Published by Global Banking & Finance Review®
Posted on January 24, 2025
2 min readLast updated: January 27, 2026
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Novo Banco fires its chief risk officer, reporting conduct concerns to regulators. The issue doesn't affect bank operations or finances.
By Sergio Goncalves
LISBON (Reuters) - Novo Banco has fired its chief risk officer, reported its concerns over his conduct to Portugal's banking regulator and filed a complaint to the Public Prosecutor's Office, which has launched an investigation.
"The suspected issue is not related nor associated, in any way, with the bank", the bank said on Tuesday, without revealing details of the transactions in question.
The dismissal of Carlos Jorge Ferreira Brandao follows an internal investigation.
Brandao was also a member of the executive board at the bank, which aims to launch an initial public offering in 2025.
The matter "has no impact whatsoever on clients, clients' accounts or transactions, on bank's finances or activity, on its commercial operations, risk management system or employees," the bank said.
Novo Banco was created in 2014 from the remains of collapsed lender BES after a multi-billion-euro government bailout.
The bank, 75% owned by the U.S. fund Lone Star since 2017, said last month it was ready to explore opportunities to go public.
Sources with knowledge of the matter told Reuters in September that Lone Star was considering a sale as well as an IPO.
Brandao joined Novo Banco in July 2017 and has been an executive board member and chief risk officer since September 2022.
On an interim basis, the role of chief risk officer will be undertaken by Chief Executive Officer Mark Bourke, the bank said.
(Reporting by Sergio Goncalves; editing by Aislinn Laing and Jason Neely)
The main topic is the dismissal of Novo Banco's chief risk officer and the subsequent report to Portugal's banking regulator.
The chief risk officer was fired due to conduct concerns reported to the regulator, though specifics were not disclosed.
The bank stated the issue does not impact its operations, finances, or client transactions.
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