S&P Global – Portuguese Banking Outlook 2025

The report by S&P Global "Portuguese Banking Outlook 2025" analyzes the stable and profitable outlook for Portuguese banks amid economic growth and fiscal discipline. Portuguese banks are expected to maintain solid profitability in 2025, although lower than in previous years, due to compressing net interest margins amid lower interest rates. The streamlined operating structures of banks enhance their efficiency relative to peers. Asset quality is forecasted to remain resilient, supported by a stable economic environment and manageable debt levels. Regulatory capital aligns with the eurozone average, and banks are preparing for the new countercyclical buffer. The report highlights potential market shifts, such as the sale of Novo Banco, and notes key rating actions for several banks in 2024.