The large Portuguese banks “presented solid results in fiscal year 2025”, which will help overcome the geopolitical and macroeconomic uncertainty expected for this year, highlighted DBRS, in an analysis released this Monday, 16.
Last year, bank profitability “benefited from significant releases of general provisions, which helped offset the decline in net interest income, driven primarily by lower interest rates,” says the financial ratings agency’s analysis, which adds that asset quality continued to improve and capitalization remained solid.
For this year, DBRS anticipates that banks “will continue to be well positioned to deliver strong profitability, supported by continued credit growth and stable or slightly higher Euribor”, although admitting that capital ratios will “decrease modestly from current high levels due to continued business growth and the distribution of dividends to shareholders”.
Furthermore, “potential disruptions in global energy markets arising from the conflict in the Middle East could impact inflation and growth, potentially affecting credit quality and demand for loans, depending on the duration and severity of the conflict,” the agency warned.
Still, banks enter 2026 with “solid reserves that help mitigate high geopolitical and macroeconomic uncertainty.”
The five main banks operating in Portugal had aggregate profits exceeding five billion euros in 2025, the year in which CGD, BCP and Novo Banco recorded the highest results in their histories.
According to Lusa’s accounts, in total, the five largest banks, which represent more than 80% of the banking system, had total profits of 5,226.5 million euros in 2025, 5.9% more than in 2024.
It is therefore confirmed that the year 2025 was, so far, the year with the highest aggregate profit for the main banks. The increase in profits was driven, above all, by the results of Caixa Geral de Depósitos, but also of BCP and Novo Banco, which recorded their highest profits ever last year.
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