In a year highlighted by the acquisition of Eurobic by the Abanca Group, Eurobic Group Abanca reported a positive net income of 84.1 million euros, achieving a return on tangible equity (ROTE) of 11.1%, according to a statement released by the bank today.
Last year, the business volume increased by 5% to 12.714 billion euros, with deposits rising 12% year-on-year to 7.190 billion euros.
The bank noted an 11% increase in transaction volumes and an 8% rise in amounts handled in the acquiring business, while insurance saw an 80% increase in new policy subscriptions.
Regarding credit risk, Eurobic Abanca highlighted that its prudent stance led to a reduction in the ‘non-performing loans’ (NPL) ratio of the European Banking Authority (EBA) to 3.5%, compared to 3.6% announced a year earlier.
EuroBic was previously owned by Angolan businesswoman Isabel dos Santos, the daughter of former Angolan President José Eduardo dos Santos. However, in 2020, following the ‘Luanda Leaks’ investigation, it was announced that Isabel dos Santos would leave EuroBic’s shareholder structure to “safeguard trust in the institution.”
The ownership of EuroBic then became a concern for banking authorities, and since then, Abanca has been in negotiations to acquire the Angolan-origin bank, with the agreement being finalized in 2023, and the purchase completed last July. In January, the group did not disclose the value of the transaction, citing confidentiality.
Following the acquisition, Abanca decided to close its branch in Portugal and integrate the entire business of the Portuguese branch (all assets and liabilities) into the now named EuroBic Abanca. As a result, the group will cease operating through a subsidiary and will operate in Portugal through an autonomous bank.
Currently, during this integration process, the bank is named EuroBic Abanca, although this is a temporary brand. Once the integration is complete, expected in the second half of this year, it will be renamed solely as Abanca.
[News updated at 16:07]
