Novo Banco hires Lloyds banker as new chief exec

Novo Banco has appointed former Lloyds director Eduardo Stock da Cunha as its new chief executive following the break up of Banco Espirito Santo, the FT reports.

Banco Espirito Santo was split into a “good” and “bad” bank after it fell into trouble over a €1.3bn black hole in the accounts of its holding company, Espirito Santo International.

Novo Banco, the “good” bank, was created to house the healthy assets of Banco Espirito Santo. It is currently run by the resolution fund that is supported by financial institutions in Portugal.

An independent team had already been hired to manage Novo Banco throughout this difficult time but the three executives handed in their surprise resignations over the weekend.

Portugal’s central bank announced on Sunday that Novo Banco has now appointed Stock da Cunha, who is a former director of Lloyds Banking Group in London, as its new chief executive.

Stock da Cunha is said to have taken a leave of absence from his role at Lloyds. During his 30 years worth of experience in the banking industry Stock da Cunha has worked closely with Lloyds chief executive António Horta-Osório, having left his previous role at Santander based in the US to join Horta-Osório at the Lloyds headquarters in London.