Competing as a Strong and Independent Portuguese Bank
The 9M22 shows a significant improvement in profitability when compared
with previous period
Income Statement (Єmn)
▲ YOY
9M21
9M22
€mn
.
1
Net Interest Income
430.2
405.9
(24.2)
+ Fees & Commissions
207.9
215.7
+7.8
2
= Commercial Banking Income
638.0
621.6
(16.4)
+ Capital Markets Results
33.7
68.2
+34.5
•
+ Other Operating Results
1.2
161.3
+160.0
= Banking Income
672.9
851.1
+178.1
3 Operating Costs
305.7
314.2
+8.5
= Net Operating Income
367.2
536.8
4
Net Impairments & Provisions
159.6
22.5
= Income Before Tax
207.6
514.3
+169.6
(137.1)
+306.8
•
- Corporate Income Tax
13.0
27.8
+14.8
- Special Tax on Banks
34.2
34.1
(0.1)
= Income after Taxes
160.4
452.4
•
+292.0
Non-Controlling Interests
6.3
24.0
= Net Income for the period
154.1
428.3
+17.8
+274.3
novobanco
NII at €405.9mn backed by loan book expansion and stable customer
margins, set to benefit from a favorable rate environment. YoY deviation
explained by senior debt issuance in 4Q21 and conservative accounting for
TLTRO III interest in 3Q22, which reflected expected evolution of the ECB
rates until its maturity;
Commissions with a strong performance in payments given pick-up in
business activity and revised pricing;
Capital Markets Results positive by €68.2mn mostly due to gains from the
hedging of interest rate risk. The fair value reserves decreased by €275mn;
Other Operating Results of €161.3mn includes €77.1mn of gains from the
sale of logistics assets in 2Q22 (€58.5mn net of non-controlling interests) and
€71.5mn (€67.0mn net of contingencies) from the sale of the headquarters
building in 3Q22, offsetting €40.9mn of contributions to resolution funds;
Operating costs reflects the continued optimisation, investment done in the
new distribution model, and the reduction of staff costs given the lower
number of employees, being stable YoY on a recurring basis (€306.5mn);
Provisions at €22.5mn reflecting the quality of the portfolio after the execution
of the restructuring process (Cost of Risk was 0.20%, -41bp YoY);
Net Income of +€428.3mn (+€274.3mn; +178% YoY) reflecting a stable
performance of commercial activities and lower credit impairments.
26View entire presentation