Portugal Opposes Further Increase in Spanish Banks' Presence
(Bloomberg) -- Portugal's government said Spanish banks shouldn't further increase their presence in the Portuguese market.
Spanish lenders now represent about a third of Portugal's banking market, Finance Minister Joaquim Miranda Sarmento said in an interview with television channel RTP3 on Wednesday night. 'I think that value shouldn't increase, due to a matter of concentration and of dependency.'
Novo Banco SA, a Portuguese bank that's majority-owned by US private equity firm Lone Star, has said it's preparing for a possible initial public offering. Bloomberg News reported on May 9 that CaixaBank SA of Spain is among suitors exploring a potential acquisition of Novo Banco, according to people familiar with the matter.
Novo Banco, Portugal's fourth-biggest lender, posted its first profit in 2021 and its net interest income climbed as central banks raised interest rates. It previously had to shed assets and sell soured debt to reduce its non-performing loan ratio, which was one of the highest in Europe after the bank emerged from the breakup of Banco Espirito Santo SA a decade ago.
'The decision on Novo Banco is up to Lone Star,' Sarmento said. 'If Lone Star decides to sell, it will place that sale in the market, and the potential interested parties will make offers.'
Spanish lenders Banco Santander SA and CaixaBank are already among the five biggest banks in Portugal.
'It seems to me that it's in the interest of the country that there isn't an excessive dependency, an excessive concentration in our banking sector in the hands of banks from a single country, as is the case of Spain,' the finance minister said.
Lone Star owns a 75% stake in Novo Banco, while Portugal holds 25% through entities including the country's Resolution Fund, which is run by the Bank of Portugal. Novo Banco Chief Executive Officer Mark Bourke said in an interview on May 6 that his bank was 'well advanced' in drafting a prospectus for a possible IPO, which it aims to carry out in June at the earliest.
Finance Minister Sarmento said in January that Lone Star plans to sell a stake of about 25% to 30% of Novo Banco in an IPO. The minister has also said that the government won't interfere if state-owned bank Caixa Geral de Depositos SA decides to assess any possible interest in buying Novo Banco.
'What I have always said is that if Caixa analyzes market conditions, and considers that it can make a proposal for Novo Banco on its own or together with another bank, it will have to present that proposal to the shareholder, and the shareholder will make a pronouncement about a concrete proposal,' Sarmento said on Wednesday night.
Caixa Geral de Depositos CEO Paulo Macedo said on Feb. 27 that his bank is analyzing the possible acquisition of Novo Banco.
Banco Comercial Portugues SA CEO Miguel Maya has said his bank —Portugal's biggest publicly-traded lender— may analyze transactions when it's asked about Novo Banco, while stating that its plans focus on 'organic growth.'
JB Capital said in a research report in March that it estimates Novo Banco could be valued at between €5.5 billion ($6.2 billion) and €7 billion.
Novo Banco has about €17 billion in corporate loans, €10 billion in mortgage loans and €2 billion in personal loans, according to a May 6 presentation. It has 1.7 million clients.
Banco Espirito Santo, once Portugal's biggest lender by market value, got a roughly €5 billion rescue in 2014 after regulators ordered it to raise more capital following the disclosure of potential losses on loans linked to companies in the family-controlled Espirito Santo Group. The Portuguese central bank moved the lender's deposits and most of its assets to Novo Banco. Lone Star then agreed to inject €1 billion in Novo Banco when it bought its stake in the bank in 2017.
More stories like this are available on bloomberg.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
2 hours ago
- Hans India
Apple Likely to Launch ‘homeOS' at WWDC 2025, Hinting at Smart Home Expansion
Apple could be gearing up to make a major smart home announcement at WWDC 2025 next week, with strong signs pointing to the debut of a new operating system called homeOS. A recently uncovered trademark filing under the name "Home Operations Suite LLC" has fueled speculation, especially since the legal details connect back to Apple — a company known for using shell firms to quietly prepare for product launches. Filed in April, the trademark falls under categories covering both software products and services, which aligns perfectly with an OS tailored for Apple's growing smart home ambitions. While Apple hasn't officially confirmed anything, the appearance of homeOS in legal filings suggests the company is ready to introduce a unified smart home software platform. Industry watchers are now wondering: will homeOS arrive alone, or will it be joined by a new device? Rumors have circulated for months about a smart speaker with a display — potentially called HomePad. If real, it could be the flagship device running homeOS. Apple has a history of unveiling hardware at WWDC, like the original HomePod in 2017 and Vision Pro in 2023, so this wouldn't be without precedent. Adding to the intrigue, Bloomberg's Mark Gurman previously reported that Apple is developing two smart home displays: a standard 7-inch version (code-named J490) and a premium version (J595) with a robotic arm that can move the screen. The base model is expected to launch later this year and might serve as the launch device for homeOS. Even if no hardware is shown, Apple could still introduce the software itself and give developers early access to tools for building smart home apps. The move would also make sense as Apple reportedly plans to rebrand and redesign its entire OS ecosystem — possibly aligning naming conventions with calendar years (e.g., iOS 26 instead of iOS 18). With WWDC 2025 expected to focus on visual updates and productivity features across Apple's platforms, homeOS could be the company's next big step in smart home innovation. Whether HomePad makes an appearance or not, all eyes will be on Apple's keynote next week.
Time of India
2 hours ago
- Time of India
Microsoft sets another record as stock all-time high and why Wall Street sees no bubble in these BIG numbers
Microsoft Corp. shares surged to a record high on Thursday, surpassing a peak from nearly a year ago, as investors increasingly view the tech giant as a prime beneficiary of the artificial intelligence boom, according to Bloomberg. The stock climbed 0.8% to close at $467.68, topping its previous high set in July. This milestone caps a robust recovery, with Microsoft's shares rallying over 30% from an April low, boosting its market capitalization by more than $800 billion. At approximately $3.48 trillion, Microsoft now holds the title of the world's largest company, just edging out Nvidia Corp., another AI powerhouse, valued at $3.42 trillion, says the report. Microsoft's stock has gained 11% in 2025, outpacing the Nasdaq 100 Index, per Bloomberg data. The company's latest earnings underscored its strong position in AI, alleviating concerns about the returns on its substantial investments in the technology. Robust demand for Microsoft's cloud computing and AI services, coupled with solid growth trends, has positioned the company as a stable force amid economic uncertainties and potential tariff challenges, according to Bloomberg. 'Microsoft is well positioned across its product lines, with a real ability to monetize AI,' Jim Awad, senior managing director at Clearstead Advisors, told Bloomberg. 'I think when we look back in three or four years, it will be one of the companies that prospered and benefited from AI the most.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Eat 1 Teaspoon Every Night, See What Happens A Week Later [Video] getfittoday Undo Despite being the last of the Magnificent Seven stocks to hit a new all-time high, Microsoft remains a favorite among investors. Bloomberg notes that Bank of America data shows Microsoft as the most-owned stock by long-only funds, with 91% holding positions. Additionally, over 90% of analysts tracked by Bloomberg recommend buying the stock, with no sell ratings. While such overwhelming optimism could signal caution, Wall Street remains bullish. The average analyst price target suggests nearly double-digit upside potential over the next 12 months, Bloomberg reports. 'Microsoft should continue growing at an impressive rate and the stock in no way looks excessively priced,' Awad told Bloomberg. 'It can be uncomfortable when everyone is on the same side of a consensus, but in this case, I think the consensus is right.'
Mint
4 hours ago
- Mint
'US no longer a safe nation for investment': Why Carmignac chief economist thinks Trump's 'revenge tax' will backfire
Raphael Gallardo, chief economist at French asset manager Carmignac. warned that the United States is no longer a secure destination for foreign investors because of risks stemming from President Donald Trump's tax and spending bill, as reported by Bloomberg. Gallardo is the latest market commentator to speak about the deep concerns over Section 899 of the bill, a provision that would increase tax rates for individuals and companies from countries whose tax policies the US considers 'discriminatory'. Some have dubbed the measure a 'revenge tax'. During a briefing on the outlook for the second half of the year, Gallardo said, 'The United States is no longer a safe nation for investment.' Carmignac, which had about $39 billion under management at the end of 2024, titled its presentation ''From America First' to Global Financial Anarchy'. Gallardo believes that Trump's unpredictable decisions on trade, along with the concerns around his foreign policy and the rule of law are all prompting traditional allies of the US to reduce their dependence and ties to the world's biggest economy. 'Why de-risk? Because the United States has become a totally unreliable military ally and so, one has to secure supply chains, find new markets,' as reported by Bloomberg. According to Bloomberg data, the Wall Street consensus is that the tax provision would further decrease investors' confidence in US assets, which are already shaken by Trump's trade policies and America's deteriorating fiscal accounts. The tax provision could trigger a 5 per cent fall in the dollar and a 10 per cent selloff across equities, according to Allianz SE chief investment officer Ludovic Subran. Carmignac is diversifying asset allocations from the US to Europe, where Germany's historic fiscal reforms have given a boost to economic growth, reported Bloomberg. German Chancellor Friedrich Merz has taken a series of measures to add weight to the country's military capacity, accelerate infrastructure spending and revive the economy through comprehensive corporate tax breaks. 'Trump managed to achieve what no one had managed before, and that's to make the Germans start to spend,' Gallardo said. Bloomberg reported that European equities have emerged as clear winners worldwide this year as concerns over the Trump administration's trade policies encourage investors to reduce holdings of US assets. At the end of May, eight of the world's 10 best-performing stock indexes were European. Carmignac handles a range of funds across equity, fixed income, diversified and alternative asset classes with different geographical focuses and target outcomes. It was among asset managers who predicted the rally in global shares last year, dismissing talk of a bubble in equity markets, as per Bloomberg
