Portugal: BCP to consider buying Novo Banco when it comes to market – CEO

The CEO of Portugal’s largest non-state bank, BCP, has signalled that it will look into the possibility of buying Novo Banco, the successor institution to Banco Espírito Santo (BES), when it is sold, applying the rigour that supports any investment decision.

“At the moment that this operation goes to market, if and when it goes to market, we will look with the rigour that supports our decisions,” said the CEO, Miguel Maya. “We will analyse at that time whether it makes sense, if it doesn’t and the value that makes sense.”

He added that the subject was not “at the moment” on table.

At a news conference in Lisbon to present the 2019 accounts on Thursday, Maya said that BCP had already made the acquisition it proposed in his current mandate, Poland’s Euro Bank, but that it was “an obligation to be attentive to every opportunity”.

Maya once more criticised the costs that BCP faces with the banking sector Resolution Fund, which financed the winding up of BES and the creation of Novo Banco, with the aid of a multi-billion-euro loan from the Portuguese state, and argued that the current funding arrangements should be reviewed.

All institutions that sell products or provide financial services in Portugal, whether they are based in the country or not, should contribute to the fund, he said, arguing that the current setup puts Portugal-based banks at a competitive disadvantage.