PremiumDBRS: investment banking will save bank revenues

The semester was a fall in revenues and an increase in impairments. BCP and Santander Totta constituted 210 million in Covid impairments. DBRS says that profitability will come from investment banking.

The rating agency, DBRS Morningstar, warns that this and next year will be a challenge for the European banking sector. "There will continue to be trends towards high provisions for expected credit losses, for weakened profitability in most banks, potentially stronger profits in investment banking and high extraordinary costs, such as the devaluation of Santander goodwill [Spain]," he told the Economic Journal Elisabeth Rudman, Head of European Financial Institutions, DBRS.

In the first half of the year, BCP and Santander Totta, the two major banks that have already presented their accounts, confirm pressure on revenues, with no prospect of reversing the trend until the end of the year. Santander Portugal's banking product fell 1% compared to June last year to 6,3 million. Much at the expense of the 660% drop in net interest income (revenue from the difference between interest on loans and deposits), to 6,8 million euros.

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Fitch: Montepio with the worst capital ratio and BCP with the largest dimension of problematic assets

Fitch carried out a comparative study of six banks - CGD, BCP, Novo Banco, Santander Totta, BPI and Banco Montepio. It compared the capital ratio of each with the regulatory requirements and compared the weight of the net problematic assets in the capital of better quality. Montepio and Novo Banco do worse in photography, despite the fact that BCP has a higher volume of problematic assets. CGD is well positioned despite the size of the balance sheet.

Novo Banco lost 138 workers and 15 branches in one year

As of June 30, 2020, the Novo Banco group had 4.855 employees, compared with 4.993 to June 30, 2019.

Montepio granted 34 thousand moratoriums worth 3 billion

Between March 27 and June 30, Banco Montepio granted 34.000 moratoriums (worth 3 billion euros), 20.500 of which were granted to families and 13.500 to companies.