Novobanco reported a first-half net profit of 367.2 million euros, down 15.6 percent from a year earlier, ECO News reports.

According to the company, higher taxes and operating costs, including expenses tied to its sale to Groupe BPCE, weighed on its earnings.

The bank said its tax bill rose 38 percent to 85 million euros from 62 million euros a year earlier, while operating costs increased by nearly 31 million euros, or 11.8 percent.

Excluding non-recurring costs related to the sale transaction, costs would still have risen 7.1 percent, Novobanco said, outpacing both commercial banking income, which grew 0.5 percent, and total banking income, which fell 5 percent.

The combination of higher taxes and operating costs amounted to a negative 54.1 million euros versus the same period last year, accounting for about 80 percent of the 67.6 million euro drop in net profit this year, while earnings were also down due to weaker contribution from other operating income.

Gross lending rose by more than 7 percent, while Novobanco’s overall market share increased to 9.4 percent. Net interest income was broadly stable, while lower provisions and impairments provided a positive offset. These results reflect a “strong commercial momentum and execution capacity”, according to Novobanco chief executive Mark Bourke.