Novo Banco, S.A. announces DG Comp notification
Novo Banco, SA (“novobanco” or the “Bank”) announces the notification by DirectorateGeneral for Competition (“DG Comp”), to the Minister of Finance, of the successful completion of novobanco’s Restructuring Period. The Commitments were agreed, in October 2017, between the Portuguese State and the European Commission and come within the scope of the state aid process. The business plan was designed to demonstrate the Bank's viability, by the end of the restructuring period, laid out a strategy for a comprehensive transformation of novobanco, based on six pillars:
1) divestment of non-core assets and focus on the Portuguese market;
2) restoring a leading position in the corporate segment and a focus on risk-adjusted profitability;
3) digital transformation and streamlining of the retail franchise;
4) improving balance sheet efficiency;
5) restructuring the operational platform; and
6) strengthening the risk management model to improve the solvency and resilience of the Bank.
During this period the progress of novobanco was monitored and verified by the Monitoring Trustee appointed by the European Commission. The Monitoring Trustee’s final report will be prepared upon the release of novobanco 2022 year-end accounts. The successful and complete execution of the business plan, despite market conditions being more challenging than the ones embedded in the business plan (eg: negative Euribor rates; negative economic consequences of the pandemic crisis), enabled the Bank to fulfil the Commitments, which will be assessed in the Monitoring Trustee’s final report. The successful conclusion of the restructuring process is a significant milestone for novobanco, which continues to compete as a strong and independent bank, supporting Portuguese corporates and households. This announcement is being made in accordance and for the purpose of article 29-Q, No. 3 of the Portuguese Securities Code and the article 17 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council.
Lisbon,13 February 2023 Novo Banco, S.A.