Compared to the same period in 2023

Ratio of non-performing loans for non-financial corporations decreased, while that of households increased slightly

According to data from the Bank of Portugal, at the end of 2024, the balance of loans granted to approximately 5 100 non-financial corporations (NFCs) in the Region totalled 1 773.8 million euros, representing a reduction of 123.6 million euros (-6.5%) compared to the same period in 2023. Contrary to the downward trend observed in the previous two years, in 2024, the number of companies with loans increased to 5 100 (4 900 in 2023), returning to 2022 levels.

Meanwhile, the amount of non-performing loans in the NFC sector stood at 12.5 million euros in December 2024, decreasing by 6.8 million euros (-35.2%) compared to the same month in 2023. Consequently, the ratio of non-performing loans in the Region declined between the end of 2023 and the end of 2024, from 1.0% to 0.7%, further distancing itself from the national average (1.8%; 2.0% in December 2023), with the favourable differential for the Autonomous Region of Madeira increasing from 1.0 percentage points (pp) at the end of 2023 to 1.1 pp at the end of 2024.

The percentage of NFC debtors with non-performing loans at the end of 2024 was 13.8%, slightly below the national average (14.0%), in contrast to the situation at the end of 2023, when the regional percentage (14.4%) exceeded the national figure (14.1%). This development results from the fact that, during this period, this indicator decreased by 0.6 percentage points in the Region while only declining by 0.1 pp at the national level.

In the household and Non-Profit Institutions Serving Households (NPISH) sector, the balance of loans granted in December 2024 amounted to 3 031.5 million euros, exceeding the 2 909.9 million euros (+4.2%) recorded at the end of the previous year. Of this total, 74.7% related to the "housing" segment, while the remaining 25.3% was allocated to "consumption and other purposes." Compared to December 2023, the balance of loans granted in the first segment increased by 3.5%, while in the second segment, the increase was more pronounced, at +6.4%.

The non-performing loans for household and NPISH sector stood at 0.9% in December 2024, 0.1 pp higher than the national level, with non-performing loans totalling 26.1 million euros. Compared to the same period in 2023, this ratio rose by 0.1 pp in the Region, while the value of non-performing loans increased by 2.3 million euros. Regarding non-performing loans in the "housing" segment, these did not exceed 5.2 million euros, representing a non-performing loan ratio of 0.2%, slightly below the national level (0.3%). Conversely, in the "consumption and other purposes" segment, the non-performing loan ratio in the same reference month was 2.7%, higher than the national figure (2.6%), with total non-performing loans amounting to 20.9 million euros.

The number of debtors in the household and NPISH sector reached 102 800 at the end of 2024, representing an increase of 1.8% compared to the same period in 2023. This increase is explained by a 2.5% rise in the "consumption and other purposes" segment (87 200), while the number of debtors in the "housing" segment (42 700) decreased slightly (-0.9%).

The percentage of debtors (households and NPISH) with non-performing loans in the ARM stood at 6.1% at the end of 2024, compared to 7.1% in Portugal. Compared to the previous year, these percentages remained unchanged in the Region but declined by 0.1 percentage points at the national level.

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