Consultancy firm Bain & Company predicts that the banking sector will once again focus on potential mergers in the coming years, aiming to gain scale and diversify business in line with global trends. In a statement released this Monday, the 9th, Bain & Company highlighted a recently published report on global banking consolidation. For Portugal, it suggests that a sector 'marked by high concentration and structural pressure on margins' should lead key decision-makers to evaluate merger possibilities. The firm notes that the need to improve efficiency, accelerate digital transformation, and respond to competition from fintechs and new European operators has brought consolidation back onto the sector's radar. Bain & Company estimates that global banking M&A activity accelerated in 2025 to a total value of 212 billion dollars. The goal for companies has been to gain scale, strengthen technological capabilities, and diversify business. The consultancy notes that while operations previously focused on either scale or diversification, they now integrate both to drive efficiency and innovation. Acquisitions in 2025 that combined both elements saw, on average, 30% better valuation gains than those focused on only one dimension. The report cites examples such as the merger between CaixaBank and Bankia in Spain, or the acquisition of LeasePlan by ALD. Portugal's banking market is considered highly concentrated, with five banks accounting for over 80% of the system. The five main banks operating in Portugal recorded aggregate profits exceeding 5 billion euros in 2025, a year in which Caixa Geral de Depósitos, BCP, and Novo Banco reported record results. The contribution tax on the banking sector reached a record high of 255 million euros.