LISBON, Feb 2 (Reuters) - Novo Banco on Friday posted a 32.5% jump in 2023 net profit to hit a record high as Portugal's fourth-largest bank benefitted from rising interest rates and a resilient business, while strongly strengthening its capital.

The unlisted lender, which is considering a potential initial public offering (IPO) this year, netted a consolidated profit of 743 million euros ($809 million).

It was the third consecutive year of profits for Novo Banco, which emerged from the ruins of failed bank BES in 2014 and has been 75%-owned by U.S. private equity Lone Star since 2017.

CEO Mark Bourke said in a statement that Novo Banco showed a "strong set of results, outperforming all 2023 financial guidance and establishing a track record of execution and delivery".

Benefiting from interest rate hikes by the European Central Bank, its consolidated net interest income (NII), or earnings on loans minus deposit costs, jumped by 83% to 1.14 billion euros, the bank said.

Its net interest margin (NIM) rose to 2.75% from 1.47% a year earlier, beating guidance of above 2.5% "as a result of the favourable interest rate environment, prudent management of interest rates on assets and the cost of financing", it said.

Net customer loans at year-end were stable at 24.5 billion euros, while its commercial cost-to-income ratio fell to 33% from 49%.

It said that net impairments and provisions increased to 174 million euros from 111 million a year earlier.

Novo Banco's said its fully loaded Common Equity Tier 1 solvency ratio stood at 18.2% in December, up 500 basis points from a year earlier.

Non-performing loans as of December stood at 1.1 billion euros, or 4.4% of total loans, down from 5.4% a year earlier.

($1 = 0.9189 euros)

(Reporting by Sergio Goncalves; editing by Inti Landauro)

((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters Messaging: sergio.goncalves.reuters.com@reuters.net))