It is with enormous satisfaction that we announce Haitong Bank’s 2018 full year results. After 4 consecutive years of losses, we are proud to have reached profitability.
What was a narrative one year ago is now a reality. We have delivered in creating the foundations for the Bank’s sustainability in terms of Governance, Business Model, Cost Awareness and Strategic Direction.
Total Banking Income was EUR 99 million, for the full year, an increase of 43% year-on-year. On the costs side, Haitong Bank delivered a year-on-year reduction of 38% in Operating Costs to EUR 78 million. We have consistently shown Operating Profits in all four quarters of 2018. For the whole year, Operating Profits reached a record EUR 21 million.
The Bank was also able to deal with several one-off impairment costs, mainly related to the legacy credit portfolio. Net Income for the year was EUR 1.2 million, which brought forward by one year the well-awaited profitability objective.
The Bank also achieved an important turnaround from an asset quality perspective, with the NPL ratio falling significantly from one year ago.