Portugal's banking resolution fund is aiming to sell its 13.54% stake in Novo Banco to maximize revenues, according to the fund's chief, Luis Maximo dos Santos. Novo Banco, the fourth largest bank in Portugal, emerged in 2014 from the collapsed BES after a state bailout. In 2017, the U.S. fund Lone Star acquired a 75% stake, while the rest is held by the resolution fund and the Portuguese state. Dos Santos stated to a parliamentary committee that the fund's focus has shifted from cost reduction to profit optimization.
The fund intends to secure a favorable sales agreement in coordination with Lone Star, potentially considering an IPO valued at around 5 billion euros. Dos Santos suggested an IPO as a likely option, awaiting Lone Star's formal announcement, expected to comply with legal procedures.
Highlighting the possibility of engaging a financial adviser, Dos Santos mentioned the likelihood of selecting one. In addition, the Portuguese banking sector, dominated by the top five banks, may witness further consolidation.
The Bank of Portugal Governor endorsed a Novo Banco IPO as beneficial to Portugal's banking environment. He emphasized the need for caution in consolidation, as it could impact capital ratios, liquidity, and operational expenses, while acknowledging the competitive dynamics within the European Union market compared to Portugal's predominantly national banking landscape. (1 USD = 0.9649 EUR)