The Bank of Portugal published updated Central Balance Sheet statistics for companies for the first quarter of 2025, highlighting a second consecutive quarterly fall in the cost of corporate financing to 4.7%, stable financial autonomy at 45.6%, and profitability broadly unchanged at 9.3%. Profitability, measured as EBITDA over total assets, was 9.3% in Q1 2025 (9.4% in Q4 2024 and 9.5% a year earlier), with the largest year-on-year declines in head offices and in electricity, gas and water, while transport and storage and construction recorded increases. Financial autonomy, measured as equity as a share of total assets, was unchanged versus Q4 2024 at 45.6% (44.1% a year earlier); for SMEs (excluding head offices and public companies in the size-class analysis) it rose to 46.3%, while large companies reached 40.9%. The share of obtained financing in total assets fell to 26.8% (from 27.6% a year earlier), reflecting continued declines in borrowing from the financial sector and from group companies, although head offices and electricity, gas and water saw higher debt securities financing. The financing cost decline was linked to the downward trend in interest rates starting in mid-2024, while the coverage of financing expenses increased year-on-year from 7.1 to 7.2, with declines in industries, electricity, gas and water and head offices due to lower EBITDA. The next update is scheduled for 3 October 2025.
Bank of Portugal 2025-07-04
Bank of Portugal updates Central Balance Sheet corporate statistics for Q1 2025 with financing costs down to 4.7%
The Bank of Portugal released Q1 2025 Central Balance Sheet statistics, noting a second consecutive quarterly decrease in corporate financing costs to 4.7%. Financial autonomy remained stable at 45.6%, while profitability was largely unchanged at 9.3%. The report highlights sector-specific variations, with declines in head offices and electricity, gas, and water, and increases in transport, storage, and construction.