Statement from the Chairman and the CEO
Dear NOVO BANCO client,
It is our privilege to share with you that NOVO BANCO is entering a new period in its history. Yesterday, the Bank of Portugal announced that the North American private equity firm Lone Star has acquired a majority ownership stake in Novo Banco that includes an injection of capital to the bank totaling €1 billion, a process that started more than 2 years ago.
Through the sale transaction and the recapitalization process, the bank’s capital position has significantly improved. Today, NOVO BANCO is a sound, well-capitalized financial institution positioned to support you, our valued client, and help you achieve your goals.
We would like to take this opportunity extend our appreciation to you, our valued client. Thank you for your loyalty and commitment to the bank. We share your confidence in NOVO BANCO, and we likewise want to convey a message of trust and hope for the future.
After several months working with Portuguese authorities, the European Central Bank, and the European Commission, Lone Star met the necessary conditions to reinvigorate Novo Banco’s status as one of Portugal’s – and Europe’s – major financial institutions. With your support and confidence, Novo Banco will focus on serving as an engine of financing to small and medium companies, the main drivers for Portugal’s growth, and simultaneously will support larger companies and individuals by launching innovative products and services that will support the dynamism of the Portuguese economy.
Through this challenging recovery of one of Portugal’s largest banking institutions, we will continue to promote a culture of trust, in line with best market practices, always with the goal of providing the best service to our clients. We hope you will appreciate that our employees also have shown great loyalty and confidence in the bank through this period, and we thank them for their confidence as we thank you. We will continue to serve you with great pride.
We are excited about the future of Portugal’s economy and NOVO BANCO’s future. With the completion of the acquisition process, we will work hard to ensure that NOVO BANCO continues long into the future as a strong, stable, domestically focused pillar of the Portuguese banking system, with the capital, resources, and expertise necessary to sustain your confidence and help enable your success and growth.
We are pleased to work with Lone Star, a firm with great experience in the financial sector and whose stakeholders have a vested interest in our success. Lone Star was founded in 1995, and invests on the behalf of its fund limited partners, who include pension funds for public sector and corporate employees and retirees, as well as foundations and endowments that support medical research, higher education and other philanthropic causes.