Since its inception, the Novo Banco group has accumulated almost € 3.7 billion in provisions to cover potential losses, most of them related to non-performing loans or those at risk.

On Monday night, the New Bank reported the results until September, indicating that in the first nine months of the year it had losses of 419.2 million euros, an increase of 8.9% compared to the losses registered in the same period of the year past.

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As a result of the sale, the Resolution Fund was entrusted with injecting the Novo Banco for up to € 3.89 billion into eight years for losses that may be recognized with so-called 'toxic' assets (credit malparado and real estate) and disposals of non-strategic operations, if they call into question the capital ratios of the institution.

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Read more (in portuguese): Novo Banco established provisions to offset loan losses