Portugal's Novo Banco reports net loss of 467.9 mln euros

Novo Banco, the bank that emerged from the break up of beleaguered bank Banco Espirito Santo, registered a net loss of 467.9 million euros (about 505 million U.S. dollars) since it was created in August last year, Portuguese Lusa News Agency reported on Monday.

The bank's impairment losses summed up to 699.1 million euros while its net financial return was 266.3 million euros.

The bank's impairments from the stakes in Portugal Telecom-Oi totalled 108.4 million euros.

According to Lusa, Chairman of Novo Banco Eduardo Stock da Cunha told reporters at the presentation of the 2014 earnings in Lisbon on Monday that he didn't know how much the bank was worth.

"I don't know how much Novo Banco is worth, but as they say, it's worth as much as they'll give for it," Stock da Cunha said.

However he pointed out that the bank was "much sounder and stronger than it was a few months ago."

Banco Espirito Santo was bailed out in August after a first-half net loss of 3.58 billion euros. The bank's former chairman, Ricardo Espirito Santo Silva Salgado, was arrested for alleged tax fraud and money laundering but was released after paying a 3-million-euro bail.

The Bank of Portugal recently revealed that 15 bidders for Novo Banco would pass on to the second phase of the sale.

Two of the candidates were excluded because they failed to meet eligibility requirements. Bidders have until March 20 to present their indicative offers.

The eventual sale of Novo Banco will pay for the state's 4.9-billion-euro bailout, according to the authorities. (1 euro = 1.08 U.S. dollars) Enditem