Financial Services

Novo Banco posts 2018 loss, gets more capital from resolution fund


LISBON, March 1 (Reuters) – Portugal’s Novo Banco, rescued by the state and now owned by U.S. private equity firm Lone Star, reported on Friday a net loss of 1.41 billion euros ($1.60 billion) for 2018 and a fresh capital injection from the country’s bank resolution fund.

The loss, compared with a loss of 2.30 billion euros in 2017, meant the unlisted bank needed 1.15 billion euros from the resolution fund.

The fund is the common responsibility of all banks operating in Portugal, and receives state loans to cover any large shortfalls in the banking system.

The injection, under the so-called contingency capital mechanism, is meant to keep solvency ratios at the country’s third-largest bank at adequate levels required by regulators.

$1 = 0.8802 euros
Reporting by Sergio Goncalves; Writing by Axel Bugge; Editing
by Mark Potter



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