- Business
- Banco Espírito Santo, S.A. (BES) operates in liquidation, managing the wind-down of its remaining assets following its collapse and regulatory intervention in 2014. Founded in 1869 and headquartered in Lisbon, Portugal, the bank previously provided a comprehensive range of banking services including retail and commercial deposits, loans, credit and debit cards, savings accounts, asset management, investment banking, brokerage, custodian services, investment funds management; life and non-life insurance products; as well as operations in corporate, institutional, private banking, international commercial banking, markets, and strategic investments, with presence in 23 countries across four continents through branches, subsidiaries, and representative offices targeting individual, corporate, and institutional clients. In August 2014, the Bank of Portugal applied a resolution measure splitting BES into Novo Banco, which absorbed healthy assets, customers, and operations with a €4.9 billion recapitalization from the Portuguese Resolution Fund, and a "bad bank" retaining toxic assets for orderly liquidation; BES's banking authorization was revoked by the European Central Bank in July 2016. Ongoing liquidation under a liquidation committee continues as of 2025, with 2024 net losses reduced to €402 million from €3.1 billion in 2023 amid accumulated liabilities exceeding €10 billion, ongoing litigation including class actions for shareholders and bondholders, and court rulings prioritizing Resolution Fund claims totaling €2.7 billion; the process addresses legacy debts with no resumption of active banking operations.