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Banco Espirito Santo net income up 60% in first nine months

Portugal-based Banco Espirito Santo has reported that the net income for the first nine months of 2007 has reached E487.8 million, corresponding to an increase of 60% over E304.7 million net profit reported in the same period of 2006.

The net income for the period totaled E450 million, excluding the non recurrent items reported in the 2nd quarter of the year. The customer loans, including securitization, grew by 17.5%, with total customer funds rising by 14.5%. The international banking business maintained a robust contribution, with customer loans and customer funds increasing by respectively 43.4% and 22.1%.

The commercial banking income (CBI) was up by 15.2% to E1.18 billion, with net interest income up by 15.3% and fees and commissions up by15%. The international business posted a significant CBI increase of 35.1%. The operating costs rose by 4.8% year on year (YoY), the cost to income decreased to 45.2%, from 53.3% in the same period of 2006.

Operating costs totaled E689.0 million, having increased by 4.8% YoY. This increase was mainly driven by the international activity costs, with domestic costs rising by 3.6%, underpinned by investments in the branch network in Portugal.

The Banco Espirito Santo dos Acores’s customer loans were up by 12.3%, to E310.3 million, with mortgage loans rising by 18.7%. The group’s private banking business posted a 7.5% increase in assets under management and banking income growth surpassing 14% YoY.