BCP’s Banco de Investimento Imobiliário Increased its Profits to €25.5MM in 2017

25 May 2018

The Banco de Investimento Imobiliário (BII), which belongs to BCP, made profits of 25.5 million euros in 2017, up 55% from the 16.5 million euros it posted in 2016, the bank announced today.

“This increase was largely powered by an increase in banking income, despite the variation in current and deferred taxes, influenced by the bank’s adhesion to the Special Regime for the Taxation of Holding Companies in 2016,” the report released today stated.

Net interest income was 7.3 million euros, down from 22.8 million euros in 2016, due to lower interest rates on loans. The results from services and fees stood at 2.2 million euros, below the 3.5 million euros posted in 2016, due to an increase in commissions payable by BII to BCP for the use of its networks.

The results originating from financial operations went from one million euros in 2016 to 42.8 million euros in 2017 due to the sale of securities, namely Portuguese corporate and government bonds.

At the end of 2017, the BII’s loan portfolio stood at 1.3679 billion euros, down by 13.3% since 2016. The bank justified the decrease citing the “lack of new credit operations” since the concession of loans for real estate development and housing has been” registered under BCP’s accounts since 2006.”

Thus, BII’s operations are currently limited to the management of the credit portfolio constituted up to July 2016.

BCP had profits of 186.4 million euros in 2017, almost eight times more than the 23.9 million euros it posted in 2016.

Original Story: Diário de Notícias / Lusa

Translation: Richard Turner