View source for Portugal apos;s Novo Banco 9-month Net Loss Soars 49 On Provisions

<br>By Sergio Goncalves<br> <br>LISBON, Nov 16 (Reuters) - Portugal's Novo Banco, which emerged from the ruins of the collapsed Banco Espirito Santo, reported a 49% leap in its net loss for January-September to 853 million euros ($1 billion)following provisions to discontinue its business in Spain.<br> <br>The bank, 75% owned by Lone Star since October 2017 and 25% by the state-backed Portuguese Resolution Fund, said late on Friday its results were also hit by provisions for bad loans.<br> <br>The impairments and provisions for the exit from its retail network in Spain and  [https://kynghidongduong.vn/blog/le-hoi-hoa-tam-giac-mach-ha-giang-va-nhung-diem-check-in-voi-hoa-dep-nhat.html hoa tam giác mạch] for higher credit risk totalled around 727 million euros, the bank said, adding it also took a hit of 187.2 million euros due to the impact of the COVID-19 pandemic.<br> <br>Earlier this year, sources told Reuters that Novo Banco was looking to sell its loss-making retail network in Spain, seeking to bolster its balance sheet and prevent further losses.<br><br>The provisions reflect [http://www.britannica.com/search?query=expected expected] losses on any deal.<br> <br>The bank has already sold assets in France, Asia and Cape Verde.<br> <br>Novo Banco's recurrent net income fell 30% to 98 million euros, but the bank said the results showed its "value-creation capacity and sustainable profitability".<br> <br>Net interest income, a measure of earnings on loans minus deposit costs, increased 9.3% to nearly 373 million euros.<br> <br>The lender halved its [http://www.futureofeducation.com/main/search/search?q=non-performing non-performing] loans (NPL) to 2.8 billion euros in September,  [https://kynghidongduong.vn/blog/le-hoi-hoa-tam-giac-mach-ha-giang-va-nhung-diem-check-in-voi-hoa-dep-nhat.html kynghidongduong.vn] after it sold problematic asset portfolios, and cut its NPL ratio to 9.7% from 19.9% a year earlier.<br> <br>Portugal is going through its worst recession in almost a century due to the pandemic, with the government predicting the economy will contract 8.5% this year.<br> <br>($1 = 0.8445 euros) (Reporting by Sergio Goncalves; Editing by Catarina Demony and Mark Potter)<br>