As part of a €134 million spend, Novo Banco’s management is ‘releasing’ 400 workers this year with a further 30 branches due to close by the end of July.
The target for branch closures is 73 in 2018, with 30 already shut down between January and the end of April this year
The slimming down of the bank’s retail operation has been agreed with Brussels and lasts until the end of 2021 by which time the American owned bank should have 400 branches left in which to serve its customers.
The goal in reducing the banking network is swiftly to reduce costs so that it can become 'profitable' in 2019 although repayment of the initial €5 billion pumped into the business by unwitting taxpayers remains but a long-term goal.
Regarding the branches to be closed by the end of July, Novo Banco already has informed its clients about the closure of their local branch and is to transfer their accounts to a nearby outlet.
When all closures are completed, taking into account the 631 branches that Novo Banco had at the end of 2014 when it was created to take over the supposed ‘good assets’ from BES, the bank will have shut down about 40% of its branch network in four years.
