News Roundup
1st January, 2013
Today, the Portuguese Banking Association is publishing its Summary Report for the first half of 2012. It analyses data from 33 of the 36 financial institutions that the APB represents and has been prepared on the basis of information reported on 30 June 2012. The figures are an aggregation from each institution's separate balance sheets and income statements.
The banking activity of the member institutions was widely affected by the deterioration in economic and political scenarios in Portugal and the rest of the euro area in the first half of 2012. In spite of the need to reinforce impairment for credit (1.259 billion euros more than in the first half of 2011) and for financial assets (98 million euros more year-on-year), with a resulting fall in the member institutions' return, the first half of 2012 still witnessed the following positive aspects:
- Increase in the aggregate core Tier 1 capital to 11.4% (against 9.5% at the end of 2011), thereby meeting EBA and Banco de Portugal requirements;
- Reduction in the transformation ratio from 139% on 31 December 2011 to 137.7% at the end of June 2012;
- 12-percentage-point growth in cost-to-income against the first half of 2011.
