The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Novo banking comes to Portugal

It took the collapse of Banco Espírito Santo, rather than the eurozone crisis, to redraw the map of Portuguese banking. Will the revised landscape show Iberian consolidation, or a new Chinese foothold on the continent?

When Spain’s Caixabank made a full takeover bid for BPI in the middle of February, it caught many people off guard.

Caixabank’s existing 44% stake in BPI, Portugal’s fourth largest bank, had been overlooked in the saga of the shake-up of the country’s banking industry following the collapse of its third-ranked financial institution, Banco Espírito Santo.

Andre-Rodrigues-CaixaBI

 We can assume that BPI or Santander would be looking to capture synergies of about €500 million

 André Rodrigues,CaixaBI

Indeed, up to this point, the dominant topic of discussion in Lisbon’s financial circles revolved around who would win the bid for Novo Banco, the ‘good’ bank created from the downfall of BES.

BPI had been a strong contender to land Novo Banco. But a three-way merger – even if led by Caixabank, which has proved itself a tremendous and solitary success story following turmoil in Spain’s savings bank sector – might just be a merger too far.

In a crowded field of bidders, two now stand out: Spain’s Santander, which already owns the most resilient and best run bank in Portugal, Santander Totta; and China’s Fosun, a financial conglomerate that recently bought a foothold in the country’s insurance market. 

Spain’s

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree