1H22 Financial Performance
Continuous improvement of underlying performance
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NII at €268mn (-€21mn; -7% YoY) backed by loan book expansion with
defending rates and set to benefit from a favorable rate environment. YoY
comparison explained by senior debt issuance in 4Q21 and negative interest
rates on money market placements;
Commissions (+€9mn; +7% YoY) driven by increased economic activity and
higher volume of transaction and performance of Asset Management and
Bancassurance segment;
Capital Markets Results were positive by €85.8mn (2Q22: -€5.6mn) mostly
due to gains from the hedging of interest rate risk, reflecting the volatility of
sovereign debt in the market. The fair value reserves decreased by €272mn
(2Q22: €28mn);
Other Operating Results of €73.2mn includes €77.1mn of gains from the sale
of real estate assets (logistics; €58.5mn net of non-controlling interests),
offsetting €40.9mn of contributions to resolution funds;
Operating costs evolution (+€4.6mn; +2.2%), reflects the continued
optimisation, investment done in the new distribution model, and the reduction
of staff costs given the lower number of employees, decreasing by 0.5% YoY
on a recurring basis;
Provisions at €19.8mn (-€69mn; -78% YoY), reflecting the quality of the
portfolio after the execution of the restructuring process (Cost of Risk was
0.15%, -0.53% YoY);
Net Income of +€267mn (+€129mn; +94% YoY) reflecting a stable
performance of commercial activities and lower credit impairments.
Income Statement (€mn)
1H21
1H22
▲ YOY
€mn
Net Interest Income
289.3
268.0
(21.2)
+ Fees & Commissions
135.5
144.4
+8.9
= Commercial Banking Income
424.8
412.4
(12.4)
+ Capital Markets Results
93.3
85.8
+ Other Operating Results
-29.1
73.2
(7.6)
+102.4
= Banking Income
489.0
571.5
+82.4
- Operating Costs
204.1
208.7
+4.6
= Net Operating Income
284.9
362.7
+77.8
Net Impairments & Provisions
89.2
19.8
(69.4)
= Income Before Tax
195.7
343.0
+147.2
- Corporate Income Tax
21.1
18.9
(2.2)
- Special Tax on Banks
34.2
34.1
(0.1)
= Income after Taxes
140.4
289.9
+149.5
Non-Controlling Interests
2.7
23.2
+20.5
= Net Income for the period
137.7
266.7
+129.0
novobanco
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