Banks in Portugal register €1.3B profit 2018

By TPN/Lusa, in News · 16-09-2019 15:55:00 · 0 Comments
Banks in Portugal register €1.3B profit 2018

Portugal’s banking sector last year had combined profit of €1.3 billion, against losses of €228 million in 2017, according to figures released by the European Banking Federation (EBF)

According to the information, the reason for the sharp positive swing in the results is "largely explained by the substantial reduction in impairments” – that is, accounting provisions for possible losses.

In 2018, according to the EBF, improvements were also recorded in Portugal in terms of non-performing loans (NPLs), which were down €24.6 billion euros from their 2016 peak.

“The NPL ratio has decreased significantly after reaching its peak level in June 2016 (from 17.9% to 9.4%), while the NPL coverage ratio increased from 43.2% to 51.9%,” the report states, citing “ambitious strategies … implemented to reduce NPLs”, with “remarkable progress”.

According to the same information, the main source of financing for banks in Portugal last year was once more customers' deposits, which swelled 3.3% from the 2017 level and represented 73.8% of all resources, up from 72.3%.

However, total loans granted last year shrank by 0.6% from 2017.

Loans to non-financial firms (most of them small and medium-sized) shrank 4.8% to a €69.6 billion, those to households increased by 0.5%. within the latter, consumer credit rose 10.5% and housing loans declined 0.2%.

In the document on the Portuguese sector, the EBF also notes that "digital transformation is a priority for Portuguese banks and strong progress has already been achieved by the sector."

From 38% of customers registered for online banking in 2010, the figure was last year 52%.

In addition, the EBF notes, 57% of banking clients on the internet use mobile networks and 65.3% of current accounts have online access.

Last year in Portugal, it adds, the number of payment cards issued totaled 21.7 million and the value of online purchases accounted for 5.7% of the card purchases.

The EBF is made up of 32 national banking associations that altogether represent some 3,500 banks with almost 2 million employees.


Be the first to comment on this article
Interactive Topics, send us your comments/opinion on this article.

Please note that The Portugal News may use selected comments in the printed edition of the newspaper.