Novobanco dos Açores yesterday reported an accumulated net profit of 10.9 million euros, an increase of 3.5% compared to the same period last year.
According to the bank’s management, this result reflects the execution of the bank’s strategy, which is focused on sustained business growth and solid revenue and capital generation.
In terms of commercial performance, Novobanco dos Açores recorded a commercial banking product of 22.8M (+2.2% vs. 2023) due to the activity’s performance and, naturally, a favorable interest rate environment. The financial margin reached 2.7%, with an increase of 1.1% in the bank’s financial result.
In addition, customer service income amounted to 4.8 million euros in 2024, an increase of 6.5% from the previous year.
He adds that this result was driven by the dynamic execution of initiatives to increase commission income, mainly in account management and means of payment.
Cost to Income, including market and other operating results, stood at 34% in 2024, well in line with the sector’s best practices.
With regard to credit provisioning, Novobanco dos Açores has a stable risk profile. The amount allocated to impairments and provisions totals 1.6M, and the cost of risk is 20bps, consistent with the desired cost of risk limits and an indicator of a healthy credit portfolio.


In 2024, the bank will have a robust Return on Tangible Equity (ROTE) of 20.6%, demonstrating its business model’s profitability and capacity to generate capital (+108bps vs Dec/23).
In 2024, loans and advances to customers (net) amounted to 368m, an increase of 3.1m compared to the same period last year. This shows the ability to meet portfolio repayments and still grow in net terms. Overdue loans amounted to 3.9m, translating into an overdue loan rate of just 1.0%.
Non-performing loans (NPL) fell by 14.5% compared to 2023’s amount, at 15.1m, with an NPL ratio of 3.95% (Dec/24).
Regarding resources, it should be noted that in 2024, the total number of customer deposits was 491 million, a sharp increase of 6.7% compared to 2023.
“Novobanco dos Açores continues to be very well positioned to support its individual and corporate clients, with the solvency ratio (CET 1) increasing to 17.5% (Dec/24), as a result of the significant growth in Equity, and the liquidity ratio (LCR) comfortable at 268.0% (Dec/24),” the bank concluded in a note sent to our newspaper.

In Diário dos Açores-Osvaldo Cabral, director

Translated to English as a community outreach program from the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL) as part of Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno, PBBI thanks Luso Financial for sponsoring NOVIDADES.