Portuguese Banks: Solid H1 2022 Results Amid More Uncertain Economic Environment
The commentary analyses the H1 2022 results of the large Portuguese banks.Summary highlights:
• In H1 2022, the total net income of the largest Portuguese banks almost doubled compared to the same period of 2021, mainly on the back of higher revenues and lower provisioning and impairment charges.
• The aggregate stock of NPLs continued to decrease Quarter on Quarter and Year on Year, as asset quality remained largely resilient following the winddown of the moratoria.
• Funding and liquidly conditions remained adequate, however the recent market volatility is contributing to increased refinancing costs in the wholesale market.
“Despite the solid results in H1 2022, in DBRS Morningstar’s view, the growing uncertainty and more challenging macroeconomic environment due to the high energy prices and persistent inflationary pressure will likely pressure future profitability and asset quality, said Nicola De Caro, from DBRS Morningstar’s Global Financial Institutions team. “
Banco Comercial Portugues is a privately-owned bank that provides a range of banking activities and financial services in Portugal and abroad, with a focus on commercial banking, corporate and investment banking and asset management and private banking. Co. operates in the following segments: Portugal, which consists of retail banking (including ActivoBank), companies (including companies and corporate and investment banking), asset management and private banking, and non-core business portfolio; and foreign activity, which consists of Poland, Angola, and Mozambique. As of Dec 31 2014, Co. had total assets of Euro76.36 billion.
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