LISBON, March 9 (Reuters) - Portugal's fourth-largest
bank, Novo Banco, said on Thursday its consolidated net profit
tripled in 2022 as higher interest rates boosted income and
impairments and provisions fell.
The bank, 75% owned by U.S. private equity fund Lone Star,
netted 561 million euros ($592 million) last year, up from 184.5
million euros in 2021, it said in a statement.
The bank said its net interest income (NII), earnings on
loans minus costs on deposits, rose 9.1% to 625.5 million euros
in 2022, thanks to rising interest rates following increases by
the European Central Bank.
Revenues from fees and commissions rose 3.8% to 293.3
million euros.
Since Lone Star bought its stake in 2017, Novo Banco has
focused on reducing risk and closing subsidiaries abroad, as
well as offloading bad loans and real estate under tough
restructuring commitments agreed with Brussels.
The bank's impairments and provisions dropped by 69% to
111.2 million euros.
After the deep clean-up of its balance sheet, the bank has
needed to book fewer impairments, while it has not had to make
so many provisions as it has fewer non-performing loans.
($1 = 0.9476 euros)
(Reporting by Sergio Goncalves Editing by Inti Landauro and
Mark Potter)
Messaging: sergio.goncalves.reuters.com@reuters.net))
