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Higher impairments drag Liberbank to FY'17 loss

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Higher impairments drag Liberbank to FY'17 loss

Liberbank SA reported fourth-quarter 2017 attributable net income of €11 million, compared to €29 million for the year-ago period. However, the lender booked an attributable net loss of €259 million for the full year, compared to net income of €129 million in 2016, partly due to higher impairments on financial assets and other charges.

While the Spanish lender's provisions dropped on a yearly basis to €7 million from €133 million in 2016, net impairments on financial assets rose to €269 million from €143 million a year earlier and other charges increased to €402 million from €85 million.

Net interest income amounted to €103 million in the final quarter of 2017, compared to €116 million a year earlier; net fees were €52 million, up from €45 million in the fourth quarter of 2016. Gains on financial assets and others dropped to €30 million from the year-ago €78 million.

The nonperforming loans ratio stood at 8.6% at the end of 2017, down from 13.9% at 2016-end. Liberbank said it aims to reach an NPL ratio of approximately 5.0% in 2018 and 3.5% in 2019.

The common equity Tier 1 ratio stood at 11.9% on a fully loaded basis and at 13.4% on a phased-in basis as of Dec. 31, 2017, compared to 10.7% and 12.1%, respectively, at the end of 2016. The total capital ratio stood at 15.4% on a phased-in basis at the end of 2017, compared to 12.2% at 2016-end.