Novo Banco obtained profits of 148.4 million euros in the first quarter of this year, 4% more than in the same quarter of 2022, it revealed this Friday, April 28, in a statement.
Between January and March, the financial margin grew by 85% to 246.3 million euros helped by the “favorable environment” of interest rates with effects on the credit portfolio, as it was “mostly indexed to the interest rate variable”, explains the bank.
Operating costs rose 8% to 111.9 million euros, reflecting the effects of inflation, the bank says. Personnel expenses increased by 4.6% to 58.3 million euros.
Even in the first quarter, The bank recorded impairments for the amount of 27.7 million euros, of which 26 million euros to deal with possible credit problems.
At the end of March, Novo Banco had 4,105 employees, 15 more than at the end of last December, and 292 branches, the same as at the end of 2022.
In 2022, Novo Banco made a profit and can now be freed from Brussels restrictions.
Novo Banco is released from Brussels. Does this mean that there are no more capital injections into the bank?
Novo Banco was created in August 2014, by resolution of Banco Espírito Santo (BES), owned by the Bank Resolution Fund. In 2017, 75% was sold to the American investment fund Lone Star, which did not pay any price for having injected 1,000 million euros.
In that sale, a mechanism was agreed by which the Resolution Fund recapitalizes Novo Banco until 2026, with a limit of 3,890 million euros, for losses in assets that affect capital ratios.
By virtue of this agreement, Novo Banco has already received 3,405 million euros of public money.
However, there are still disputes between Novo Banco and the Resolution Fund (first in the arbitration court) that could lead to more money being placed, although in reference to 2022 (the year in which it had benefits of 560.8 million euros) not having requested a new capital injection.
In the statement released this Friday, the bank says that it considers that there are amounts owed by the Resolution Fund for 2020 and 2021 and that it is carrying out “the legal and contractual mechanisms at its disposal to ensure their receipt.”
Benefits of more than 2,500 million euros. The five biggest banks had a “fantastic” year, raising ECB interest rates
Source: Observadora
