Novo Banco closed the first nine months of 2024 with profits of 610.4 million euros, around 4% less than in the same period last year (638.5 million), highlighting the bank that made a provision of 30 million related “to the transformation process within the framework of the strategic innovation and simplification program”, without this non-recurring effect, profits would be affected. have grown slightly (0.3%), indicates the bank in a statement.
Despite the downward trend in interest rates, the bank recorded a increase in financial marginwhich went from 831 to around 886 million euros in the first nine months of this year. Even so, broken down by quarter, the bank has already recorded a 1.5% drop in its financial margin in the third quarter.
It is, in simple terms, the difference between what the bank charges for the loans it grants and its financing costs (customer deposits, broadly speaking). The positive evolution of the financial margin, although it is growing more slowly, will be related to the fact that the fall in interest rates is slowly reflected in the calculations of the installments paid by clients, which are only reviewed within defined periods (generally, three, six or 12 months).
To preserve the financial margin, the The bank reduced the remuneration of deposits.. “The average interest rate on deposits in September 2024 was 1.26%, compared to 1.48% in June 2024,” the bank indicates in a press release.
On the other hand, the Novo Banco increased commission collection by 10.7%exceeding 240 million euros in this item, which also counts in the banking product. This increase in commission collection was “supported by the performance of the Novo Banco franchise with a growing customer base and by the dynamic execution of initiatives to increase commission income, mainly in account management and payment methods. ”.
Milenio BCP promises to multiply dividends, after increasing profits by 9.7% (to 714 million) in the first nine months of the year
Source: Observadora
