Novo Banco had exposure of 2 billion to large debtors at the end of 2021 – Banca & Finanças

Novo Banco’s exposure to large debtors at the end of 2021 amounted to 1.99 billion euros, 366 million less than in 2020 (when the total reached 2.35 billion).

The number is provided by Banco de Portugal, which updated aggregate information on the institution’s large financial positions reported in September 2021. As in previous reports, large debtors are not identified.

The supervisor explains that the disclosure “frames the payment made by the Resolution Fund to Novo Banco last year, under and in compliance with the provisions of the Contingent Capitalization Agreement, signed on October 18, 2017”.

Of the total exposure of €1.99 billion, credit borrowers accounted for €642 million, while equity investments accounted for €1.35 billion.

The number of large debtors decreased from 30 to 26, and of these, three appear with a value of zero.

Among credit borrowers, the largest exposure was 241 million euros, having improved by only 3 million euros compared to the last figure. The biggest reduction was 38 million euros, from 61 to 23 million.

In terms of holdings in equity instruments, the largest exposure was also the one in which there was the most significant decrease: from 905 million euros in 2020 to 801 million at the end of last year. The difference is 104 million euros.

There are exposures that, according to data from the Bank of Portugal, have increased. This is the case of one that rose from 116 to 129 million euros.

Novo Banco’s total initial exposure was €7.59 billion, of which €4.68 billion related to credit (compared to the current €642 million), and €2.92 billion related to holdings in capital instruments (a figure that at the end of last year had fallen to 1.35 billion).

At the end of 2021, impairment losses reached 399 million euros, less than the 617 million recorded a year earlier.

Banco de Portugal qualifies as a “large debtor” any entity that gives rise to an exposure of more than 43.3 million euros.

Source: Jornal de Negócios by

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