Novobanco first-half profit falls 15.6% to €367 million
Novobanco’s first-half profit fell as higher taxes and costs linked to its sale to BPCE weighed on earnings, despite continued loan growth.
Novobanco reported a first-half net profit of €367.2 million, down 15.6% from a year earlier, as higher taxes and operating costs, including expenses tied to its sale to Groupe BPCE, weighed on earnings.
The bank said its tax bill rose 38% to €85 million from €62 million a year earlier, while operating costs increased by nearly €31 million, or 11.8%. Novobanco said that, excluding non-recurring costs related to the sale transaction, costs would still have risen 7.1%, outpacing both commercial banking income, which grew 0.5%, and total banking income, which fell 5%.
The combined impact of higher taxes and operating costs amounted to a negative €54.1 million versus the same period last year, accounting for about 80% of the €67.6 million drop in net profit. Earnings were also hit by a weaker contribution from other operating income, which fell to €14.6 million from €57.5 million in the first half of 2025.
Chief executive Mark Bourke said the results reflected “strong commercial momentum and execution capacity”, with customer loans up about 6% since the start of the year. Gross lending rose by more than 7%, while the bank said its overall market share increased to 9.4%. Net interest income was broadly stable, rising 0.8% to €563.3 million, and lower provisions and impairments provided a positive offset, falling by €25.3 million.
Originally published at Eco.pt
