The Bank of Portugal published updated central balance sheet statistics for non-financial corporations for the fourth quarter of 2024, showing a ninth consecutive quarterly increase in financial autonomy to 45.6%, a first decline in the cost of financing since the second quarter of 2022 to 4.8%, and broadly stable profitability at 9.4%. Profitability, measured as EBITDA over total assets, was unchanged from the previous quarter and slightly below the year-earlier level, with private companies at 9.5% and public companies at 7.3%. Financial autonomy (equity as a share of total assets) rose across sectors except head offices, and the increase was more pronounced in small and medium-sized enterprises (46.0%) than in large firms (41.4%), reflecting retained earnings. The share of obtained financing in total assets fell to 26.6% from 27.6%, driven by continued declines in borrowing from the financial sector and intragroup companies, while head offices and public companies recorded higher debt securities financing; despite the quarterly fall in funding costs, the cost of obtained financing remained higher than a year earlier for all sectors except construction. Coverage of financing expenses fell year on year to 7.1 from 7.4. The next update is scheduled for 4 July 2025.
Bank of Portugal 2025-04-04
Bank of Portugal updates central balance sheet corporate statistics for Q4 2024 showing higher equity ratios and lower financing costs
The Bank of Portugal released updated central balance sheet statistics for Q4 2024, noting a ninth consecutive quarterly rise in financial autonomy to 45.6% and a decline in financing costs to 4.8%. Profitability remained stable at 9.4%, with private companies at 9.5% and public companies at 7.3%. The share of obtained financing in total assets decreased to 26.6%, despite higher debt securities financing for head offices and public companies.