Light at the end of the tunnel

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Of all the international operations of Portuguese state-owned bank Caixa Geral de Depósitos (CGD), those of Banco Nacional Ultramarino (BNU) provided the largest contribution in 2016, at a total of 63.1 million euros (MOP538.7 million/US$67.3 million), according to the most recent financial report released by CGD.
The contributions from the Macau bank in 2016 represented a 7.2 per cent yearly increase from the almost 51.8 million euros contributed in 2015.
After BNU, the largest international contributors to CGD were its branch in France, with 40.1 million euros, and BCG Angola, with 26.3 million euros. Both operations in France and Angola saw their contributions decrease yearly by 6.3 per cent and 22.2 per cent, respectively.
In total, international contributions to CGD in 2016 decreased by 60.1 per cent year-on-year to reach 55.7 million euros.

Historically bad
In overall consolidated results, CGD registered more than a ten-fold increase in negative consolidated net income, from 171 million euros in 2015 to 1.86 billion euros in 2016, the sixth consecutive year the group has presented negative results and the largest registered by the bank so far.
Portugal’s Prime Minister António Costa stated that the “historic losses” were not due to CGD’s operations, but due to “recognition of some of the impairments the group accumulated in recent years” that came to light during the group’s ongoing recapitalisation process.
This increase in negative net income was also justified by the bank’s financial report on the 321 per cent yearly increase in provisions and impairments, which reached a total of 3.01 billion euros in 2016.
The European Commission recently approved a proposal by the Portuguese government to raise its capital in CGD by 3.9 billion euros, in order to make the group profitable again.
After the results were revealed, the group’s Executive President, Paulo Macedo predicted the group would register a profit again in 2018.

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