Novobanco
Novobanco or Novo Banco, SA is a financial institution that stands out as one of the country's main commercial banks, based in Portugal. It was established on 4 August 2014, as a result of a restructuring and recapitalisation process by the Bank of Portugal to save the good assets of the previously bankrupt Banco Espírito Santo (BES). The rescue of BES was precipitated by historic losses of 3,577 million euros. BES's toxic assets, on the other hand, were transferred to a "bad bank".
| Company type | Public company|Public |
|---|---|
| Industry | Financial services |
| Predecessor | Banco Espirito Santo |
| Founded | August 4, 2014 |
| Headquarters | Lisbon, Portugal |
Number of locations | 292 branches |
Key people |
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| Products | Retail and investment banking, insurance, asset management, venture capital |
| Brands | novobanco |
| €743mn (2023) | |
| Total assets | € 43.5 billion (2023) |
| Total equity | € 6.568 billion (2023) |
| Owners |
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Number of employees | 4,209 (Dec 2023) |
| Subsidiaries | Banco Best (100%); GNB GA (100%) |
| Website | www.novobanco.pt www.novobanco.pt/english/about-novobanco/about-novobanco |
novobanco has been designated as a Significant Institution since the entry into force of European Banking Supervision in late 2014, and as a consequence is directly supervised by the European Central Bank.
From 2017 to 2022, novobanco implemented a restructuring plan that focused on key areas such as improving asset quality, cost reduction, operational efficiency and strategic realignment.The bank took steps to reduce its non-performing loan portfolio from 12.3% of net NPL ratio in 2017 to 1.0% in 2022, including implementing strict risk management practices, strengthening internal controls and creating specialised recovery units.
In addition, novobanco has streamlined its operations, including divesting its international activity to focus entirely on Portugal, and optimised its cost structure, with Cost to Commercial Banking Income ("C/I") decreasing from 75.4% in 2017 to 44% in 2022, on a recurring basis.
As of 2022, novobanco begins a new stage in its history, with a renewed brand, a solid balance sheet and robust capital ratios. At this stage the bank has invested heavily in renewing its commercial network.