Alvarez & Marsal (A&M) is delighted to publish the fourth edition of the Portuguese Banking Pulse ("The Pulse") FY23. In this edition, we share results from our research examining the 7 biggest Portuguese banks ("top 7") regarding their activities within Portugal and highlight key performance indicators of the Portuguese banking industry.
The Pulse aims to help banking executives and board members stay current on industry trends. As trending topics, we include: 1. Growth; 2. Liquidity; 3. Income & Operating efficiency; 4. Risk; 5. Profitability; 6. Capital.
All the data used in this report has been obtained from publicly available sources. The methodology for all the calculations is homogeneous and discussed in the glossary.
Key trends:
- The profitability (ROE) of the banking sector in 2023 stands at 15.08%, which means an increase of 62.5% in comparison to last year.
- Industry solvency has increased in 22 bps, with a CET1 fully loaded ratio of 16.9%.
- Industry efficiency has improved from 48.1% in 2022, with the figure reaching 31.6% by December 2023
- Non-performing loans (NPLs) decreased to 2.59% while the cost of risk (CoR) suffered an increase until reaching 0.35% levels.
- Alvarez & Marsal's ranking is led by Caixa Geral de Depositos, followed by Novobanco. The last place is for Banco Montepio.
Originally published 13 May 2024
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