Lisbon, March 6, 2025 (Lusa) - The five largest banks operating in Portugal had aggregate profits of €4.964 billion last year, a record figure that makes 2024 the best year ever for banking in Portugal, according to accounts published by Lusa.

The aggregate profits of €4.964 billion from the five largest banks are 12% more than the net result for 2023.

Public bank Caixa Geral de Depósitos (CGD) had the highest profits last year, totalling €1.735 billion.

Santander recorded profits of €990 million and BCP €906.4 million.

Novo Banco made a profit of €744.6 million and BPI made a profit of €588 million.

When the banking results for 2023 were released in the first months of 2024, analysts then considered that there had been an exceptional "peak" in banking profitability (in Portugal but also in Europe) and predicted that in 2024 the sector would continue to be highly profitable but at lower levels due to falling interest rates and an uncertain economic and geopolitical situation.

However, as the end of 2024 approached, it became clear that the year would be better than expected, surpassing that of 2023, and that the largest banks in Portugal could achieve profits close to €5 billion, which was confirmed.

Although net interest income (the difference between interest charged on loans and interest paid on deposits) grew slightly more in 2024, due to the reduction in interest rates on loans and a slight increase in interest on deposits, it remains high. Profits grew even more, and in some cases, it was helped by the reversal of impairments and provisions, especially for loans (in the case of CGD).

To accompany the increase in profits, the banks will now also increase the dividends to be paid to shareholders for 2024.

IM/ADB // ADB.

Lusa