Banco Nacional Ultramarino (BNU) has reported a first-quarter unaudited profit after tax of MOP 39.9 million, a decrease of MOP 69.5 million (63.6 per cent) compared to the same period in 2021.
The bank’s financial performance continued to reflect the low interest rates environment and heightened uncertainties of the global and Macao economy, with net interest income down by MOP 6.7 million and net fees and commission income decreased by MOP 9.1 million.
During the first quarter of 2022, the bank reported a net charge for impairment on credits and financial investments of MOP 34 million upon the adoption of the new Macao Financial Reporting Standards, which primarily reflected the bank’s conservative impairment model on the forward economic outlook arising from inflationary risks and tighter Covid-19 related restrictions in mainland China.
The bank also recorded a net loss of MOP 26.3 million on disposal of financial investments, mainly due to recent interest rate hikes in the US and downgrading activities. These impacts to the bank’s operating results are considered as extraordinary and non-recurring.
With the growth and financial integration of the Greater Bay Area (GBA) and introduction of the Guangdong-Macao Intensive 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 ahead, the Hengqin branch will concentrate on enriching the connection between mainland China, Macao and Portuguese-speaking countries by providing financial support and constructing a diversified business environment in GBA.
The bank’s operating expenses held constant year on year (-0.1 per cent), 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 presented a solvency ratio of 21.65 per cent, representing an increase of 132 basis points year-on-year, while well above the minimum regulatory requirement of 8 per cent and high liquidity levels.
