In the second quarter of 2024

Ratios of non-performing loans and the balance of loans granted to non-financial corporations and households decreased year-on-year

According to data provided by the Bank of Portugal, at the end of the second quarter of 2024, the balance of loans granted to non-financial corporations (NFCs) amounted to 1.8 billion euros, representing a 131.7 million euros (-6.7%) drop over the end of June 2023 and a rise of 20.6 million euros (+1.1%) over March 2024.

The ratio of non-performing loans for NFCs for this type of corporation decreased by 1.3 percentage points (pp) compared to June 2023, reaching 0.9% at the end of the reference period. Compared to the previous quarter, there was a reduction of 0.2 pp. Nationally, this indicator remained unchanged from the end of March 2024 but decreased by 0.1 pp year-on-year, not exceeding 2.0% at the end of June 2024. The amount of non-performing loans within non-financial corporations headquartered in the Region was 17.3 million euros during the reference period, down by 2.3 million euros over March 2024, also decreasing by 27.1 million euros compared to June of the previous year.

At the end of June 2024, the number of debtors in the non-financial sector stood at 5.0 thousand, a figure similar to that recorded in the same period of the previous year. The percentage of NFC debtors with non-performing loans at the end of June 2024 was 13.4%, below the national average of 13.8% for the same period. There were decreases of 0.2 pp and 1.7 pp in this indicator compared to the previous and corresponding quarters, respectively.

In the household sector and Non-Profit Institutions Serving Households (NPISH), there was a year-on-year reduction of 111.8 million euros (-3.6%) in the balance of loans granted, amounting to 3.0 billion euros at the end of the second quarter of 2024. Compared to the previous quarter, there was an increase of approximately 23.7 million euros (+0.8%). A more detailed analysis reveals that 74.9% of this balance was related to housing loans, while the remaining 25.1% pertained to consumption and other purposes.

Regarding overdue housing loans, they did not exceed 5.8 million euros, representing a non-performing loan ratio of 0.3%, consistent with the national level. For consumption and other purposes, this ratio was 2.5% (2.6% nationally).

The number of debtors in the household and NPISH sectors increased compared to the same quarter of the previous year, reaching 101.1 thousand (+0.3%), of which 42.5 thousand had housing loans (-2.1%) and 85.2 thousand had loans for consumption and other purposes (+0.9%).

The percentage of debtors (households and NPISH) with non-performing loans in the Autonomous Region of Madeira was 5.4% at the end of the first half of 2024, compared to 7.0% in Portugal. These percentages decreased by 0.6 pp in the Region and increased by 0.2 pp nationally compared to a year earlier.

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