Novo Banco, the Portuguese bank led by former AIB chief financial officer Mark Bourke, fired its chief risk officer following an internal probe into what the lender described as “suspicious” financial transactions.
Carlos Brandao, who was also an executive board member, was dismissed with immediate effect, the Lisbon-based bank said in a regulatory filing on Tuesday. Novo Banco said it has started an internal investigation and filed a complaint to the Public Prosecutor’s Office.
“This decision was taken following the identification, through the bank’s internal processes, of suspicious financial transactions in this individual’s personal sphere,” Novo Banco said, adding the issue isn’t related in any way to the bank and will have no impact on its activity, finances or clients.
Brandao couldn’t immediately be reached for comment.
Novo Banco has been preparing for a possible initial public offering, which CEO Bourke has said is the “base case” for the bank that’s majority owned by private equity firm Lone Star. Bourke said at the end of October that the normal windows for IPOs would usually be in the second quarter or after the summer.
Bourke will hold the role of chief risk officer on an interim basis, Novo Banco said.
Brandao joined Novo Banco in 2017 as general manager for global risks. Before that, he was CEO and country manager at Bankinter Portugal and head of retail and country manager at Barclays Bank Portugal, according to his LinkedIn profile.
Novo Banco was created in 2014 from the remains of collapsed lender Banco Espirito Santo after a government bailout. Lone Star owns 75 per cent of Novo Banco, a stake it bought in 2017, while the Portuguese resolution fund and the state own the remaining 25 per cent.
The bank posted its first profit in 2021, and its net interest income climbed as central banks raised rates. As part of a recovery plan, Novo Banco previously had to shed assets and sell soured debt to reduce its non-performing loan ratio, which was once one of the highest in Europe. – Bloomberg
