LISBON Oct 25 Banco Espirito Santo,
Portugal's second-largest listed bank by assets, swung to
larger-than-expected net loss of 381 million euros in the first
nine months of 2013 from a year-ago profit as provisions for bad
loans rose sharply.
BES also said in a statement on Friday that net interest
income - the difference between interest charged on loans and
interest paid on deposits -- fell 15 percent to 767 million
euros from a year earlier.
Analysts surveyed by Reuters had predicted, on average, a
net loss of 299 million euros and net interest income of 727
Portugal emerged from a deep recession in the second
quarter, but banks are still expected to struggle in the short
term with the effects of the worst downturn since the 1970s in
the bailed-out country.
BES had previously said that the peak of overdue loans could
happen at the end of this quarter or the start of the next.
Its shares had closed 2.6 percent lower on Friday before the
results were announced, while the broader market in Lisbon fell
(Reporting by Andrei Khalip and Daniel Alvarenga)