(Adds provisions, loans to clients)
LISBON Aug 5 Novo Banco, the "good bank" being
carved out of Portugal's troubled lender Banco Espirito Santo
, has started with assets worth 59.6 billion euros
($79.6 billion), Novo Banco said on Tuesday, implying 4.4
billion euros have been left behind in the "bad bank."
The finances of the bad bank are of crucial importance to
BES's shareholders and subordinated bondholders as
whatever chance they have of recovering any cash hinges on
whether the bad bank can recover any of its lending to the
crumbling business empire of the bank's founding Espirito Santo
The difference provided by Novo Banco is between its assets
and the assets of BES at the end of June on a standalone basis
rather than the consolidated BES Group. The group's total
assets, including various subsidiaries, stood at 80 billion
euros in June according to the results reported last week.
Novo Banco did not reveal the amount of toxic assets left
behind in the bad bank by BES's subsidiaries like Banco Espirito
Santo Angola (BESA), which has a problematic loan book. Angola
on Monday appointed administrators to manage the indebted unit.
Provisions at Novo Banco stand at 1.7 billion euros.
Total liabilities at Novo Banco stood at 58.2 billion euros,
including almost 32 billion in clients' funds, mainly deposits.
Senior debt liabilities stood at 8.06 billion euros, the same as
in the old BES.
Loans to clients at Novo Banco stood at around 32.9 billion
euros, down from 34.2 billion at standalone BES.
The rescue plan for Banco Espirito Santo, unveiled late on
Sunday, involved an injection of 4.9 billion euros mostly via a
state loan and splitting the lender into Novo Banco and the "bad
bank", housing BES's exposures to the family businesses and
other problem assets.
Portugal's Bank Resolution Fund that received a 4.4 billion
euro state loan, is now the formal owner of Novo Banco. The
country's authorities hope the healthy, recapitalised new bank
will be sold to investors in the near future and the state will
get the money back with interest.
(1 US dollar = 0.7483 euros)
(Reporting By Andrei Khalip; Editing by Erica Billingham and