Novo Banco to make profits from first quarter of 2021, says CEO

After years of losses, Novo Banco will start to make profits from this quarter, Novo Banco’s CEO António Ramalho, said on Friday.

“After the end of the restructuring period, a period of positive results will start from the first quarter,” he said at a press conference to present the results for 2020. 

The bank, which was carved out of the Banco Espirito Santo and 75% owned by US fund Lone Star, announced on Friday that it needs 598 million euros capital injection from the Bank Resolution Fund to deal with losses of 1.3 billion euros in 2020.

“Today begins the year 2021, which despite being a challenging year – not only for Novo Banco but for the whole system – will be the year in which the bank sees growth,” he added. “Everything has to come to an end.”

Portugal’s government has said it is “fully convinced” that the final value of the Resolution Fund to be transferred to Novo Banco would “remain below the value foreseen in the OE2021 proposal,” according to a statement, Lusa news agency reported.