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BES says believes losses won't compromise capital ratios
July 10, 2014 / 11:42 PM / 3 years ago

BES says believes losses won't compromise capital ratios

LISBON, July 11 (Reuters) - Banco Espirito Santo (BES) , Portugal’s largest listed bank, said on Thursday it believes any potential losses from companies of the bank’s founding family will not put at risk its ability to meet minimum required capital ratios.

It said in a statement that the bank’s “executive committee believes that the potential losses resulting from the exposure to Espírito Santo Group do not compromise the compliance with the regulatory capital requirements.”

But BES added that it is “waiting for the release of the restructuring plan of Espírito Santo Group in order to assess the potential losses related to its exposure.”

The bank said it had a 2.1 billion-euro capital buffer above the minimum regulatory common equity tier 1 ratio at the end of March.

Shares in BES were suspended on Thursday after they plunged 17 percent on growing concerns of the impact on its capital from debts at holding companies of the Espirito Santo family, which holds a 25 percent stake in the bank.

The bank said its total exposure to those companies was 1.183 billion euros at the end of June.

Investor fears are growing that Espirito Santo International, one of the family’s holding companies, may be unable to pay off its debts. The family’s companies are planning a restructuring.

Reporting By Axel Bugge

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