Even with profits, Novobanco prepares another capital request to the Resolution Fund
The purpose of the bank's request is to restore capital ratios, with the exact amount still being discussed.
Even after a year marked by profits of around €200 million, Novobanco is preparing another capital request to the Resolution Fund, according to the Portuguese daily newspaper Jornal Económico. The purpose of the request is to restore capital ratios, with the exact amount still being discussed.
At stake is the bank’s CET1 capital ratio, which is protected at 12%. According to the contingent capital mechanism agreement, it is necessary to inject capital into the bank institution when the ratio falls below this level, explains the newspaper.
This necessity comes at a time when there are still unresolved differences between Novobanco and the Resolution Fund, notably over the impact of the sale of the branch in Spain and the revaluation of the bank’s holdings in the restructuring funds.
