Banking BNU profits drop 64% to MOP40m in Q1
Banco Nacional Ultramarino, S.A. (BNU) reported an unaudited profit after tax of MOP39.9 million, a decrease of MOP 69.5 million (-63.6%) as compared to the same period in 2021.
In a statement, the bank said that its financial performance continued to reflect the low interest rates environment and heightened uncertainties of the global and Macau economies, with net interest income down by MOP6.7 million and net fees and commission income down MOP9.1 million.
During the first quarter of 2022, the bank also reported a net charge for impairment on credits and financial investments of MOP34 million (compared to MOP1.2 million in Q1, 2021) upon the adoption of the new Macau Financial Reporting Standards, primarily reflected in the “bank’s conservative impairment model on the forward economic outlook arising from inflationary risks and tighter Covid-19 related restrictions in mainland China,” the firm said in a statement.
In terms of disposal of financial investments, it recorded a net loss of MOP26.3 million (compared to a net gain of MOP3.4 million in Q1, 2021), mainly due to recent interest rate hikes in the U.S. and downgrading activities.
“With the growth and financial integration of the Greater Bay Area and introduction of the Guangdong-Macao In-depth Cooperation Zone in Hengqin, the bank’s Hengqin branch continued to cater especially to the financial needs of investors from Macau and Hong Kong, including individuals and corporates,” the bank’s statement said.
