Novobanco Market Standing and Bank Services

Novobanco has established itself as a significant player in the Portuguese banking market, with a strong presence in the country's retail banking sector. With a large network of branches and ATMs, Novobanco offers convenient access to its services for customers across Portugal.

Novobanco's market standing is also reflected in its robust financial performance, with a significant increase in assets and a stable capital base. This solidity has enabled the bank to expand its services and offerings to meet the evolving needs of its customers.

One of the key services that sets Novobanco apart is its digital banking platform, which provides customers with a seamless and secure way to manage their accounts and conduct transactions online. This platform has been a game-changer for many customers, allowing them to bank on their own terms and at their own pace.

Novobanco has a strong industry reputation, recognized by leading publications and organizations.

They've received numerous awards from Global Finance Magazine, including Best Trade Finance Provider and being named the top Trade Finance Provider in Portugal for the fifth consecutive year.

Their expertise in structured retail products has also earned them the "Best Distributor, Portugal" award from SRP Europe Awards.

Here are some of the notable awards and recognitions they've received:

Novobanco has received numerous awards and recognitions from the market, showcasing its exceptional performance. Global Finance Magazine has named Novobanco the Best Trade Finance Provider.

The Covered Bond Report awards have honored Novobanco as the Best Debut. Global Capital Awards have recognized Novobanco's innovative deal as the Best Pioneering Deal.

Novobanco's structured retail products have been recognized by SRP Europe Awards, earning the Best Distributor, Portugal award. Jornal de Negócios/APFIPP has also acknowledged Novobanco's achievements.

For the fifth consecutive year, Novobanco has been named the top Trade Finance Provider in Portugal by Global Finance magazine. The Refinitiv Lipper Fund Awards have honored Novobanco's NB Euro Bond fund as the best Euro bond fund in Europe for the 12th year.

This fund has consistently excelled over the last 3, 5, and 10 years. Novobanco has also won the SRP Europe Awards' Best Distributor, Portugal award, demonstrating its strong and consistent performance in Structured Products.

Related reading: Banco Best

Market recognition is a testament to Novobanco's commitment to excellence. Novobanco has received numerous awards and recognitions from reputable institutions.

Global Finance Magazine has named Novobanco the Best Trade Finance Provider, and it has also been recognized as the top Trade Finance Provider in Portugal for the fifth consecutive year. This is a remarkable achievement, demonstrating the bank's consistency and expertise in trade finance.

The Covered Bond Report awards have honored Novobanco with the Best Debut award, and Global Capital Awards have praised the bank with the Best Pioneering Deal award. These accolades highlight Novobanco's innovative approach to finance.

SRP Europe Awards have also recognized Novobanco's excellence, naming it the Best Distributor, Portugal, for structured retail products. This award is a testament to the bank's strong performance in the structured products market.

Here are some of the notable awards and recognitions received by Novobanco:

Moody's rating upgrade is another significant achievement for Novobanco. The bank's senior preferred notes were upgraded by 9 notches to Baa2 with an unchanged positive outlook. This upgrade reflects ongoing improvements in the bank's creditworthiness and its strong operating conditions.

The upgrade also highlights the improved Portuguese Macro Profile, which has positively impacted the standalone credit profiles of Portuguese banks. This is a significant development, demonstrating the bank's resilience and ability to adapt to changing market conditions.

In addition to these recognitions, Novobanco has also made significant progress in resolving the issues related to the Banco Espirito Santo (BES) rescue. The bank has successfully closed the asset protection scheme, which has lifted a contractual dividend ban. This development has paved the way for Novobanco to normalize its capital structure and explore new opportunities, including an initial public offering in 2025.

Novo Banco faced a significant challenge in serving small business owners in Portugal. SMEs were being largely underserved by financial institutions.

The bank's analysis of the SME banking landscape revealed a major issue.

Novo Banco was struggling to provide a satisfactory digital banking experience to small business owners in Portugal.

The bank found that SMEs were being underserved by financial institutions, leading to a significant gap in the market.

Novo Banco realized that building a highly personalized and easy-to-use business financial management platform was key to becoming leaders in the SME banking segment.

This platform would help small business owners manage their finances more effectively, which is essential for their growth and success.

Check this out: Espírito Santo Financial Group

One bank in Portugal stands out for its exorbitant charges, with customers complaining about the costs of even the simplest transactions.

Bes, now known as Novo Banco, charges a staggering 11.50 euros to change a card PIN.

Their poor communication skills are also a major issue, with customers reporting that they often don't receive replies to messages for weeks, if at all.

Staff at this bank are also known to be rude, making interactions with them a stressful experience.

Their lack of customer care is a major concern, with customers feeling neglected and ignored.

Novo Banco's customers have reported extremely poor experiences with the bank's services.

Many customers have expressed frustration with the bank's slow response times, with some reports indicating that it can take up to 2 or 3 weeks to receive a reply to a message.

The bank's high fees have also been a major source of complaint, with some customers being charged as much as 11.50 euros to change a card PIN.

Customers have also reported being treated rudely by bank staff, with some even describing the experience as the "worst banking experience" they've ever had.

In some cases, customers have reported that bank officials have shown a complete lack of respect for their customers, failing to respond to calls or emails in a timely manner.

Novobanco's business model is centered on domestic commercial banking for companies and individuals. This approach allows the bank to offer a wide range of financial products and services.

The bank operates a commercial network of 292 branches and 20 corporate centres, covering the entire national territory. This extensive presence enables Novobanco to provide personalized financial solutions to its customers.

Novobanco offers a variety of banking services, including deposit services, loans, asset management, insurance, and investments. These services cater to the needs of individuals, companies, and institutional clients.

With assets of 44 billion euros, Novobanco is one of the largest banks in the national market, serving 1.6 million customers. This significant customer base and substantial assets demonstrate the bank's stability and growth.

Novobanco's market share is 9.8% as of June 2023, solidifying its position as a major player in the national banking market.

Curious to learn more? Check out: National Bank of Greece

Vítor Bento abandoned the leadership of Novo Banco a month and a half after starting up his duties, in September 2014, and was replaced by Eduardo Stock da Cunha.

The Resolution Fund is the bank's only shareholder until a sale transaction takes place, and it's a structure created in 2012 with contributions from Portuguese banks and the financial sector.

Novo Banco incorporates every staff, branch, deposits, credit customers, and holders of senior bonds of Banco Espírito Santo.

In August 2014, Novo Banco launched its first communication campaign to mark the beginning of the change in the bank's image, with a butterfly as its symbol.

By September 22, 2014, the bank had launched its new identity, incorporating the butterfly's wings in the shape of a mathematical power, to symbolize the commitment to regaining its leading role.

The Resolution Fund received three binding bid offers on Novo Banco by June 30, 2015, from Banco Santander SA, Fosun International Limited, Anbang Insurance, and Apollo Global Management.

However, the sale was cancelled in September 2015 due to the offers being deemed unsatisfactory.

In March 2016, Novo Banco announced a plan to cut 1,000 jobs to reduce operating costs by 150 million euros as part of its restructuring plan agreed with the European Union.

The proposed job cuts equated to 14 percent of the bank's workforce at the time.

In October 2016, the Resolution Fund received four offers on Novo Banco from China's Minsheng Financial Holding, Apollo, Centerbridge, and Lone Star.

In January 2017, Aethel Partners made an offer to buy Novo Banco.

In March 2017, the Portuguese Central Bank announced that Lone Star Funds would acquire 75% of Novo Banco in return for a capital injection of €1bn.

The deal was closed in October 2017, and Lone Star Funds started controlling 75% of Novo Banco.