The bank will not have to make contributions to the European Solution Fund in 2024.

In February 2024, the Single Resolution Fund (FUR) announced that the annual contribution for the financial year 2024 will not be charged, as the financial resources of the Single Resolution Fund have reached, on 31 December 2023, the target level of 1% of covered deposits held in Member States participating in the Single Resolution Mechanism.

Portuguese banks are therefore safe from this contribution this year, as shown in the reports and accounts for the first half of the year, thus providing for the periodic annual contributions they are required to make, including this European fund which is part of one of the pillars of the ongoing banking union.

FUR is therefore responsible for disclosing to banks a significant decrease in periodic contributions (which include contributions to the Single Resolution Fund; Decision boxNational Action; and to the Deposit Insurance Fund), In semi-annual accounts.

This is the case of the Banco Centrale Popular, for example, which revealed that “the positive performance of the activity in Portugal also contributed, to a large extent, to a reduction of 33 million euros in the costs incurred with the mandatory contributions to which the bank is subject”. This reduction is due “on the one hand to the fact that once the target level was reached, no contribution linked to the Single Resolution Fund was charged, and on the other hand, to the reduction of the liabilities of the Banco Centrale Popular, after the payment of the amounts due by the Banco Centrale Popular”. The financing obtained with the European Central Bank and which took place at the end of 2022, with an impact on the calculation of the amount of contributions due in the current year”.

Novbanko saw mandatory contributions fall from €22.3 million in June 2023 to around €6.5 million in June 2024.

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As part of the annual periodic contributions to the Deposit Guarantee Fund (FGD), Novobanco and the rest of the group's banks have undertaken irrevocable commitments.

At the end of the 2023 financial year, and based on the recommendation of this institution (FGD), the Group paid the full value of the commitments undertaken in the amount of EUR 56.147 million, after recognizing this amount as a cost for the year.

CGD also reveals that in the first half of the year, other operating results recorded a decrease of approximately EUR 18 million compared to the first half of 2023, partly due to the fact that no contributions were made in 2024 to the Single Resolution Fund, which reached its end of the objective.

As for recurring contributions (organizational costs), Kaisha saw the amount drop from €30 million to €12 million in one year, according to June accounts. All because of the fur.

After an eight-year period of capitalization and full exchange of FUR resources, its financial resources have reached, on 31 December 2023, the specified target level corresponding to 1% of the amount of covered deposits of all authorised credit institutions in all Member States of the European Banking Union, which are covered by the deposit guarantee.

As of December 31, 2023, FUR held approximately EUR 78 billion in available financial resources.

The SRB will check annually whether the financial resources available to the FUR have fallen below the target level (i.e. as a result of high growth in covered deposits) and, if so, whether they are insufficient to cover losses, costs or other expenses incurred through the use of the FUR as a result of the application of the resolution measures. The SRB will assess whether new contributions to the FUR should be calculated and collected, according to the ECB website.