TIDMEOS
ESPÍRITO SANTO FINANCIAL GROUP S.A. ANNOUNCES ITS
AUDITEDCONSOLIDATED RESULTS FOR THE FULL YEAR 2013
Luxembourg/Portugal - 28 April 2014 - Espírito Santo Financial
Group S.A. ('ESFG' or the 'Company') (NYSE Euronext Lisbon: ESF;
Bloomberg: ESF PL; Reuters: ESF LS) today announces its audited
consolidated results for the full year 2013. The report is compiled
under IFRS as implemented by the EU.
HIGHLIGHTS FOR THE REPORTING PERIOD
ESFG's banking and insurance operations remain constrained by
the economic environment in which its principal subsidiaries
operate - Portugal. Recent indicators point to an improving picture
however, including a significant improvement in the external
balance of credit in the latter part of the year. By the end of the
reporting period Banco Espírito Santo ('BES') had recognised
impairments of EUR 1.42 billion. ESFG recognised a further EUR
700.0 million of provisions which impacted on results.
-- Consolidated Commercial Banking Income at ESFG fell by 14.1%
year-on-year to EUR 1.82 billion, (EUR 2.11 billion in December
2012);
-- Consolidated Net Interest Income reached EUR 1.09 billion, (EUR
1.27 billion in December 2012), a 13.7% decline
year-on-year;
-- Consolidated Net Fees and Commissions fell 14.9% year-on-year
to EUR 723.1 million, (EUR 849.6 million in December 2012);
-- Consolidated Market Results1 declined to EUR
86.9 million, (EUR 489.9 million in December 2012);
-- Consolidated Insurance Earned Premiums (Net of Reinsurance)
increased by 70.4% year-on-year to EUR 694.7 million, (EUR
407.6
million in December 2012) and includes the full consolidation of
the
BES life insurance business BES Vida;
-- Consolidated Claims Incurred (Net of Reinsurance) declined by
23.5% to EUR 483.2 million, (EUR 631.9 million in December
2012);
-- Consolidated Operating Expenses rose by 27.6% year-on-year to
EUR 4.11 billion, (EUR 3.22 billion in December 2012), as
provisioning
increased;
-- Consolidated Staff Costs and General Administrative Expenses decreased
by 5.4% year-on-year to EUR 1.21 billion, (EUR 1.28 billion
in
December 2012);
-- As of the 31 December 2013 ESFG's Core Tier 1 ratio declined to
9.2% following provisioning requirements at ESFG and
consolidated
losses at BES. BES' Core Tier I however rose year-on-year to
10.6%
(BIS II) or 9.8% under EBA regulations. As of January 2014,
ESFG
estimates that its BIS III CET I stood at 8.5%, above
minimum
requirements.
1Aggregate of Net Gains/Losses from Financial Assets at Fair
Value through Profit and Loss; Net Gains on Available for Sale
Financial Assets, Net Gains from Foreign Exchange Differences and
Net Gains/Losses from the Sale of Other Assets.
CONTENTS
1. Income Statement Summary [3]
2. Macroeconomic Environment [4]
3. Overview of Operations [5]
4. Operating Structure [11]
5. Income Analysis
5.1 Banking [13]
5.2 Insurance [15]
5.3 Other Income [17]
6. Cost Analysis
6.1 Operating Expenses [18]
6.2 Extraordinary Provisioning and Guarantee [19]
7. Solvency and Liquidity
7.1 Solvency [20]
7.2 Basel III [22]
7.3 Liquidity - External Debt [23]
7.4 Credit Rating [23]
8. Developments in FY13 and Subsequent Events [24]
9. Consolidated Financial Statements [26]
CONFERENCE CALL
A conference call for investors and analysts will be held on 29
April 2014 at 3:00 PM (UK & Portugal) / 4:00PM (CET) / 10:00AM
(Eastern). An instant replay of the call will be available for two
weeks. For details, please contact Miles Chapman at Taylor Rafferty
on telephone number +44 (0) 207 614 2916.
1. INCOME STATEMENT SUMMARY
Fig. I
(EUR Thousands) FY12 FY13 % ?
+ Net Interest Income 1 265 221 1 092 495 (13.7%)
+ Net Fees and Commissions 849 614 723 132 (14.9%)
= Commercial Banking Income 2 114 835 1 815 627 (14.1%)
+ Capital Markets Results1 489 864 86 929 (82.3%)
+ Other Operating Income 458 937 74 843 (83.7%)
+ Insurance Earned Premiums 407 632 694 668 70.4%
(Net of Reinsurance)
+ Dividend Income 73 167 58 394 (20.2%)
= Operating Income 3 544 435 2 730 460 (23.0%)
- Staff Costs and 1 280 467 1 209 845 (5.5%)
General Expenses
- Claims incurred (Net 631 943 483 218 (23.5%)
of Reinsurance)
- Change in Technical (297 404) 1 075 -
Reserves (Net of
Reinsurance) & Insurance
Commissions
- Depreciation, Provisioning 1 327 128 2 254 257 69.9%
and Impairments
- Other Expenses 276 990 157 951 (43.0%)
= Operating Expenses 3 219 124 4 107 329 27.6%
Profit/Loss before Tax (Inc. 491 390 (1 368 043) -
Gains from Financial
Investments & Share of
profit of Associates)
- Current Taxes 152 159 157 432 3.9%
- Deferred Taxes (41 157) (321 625) -
- Minority Interests 58 071 (370 615) -
= Net Income 313 633 (864 031) -
1Aggregate of Net Gains/Losses from Financial Assets at Fair
Value through Profit and Loss; Net Gains on Available for Sale
Financial Assets, Net Gains from Foreign Exchange Differences and
Net Gains/Losses from the Sale of Other Assets.
2. MACROECONOMIC ENVIRONMENT
2013 was marked by a recovery in global economic activity:
growth in the United States accelerated in the second half of the
year, driven by the rebound in the labour and housing markets and
the strong monetary policy stimuli implemented, while sentiment in
the Eurozone also improved. In the second quarter the Eurozone's
GDP returned to positive quarterly growth, supporting expectations
for an increase of around 1.0% in 2014, following a 0.5% slump in
2013. Furthermore, the year also saw the stabilisation of growth in
China at around 7.7%.
With activity picking up and the Federal Reserve signalling a
reduction in quantitative easing, yields on the 10-year Treasuries
and Bunds rose in 2013 from 1.758% to 3.029%, and from 1.316% to
1.929%, respectively. Overall, the emerging markets were penalised
by the expected narrowing of access to liquidity. In Brazil, the
Real lost around 13.0% against the USD and 17.0% against the EUR
while the Bovespa index retreated by 15.5%. In the US and Europe,
the rebound of growth and confidence in a context of expansionary
monetary policies was particularly favourable for the equity
market. In the US, the S&P 500 and Nasdaq indices gained 29.6%
and 38.3%, while in Europe the DAX, CAC and IBEX advanced by 25.5%,
18.0% and 21.4%, respectively. In light of persisting deflationary
risks, in November the ECB cut the rate on the main refinancing
operations from 0.5% to 0.25%; however, the 3-month Euribor rose by
6 bps in the fourth quarter and 10 bps in the year, to 0.287%,
while the EUR advanced by close to 4.5% against the USD, to EUR/USD
1.379.
In Portugal, the strong performance of exports and the
stabilising trend of domestic demand from the second quarter
onwards supported an upturn of economic activity, even if growth
remained constrained by the deleveraging process under way across
the various sectors. GDP registered an annual contraction of 1.5%
in 2013, however it is forecast to grow by close to 1.0% in 2014.
From the first to the fourth quarter, unemployment retreated from
17.7%, to 15.3% of the labour force. The net lending capacity of
the economy is estimated to have reached c. 2.5% of GDP, helped by
the increase in domestic savings and a general government deficit
below the target of 5.5% of GDP. Portugal returned to the capital
markets in December with a debt exchange operation (EUR 6.6
billion), immediately followed in January 2014 by a EUR 3.25
billion 5-year syndicated bond issue. After hitting a high of 7.5%
in July, the yield on the 10-year treasury bonds closed the year at
6.13%, continuing to subside in the first months of 2014, to close
to 5.0%. The PSI-20 index climbed by c. 16.0% in 2013.
3. OVERVIEW OF OPERATIONS
ESFG's consolidated net results for the full year 2013,
attributable to equity holders of the Company fell to -EUR 864.0
million from EUR 313.6 million in 2012. As well as the
consolidation of BES' full year losses and the positive results
from its other banking and insurance operations, ESFG's 2013
results include a EUR 700.0 million extraordinary provision which
impacted negatively on the Company's consolidated results (see
point 6.2).
Results of ESFG's core operations were constrained by the
challenges of the Eurozone crisis and the impact of the Financial
Adjustments' Programme adopted by Portugal. The performance of
ESFG's principal banking investment, BES, was affected by the rise
of insolvencies in Portugal, impacting on impairment levels and the
need to provide adequate provisions. Recent quarterly banking
income results, however, show clear improvements. Consolidated
contributions from ESFG's other banking operations remain positive,
though reduced when compared to 2012. ESFG's consolidated life and
non-life insurance results, through BES and Tranquilidade, improved
during the reporting period.
ESFG, by year-end 2013 and during 2014, continues in its
programme of simplification of its investment structure through the
sale and/or consolidation of banking and insurance assets. In the
first quarter of 2014, and as part of the simplification programme,
ESFG saw the following divestments: the sale of its stake in BES
Vénétie and the IPO of a material part of its stake in its
healthcare investment; Espírito Santo Saúde. In early April 2014
ESFG sold its remaining stake in Banco BEST (see point 4).
Consolidated Commercial Banking Income at ESFG declined 14.1%
year-on-year to EUR 1.82 billion. Strong growth in customer
deposits at BES, however, saw a 6.6% rise to EUR 36.8 billion.
Loans to customers decreased slightly during the period with
mortgages declining by 4.1%, obversely loans to exporting SME's
rose by 4.3% year-on-year. The Bank's Loan to Deposit ratio (LtD)
fell from 137% to 121% by year end. Net interest income at BES,
which improved in the second half of 2013, fell by 12.4%
year-on-year to EUR 1.04 billion. Net Interest Margin (NIM) dropped
by 19 bps to 1.51% from 1.70% as the decline in interest rates on
assets outpaced the decline in financial liabilities. When compared
year-on-year, ESFG's consolidated NII results declined by
16.1%.
Consolidated Fees and Commissions (Net of Expenses) at ESFG
totalled EUR 723.1 million, a decline of 14.9% year-on-year.
Results include the significant cost of guarantees provided by the
Portuguese state for certain debt instruments issued by BES but
which are expected to end by 2015. Fees and Commission income
reported by the Bank declined year-on-year by 16.3% to EUR 693.4
million. Positive quarterly trends, seen in the Bank's NII
business, were also seen in Fees and Commissions. Capital market's
results, including interest rate, credit and FX as well as equity
trading, consolidated at ESFG declined to EUR 86.9 million.
ESFG's consolidated net results reflect the challenges faced by
BES and its measures to mitigate them, namely the 18.6%
year-on-year increase in provisioning charges during the year to
EUR 1.42 billion as well as the EUR 700.0 million provision at
ESFG. At BES, the increase in provisions for credit to EUR 3.39
billion has seen the credit provisions over gross customer loans
rise to 6.8% from 5.3% a year earlier.
Consolidated operating expenses during the period grew by 27.6%
year-on-year on the back of increased provisioning. Staff costs
were contained, however, falling by 10.9% year-on-year to EUR 691.4
million from EUR 777.7 million a year earlier. ESFG's continued
organic drive towards business outside of its traditional markets
remains a central strategy, with staff and administrative costs in
its established markets declining whilst rising in international
markets.
Total consolidated assets at ESFG declined by 3.1%, from EUR
87.57 billion at the end of 2012 to EUR 84.85 billion at the end of
2013. Consolidated Risk Weighted Assets at ESFG fell to EUR 60.60
billion by the end of the period from EUR 65.08 billion a year
earlier.
Group Banco Espírito Santo
The results of ESFG's banking subsidiary, BES, reflect the
difficult operating environment of its principal market of
Portugal. Results for the full year 2013 fell to -EUR 517.6 million
from EUR 96.1 million a year earlier. The results come at a time
when the Bank is strengthening its balance sheet through continued
deleveraging, resulting in a reduction in banking income, and
reinforcement of its provisions on loans. Net funding from the ECB
fell to EUR 5.4 billion from EUR 6.9 billion a year earlier. The
course of reducing funding from the ECB contributed to a decline in
NIM.
Commercial banking income declined by 14.0% year-on-year to EUR
1.73 billion from EUR 2.01 billion in FY12. Quarterly operating
results however saw gradual improvement with domestic NII steadily
increasing and international NII recovering. Further improvements
in macro conditions are expected to support the Bank's improved
performance through 2014.
The Bank's Core Tier I ratio improved to 10.6%, exceeding the
Bank of Portugal's requirement (minimum of 10%); under the EBA
calculation method, the Core Tier I ratio is 9.8%, also above the
minimum 9.0% established by the European Banking Authority. Under
the BIS III, which began in January 2014, the Bank estimates its
CET I at 10.1% (8.1% fully implemented, excluding DTA).
At the end of the second quarter BES' Life insurance subsidiary
BES Vida completed a monetisation transaction of its life risk
portfolio which contributed to the Bank's results. During the
fourth quarter BES benefited from the capital increase at BES
Angola, which contributed an additional 25 bps to the consolidated
capital position of the Bank. Further operations, which included a
sale of a stake in Energias de Portugal ('EDP') and two synthetic
securitisation operations, improved the Bank's overall solvency
position. Under BIS II, risk-weighted assets (RWAs) at BES fell by
EUR 4.35 billion from the beginning of the year to EUR 57.33
billion.
The deleveraging programme, which began in 2010, and pre-empted
the Portuguese Government's request for assistance, has continued
through the last quarter of 2013. ESFG's banking subsidiary's LtD
ratio at year end of 2013 fell to 121%, a decrease of some 16
percentage points. The marked improvement in the LtD ratio was
supported by the increase in the year's customer deposits. Deposits
reached EUR 36.83 billion, an increase of 6.6% year-on-year.
Overall customer funds, including deposits and other on and off
balance sheet products, rose by 4.0% year-on-year from EUR 44.8
billion to EUR 46.6 billion.
Although overall asset quality remained resilient, the economic
situation in Portugal has had its effect on the levels of overdue
loans both in Portugal and internationally. Non-Performing Loans
(NPL) of over 90 days rose from 3.9% at the end of 2012 to 5.7% by
the end of 2013. On a quarterly basis, it was noted that NPL
formation is slowing down, with negative net new entries in credit
at risk in the fourth quarter 2013. Coverage levels have been
reinforced, with on-balance sheet provision reserves reaching 6.8%
of gross loans (covering 65% of credit at risk vs. 57% one year
ago), a 25.8% increase during the period to EUR 3.39 billion.
Overdue loans in Portugal show the same trend, with a reduction of
stock in the last quarter of the year.
Consolidated international operations play an important role in
Espírito Santo Financial Group's strategy of diversification.
Spain, Brazil and Africa make up BES' strategic banking triangle,
when adding its other international interests, namely the UK and
the USA, international contributions remain positive, but to a
lesser degree when compared to a year earlier. Results from the
Bank's international operations reached EUR 21.9 million following
a fall in capital markets results and continued provisioning.
International net interest income rose by 31.8% year-on-year to EUR
470.9 million driven by the Bank's Angolan operations. Fees and
Commissions declined to EUR 192.0 million. Combined, international
commercial banking rose by 1.6% year-on-year.
The increase in international net interest income helped counter
the 31.6% decline in domestic NII. Combined international and
domestic commercial banking income at BES fell by -12.4%.
Consolidated banking income at BES, including capital markets and
other results, fell to EUR 1.73 billion from EUR 2.00 billion in
2012, a decline of 14.0%. Developments at BES' international
operations include the recovery in the United Kingdom driven by the
expansion of wholesale funding; the positive evolution in France
and Luxembourg were countered by lower contributions from African
operations and the negative impact of the EU crisis on the Bank's
operations in Spain.
At Banco Espírito Santo de Angola ('BESA'), in which BES has a
55.7% stake and management control, total assets reached EUR 8.24
billion, a year-on-year rise of 4.0%, and its credit portfolio rose
by 9.0% to EUR 5.89 billion. By the end of the year, customer funds
declined by 6.0%. Net income reached EUR 40.3 million with NII
rising by 66.0% to EUR 235.0 million. Results were however affected
by a reduction in fees and commission and a reinforcement of
provisions.
BES reinforced its position in Moza Banco during the first half
of the year by acquiring 24.0% of the capital of Grupo Geocapital
and now holds 49.0% of the share capital of Moza Banco. The
Mozambican bank's operations continued to grow during the year with
deposits rising by 72.0% year-on-year to EUR 360.0 million.
Investment banking activities at Espírito Santo Investment Bank
('BESI'), include advisory services in project finance, mergers and
acquisitions, restructuring and consolidation of liabilities,
preparation and public or private placement of shares, bonds and
other fixed-income and equity instruments, stock broking and other
investment banking services. In addition, the bank offers
traditional banking services to corporate and institutional
clients.
Banking Income at BESI reached EUR 246.9 million, a decline of
5.5% with the non-Portuguese business accounting for 59.0% of total
business. Commercial banking income and capital markets (and other
results) declined by 5.1% and 7.5% respectively. Pre-tax profits
for the period fell to EUR 16.7 million as provisioning increased
to EUR 59.9 million, a rise of 29.5% year-on-year. Operating costs
declined by 2.3% year-on-year to EUR 171.6 million.
ESFG's consolidated international operations also include the
Group's other directly owned banking operations
ESFG's Swiss private banking operations, Banque Privée Espírito
Santo ('BPES'), reported a statutory net income of CHF 1.9 million
under Swiss GAAP, down from CHF 4.8 million in the previous year.
However, due to IFRS adjustments, the net contribution to ESFG's
consolidated results fell to -CHF 11.4 million from CHF 6.2 million
a year earlier. Total revenues however grew year-on-year by 8.0% to
CHF 56.1 million. Increased provisioning weighed on net results.
The strength of the Bank's commercial activity is reflected in
Assets under Management (AuM) which now exceed CHF 5.5 billion, an
increase of 14.5% YoY. Net new money rose by CHF 217.0 million from
the beginning of the year. The positive performance in global
markets in 2013 compensated for the continued strength of the Swiss
Franc versus the Euro.
BPES strengthened its focus on wealth management in 2013 by
acquiring the LATAM unit of Hyposwiss Privatbank AG. The Hyposwiss
team joined BPES in a newly opened Zurich branch office during the
last quarter of 2013. ESFG considers this to be an important step
in BPES' development strategy of expanding operations within the
European Union. The acquisition brought a further 700 clients to
the Swiss banking operations. At Espírito Santo Wealth Management
(Europe) S.A. (ES Wealth Management), controlled through BPES, AuM
has reached EUR 243.0 million and was granted the authorization to
begin operations in Spain with the first branch opened in
Madrid.
Net Income at ES Bankers (Dubai) Limited ('ESBD'), wealth
management operations, declined to USD 3.5 million from USD 7.3
million a year earlier, a decrease of 52.1% year-on-year. Banking
income however remained stable at USD 16.3 million. The reduction
in profitability reflects the Bank's new strategy and repositioning
for the future. Personnel levels at the Bank have almost doubled in
the past year. Fees and Commissions rose by over 16.5% when
compared to 2012, from USD 10.1 million in FY12 to USD 12.1 million
by FY13. Financial results at the Dubai bank fell to USD 4.2
million from USD 6.3 million in 2012. The Bank's lending to
customers declined sharply as the Bank focuses on its core
business. LtD ratio fell to 34.0% from 53.0% a year earlier.
ESBD closed the period with Total Equity of USD 40.9 million
generating a ROE of 8.9%. Total assets increased to USD 410.3
million by the end of the year, a sharp increase from USD 254.6
million in 2012. AuM, focusing on high net worth individuals, rose
by 21.3% year-on-year to USD 1.86 billion. The Bank has increased
in private client accounts to 808 from 634 a year earlier.
Banking activity at Espírito Santo Bank of Panama ('ESBP')
remains positive. Individual net income in 2013 fell to USD 18.5
million from USD 21.3 million in 2012, a decline of 13.6%. NII
however rose by 9.5% to USD 20.7 million during the period. Fees
and Commissions remained stable at USD 1.3 million in 2012 to USD
1.3 million in 2013. Banking Income remained relatively unchanged
at USD 21.3 million. Staff costs and general administrative
expenses rose as ESBP develops new business channels focusing on
wealth management.
At Banque Espírito Santo et de la Vénétie ('BESV') (France) net
income fell to EUR 7.1 million from EUR 9.6 in 2012 (which included
non-recurrent items). Gross operating income rose by 26.9% however
a 7.7% increase in operating costs weighed on results. The Bank's
reorganisation programme, including the reform of commercial
operations and the outsourcing of services. The French Bank's
pre-tax profit for the period reached EUR 6.6 million.
On 14 February 2014 ESFG announced that it has sold its full
44.81% stake in BESV to BES (see point 4). BES remains with
management control of the French banking operations.
Banco BEST, principally owned through BES but in which ESFG
owned a 9.0% direct stake, reported a net individual full year net
income of EUR 10.2 million, a rise of 21.0% year-on-year. The
internet banking operation focuses on the provision of online
trading and investment services. The Bank reported EUR 2.3 billion
of Assets under Custody. On 2 April 2014, ESFG's remaining 9.0%
stake in BEST was sold to BES. As of that date BES holds a direct
stake of 75.0%.
4. OPERATING STRUCTURE - 31 December 2013
Fig. II
[ Objects omitted ]
Tranquilidade Group and BES Vida
ESFG's insurance operations contributed positively to ESFG's
full year results for 2013 despite continued economic difficulties
in Portugal. In 2013, ESFG's consolidated operations remained the
largest privately owned insurance group in Portugal with a
consolidated market share, by premiums, of 19.2%, out-ranked only
by the state insurer, and which compares favourably with the
Group's market share in 2012 of 18.0%. ESFG's market share in the
non-Life sector, through Tranquilidade Group and BES Seguros
reached 10.6%. The combined market share in the Life business of
T-Vida and BES Vida stood at 22.8%. Outside of Portugal ESFG's
insurance operations are present in Spain, Angola, Mozambique, Cape
Verde, Brazil, Argentina and Chile.
Tranquilidade acts as a holding company for ESFG's interests in
T-Vida, LOGO, BES Seguros and other insurance subsidiaries.
Tranquilidade's net individual income reached EUR 19.0 million, a
year-on-year increase of 3.0%. Technical results, net of
re-insurance, fell during the period by 7.5% to EUR 59.0 million.
These results were affected by storms in the first quarter.
Financial results stood at EUR 28.4 million in 2013, while
operating costs stood at EUR 66.9 million. Tranquilidade's
individual market share stood at 8.3%. Tranquilidade's market share
in workers compensation, fire and other damage and motor stood at
10.8%, 8.3% and 8.4% respectively by year end 2013.
T-Vida reported an individual net income of EUR 4.3 million, a
year-on-year decrease of 5.2%. Premiums at Tranquilidade's Life
business increased by 24.7%.
BES Vida posted an individual net income of EUR 302.8 million
(including the extraordinary gains of approximately EUR 150.0
million associated with the non-recurrent reinsurance transaction
announced at the end of the first half of the year). BES Vida, a
fully owned subsidiary of BES, posted strong premium growth of
37.9% year-on-year to EUR 2.00 billion on the back of increased
unit-linked, savings and pension product growth. Claims saw a sharp
decline of 31.7% year-on-year following BES' return to full
management control and a sharp reduction in financial product
redemptions, leading to a 24.2% increase in actuarial reserves
which reached EUR 7.03 billion.
ESFG's assurfinance programme of cross-selling banking products
through its agents accounted for 19.1% of new clients at BES in
2013 and represents 9.5% of the total increase in retail AuM.
Tranquilidade's distribution network is made up of more than 1.700
points of sale, of which 35 are own branches and 173 tied agent
stores.
5. INCOME ANALYSIS
5.1 Banking Income
Consolidated Net Interest Income (NII) declined by 13.7%
year-on-year to EUR 1.09 billion from EUR 1.66 billion in 2012. The
reduction in NII at BES was domestically driven and relates to the
impact of the weak economic picture in Portugal and the volatility
in interest rates. NII generated outside of Portugal, particularly
in Angola, saw a 31.8% year-on-year increase to EUR 470.9 million.
Interest earning business remains unchanged, when compared to a
year earlier at close to EUR 68.6 billion with loans to customers
focusing primarily on the corporate sector with loans to
individuals continuing to shrink through lower demand and
amortisation of mortgage loans. The average rate of interest on
financial assets fell (-37 bps) but exceeded the decrease in the
average rate of liabilities paid (-18 bps). Net Interest Margin
(NIM) therefore fell by 19 bps year-on-year from 1.70% to
1.51%.
BES' customer loans decreased by EUR 677.0 million which
included a 4.1% decrease in mortgage loans. Loans to exporting SMEs
however grew by 4.3%, accelerating in the last quarter of the
year.
In 2013, BES was able to issue over EUR 750.0 million of
subordinated debt into the wholesale markets, paving the way for
other financial Portuguese banks. Redemptions of outstanding
wholesale debt stood at EUR 1.60 billion in the period. The average
debt redemption rate in the past three years stood at EUR 3.1
billion per annum, and in 2014 BES expects to redeem EUR 2.2
billion. At year-end 2013, BES' net use of ECB funding fell to EUR
5.4 billion from a high of EUR 13.7 billion in June 2012, a decline
of close to 60.0%.
Consolidated Fees and Commissions (Net of Expenses) declined by
14.9% year-on-year to EUR 723.1 million in 2013 from EUR 849.6
million in 2012. Results include fees generated by BES as well as
from asset management and securities related fees from the private
banking operations directly owned by ESFG namely Banque Privée
Espírito Santo and ES Bankers (Dubai). Fees relating to Asset
Management grew across the three banks with BES AM fees rising by
2.0% year-on-year to EUR 87.9 million. BES saw strong growth in
fees on documentary credit which rose by 20.7% to EUR 105.1 million
in 2013. Commissions on securities increased by 1.2% year-on-year
to EUR 74.3 million. When excluding the cost of
government-guaranteed bonds issued by BES and other non-recurrent
fees, guaranteed by the Republic of Portugal, fees and commissions
fell by 6.1% year-on-year.
Fees and commissions linked to corporate business, namely
financings (collections and loans), project finance and documentary
credits declined however, reflecting the economic conditions as
well as the Group's deleveraging programme. Commission income from
credit cards and account management (commissions on current
accounts, transfers, and payment orders) were also impacted by the
current austerity policies. Commissions on Bancassurance activity
declined year-on-year, though quarterly improvements were
noted.
Consolidated Capital Markets totalled EUR 86.9 million in 2013
from EUR 849.6 million reported in 2012. Capital market results
reflect the consolidated trading activity, of primarily BES. BES'
exposure, by the end of 2013 to both Portuguese and Spanish
sovereign debt, and to a smaller extent Italy, reached EUR 4.30
billion. 36.0% of sovereign exposure was in T-bills and a further
11.0% in debt of between 1 and 5 years; this reflects the
well-considered duration profile of the Bank's asset allocation.
The Bank's sovereign portfolio contributed positively to capital
markets' results but at a diminished rate when compared against
2012, which saw significant rate reduction in peripheral sovereign
debt.
5.2 Insurance Income
Income generated from the Group's insurance operations are
consolidated from both ESFG's fully owned Companhia de Seguros
Tranquilidade, S.A. (Tranquilidade) operations and through BES'
recent, fully acquired, consolidation of its life business; BES
Vida, Companhia de Seguros (BES Vida). By the end of the reporting
period, ESFG's consolidated life and non-life operations remained
the largest privately owned insurance group in Portugal with a
combined market share of 19.2%.
Consolidated Insurance Earned Premiums (Net of Reinsurance) rose
by 70.4% to EUR 694.7 million in 2013 from EUR 407.6 million a year
earlier. Consolidated Claims Incurred (Net of Reinsurance)
decreased by 23.5% to EUR 483.2 million from EUR 631.9 million at
year-end 2012. Results include the full consolidation of both
ESFG's direct investments in Tranquilidade and the BES
bancassuranace businesses.
At Tranquilidade2 insurance earned premiums (net of reinsurance)
declined by 4.8% year-on-year to EUR 279.2 million from EUR 293.2
million a year earlier. Claims at Tranquilidadeand changes on
technical reserves and commissions reached EUR 285.4 million,
compared to EUR 294.9 million in 2012, a decrease of 3.2%.The
combined ratio at Tranquilidade rose from 94.3% to 95.2%. The
expense ratio stood at 30.9%. The marginal increase in the combined
ratio is explained by the fall in premiums by 1.0%. Tranquilidade,
which acts as a holding company for ESFG's interests in T-Vida,
LOGO, BES Seguros and others, reported continued geographical
growth as operations began in Mozambique and Angola in 2012.
Tranquilidade's net individual income reached EUR 19.0 million,
a year-on-year increase of 3.0%. Technical results net of
reinsurance fell during the period by 7.0% to EUR 59.2 million.
These results were affected by the storms that affected Portugal in
the first quarter 2013. Financial results reached EUR 28.3 million
in 2013. Operating costs stood at EUR 66.9 million. Tranquilidade's
individual market share stood at 8.3%. During 2013 Tranquilidade's
market share in workers' compensation, fire and other damages and
motor stood at 10.8%, 8.3% and 8.4% respectively.
T-Vida reported an individual net income of EUR 4.3 million, a
year-on-year decrease of 5.2%. Premiums however increased by 24.7%.
Risk products continue to be the main focus for ESFG's insurance
operations in its Life business though the largest growth was in
PPR's products (retirement savings plans). The technical margin
increased by 5.6%, (from EUR 5.8 million to EUR 6.2 million),
mainly due to an increase in premiums. Operating costs increased by
5.6% year-on-year to EUR 6.1 million.
2 Tranquilidade Group, excluding BES insurance operations
ESFG's Angolan and Mozambican insurance operations, through
Tranquilidade, which began in 2012, report individual results of
breakeven and -EUR 0.9 million respectively but are expected to
contribute positively to full year results in 2014.
Tranquilidade's direct insurance business, LOGO, reported that
its customer base had reached 116,335 clients and that gross
written premiums of amounted to EUR 19.8 million. LOGO is currently
the third largest direct insurer in Portugal. The motor claims
ratio at LOGO decreased by 5.7 p.p. from 79.7% to 74.0%.
At BES Vida, fully owned by BES, results were positively
influenced by the reinsurance of its life risk portfolio under
which all the inherent risks were transferred though BES Vida
maintained the management of the contracts and the relations with
clients. The operation contributed approximately EUR 150.0 million
to the Company's individual results of EUR 302.8 million by year
end 2013. Results were strengthened by an increase in insurance
production, which reached EUR 2.0 billion in premium volume, a
40.9% increase year-on-year. Unit-linked products and pension plans
saw strong growth while claims' volume fell sharply (-31.7%) as
financial products' redemption volume declined. The overall effect
was 24.9% increase in actuarial reserves to EUR 7.10 billion.
AdvanceCare, ESFG's managed care platform for healthcare
insurers provides the link between the Company's insurance
operations and healthcare providers, serving a total of 918,371
members. The care manager continues to provide strong results, in
the period ending 2013 its net individual income stabilized at EUR
2.2 million from EUR 2.3 million a year earlier. AdvanceCare is a
joint venture between Tranquilidade and United Health Group. In
2013 the managed care company is estimated to have handled one
third of healthcare claims made through all insurance companies in
Portugal. Tranquilidade maintains management control.
Tranquilidade's assistance service provider, Europ-Assistance
(Portugal), jointly held with Europ Assistance Holding (France)
reported a 44.4% increase in individual results to EUR 4.0 million
by year end 2013 from EUR 2.8 million a year earlier. Tranquilidade
has a 47.0% economic stake in the operations.
5.3 Other Income
Consolidated Net Other Operating Income decreased to EUR 74.8
million from EUR 458.9 million following non recurrent gains at BES
in 2012 and the deconsolidation of ESFG's healthcare operations
following ESFG's decision to relinquish control.
On 12 February 2014 Espírito Santo Saúde (ESS) began trading on
the NYSE Euronext exchange following a successful IPO launched on 6
February 2014. Following the completion of the IPO of Espírito
Santo Saúde, SGPS, S.A. ('ESS') and the exercise of the
over-allotment option on 13 March 2014 in respect of 2,881,113 ESS
shares, ESFG announces that it has sold a total of 10,158,770
shares (10.62% of the existing ESS share capital), corresponding to
gross proceeds to ESFG of EUR 32.5 million.
Subsequently ESFG announces that it remains the holder of a
3.38% direct stake in the healthcare company. Management control is
held by Espírito Santo Health Care Investments (ESHCI) which holds
a stake of 51.0%. As of that date, ESFG holds a 17.7% stake in
ESHCI. ESFG's, direct and indirect, economic stake in ESS is
12.42%.
Dividend Income declined to EUR 58.4 million from EUR 73.2
million in 2012 as payments remain constrained reflecting the
current macroeconomic picture in the Eurozone, reduced dividend
policies and the reduction in certain equity investments at
BES.
6. COST ANALYSIS
6.1 Operating Expenses
Consolidated Operating Expenses for the period ending the 31
December 2013 rose by 27.6% to EUR 4.11 billion from EUR 3.22
billion a year earlier. The significant rise relates to
Depreciation, Provisioning and Impairments both at BES and at
ESFG.
Consolidated Staff Costs and General Administrative Expenses
fell by 5.5% to EUR 1.21 billion from EUR 1.28 billion in 2012. The
decline was helped by a 10.9% fall in staff costs resulted from
ESFG Group's strict control over variable salaries in Portugal.
International staff costs at BES however rose by 4.9% year-on-year
as the Bank focuses on the reorganisation of its Angolan
operations. The Bank's staff costs in Portugal fell by 3.8%
year-on-year.
General administration expenses at ESFG rose by 3.0% as costs,
relating to further international growth, rose. BES has implemented
a EUR 100.0 million cost-cutting plan to be executed between 2013
and 2015. The Bank's cost reduction, including employment and
running costs (such as IT and advertising) is aligned with
cost-cutting programmes of ESFG's other subsidiaries. Retail
banking at BES is supported by a domestic branch network of 643
branches in Portugal and a net reduction of 23 branches since the
beginning of the year. The branch network includes 44 on-site
branches in partnership with insurance agents under the Group's
assurfinance programme. The streamlining process permitted a 6.5%
reduction in operating costs at the Bank.
Consolidated Costs due to Depreciation, Provisioning and
Impairments rose by 69.9% year-on-year to EUR 2.25 billion from EUR
1.33 billion in 2012. Despite improved economic conditions in
ESFG's principal market, Portugal, the balance of provisions for
credit registered on the balance sheet at BES has increased to EUR
3.39 billion by the end of 2013, a year-on-year rise of 25.8% with
the credit provisions/gross customer loans ratio rising to 6.8%
(5.2% in FY12).
Impairments costs at BES rose by 18.6% or EUR 1.42 billion in
the period, the principal impairments being set against credit and
foreclosures on real-estate, with EUR 104.1 million being set
against securities. BES' provisions charge rose by 40bps to 2.02%
ESFG considers that the actions taken by BES, through their strong
provisioning effort, represent a conservative approach to the
current environment.
6.2 Extraordinary Provisioning and Guarantee
Further to BES provisioning, ESFG's 2013 results include a EUR
700.0 million extraordinary provision which relates to the
potential risks that may arise from the fact that some of ESFG
Group's retail clients are exposed, through debt issuance, to
Espírito Santo International ('ESI'). The provision was finalised
after extensive discussions with the regulator and is in accordance
with the results of ETRICC (transversal revision of impairments on
credit portfolios). As part of the same process it was agreed
between the Company and the regulator to provide a EUR 700.0
million guarantee to ensure the timely reimbursement of the
commercial paper issued by ESI placed with ESFG Group retail
clients.
The outstanding amount of commercial paper held by BES retail
clients has fallen to less than EUR 500.0 million as of 28 April
2014. The reduction has been achieved through the ongoing
deleverage and re-organisation plan at ESI. Final reimbursements to
BES retail investors are expected to be concluded in early December
2014. ESFG remains committed in its support of its subsidiaries
through the provision of the guarantee.
Other Expenses fell year-on-year by 43.0% to EUR 160.0 million
from EUR 277.0 million at the end of 2012.
7. SOLVENCY AND LIQUIDITY
7.1 Solvency
ESFG is approved by the Bank of Portugal to use the Internal
Ratings Based ('IRB') method for calculating minimum core capital
requirements to cover credit risk. The authorisation covers ESFG
and its subsidiaries, BES and BESI and their respective
subsidiaries. ESFG provides information on regulatory capital and
capital ratios under the BIS (IRB) II regulations. ESFG is
authorised to use the Internal Ratings Based (IRB) approach for
credit risk and Standardised Approach - TSA method for operational
risk, since the first quarter of 2009.
ESFG's capital ratios under Basel II at the end of the reporting
period are estimated at: Core Tier 1: 9.2%, Tier 1: 9.0% and Total
Solvency: 10.9%. Under the EBA method, ESFG's Core Tier 1 ratio
stood at 8.5%. ESFG's solvency position was weakened by its
consolidation of the Bank's results and extraordinary provisioning
charges at ESFG relating to the guarantee provided by ESFG and
which reflects the current exposure to certain non-financial assets
of Group Espírito Santo ('GES'). The nature of the provision is
that certain risks exist but are not certain to happen. There has
been no cash effect on ESFG at this time.
Fig. III
Solvency (Basel II IRB Foundation) FY11 FY12 FY13
Core Tier I 8.3% 10.1% 9.2%
Core Tier I (EBA) - 9.6% 8.4%
Tier I 8.6% 10.1% 9.0%
Total 9.4% 11.5% 10.9%
RWA (EUR million) 66,966 65,063 60,603
Under BIS III (CRD IV/CRR) which will be in force as from 1
January 2014, the Common Equity Tier I ratio, considering the
effect of the provision and employing the transitional provisions
is 8.5%, or 8.8% considering the waiver of Article 84 (5) and the
eligibility of the minority interests in BESPAR. This result is
above the Bank of Portugal's requirement (minimum of 7.0%).
The EUR 700.0 million provision impacted negatively on ESFG's
core capital position. As a financial holding company, and
regulated entity, ESFG will continue to work with its regulator to
improve on its consolidated solvency position through its focus on
its principal banking assets. Banco Espírito Santo's capital
position remains unaffected by ESFG's decision to include the
provision in the full year's accounts.
The capital increase at BES Angola, the BES Vida reinsurance of
its individual life risk portfolio, a sale of a large part of the
Bank's stake in EDP and other measures reinforces BES' capital
position. The Bank was also able to improve on its total solvency
position by issuing a benchmark Tier II subordinated debt
instrument. Though not incorporated into the Bank's capital
structure BES Angola received a Sovereign guarantee from the
Republic of Angola as part of the republics medium Term National
Development Plan for 2013 until 2017.
BES Solvency
The Bank's Core Tier I ratio improved to 10.6%, exceeding the
Bank of Portugal's requirement (minimum of 10%); under the EBA
calculation method, the Core Tier I ratio is 9.8%, also above the
minimum 9.0% established by the European Banking Authority. Under
the BIS III, which began in January 2014, the Bank estimates its
CET I at 10.1% (8.1% fully implemented, excluding DTA). Under BIS
II, RWA's at BES fell by EUR 4.35 billion from the beginning of the
year to EUR 57.33 billion.
7.2 Basel III
In the context of the Basel III prudential framework, the
European Parliament and the Council approved Regulation (EU) no.
575/2013 and Directive 2013/36/EU which establish the applicable
prudential requirements for credit institutions and investment
firms in the European Union.
Within the scope of the Programme of Economic and Financial
Assistance to Portugal, a set of rules to be observed by the
Portuguese banks were agreed with the European Commission, the
European Central Bank and the International Monetary Fund and laid
down in Bank of Portugal's Notice 6/2013, of 30 December, namely
establishing the following:
-- A minimum common equity Tier I of 7.0%;
-- The coefficients and percentages to be used for the calculation of own
funds during the transitory periods including:
Fig.IV
BoP Notice 2014 2015 2016 2017 2018 2019 2024
6/2013
1. 20% 40% 60% 80% 100% -
Deduction
of
unrealised
losses on
assets
measured
at
fair
value(1)
2. 100% 60% 40% 20% 0% -
Exclusion
of
unrealised
gains on
assets
measured
at
fair
value(1)
3. Deferred 0% 10% 20% 30% 40% 50% ... 100%
tax assets
(DTA) that
rely
on
future
profitability(2)
4. Items 80% 60% 40% 20% 0% -
that do
not qualify
as
the
minority
interests(3)
5. 20% 40% 60% 80% 100% -
Recognition
in
consolidated
own funds
of
minority
interets
and
qualifying
additional
Tier 1 and
Tier
2 capital
6. 80% 60% 40% 20% 0% -
Additional
filters
and
deductions
(e.g.
Securitised
assets,
cash flow
hedges)
7. 80% 70% 60% 50% 40% 30% ...
Limits
for
grandfathering
of items
within
additional
Tier 1 and
Tier 2
items
8. 20% 40% 60% 80% 100% -
Other
deduction
itens
(e.g.
Intangible
assets,
equity
holdings,
pension
funds)
(1) Do not include in any element of own funds unrealised gains
or losses on exposures to central governments classified in the
"Available for Sale" category of EU-endorsed IAS 39 until the IAS
39 is not replaced(2) Deduction calculated by multiplying the
applicable % to the existing DTA on the balance sheet as of 31 Dec.
13; future increases follow the general rule in point 8.(3)
Determined by multiplying the % by the Minority Interests
surplus
7.3 Liquidity - External Debt
ESFG's external debt at the end of the period rose by EUR 59.6
million year-on-year to EUR 780.2 million (falling from a high of
EUR 1.3 billion in late 2011). ESFG continues to reduce interest
costs through liability management in recognition of reduced
dividend income from its subsidiaries.
On 25 November, ESFG announced the launch of EUR 200 million
bonds, exchangeable into BES. The coupon was set at 3.125% and
matures in December 2018. The proceeds were used to repurchase EUR
135.6 million of an outstanding convertible into ESFG shares.
ESFG's EMTN and ECP programmes provides, and guarantees, the
establishment of liquidity to its fully owned subsidiary Espírito
Santo Financière (ESFIL). In 2013, ESFIL launched and priced the
sole senior EUR 200 million two-year note from the EUR 2.0 billion
EMTN programme. At year-end 2013, ESFIL had utilised EUR 174.5
million of the EUR 1.0 billion ECP programme.
7.4 Credit Rating
ESFG is rated by two international rating agencies; DBRS and
Moody's. The ratings are:
Fig. IV
Short Term Long Term Comment Date of Rating
DBRS R-2 (Middle) BBB (Low) Neg. Outlook 07/05/13
Moody's NP B2 Neg. Outlook 05/12/13
8. DEVELOPMENTS DURING 2013 AND SUBSEQUENT EVENTS
-- On 2 April 2014, ESFG sold its remaining 9.0% stake in Banco BEST to
BES.
-- On 18 March 2014, ESFG announced that it had sold a 10.63% stake in
Espírito Santo Saúde, as part of the healthcare company's
IPO,
launched on 6 February. The sale, which included the
over-allotment
option, leaves ESFG with a 3.38% direct stake in the
company.
-- On 7 March 2014, ESFG informed that Mr. Mário Mosqueira de Amaral, a
member of the Board, had passed away.
-- On 14 February 2014, ESFG announced the sale of its 44.81% stake in
BES Vénétie to BES.
-- On 25 November 2013, ESFG announces launch of EUR 200.0 million
exchangeable bonds and simultaneous tender offer on
outstanding
convertibles.
-- On 13 September 2013, ESFG appoints new Chief Executive Officer, Roger
Hartmann.
-- On 18 July 2013, Moody's confirmed ESFG's long term debt rating at B2
(Neg).
-- On 27 June 2013, Banque Privée Espírito Santo (BPES) announced the
acquisition of LATAM unit of Hyposwiss Privatbank AG. Following
the
acquisition, BPES will open a branch in Zurich.
-- On 7 May 2013, DBRS confirmed ESFG's long term rating at BBB (low) and
short-term rating at R-2 (middle).
-- On 29 April 2013, ESFG announced the results of the AGM, held in
Luxembourg on 26 April 2013 which included the approval
Company's
audited annual accounts, published for review by its
shareholders on
the 29 March 2013.
-- On 23 April 2013, ESFG announced the successful issuance of the EUR
200 million ESFG guaranteed ESFIL two year senior note which
will
mature in June 2015.
-- On 18 March 2013, ESFG published its consolidated annual accounts for
2012.
CONTACTS
Espírito Santo Financial Group Taylor Rafferty
Filipe Worsdell Miles Chapman
+44 (0) 20 3429 2100 +44 (0) 207 614 2916
fworsdell@esfg.com miles.chapman@taylor-rafferty.com
The Espírito Santo Financial Group provides, through its
subsidiaries, a global and diversified range of financial services
to its clients including Commercial banking, Insurance, Investment
banking, Stock-brokerage and Asset management in Portugal and
internationally. For additional information on Espírito Santo
Financial Group, its subsidiaries, operations and results, please
visit the Company's website on www.esfg.com.
- Tables to follow -
ESPÍRITO SANTO FINANCIAL GROUP SA
CONSOLIDATED BALANCE SHEET AS
AT 31 DECEMBER 2013 AND 2012
12/31/2013 31.12.2012
(in thousands of euro)
Assets
Cash and deposits at central banks 1 828 674 1 444 831
Deposits with banks 1 148 934 1 126 853
Financial assets held for trading 2 488 465 3 981 845
Other financial assets at fair 3 564 118 2 603 463
value through profit or loss
Available-for-sale financial assets 8 929 778 11 041 235
Loans and advances to banks 4 827 790 4 548 247
Loans and advances to customers 49 270 667 50 692 878
Held-to-maturity investments 1 672 068 1 119 047
Derivatives for risk management purposes 363 391 516 520
Non-current assets held for sale 3 567 011 3 280 185
Property and equipment 974 229 982 617
Investment properties 719 422 797 323
Intangible assets 608 269 703 210
Investments in associates 606 473 640 614
Technical reserves of reinsurance ceded 76 899 70 773
Current income tax assets 40 967 28 811
Deferred income tax assets 1 064 883 760 953
Other assets 3 097 613 3 234 655
Total assets 84 849 651 87 574 060
Liabilities
Deposits from central banks 9 772 244 10 941 325
Financial liabilities held for trading 1 336 768 2 124 225
Deposits from banks 5 033 494 5 065 980
Due to customers 38 093 807 35 625 474
Debt securities issued 12 615 208 15 952 870
Derivatives for risk management purposes 130 710 125 199
Investment contracts 4 473 921 3 844 020
Non-current liabilities held for sale 153 580 175 945
Provisions 917 020 255 601
Technical reserves of direct insurance 2 643 156 2 488 328
Current income tax liabilities 122 313 253 406
Deferred income tax liabilities 96 972 154 736
Subordinated debt 1 403 188 1 176 482
Other liabilities 1 345 833 1 268 442
Total liabilities 78 138 214 79 452 033
Equity
Share capital 207 075 207 075
Treasury shares ( 3 459) ( 35 965)
Share premium 884 456 884 456
Preference shares 51 367 55 978
Other equity components 26 418 58 100
Capital reserves non distributable 700 970 700 970
Fair value reserve ( 3 208) 25 771
Other reserves and retained earnings 284 548 ( 10 282)
Profit for the year attributable ( 864 031) 313 633
to equity holders of the Company
Total equity attributable to equity 1 284 136 2 199 736
holders of the Company
Non-controlling interest 5 427 301 5 922 291
Total equity 6 711 437 8 122 027
Total equity and liabilities 84 849 651 87 574 060
ESPÍRITO SANTO FINANCIAL GROUP SA
CONSOLIDATED INCOME STATEMENT
FOR THE YEARS ENDED 31
DECEMBER 2013 AND 2012
12/31/2013 31.12.2012
(in thousands of euro)
Interest and similar income 3 629 256 4 097 681
Interest expense and similar charges 2 536 761 2 832 460
Net interest income 1 092 495 1 265 221
Dividend income 58 394 73 167
Fee and commission income 926 760 1 035 146
Fee and commission expenses ( 203 628) ( 185 532)
Net (losses) from financial assets ( 294 970) ( 54 762)
and financial liabilities
at fair value through profit or loss
Net gains / (losses) from 451 649 605 568
available-for-sale
financial assets
Net (losses) from foreign ( 2 688) ( 18 369)
exchange differences
Net (losses) from the ( 67 063) ( 42 573)
sale of other assets
Insurance earned premiums 694 668 407 632
net of reinsurance
Other operating income 74 843 458 937
Operating income 2 730 460 3 544 435
Staff costs 692 734 777 707
General and administrative expenses 518 076 502 760
Claims incurred net of reinsurance 483 218 631 943
Change on the technical reserves 153 331 ( 336 660)
net of reinsurance
Insurance commissions ( 152 256) 39 256
Depreciation and amortisation 119 458 145 779
Provisions net of reversals 695 651 57 251
Loans impairment net of reversals 1 005 293 794 291
and recoveries
Impairment on other financial 109 978 106 737
assets net of reversals
Impairment on other assets 323 877 223 070
net of reversals
Other operating expenses 157 969 276 990
Operating expenses 4 107 329 3 219 124
Gains on disposal of investments 3 74 050
in subsidiaries and associates
Gains arising on business combinations - 87 273
achieved in stages
Share of profit of associates 8 823 4 756
Profit before income tax (1 368 043) 491 390
Income tax
Current tax 157 432 152 159
Deferred tax ( 321 625) ( 41 157)
( 164 193) 111 002
Profit/(loss) on continuing operations (1 203 850) 380 388
Discontinued operations ( 30 796) ( 8 684)
Profit/(loss) for the year (1 234 646) 371 704
Attributable to equity ( 864 031) 313 633
holders of the Company
Attributable to non-controlling interest ( 370 615) 58 071
(1 234 646) 371 704
This information is provided by Business Wire
Espirito Santo (LSE:EOS)
Historical Stock Chart
From May 2024 to Jun 2024
Espirito Santo (LSE:EOS)
Historical Stock Chart
From Jun 2023 to Jun 2024
