NOVO BANCO, SA

NOVO BANCO, S.A. is a Portuguese universal bank headquartered in Lisbon, created in 2014 following the resolution of Banco Espírito Santo, with the “good bank” perimeter transferred to the new entity and legacy assets largely segregated. It operates mainly in Portugal with a smaller presence in Spain, serving retail, SME, corporate, and private banking clients, and provides payment services, current and savings accounts, mortgages and consumer loans, working capital and trade finance, treasury and markets services, asset management, and insurance distribution through group units and partnerships. The bank is supervised under the European Central Bank’s Single Supervisory Mechanism and Banco de Portugal, is subject to EU resolution and MREL requirements, and funds itself primarily through customer deposits complemented by covered bonds and senior/MREL-eligible issuance. Since its 2017 sale, the majority shareholding has been held by funds advised by Lone Star, while the Portuguese Resolution Fund retains a minority interest; a contingent capital agreement with the Resolution Fund was put in place at closing and has involved periodic compensations and audits tied to a defined pool of legacy assets. In recent years the institution has focused on balance-sheet cleanup, cost rationalization, and de-risking, reporting sustained profitability, lower non-performing exposures, and capital ratios in line with regulatory minima, while maintaining a predominantly domestic risk profile sensitive to Portuguese macro and interest-rate conditions. Ongoing legal and regulatory matters mainly stem from pre-resolution exposures and creditor claims associated with the former Espírito Santo group, and outcomes can affect earnings and capital through impairments or litigation costs. Retail and business products are distributed via branches, online banking, and mobile apps, with standard EU protections applying to payments and data; deposits are covered by the Portuguese Deposit Guarantee Fund up to EUR 100,000 per depositor per institution. Pricing, fees, eligibility, and documentation requirements vary by segment and product, and the bank has signaled optionality around future capital and ownership structure, including potential public market access, subject to supervisory approvals and market conditions.