Novo Banco Asia profits dropped 93.9 pct in 2014

The profits of Novo Banco Asia dropped by 93.9 percent year-on-year in 2014, amounting to a profit of  MOP2.4 million, according to a finance report that was published in the government’s Official Gazette (BO).
The bank’s financial result decreased by 56.8 percent year-on-year to MOP23.2 million.
According to the report, the downturn was triggered by a number of factors, including the Banco Espirito Santo (BES) resolution, an increase in the operation costs of investments and the implementation of a new computer system, as well as a cost increase in the bank’s use of facilities and human resources.
“The ‘Corporate Banking and Trading Finance’ business, together with the local business and trade between China, Portugal and the Portuguese-speaking countries, where the Novo Banco group operates, has remained an important strength,” it read.
The bank acknowledged that 2014 was a strong year for investment, but that the bank’s activities were adversely affected following BES’ dissolution and the economic changes in Macau’s gaming and tourism industries.
Novo Banco is Portugal’s third-largest bank in terms of assets. It was created out of failed lender Banco Espirito Santo SA last year, after it collapsed in August amid a record first-half loss triggered by its exposure to its troubled family-controlled parent company.
The Bank of Portugal split BES into a “good bank” — renamed Novo Banco and housing healthy assets —, and “a bad bank”, which housed riskier assets.
Novo Banco was loaned EUR4.9 billion from what was left of Portugal’s European Union-led bailout fund.
BESOR, rebranded Novo Banco Asia, is a subsidiary of Novo Banco and was established in Macau in 1996. The bank operates mainly in the areas of trade finance and private banking.
Novo Banco Asia’s general assembly has scheduled a meeting for August 7 to discuss the election of board members.
Since June 1, several board members have resigned, including Pedro Homem, Manuel Barreto, Amílcar Pires and Ricardo Espírito Santo Silva.  MDT/Lusa