The financial institution said in a statement sent to the Portuguese Securities Market Commission (CMVM) that Novo Banco posted a profit of 428.3 million euros in the first nine months of the year, an increase of 178% year-on-year.

For the bank led by Mark Burke (pictured), this figure reflects “sustained business growth demonstrating the ability to generate revenue and capital, despite the current macroeconomic context, inflationary pressures and rising interest rates.”

The income of commercial banks fell 2.6% to 621.6 million euros. Banking income rose 26.5% to €851.1 million, with “a positive contribution from other operating income of €161.3 million, driven by deleveraging for the real estate portfolio”.

This figure includes a capital gain of €71.5 million resulting from the sale of the existing headquarters building in the third quarter of this year.

In August of this year, the bank informed the market that it had completed the sale of its headquarters building located on Avenida da Liberdade for €112.2 million. Buyer is Merlin properties.

Novo Banco adds that “credit to customers increased in all sectors”, being set at €25.8 million.

Operating costs amounted to €314.2 million, a year-on-year increase of 2.8%, “with lower personnel costs offset by one-off increases in general, administrative and depreciation costs that support investment in operational and business process improvement.”

In terms of deficits, the non-performing loan ratio (NPL) was 5%, “with an increase in coverage ratio to 77.2%, close to the average ratio of European peers,” he adds.

In terms of profitability, the annual return on equity (before taxes) was 12.4%. In terms of capital ratio, CET1 rose 90 basis points in the quarter to 12.7%.