LISBON Feb 3 Portugal's largest listed bank by
assets, Millennium bcp, posted a 2013 net loss of 740.5
million euros ($1 billion), hurt by impairments on bad loans and
the high cost of interest on state loans.
The cost of tapping state loans, a part of Portugal's
bailout aimed at recapitalising its banks, rose to 269 million
euros in 2013 from 135 million in 2012. Impairments hit 1.287
billion euros last year, down from 1.319 billion in 2012.
The loss was slightly more than the 730 million euros
forecast by analysts and compares with a loss of 1.22 billion in
Net interest income, the difference between interest charged
on loans and interest paid on deposits, fell 15 percent to 848
million euros compared with 870 million forecast by analysts.
Portugal's 2011 bailout and the debt crisis that sparked its
worst economic crisis since the 1970s hit its banks hard. But
the economy has now started to recover and 2014 may be
Portugal's first year with positive economic growth since 2010.
Millenium bcp's shares are flat for the year, having been
hit by the general downturn in stock markets, and closed 2.6
percent lower on Monday before the release of the results.
The bank said that overseas operations posted a net profit
of 178 million euros, a gain of 6.5 percent. Portugal has
operations in Poland, Angola and Mozambique but it sold its
loss-making business in Greece last year.
Chief executive Nuno Amado said the Polish business remains
a core holding for the bank while it plans to sell the operation
in Romania by the end of 2015.
($1 = 0.7397 euros)
(Reporting by Sergio Goncalves; Writing by Axel Bugge; Editing
by Louise Ireland)