Novo Banco fattens on sector profits

 In News

Novo Banco, the bank created from Banco Espírito Santo, is in profit for the first time since its creation in 2015.

The bank, led by António Ramalho, registered profits of €60.9 million in Q1 of 2018 compared to the €130,9 million losses for the same period in 2017.

The recovery was largely down, according to Ramalho, the same of the group’s insurance arm GNB Vida (€51.2 million).

Global Bankers is in the favourite to buy GNB Vida which was put up for sale at the end of 2017.

According to the bank, Novo Banco’s operational result was €130.2 million in the Q1, “More than double the amount registered for the same period in 2017, essentially down to market results and other business results”. The overall banking products are worth €252.2 million.

In this period the group reduced loans portfolio by around €2.2Bn compared to the first three months of 2017, “With special emphasis on non-performing loans (€-1.9Bn)”.

At the same time customer deposits increased €3.4Bn of which €1.8Bn resulted from the Liability Management Exercise. “Compared to December 2017 deposits were reduced by €1.1Bn.”

It was the first time in many quarters that all Portugal’s banks registered positive results. After Caixa Geral de Depósitos (CGD), BCP, BPI and Santander Totta all presented positive results for Q1 with Novo Banco’s being over €500 million.