Scandal-hit Portuguese bank lost $10B in year it collapsed
LISBON, Portugal (AP) — A one-time leading Portuguese bank that collapsed and caused an unprecedented financial scandal has reported losses of 9.2 billion euros ($10 billion) in 2014, the year it went bankrupt.
Banco Espirito Santo SA said in a statement to the Lisbon stock exchange late Wednesday that over 2014 its total assets fell from 66.2 billion euros to 197 million euros.
Portugal’s central bank split BES into a so-called bad bank, which kept soured investments and the brand name, and a good bank called Novo Banco, which took over deposits.
The bad bank is due to be wound up in coming months, though litigation could delay that.
The government is scheduled to make a second attempt to sell Novo Banco next month after last year receiving offers it said were too low.