 21,234
Provision for possible loan
losses 26.3 44.8% 5,279 3,646
Net interest income after
provision for possible
loan losses 96.0 9.4% 19,240 17,588
Other operating income:
Income from securities 31.0 46.8% 6,216 4,235
Commissions 51.4 25.8% 10,300 8,188
Profit arising from
trading activity 90.6 14.6% 18,167 21,262
Other income 32.7 -5.3% 6,557 6,922
Gains on sale of shares of
subsidiaries 0.0 0 0
205.7 1.6% 41,240 40,607
Other operating expenses
Commissions 3.9 -9.7% 784 868
Losses arising from
trading activity 58.8 -28.0% 11,797 16,377
Staff costs 70.9 8.9% 14,207 13,045
Other administrative costs 74.9 17.4% 15,026 12,798
Depreciation 17.1 5.5% 3,424 3,247
Other provisions 2.9 572 -424
Other expenses 7.9 -34.6% 1,582 2,419
236.4 -1.9% 47,392 48,330
Income before income taxes 65.3 32.7% 13,088 9,865
Income taxes 0.3 -88.0% 51 426
Net income 65.0 38.1% 13,037 9,439
Minority interests (2.9) -583 -345
Net income attributable to
the bank 67.9 39.2% 13,620 9,784
Number of shares (Average) 126,100 14.6% 126,100 110,000
Earnings per share in
Escudos 0.54 21.4% 108.0 88.9
QUARTERLY
PTE
30/06/99 31/03/99 31/12/99 30/09/98 30/06/98
Interest income 39,063 46,327 48,449 50,799 43,314
Interest expense 26,871 34,000 35,934 38,095 32,353
Net interest income 12,192 12,327 12,515 12,704 10,961
Provision for possible
loan losses 3,003 2,276 2,228 1,568 1,723
Net interest income
after provision for
possible loan losses 9,189 10,051 10,287 11,136 9,238
Other operating income:
Income from securities 3,327 2,889 1,815 1,967 2,398
Commissions 5,290 5,010 5,577 5,056 3,178
Profit arising from
trading activity 6,925 11,242 11,544 16,565 7,021
Other income 3,597 2,960 2,636 2,636 2,867
Gains on sale of
shares of
subsidiaries 0 0 0 0 0
19,139 22,101 21,572 26,224 15,464
Other operating expenses
Commissions 325 459 267 458 291
Losses arising from
trading activity 3,318 8,479 8,083 13,776 4,762
Staff costs 7,312 6,895 6,875 6,983 6,540
Other administrative
costs 7,685 7,341 7,193 8,115 5,652
Depreciation 1,677 1,747 1,852 1,705 1,744
Other provisions 593 -21 264 220 -597
Other expenses 705 877 887 503 1,561
21,615 25,777 25,421 31,760 19,953
Income before income
taxes 6,713 6,375 6,438 5,600 4,749
Income taxes -1 52 -185 485 28
Net income 6,714 6,323 6,623 5,115 4,721
Minority interests -256 -327 -376 -268 -467
Net income attributable
to the bank 6,970 6,650 6,999 5,383 5,188
Number of shares
(Average) 126,100 126,100 120,150 110,000 110,000
Earnings per share in
Escudos 55.3 52.7 58.3 48.9 47.2
31/03/98 31/12/97 30/09/97 30/06/97
Interest income 57,075 50,654 64,792 74,097
Interest expense 46,802 38,938 54,716 63,975
Net interest income 10,273 11,716 10,076 10,122
Provision for possible
loan losses 1,923 3,808 1,551 2,784
Net interest income
after provision for
possible loan 8,350 7,908 8,525 7,338
Other operating income:
Income from securities 1,837 1,631 1,671 1,323
Commissions 5,010 5,541 3,784 4,174
Profit arising from
trading activity 14,241 31,452 23,344 33,304
Other income 4,055 3,878 3,661 3,446
Gains on sale of
shares of
subsidiaries 0 -1,889 0 0
25,143 40,613 32,460 42,247
Other operating expenses
Commissions 577 799 505 445
Losses arising from
trading activity 11,615 28,927 18,590 28,530
Staff costs 6,505 8,533 9,017 8,892
Other administrative
costs 7,146 5,198 5,261 5,165
Depreciation 1,503 1,581 1,438 1,420
Other provisions 173 -2,665 271 85
Other expenses 858 351 1,498 1,581
28,377 42,724 36,580 46,118
Income before income
taxes 5,116 5,797 4,405 3,467
Income taxes 398 225 430 380
Net income 4,718 5,572 3,975 3,087
Minority interests 122 155 437 862
Net income attributable
to the bank 4,596 5,417 3,538 2,225
Number of shares
(Average) 110,000 110,000 110,000 110,000
Earnings per share in
Escudos 41.8 49.2 32.2 20.2
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