Portuguese banks posted a net profit of 3.127 billion euros in the first half, with the non-performing loan rate falling to 3.4%, below the 5% red line, the governor of the Bank of Portugal said on Tuesday.
Mário Centeno was speaking at the end of the conference “The impact of the new world order on the European economy”, organized by the Eco newspaper, at the Belém Cultural Center, in Lisbon, highlighting the evolution of the banking system in recent years. .
There is an increase in net income that is very noticeable and consistent in recent years, obviously with the exception of 2020. The 2022 data shows a further reinforcement of this robustness,” he said.
In the presentation that accompanied the speech, the BdP governor indicated that the net result of the Portuguese banking system stood at 3,197 million euros in the first half of this year.
“A large part of this result, now looking at the other side of the balance sheet, is a reduction in risk. We have a very significant reduction in bank balance sheet risk. It was the largest reduction in balance sheet risk of eurozone banks since 2017, it occurred in Portugal”, he underlined.
Mário Centeno also highlighted that the non-performing loan ratio (NPL) was below the reference 5%.
We started from 17% in 2016 to values below 4%”, he highlighted.
According to the presentation, non-performing loans fell to 3.4% in the first half of the year and, net of impairments, to a rate of 1.6%.
The official data from the banking supervisor will be released this Thursday, the day on which the data on the evolution of the Portuguese banking system is scheduled to be published.
According to the latest BOP report on the Portuguese banking system, the gross delinquency rate fell by 0.1 pp in the first quarter of this year compared to the previous quarter, down to 3.6%, when in the same quarter of 2021 stood at 4.6%
The NPL ratio net of impairments remains at 1.7%.
According to the report, the total capital ratio decreased by 0.5 pp. compared to the fourth quarter of 2021, to 17.5% and the return on assets increased 0.28 pp. compared to the first quarter of 2021, to 0.69% AND the total capital ratio decreased by 0.5pp. compared to the fourth quarter of 2021, at 17.5%.
Source: Observadora
