Novobanco posts profits of €373.2 million

Novobanco posted profits of €373.2 million for the first half of 2023, an increase of 40% on the like-for-like period in 2022.

The bank says the profits are down to “the sustained evolution of the business and its capacity to generate revenues and capital.”
“We have enjoyed another period of strong commercial and financial performance with a continued growth of the business, solid ratios of liquidity and a sustained generation of capital”, says the CEO, Mark Bourke in a note attached to the half year financial account. “Novobanco continues to exceed expectations”, he added.
In the six months the bank’s financial margin almost doubled in relation to the like-for-like half in 2022, growing 95.5% to €524 million “reflecting an improvement in the average interest rate on assets and a lower increase in the costs of financial resources”, states the bank.
The commercial bank product grew 62% to €669.4 million “in a favourable interest rate environment”. “This performance more than compensated the effect of inflation and was also down to investment in improving bank processes.”
Revenues from bank charges fell 8.8% while revenues from payment method management increased by 10.5%.