DBRS Morningstar sees results from large Portuguese banks as “strong” in the first half, but warns that growing uncertainty and a more challenging macro environment are likely to put pressure on future profitability and asset quality.
Despite strong results in the first half of 2022, in DBRS Morningstar’s opinion, increasing uncertainty and a more challenging macroeconomic environment due to high energy prices and persistent inflationary pressure are likely to put pressure on future profitability and the asset quality,” says Nicola De Caro. , from the DBRS Morningstar Global Financial Institutions team, in an analysis published Monday.
In the analysis of the results of the large Portuguese banks in the first half of this year, published this Monday, DBRS states that in that period “the total net profit of the largest Portuguese banks almost doubled compared to the same period of 2021 , mainly due to higher revenues and lower charges for provisions and impairments”.
EITHER Values Aggregate NPLs continued to decline quarter-over-quarter and year-over-year as asset quality remained largely resilient after defaults fell,” says DBRS.
DBRS states that “the financing and liquidity conditions remained adequatehowever, recent market volatility is contributing to rising refinancing costs in the wholesale market.”
Source: Observadora
