The general assembly (AG) of Novo Banco meets this Monday, 23rd, to discuss the 2025 accounts and dividends, which could now go to the bank’s new shareholder, the French group BPCE.
The call for the meeting is not public, but Lusa is aware that the agenda includes the approval of the 2025 accounts (the year in which the bank had historic results of 828 million) and the dividend policy.
Although Novo Banco is still owned by the North American fund Lone Star (in 75%) and by the Portuguese State (in 25%, through the Resolution Fund and the General Directorate of Treasury and Finance) and the sale deed should only be signed at the end of April, the sale agreement to the French group BPCE (made last year) provides that the distribution of profits relating to 2025 already belongs entirely to the French group, according to information collected by Lusa.
In fact, according to the same information, the amount that BPCE agreed to pay for Novo Banco – 6,400 million euros (above market expectations) – already had the appropriation of the 2025 dividends as a presupposition.
Regarding dividends, today’s general meeting may decide not to distribute them now, and it will then be up to the new shareholder – when they formally take over the bank – to decide what to do.
If the payment of dividends is now decided, they will be paid to the new shareholder, not to those still current (Lone Star and the Portuguese State).
On Friday, Lusa questioned the banking Resolution Fund and the Ministry of Finance about the issue, as shareholders, but received no response.
Novo Banco was created in 2014 to take over part of the banking activity of Banco Espírito Santo (BES) when, in August of that year, the bank was the target of a resolution measure due to the serious crisis in which it was immersed.
In 2017, the majority of Novo Banco (75%) was sold to Lone Star, with the Portuguese State keeping the remainder (25%).
In this sale, a mechanism was agreed by which the banking Resolution Fund would compensate Novo Banco for ‘toxic’ assets inherited from BES. In the following years, the Resolution Fund injected R$3,405 million into the bank, causing several political and media controversies due to the use of public money.
With the early end of this mechanism, at the end of 2024, it became possible to sell the bank and pay dividends.
In June, Novo Banco shareholders agreed to sell it to BPCE for 6,400 million euros, and the agreements were signed in October. With the sale, Lone Star receives 4,800 million euros and the Portuguese State 1,600 million euros.
The bank’s sale deed should be signed at the end of April.
Banque Populaire Caisse d’Epargne (BPCE) is one of the main banking groups in France.
It already operates in Portugal in consumer credit and investment banking (it owns the Natixis technology center in Porto, with 2,500 employees), but this purchase marks its entry into retail banking in Portugal.
Novo Banco’s more than 4,000 employees considered themselves forgotten in the sale and created a petition demanding a reward for their efforts in recent years equivalent to two salaries. Novo Banco ended up agreeing and the bonus payment will take place with the processing of May salaries.
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