Bank of Portugal published an update of its long-run statistical series for the Portuguese banking sector, extending the dataset to 2024. The updated figures show banks recorded the highest net profit in the series in 2024, alongside a further contraction in the branch network and a third consecutive annual increase in employment. Net profit reached EUR 6,288 million in 2024, equivalent to 1.4% of average assets, up from EUR 5,572 million and 1.3% in 2023. The year-on-year increase of EUR 717 million reflected higher net interest income (up EUR 137 million) and fees (up EUR 124 million), and a sharp reduction in provisions and impairments for potential credit defaults (down EUR 1,233 million). Lending to households ended 2024 at EUR 132.8 billion, up EUR 4.9 billion, with the mortgage stock rising to EUR 102.4 billion, up EUR 3.5 billion, while loans to non-financial corporations fell by EUR 747 million. The number of branches fell to 4,502 at end-2024, marking the 14th consecutive annual decline and 3,604 closures from the 2010 peak of 8,106. Headcount rose to 59,846, with the increase largely attributed to a resident entity in an international banking group providing global services; staff aged over 44 accounted for 57% of sector employment. The release also notes continued shifts towards electronic payments, with cash withdrawals representing 15% of total card-based operations in 2024. The next update to the long-run series is scheduled for the third quarter of 2026.
Bank of Portugal 2025-07-07
Bank of Portugal updates long-run Portuguese banking sector series through 2024 showing record EUR 6,288 million net profit
The Bank of Portugal updated its long-run statistical series for the banking sector, revealing a record net profit of EUR 6,288 million in 2024, driven by increased net interest income and reduced provisions for credit defaults. The data also shows a continued contraction in the branch network and a rise in employment, with significant shifts towards electronic payments.