The former head of Banco Espírito Santo’s investment arm, José Maria Ricciardi, talks to Stefania Palma about the parent bank’s turbulent last days and how he hopes to exploit its established European network in his new position as the chief executive of Haitong Bank.

Portugal's economy has endured a torrid few years and this has been reflected in its activity in the capital markets. However, the past 12 months have seen reasons for optimism, with the benchmark 10-year debt yield dropping significantly from an all-time high in 2012 and economists cautiously welcoming the new government's financial policies.

After years of unprofitability, the Portuguese banking sector is finally getting back on its feet. But, with the sale of Novo Banco by the Bank of Portugal still outstanding and other lenders vulnerable to takeover, the sector may not be out of the woods yet.

Two months after finalising Haitong Securities' acquisition of Novo Banco's investment banking unit, now called Haitong Bank, the parent company's deputy CEO and the UK head of the new bank talk about the acquisition, their international growth plans and what a jittery renminbi means to them. 

Portugal’s banks may be battling an economic downturn and the after-effects of the Banco Espírito Santo collapse, but they are still preparing for a return to profitability. 

Portugal has endured a painful economic rescue programme following its bail-out, but now markets are slowly recognising that the country's economy has bottomed out and growth is forecast. 

Portugal's banks have undergone a radical transformation in the past few years, emerging from the country's economic crisis better capitalised, leaner and more efficient than ever. Profitability, however, is yet to recover.