Portuguese Banking System, Q2 2017, BdP

Page created: Wednesday, 4 October 2017 15:42GMT

Report:  04 October 2017 - 14 Page(s)
Portuguese Banking System

Main Highlights

Balance sheet
In the second quarter of 2017, banking system’s total assets decreased slightly vis-à-vis the previous quarter.
The continued reduction of the loans to customers’ portfolio was partially offset by the increase in the sovereign debt securities’ portfolio. Customer deposits remained stable.

Liquidity and funding
Financing obtained from the Eurosystem declined in the second quarter of 2017, in contrast to the preceding quarter. Banking system’s liquidity indicators improved, in line with the latest quarters. The liquidity of
domestic institutions, measured by the liquidity gaps, increased and remained at a comfortable level.

Asset quality
The non-performing loans ratio decreased again in the second quarter of 2017, reflecting a greater reduction in non-performing loans than the one observed in total loans. This development was common to all segments analysed.

The profitability of the banking system was positive in the first half of 2017, which compares with the virtually nil figure observed in the same period of the previous year. The improvement in profitability vis-à-vis the first half of 2016 was chiefly driven by a significant reduction in the flow of impairments.

Solvency levels increased in the second quarter of 2017, due to the growth of the banking system’s own funds and the reduction of the risk-weighted assets.

Original title:  Portuguese Banking System: latest developments 2 nd quarter 2017