Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Bradesco Said Not to Be Planning BES Capital Contribution

Don't Miss Out —
Follow us on:

July 31 (Bloomberg) -- Banco Bradesco SA, the Brazilian lender that owns 3.9 percent of Banco Espirito Santo SA, doesn’t plan to contribute to the Portuguese bank’s capital raise, according to a person familiar with the matter who asked not to be identified because he wasn’t authorized to speak publicly.

Bradesco will assess the Espirito Santo’s capitalization “at the right moment,” Chief Executive Officer Luiz Carlos Trabuco Cappi said today after his Osasco, Brazil-based bank reported second-quarter results. “There isn’t any capitalization being requested at this moment. What exists is a discussion.”

The Bank of Portugal required Espirito Santo to raise capital after the lender set aside 4.25 billion euros ($5.7 billion) in the first half of the year, mostly to cover souring loans to other members of the Espirito Santo Group. That cut the bank’s common equity Tier 1 ratio to 5 percent, less than the 7 percent regulatory minimum, according to a statement late yesterday as the company posted a 3.6 billion-euro first-half net loss.

Espirito Santo shares plunged 42 percent today to 20.1 euro cents in Lisbon, the biggest decline on record, valuing the bank at 1.13 billion euros.

To contact the reporters on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.net; Francisco Marcelino in Sao Paulo at mdeoliveira@bloomberg.net

To contact the editors responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net Christine Harper

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.