In the second quarter of 2023

Ratios of overdue credit for non-financial corporations and households in the housing segment decreased on a year-on-year basis

According to data provided by the Bank of Portugal, at the end of the second quarter of 2023,  the balance of loans granted to non-financial corporations (NFCs) at the end of the second quarter of 2023 amounted to 2.0 billion euros. This represents a decrease of 51.1 million euros (-2.5%) compared to the end of June 2022 and an increase of 18.7 million euros (+1.0%) compared to March 2023.

The ratio of overdue credit for NFCs decreased by 0.4 percentage points (pp) compared to June 2022, settling at 2.2% at the end of the reference period. There were no changes compared to the previous quarter. At the national level, this indicator remained at 2.1% compared to the previous quarter (March 2023), showing a decrease of 0.1 pp year-on-year, not exceeding 2.1% by the end of the second quarter of 2023. The amount of non-performing loans within non-financial corporations headquartered in the Region stood at 44.4 million euros (an increase of 2.3 million euros from March and a decrease of 8.5 million euros compared to June of the previous year).

At the end of June 2023, the number of debtors in the non-financial sector totalled 5.0 thousand (a value that has remained consistent since January 31, 2023), which is, however, lower than the figure recorded in the same period of the previous year (5.3 thousand), representing a year-on-year decline of 5.7%.

The percentage of debtors in the NFC sector with overdue loans at the end of June 2023 was 15.1%, surpassing the national average (14.3% in the same period). Compared to the previous and year-on-year quarters (-0.5 pp and +0.5 pp respectively), the trend was uneven.

In the households’ sector and Non-Profit Institutions Serving Families (NPISH), there was a year-on-year increase of 22.0 million euros in the balance of loans granted, which amounted to 3.1 billion euros at the end of the second quarter of 2023. When compared to the previous quarter, there was a decrease of approximately 2.8 million euros. A detailed breakdown reveals that 72.1% of that balance pertained to the housing segment, while the remaining 27.9% was attributed to consumption and other purposes.

Regarding overdue loans in the housing segment, they did not exceed 7.3 million euros, constituting an overdue loan ratio of 0.3%, a historical minimum of the available data series, which began in March 2009. This percentage is the same as at the national level (0.3%). Between June 2022 and June 2023, the overdue loan ratio for housing was reduced by 0.2 pp in the Region.

The number of debtors in the household and NPISH institutional sector decreased compared to the previous quarter, reaching 100.8 thousand. At the end of the second quarter of 2023, there were approximately 43.4 thousand debtors with housing loans and 84.4 thousand with loans for consumption and other purposes.

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