Portugal’s Novo Banco, the bank that inherited the quality assets of bankrupt bank Banco Espirito Santo (BES) may be sold on the stock exchange and its listing prospectus is practically concluded, Portuguese weekly newspaper Expresso reported.
The newspaper also reported that the sale on the stock market was now considered an increasingly viable way of the State selling off its stake, although the Bank of Portugal has not given up its hope of selling the bank’s entire capital to a single buyer, which is considered to be the ideal solution.
The Bank of Portugal will decided by the end of June if it will directly sell Novo Banco or if it will be sold on the stock market. Only then will the documentation that interested parties are waiting for in order to make a proposal, be published.
Informal contacts with interested parties that signed a confidentiality agreement to look at Novo Banco’s data, are taking place in June, in order to judge the potential success of a direct sale.
In 2015 Novo Banco posted a loss of 981 million euros due to credit impairments “inherited from BES” which required the bank to set up provisions in the amount of 1.056 billion euros.
Excluding those effects, operating profit totalled 125 million euros, with a drop in costs of 12.7 percent against 2014, with staff costs falling by 8.2 percent. (macauhub/PT)