In the second quarter of 2025

Balance of loans granted to non-financial corporations decreased year-on-year, while that of loans to households increased

According to data provided by the Bank of Portugal, at the end of the second quarter of 2025, the loan balance for non-financial corporations (NFCs) in the Autonomous Region of Madeira (ARM) stood at 1 819.0 million euros, representing a decrease of 33.7 million euros (-1.8%) compared with the end of June 2024, and an increase of 51.1 million euros(+2.9%) relative to March 2025.

The non-performing loan (NPL) ratio for these corporations rose compared with the end of March 2025, increasing by 0.2 percentage points (pp) to reach 1.0% at the end of June 2025. Compared with the same quarter of the previous year, this ratio increased by 0.1 pp. At the national level, the NPL ratio was 1.9%, unchanged from the previous quarter but down by 0.1 pp compared with the same period in 2024. The amount of non-performing loans among NFCs headquartered in the Region reached 18.4 million euros, up 3.6 million euros from March 2025 and 1.5 million euros from June 2024.

The percentage of NFC debtors with non-performing loans in the ARM stood at 14.0% at the end of June 2025, slightly below the national average (14.5%). Year-on-year, this indicator rose by 0.1 pp in the Region and by 0.2 pp nationwide.

In the household and Non-Profit Institutions Serving Households (NPISHs) sector, the loan balance increased by 218.6 million euros (+7.4%) year-on-year, reaching 3 161.2 million euros at the end of the second quarter of 2025. Compared with the previous quarter, the balance rose by approximately 74.4 million euros (+2.4%). A breakdown of this balance reveals that 73.9% was allocated to housing loans, while the remaining 26.1% referred to consumption and other purposes.

During the reference quarter, the NPL ratio in this sector was 0.8%, unchanged in year-on-year terms, but 0.1 pp lower than at the end of March 2025. In the housing loan segment, the ratio remained at a minimum of 0.2% (identical to the national figure), while in consumption and other purposes segment, it reached 2.7%, exceeding the national average by 0.2 pp. Compared with the second quarter of 2024, this ratio increased by 0.3 pp in the ARM and remained unchanged in Portugal.

The total amount of overdue loans in this sector was 26.9 million euros, including 4.4 million euros in the housing segment and 22.5 million euros in consumption and other purposes. This represented an overall year-on-year increase of 13.5% and a quarterly rise of 0.7%.

The number of debtors in the household and NPISHs sector rose to 103.8 thousand (+2.0 thousand; +2.0%) compared with the same quarter of the previous year. Of these, 42.7 thousand had housing loans (+0.1 thousand; +0.2%) and 88.7 thousand had loans for consumption and other purposes (+2.1 thousand; +2.4%).

At the end of the second quarter of 2025, 6.2% of debtors with non-performing loans in the Autonomous Region of Madeira (ARM), compared with 7.4% in Portugal. Compared with the same quarter of 2024, the ratio in the ARM increased by 0.3 pp, while remaining unchanged at the national level.

Deposits increased for households and NFCs, but continued to decline among emigrants

At the end of the second quarter of 2025, household and NPISH deposits in the ARM reached their highest level since the start of the series in December 2018, amounting to 4 381.3 million euros. This reflects a year-on-year growth of 4.9% and a quarterly increase of 1.2%.

In the NFC sector, deposits totalled 1 929.2 million euros, representing a year-on-year growth of 31.7% and a quarterly increase of 4.2%.

Conversely, the deposit balance of emigrants continued the downward trend that began in June 2024. Having stood at 189.1 million euros in that period, it fell to 149.0 million euros by the end of June 2025, corresponding to a year-on-year decline of 21.2% and a quarterly drop of 4.2%.

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