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Millennium BCP Q1 net profit drops YOY as trading income falls

MillenniumBCP reported first-quarter group net income attributable toshareholders of the bank of €46.7 million, down 33.7% from €70.4 million a yearearlier, as net trading income fell sharply absent a large year-ago gain onPortuguese sovereign debt.

EPS for the quarter was 0.3 cent, compared to 0.5 cent ayear ago.

The lender booked net income of €44.8 million frominternational activity, compared to €54.9 million a year ago. Net incomefrom domestic activity fell to €1.9 million from €14.8 million.

Net trading income declined to €28.3 million from €191.3million in the first quarter of 2015, during which Millennium BCP booked gainsof €115.8 million on the sale of Portuguese debt securities. The lender notedin the May 2 report that the sales in the year-ago period were "a resultof market opportunities in the activity in Portugal that were not repeated inthe same period of 2016."

Net interest income fell year over year to €292.4 millionfrom €297.8 million. The net interest margin for the first quarter stood at1.81%, flat year over year. Net fees and commission income totaled €163.9million for the first quarter, up from €162.3 million a year earlier.

Loan impairments for the quarter dropped to €160.7 millionfrom €201.0 million a year ago. Other impairment and provisions amounted to€15.4 million, down from €70.1 million in the first quarter of 2015.

The ratio of loans more than 90 days overdue to total loansstood at 7.4% as of March 31, compared to 7.3% a year earlier, while the creditat risk ratio ticked down to 11.5% from 12.1% over the same period.

Return on average equity for the period stood at 4.1%,compared to 6.9% a year ago.

The bank's phased-in common equity Tier 1 ratio was 12.8% asof March-end, compared to 13.3% at Dec. 31, 2015, and 11.5% as of March 31,2015. The fully implemented CET1 ratio stood at 10.0% at March 31, compared to10.2% at Dec. 31, 2015, and 8.7% as of March 31, 2015.