Banco Nacional Ultramarino, S.A. (BNU) reported higher net interest income and business volume but lower profits for the first nine months of 2022, owing to non-recurring events.
BNU´s unaudited profit after tax until September was MOP 228.1 Million, a decrease of MOP 110.4 Million compared to the same period of 2021.
During the period, the results evolution reflects an improvement in the net interest income which increased by MOP 17.5 Million or 3.4% compared to the same period of 2021.
Business volume was also up with credit growth by 2.2% quarter on quarter, contributing to the net interest income which increased by MOP25.7 Million or 15.0% compared to the previous quarter.
However net fees and commission income continues to decline, by MOP 5.8 Million or 19.1% compared to the previous quarter, “reflecting the heightened uncertainties on global and local economies”, the bank reported.
Results during the period were hurt by a net charge for impairment on credits and financial investments of MOP 85.2 Million (2021: net provision charge of MOP 5.2 Million) “mainly attributable to the adoption of the new Macau Financial Reporting Standards, which primarily reflected the Bank’s conservative impairment model on forward economic outlook arising from economic uncertainties such as inflation and pandemic related restrictions”.
In addition, the Bank recorded a net loss of MOP 27.4 Million (2021: net gain of MOP 16.3 Million) on disposal of financial investments, “mainly due to the recent interest rate hikes in the U.S. and Eurozone and certain downgrading activities which negatively impacted the valuation of the Bank’s investments”.
“However, these impacts to the Bank’s operating results are considered as non-recurring events”, BNU adds.
The Bank’s operating expenses held constant year on year, “as the impact of cost-saving initiatives was offset by the continued growth in digitalisation investments, which aims to enhance customer experience and increase internal efficiency”.
The Bank continued to present a robust solvency ratio of 22.02%, representing an increase of 76 basis points year on year, while well above the minimum regulatory requirement of 8% and high liquidity levels.
With the growth and financial integration of the Greater Bay Area (“GBA”) and introduction of the Guangdong-Macao In-depth Cooperation Zone in Hengqin, “the Bank’s Hengqin Branch continued to cater especially to the financial needs of investors from Macao and Hong Kong, including individuals and corporates”.
“Looking forward, the Bank’s Hengqin Branch will dedicate to enrich the connection between Mainland China, Macau and Portuguese speaking countries in providing various financial supports and to assist in constructing well-diversified business environment in GBA”, BNU added.