“This amount will be withdrawn from the bank within 30 days starting today and will be paid to our shareholders,” stated Benjamin Dickgiesser during a conference call with analysts presenting the first-quarter results of Novo Banco.
On Monday, Novo Banco announced the approval of a capital reduction of 1.1 billion euros at a shareholders’ general meeting, which will be distributed to shareholders in the form of a dividend of 2.20 euros per share.
“Novo Banco informs that a reduction in share capital amounting to 1.1 billion euros has been approved, with the aim of freeing up excess capital,” read the statement sent to the Comissão do Mercado de Valores Mobiliários (CMVM).
Regarding the financial results for the first quarter of this year, in which Novo Banco’s profit fell by 1.9% to 177.2 million euros, the bank’s Chief Executive Officer (CEO) described these as “very consistent” figures.
“I think this is clearly a very solid set of results. When we look at the balance sheet and the income statement, we are making progress and meeting goals across all fronts and categories,” stated CEO Mark Bourke.
The CEO notably referenced growth “in all major credit portfolios, mortgage and consumer,” as well as in commissions and deposit base.
Novo Banco reported profits of 177.2 million euros in the first quarter, down 1.9% from the first three months of 2024, as disclosed by the bank in a statement today.
The net interest margin (the difference between interest charged on loans and interest paid on deposits) fell by 6.7% to 279.1 million euros, while commissions increased by 12.3% to 84.3 million euros.
The bank indicated that the reduction in revenues (commercial banking product fell by 2.8% to 363.4 million euros) occurred within expectations, amidst a context of declining interest rates, and that the increase in commissions was supported by the rise in loan volume and customers.
Additionally, in the first quarter, operating costs rose by 5.3% to 125.2 million euros. Within this, personnel costs increased by 8.1% to 68.4 million euros.
Impairments and net provisions were recorded at 12.3 million euros, half of the amount accounted for in the first quarter of 2024.
