Portugal's Millennium bcp says it doesn't need M&A to be competitive

Portugal's largest listed bank Millennium bcp BCP does not need deals, such as potentially buying smaller rival Novo Banco, to stay ahead of the competition, CEO Miguel Maya said on Monday.

Unlisted Novo Banco, which is 75% owned by U.S. private equity fund Lone Star and is Portugal's fourth-largest lender, is preparing an initial public offering of 25%-30% of its capital, but a full sale has not been ruled out.

Analysts see Millennium bcp as a potential bidder to maintain its market leadership.

"We don't have to consolidate (with another bank) to be more competitive," Maya told a banking conference, when asked about his bank's stance in the context of the sale of Novo Banco.

• "Obviously we'll look at all the opportunities that may arise, but very rigorously
• It is not the strongest who wins, but the most agile," he said.

Acting Finance Minister Joaquim Miranda Sarmento said last week Portugal was concerned about its banking sector's over-dependence on neighbouring Spain and viewed the possibility of a Spanish lender buying Novo Banco as contrary to the country's interests.

Spain's Caixabank CABK, owner of Portugal's fifth largest bank BPI, is considering submitting a proposal to buy Novo Banco, a source with knowledge of the matter said, confirming recent reports in the Spanish press. Caixabank declined to comment.

Maya said it was "good to maintain this balance" between Spanish banks operating in Portugal alongside local lenders, with one strong state-owned bank, Caixa Geral de Depositos, and Millennium bcp as the largest players in terms of financing the economy.