Novo Banco posted a profit of EUR 148.4 million in the first quarter of this year, 4% more compared to the same quarter of 2022, the bank announced in a statement on Friday.
Between January and March, the financial margin grew by 85% to 246.3 million euros, an increase that the bank said was aided by the “favorable environment” of interest rates affecting the loan portfolio, as it is “usually indexed against a variable interest”. rate”.
Operating expenses rose 8% to EUR 111.9 million, reflecting the effects of inflation, the bank says. Personnel costs rose by 4.6% to 58.3 million euros.
Also in the first quarter, the bank introduced write-downs 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 December last year, and 292 branches, the same number as at the end of 2022.
Novo Banco was created in August 2014 following the 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 paid no price with an investment of 1,000 million euros.
In that sale, a mechanism was agreed whereby the Resolution Fund will recapitalize Novo Banco until 2026, with a limit of EUR 3,890 million, for losses on assets that affect capital ratios.
Under this agreement, Novo Banco has already received 3,405 million euros in public money.
However, there are still disputes between Novo Banco and the Resolution Fund (first in the arbitral tribunal) that could lead to more money being placed, albeit with regard to 2022 (the year in which it had a profit of 560.8 million euros) have not requested a new capital injection.
In the statement released today, the bank says it believes amounts are due from the Resolution Fund for 2020 and 2021 and that it is “executing the legal and contractual mechanisms at its disposal to ensure they are received” .
Source: DN
