Espírito Santo Financial Group

The Espírito Santo Financial Group (ESFG) was a Portuguese holding company with headquarters in Luxembourg, founded in 1984. The group represents the interests of the Portuguese Espirito Santo Group, which has major investments in Portugal and Europe, Americas, Africa and Asia.

Banco Espirito Santo Financial Group
TypeSociedade Anónima
IndustryFinancial services
Founded1984
FounderRicardo Espírito Santo Silva Salgado
Headquarters
Luxembourg
,
Luxembourg
Area served
Europe, United States, Latin America, Africa, Asia, Arabian Peninsula
Key people
chairman and CEO = Roger H. Hartmann; Ricardo Espírito Santo Silva Salgado, José Manuel Pinheiro Espírito Santo Silva
ProductsRetail, corporate, investment and private banking, insurance, asset management, private equity
Total assets$119.1 billion (2015)[1]
Websitewww.esfg.com

The company is listed on the NYSE Euronext and the London Stock Exchange. The flagship of ESFG is the Banco Espírito Santo(BES), a full-service bank based in Lisbon. The bank has subsidiaries within and outside of the Portuguese-speaking business world. Through its subsidiaries, ESFG provides a series of banking services that are centered in the Banco Espirito Santo. These are general insurance services (Tranquilidade)[2] and health services (BES Saúde).[3]

In addition to the Banco Espirito Santo in Portugal, Azores and Madeira, BES has branches in Luanda, as well as branches or offices in São Paulo, Praia, Madrid, London, Frankfurt, Paris, Warsaw, Lausanne, Macau, Panama City, Dubai, Miami, New York City, Caracas and the Cayman Islands.

In May 2014, it was disclosed, in a rights issue document of Banco Espírito Santo, the major shareholder(Espirito Santo International) of the group was in “serious financial condition” and accounting “irregularities" were found after an external audit was ordered by the Bank of Portugal.[4][5] ESFG owned 25% of Banco Espírito Santo and Espírito Santo International owned 49% of ESFG.[4] The Government of Portugal and Portugal's biggest bank, Caixa Geral de Depósitos, refused assistance to the group.[6] Long time CEO, Ricardo Salgado resigned in July 2014, on pressure by the Bank of Portugal.[7]

Prior to its downfall, it came to public attention that the group had several dealings and associations with corruption and tax avoidance cases, such as the bribery case over the acquisition of submarines[8][9] and the Panama Papers scandal.[10]

The potential of a default of the group's obligations caused great concern among creditors.[11][12][13] On 11 July 2014, Banco Espírito Santo, partially owned by ESFG, disclosed that it has a buffer of 2.1 billion euros above the regulatory minimum; enough to cover its exposure to debt in the Espirito Santo Financial Group.[14][15]

File for bankruptcy

On 18 July 2014 the Espirito Santo family’s holding company, which owns a stake in Portugal’s second-largest bank, has filed for creditor protection, meaning that it is bankrupt.[16]

Operations
Related organizations
Commercial banking
Financial services
  • Compagnie Bancaire Espírito Santo in Switzerland[22]
  • ESAF - Espírito Santo Activos Financeiros[23]
  • Espírito Santo Activos Financieros Spain
Insurance and Healthcare

In Portugal:

  • Companhia de Seguros Tranquilidade "Traquilidade"[24]
  • Companhia de Seguros Tranquilidade Vida
  • Espirito Santo Companhia de Seguros
  • Espírito Santo Saúde (Hospitals)
  • Europ Assistance Portugal / Europ Assistance[25]
Investment banking
Other

In Portugal:

The bank owns a small part of Banque Marocaine du Commerce Extérieur, a bank in Morocco.

See also
  • Banco Espírito Santo Azores
  • BESI Brasil

References
  1. "The World's Largest Public Companies". Forbes.
  2. Website „Tranquilidade“ Archived 2006-12-07 at the Wayback Machine (Portuguese)
  3. Website Espírito Santo Saúde Archived 2011-07-01 at the Wayback Machine (Portuguese)
  4. "What, Exactly, Is Espírito Santo?". blogs.wsj.com. 10 July 2014.
  5. Audit Cites Problems at Portugal Conglomerate The Wall Street Journal May 22, 2014
  6. "Governo "teve ato de coragem" ao recusar ajuda ao buraco do BES" [Government was "brave" for refusing to help BES]. Noticiasaominuto. 25 June 2014. Archived from the original on 27 July 2014. Retrieved 10 July 2014.
  7. "Stock Markets Fall Amid Trouble at Bank in Portugal". The New York Times. 10 July 2014.
  8. "Germans prove €6.4 million submarine bribe was received by four Portuguese elite".
  9. "Espírito Santo families shared submarine commission payment".
  10. "Leitor Expresso".
  11. "Europe: Contagion or Isolation?". blogs.wsj.com. 10 July 2014.
  12. "Espirito Santo Creditors Doubt Containment on Missed Payment". bloomberg.com. 10 July 2014.
  13. "Espírito Santo Investors Feel The Pain". blogs.wsj.com. 10 July 2014.
  14. "Banco Espirito Santo Lifts Lid on Exposure to Group". bloomberg.com. 11 July 2014.
  15. "Portugal Crisis Bank BES 'Sufficiently Capitalized'". haberler.com. 11 July 2014.
  16. "Espirito Santo International files for creditor protection".
  17. "besa.ao". besa.ao. Archived from the original on 2014-09-05. Retrieved 2014-07-12.
  18. "esbf.com". esbf.com. Retrieved 2014-07-12.
  19. Archived November 23, 2006, at the Wayback Machine
  20. "gespanama.com". gespanama.com. Retrieved 2014-07-12.
  21. "bes.com.ve". bes.com.ve. Retrieved 2014-07-12.
  22. "espiritosanto.com". espiritosanto.com. Retrieved 2014-07-12.
  23. "esaf.pt". esaf.pt. Archived from the original on 2014-07-14. Retrieved 2014-07-12.
  24. "Archived copy". Archived from the original on 2006-12-07. Retrieved 2006-12-09.{{cite web}}: CS1 maint: archived copy as title (link)
  25. "europ-assistance.pt" (in Portuguese). europ-assistance.pt. Retrieved 2014-07-12.
  26. Archived December 7, 2006, at the Wayback Machine
  27. "bes.es". bes.es. Retrieved 2014-07-12.
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