The Portuguese bank reports its first annual profit ever, a total of €184.5 million.

After accumulated losses of €8.4 billion since the resolution of former BES bank in August 2014, Portugal’s Novobanco finally reached the light at the end of the tunnel by achieving an unprecedented profit of €184.5 million last year.

This positive result compares with losses of €1,329 million in 2020, but does not, however, prevent a new request to the Resolution Fund for €209.2 million.

On the possibility of a new capital injection, the Resolution Fund and also the finance minister, João Leão, had already responded negatively to the bank even though the request had not been publicly announced, so a new dispute between the two parties is expected. And this surges at a time when the contingent capital mechanism ceiling of 3.89 billion, valid until 2026, is about to run out – with this request, another 200 million remain, and there are disputes in the arbitration court in the amount of €170 million.

A year of profits was already forecast for the financial institution, according to the signs that were being given by António Ramalho throughout last year, and which were confirmed quarter after quarter.

The bank justifies the first positive results in its eight-year history with the improvement in the bank’s operating results (with a contribution of €377.7 million), a lower level of impairments and provisions (down 70.4% to 352 million) and and by the recording in 2020 of the 300.2 million loss on the revaluation of restructuring funds.

Original Story: Eco News | News
Photo: Novo Banco Website
Edition: Prime Yield