LISBON (Reuters) - Portugal's fourth-largest lender Novo Banco, which is preparing for an initial public offering (IPO), said on Thursday its consolidated net profit hit a record 744.6 million euros ($804 million) in 2024, up 0.2%.

The rise was due to an increase in interest margins and commissions offsetting higher provisions, it said.

Net interest income (NII) - a measure of earnings on loans minus deposit costs - rose 3.2% year-on-year to 1.18 billion euros, despite the downward trend in European Central Bank interest rates.

Fees and commissions increased 9.1% to 323 million euros, while total impairments and provisions were 8.4% higher at 188.4 million euros.

($1 = 0.9261 euros)