Portugal’s six largest banks post combined net profits of €1.25Bn in 1Q

Portugal’s main banks CGD, BCP, Novobanco, Santander, BPI and Banco Montepio posted combined net profits of €1.2Bn in the first quarter of 2025.

The result was in line with the profits they made in 1Q, 2024. It means that the fall in European Central Bank interest rates is negatively impacting bank revenues. Nevertheless, an increase in lending prevented a fall in profits overall.

One thing the banks had in common in the first quarter was an increase in their credit portfolios, supported by an increase in mortgage lending, which benefited from a boost given by State guarantees on mortgages for young people.

The State stepped in to support the banks in order to avoid a drop in their profits in 2025. According to May’s Financial Stability Report, in the first quarter of 2025 secured credit accounted for 9% of total lending and 13% of the total amount of new mortgage contracts.

CGD posted €393 million in profits (down €2 million), BCP made €243.5 million (+3.9%), Santander Totta profits stood at €268.8 million, BPI (€137 million – up 13%), Montepio netted €34.2 million, and Novobanco clocked up profits of €177.2 million (down 1.8%).