First-quarter earnings at Novo Banco increased 4% to 148.4ME.

Date:

Share post:

Novo Banco reported a profit of 148.4 million euros in the first quarter of this year, an increase of 4% compared to the same period in 2022.

Between January and March, net interest income increased by 85 percent to 246.3 million euros. The bank attributes this increase to the “favorable environment” of interest rates, which had an impact on the loan portfolio, which is “mostly indexed to the variable interest rate.”

First-quarter earnings at Novo Banco increased 4% to 148.4ME.

The bank reported that operating expenses increased by 8% to 111,9 million euros due to the effects of inflation. Personnel expenses rose 4.6% to 58.3 million euros.

In addition, the bank recorded impairments of 27.7 million euros in the first quarter, of which 26 million euros were allocated to potential credit issues.

Novo Banco had 4,105 employees at the end of March, 15 more than at the end of last December, and 292 branches, the same number as at the end of 2022.

The bank resolution fund established Novo Banco in August 2014, during the resolution of Banco Esprito Santo (BES). In 2017, 75% was sold to the U.S. investment fund Lone Star, which invested €1 billion at no cost.

In this sale, a mechanism was agreed upon whereby the Resolution Fund would recapitalize Novo Banco until 2026, up to a maximum of €3,890,000,000, for losses in assets that affect capital ratios.

Under the terms of this agreement, Novo Banco has already received 3,405,005,000 in public funds.

However, there are still disputes between Novo Banco and the Resolution Fund (already in arbitration court) that could lead to more money being put in, despite the fact that Novo Banco has not requested a new capital injection for 2022 (the year in which it earned 560,8 million euros in profits).

In a statement released today, the bank states that it believes it is owed funds from the Resolution Fund for 2020 and 2021 and that it is utilizing “the legal and contractual mechanisms at its disposal” to ensure receipt of these funds.

Related articles

gov.pt portal launched in September and application in the 1st quarter of 2025

The single digital services portal gov.pt will be launched in September and the application will take place in...

Films censored during the Estado Novo and a reinforced dose of Portuguese short films at MOTELX festival

A reinforced dose of Portuguese short films, films banned by the Estado Novo and Edgar Pêra's new feature...

Vista Alegre eyes Asia and the Middle East in partnership with Ronaldo

The president of Vista Alegre said in an interview with Lusa that Cristiano Ronaldo's investment in Vista Alegre...

Benfica win women’s field hockey Portuguese Cup for the 10th time in a row

Benfica won the women's roller field hockey Portuguese Cup for the 10th time in a row today, beating...