LISBON, Jan 10 (Reuters) - Portugal’s recently delisted small bank Caixa Economica Montepio Geral said on Wednesday its capital ratio was higher than new regulatory requirements to be applied from July 2018.
The bank, whose bad loans made it a cause for market concerns after the collapse of two bigger lenders in Portugal in 2014-15, said in a statement it had received the new requirements from the Bank of Portugal under the annual Supervisory Review and Evaluation Process.
Its consolidated own funds common equity Tier 1 ratio at the end of September stood at 13 percent under the phasing-in criteria, while the requirement for July 2018 was 9.4 percent.
The total own funds ratio was 13.2 percent, slightly above the 12.9 percent target.
The bank returned to a small profit in the first nine months of last year after a long period of losses and market concerns about its health due to bad loans accumulated as a result of the country’s debt crisis.
Last June, CEMG completed a capital increase of 250 million euros and in September it became a public liability company in order to benefit from a change in the treatment of some deferred tax assets (DTA), which should still contribute an additional 48 basis points to its CET1 ratio. (Reporting by Andrei Khalip; editing by Alexander Smith)