Portugal: BPCE buys Novo Banco, group’s entry into domestic retail

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Portugal: BPCE buys Novo Banco, group’s entry into domestic retail

4:05 CAT | 16 Jun 2025

File photo: Lusa

The purchase of Novo Banco by BPCE marks the French group’s entry into retail banking in Portugal, where it already operates in consumer credit and investment banking through Banco Primus, Oney and Natixis.

In a statement released on Friday, announcing that it had agreed to purchase the 75% stake in Novo Banco held by Lone Star Funds for an amount equivalent to a valuation of €6.4 billion for 100% of the bank’s share capital – Banque Populaire Caisse d’Epargne (BPCE) sais it was “a solid player in Portugal” and had a “lasting commitment” to the country.

“BPCE currently employs more than 3,000 people in Portugal, a figure that testifies to its ongoing commitment to the country. The opening of a multi-company competence centre in Porto in 2017 has further strengthened local ties,” it said.

By integrating Novo Banco into the group, and together with the Banque Populaire and Caisse d’Epargne banking networks it owns in France, BPCE said it would “further strengthen its role as an important partner in the development of the Portuguese economy, recognised for its solid foundations and resilience”.

‘BPCE intends to promote the financing of local projects for businesses and individuals, while expanding the range of services offered to Portuguese customers.’

In Portugal, the French banking group already has a Natixis development centre, established eight years ago in Porto, which, with a total of 2,500 employees, provides BPCE with services in the areas of investment banking, asset management, risk management, finance, and compliance.

It also operates in the country through Banco Primus, 100% owned by BPCE Financement. Based in Lisbon, with 130 employees and specialising in consumer credit, it focuses mainly on financing used cars.

According to BPCE, Banco Primus has a 4% market share in Portugal and granted more than 90,000 loans in 2023.

Oney is also based in Lisbon; it is a subsidiary of Oney Bank, a European online bank specialising in payment, credit and insurance solutions, in which BPCE holds the majority share.

Founded in 1994 (under the name Creditplus) and employing 360 staff, Oney operates in the Portuguese consumer credit market and serves around one million customers.

Globally, Groupe BPCE is present in over 50 countries, employing 100,000 staff and serving 35 million customers.

Claiming to finance 22% of the French economy, it presents itself as “the second largest banking group in France and the fourth largest in the euro zone in terms of capital”.

In France, it operates in the retail banking and insurance sectors through its two large networks, Banque Populaire and Caisse d’Epargne, as well as Banque Palatine and Oney.

It also operates worldwide, offering asset and wealth management services through Natixis Investment Managers and wholesale services via Natixis Corporate & Investment Banking.

In a statement released today regarding the sale of Novo Banco, the Ministry of Finance highlights BPCE as “the second largest French bank, one of the largest European banks and a cooperative bank”, considering that the deal “will enable the creation of value and support for the national economy and Portuguese companies”.

In addition to the 75% of Novo Banco’s capital held by the US fund Lone Star, BPCE will buy the remaining 25%, held by the Directorate-General for Treasury and Finance (11.46%) and the Resolution Fund (13.54%).

Novo Banco was created in 2014 to take over part of the banking activity of Banco Espírito Santo (BES) when it was resolved.

Since 2017, when Lone Star bought Novo Banco, the Bank Resolution Fund has injected €3.405 billion into the bank, generating several political and media controversies. With the early end of this mechanism at the end of 2024, selling Novo Banco and receiving dividends has become possible.

Source: Lusa