The Bank of Portugal published updated Central Balance Sheet corporate statistics for the second quarter of 2025, showing a further decline in the average cost of companies’ obtained financing to 4.7%, equity funding at about 45% of total assets, and profitability at 9.3%. Profitability, measured as EBITDA over total assets, slipped to 9.3% from 9.4% at end-2024, with the largest declines in transport and storage (-1.3 percentage points) and industry (-0.8 percentage points), while head offices increased by 0.5 percentage points due to higher dividend receipts; public companies recorded profitability of 6.0% (-0.5 percentage points). Financial autonomy (equity as a share of assets) stood at 45.4% for all companies (+0.1 percentage points), with small and medium-sized enterprises rising to 46.3% and large companies falling to 40.2%; the share of obtained financing in assets increased to 26.9% (+0.3 percentage points), driven by higher borrowing from the financial sector and debt securities financing. The financing cost decline was attributed to falling interest rates since mid-2024 and was broad-based across sectors and size classes, while the coverage of financing expenses rose to 7.3 from 7.0, except in industry, electricity gas and water, and transport and storage where it fell due to lower EBITDA. The next update is scheduled for 6 January 2026.
Bank of Portugal 2025-10-03
Bank of Portugal publishes Q2 2025 corporate balance sheet statistics showing financing costs down to 4.7%
The Bank of Portugal released updated Central Balance Sheet corporate statistics for Q2 2025, noting a decline in average financing cost to 4.7% and profitability at 9.3%. Financial autonomy increased slightly to 45.4%, with small and medium-sized enterprises rising to 46.3% and large companies falling to 40.2%. The decline in financing costs was attributed to falling interest rates, while coverage of financing expenses rose to 7.3, except in certain sectors.