LISBON May 15 Banco Espirito Santo,
Portugal's largest listed bank, posted on Thursday a first
quarter net loss of 89.2 million euros, in line with
expectations, as impairments for bad loans weighed on the
The bank said the cost of provisions for bad loans rose 47.6
percent to 276 million euros, driven by deleveraging after
Portugal's debt crisis.
Net interest income - the difference between interest
charged on loans and interest paid on deposits - rose 21.7
percent to 270 million euros.
Analysts surveyed by Reuters had predicted, on average, a
net loss of 88 million euros and net interest income of 274
Portugal emerged from a deep recession in the second quarter
Of 2013, but banks are still struggling in the short term with
the effects of the worst downturn since the 1970s in the
Shares in Banco Espirito Santo had closed 5.54 percent lower
on Thursday before the results were announced.
(Reporting By Axel Bugge and Sergio Goncalves)