BES stands by 2010 goals, international ops help

LISBON, June 20 (Reuters) - Banco Espirito Santo (BES.LS) is confident of reaching its 2010 target of 850 million euros in net profit, boosted by its international operations, Portugal's second largest listed bank said on Friday.

In a presentation on the bank's strategy day, BES said that it maintained the 2010 target in spite of widespread losses in the financial sector due the credit crisis. Last year BES reported a net profit of 607 million euros.

It said any potential slowdown in business at home would be offset by its exposure to fast-growing economies, mainly Angola and Brazil. Still, it aims to raise its domestic market share in Portugal to 22 percent by 2010 from 20.4 percent in 2007. "We are well aware of the challenges presented by current market conditions but we expect that with hard work and with a mindset always geared to shareholder value creation BES will achieve its 2010 objectives," the presentation said.

It said that with a strong capital base, sound financial management, risk controls and its exposure to high growth countries, "BES is well positioned to maintain the strategic focus and face a challenging set of medium term targets."

BES originally established its 2010 target of 850 million euros in net profit in May 2007.

"Living in a different world today compared to one year ago has led to a fine tuning of BES business plan but not a revision of 2010 objectives," it said.

It is also aiming for a return on equity of 19 percent by 2010, up from 16.6 percent in 2007.

At 0930 GMT shares in BES were 1.17 percent higher at 10.8200 euros. (Reporting by Axel Bugge; Editing by David Cowell)