Banking news in Portugal

Portuguese bank Millennium BCP reported a net profit of €873.7 million for the first nine months of the year, representing a 12.6 percent increase compared to the same period in 2025. Chief Executive Miguel Maya described the economic backdrop as challenging, but noted that domestic operations generated €727.9 million in earnings while non-performing loans in Poland declined. Customer loans across the group grew 7.8 percent to €66.2 billion.

Mixed-rate contracts accounted for 87% of all new home mortgages in Portugal, according to Bank of Portugal (Banco de Portugal) data cited by DECO PROteste. The contracts offer an initial fixed payment period with an average interest rate of 2.86%, below the 3.23% average for variable-rate loans. Consumer protection specialists warned that while aggressive bank promotions offer short-term savings, borrowers should carefully evaluate how payments will adjust once the variable phase starts.

Banco CTT announced that its mobile application, homebanking service, and MB WAY transfers will remain offline through Sunday due to a scheduled systems upgrade. The outage, which began Friday, temporarily prevents customers from sending or receiving digital payments and accessing online accounts. The bank confirmed the disruption is necessary to complete planned technical improvements.

The Bank of Portugal (Banco de Portugal) advised consumers never to hand payment cards to staff when paying in shops or restaurants. The central bank stated that merchants must configure payment terminals so that customers insert cards and enter security PINs themselves. The guidance aims to prevent fraud and reduce unauthorized transactions during in-person purchases.

Portugal has implemented a ban on cash payments or receipts involving amounts of 3,000 euros or more. According to the Bank of Portugal (Banco de Portugal), this restriction applies to both parties in a transaction and cannot be circumvented by splitting payments into smaller installments.

The five largest banks in Portugal recorded combined profits exceeding 2.5 billion euros in the first half of 2026. While this figure represents a decline of more than 3% compared to the same period in 2025, banks like Santander, BPI, and Novo Banco saw individual profit drops exceeding 13%.

Novo Banco reported a 15.6% decline in net profits to 367.2 million euros for the first half of 2026. The bank attributed the decrease to extraordinary costs associated with its sale to the French group BPCE and a higher effective tax rate.

Starting this Saturday, new macroprudential measures from the Bank of Portugal (Banco de Portugal) will lower the debt-to-income ratio for mortgage applicants to 45%. While the move aims to protect buyers, banking leaders like Paulo Macedo, CEO of Caixa Geral de Depósitos, anticipate a potential 10% drop in credit production. Experts advise applicants to prepare complete dossiers and consult multiple institutions to navigate the stricter approval environment.

The fintech company Trade Republic has opened a branch in Portugal, now offering a local bank account number (International Bank Account Number or IBAN) and a simplified tax reporting process. The platform, which has surpassed 200,000 users in the country, also introduced a 3% interest rate on balances up to 50,000 euros.

A new study by the Bank of Portugal (Banco de Portugal or BdP) reveals that 40% of civil parishes in Portugal lacked a physical cash access point in 2025. While 95% of the population lives within five kilometres of an ATM or bank branch, the central bank noted that rural areas, particularly in Trás-os-Montes, face significant difficulties.

The German digital bank Trade Republic has officially launched a branch in Portugal, authorized by the Bank of Portugal (Banco de Portugal or BdP). Customers can now obtain a Portuguese IBAN (PT50) and earn 3% interest on balances up to 50,000 euros, with the bank aiming to double its current base of 200,000 customers within a year.

The Bank of Portugal (Banco de Portugal or BdP) has launched a public consultation on compensation rules for creditors harmed by the 2014 collapse of Banco Espírito Santo (BES). With 630 million euros allocated from the Resolution Fund (Fundo de Resolução), common creditors are expected to begin receiving reimbursements on December 1st.

The Resolution Fund (Fundo de Resolução) will begin repaying the state for the Banco Espírito Santo (BES) bailout starting at the end of 2026. Although the fund received proceeds from the sale of Novo Banco, it previously deferred repayments because it was not required to pay interest. The banking sector will also receive partial reimbursement as part of this process.

Starting August 1, the Bank of Portugal (Banco de Portugal or BdP) will implement new macroprudential rules for mortgage and consumer credit. The central bank is lowering the maximum debt-to-income ratio from 50% to 45% to mitigate financial risks for households. Additionally, the new regulations simplify loan duration requirements based on borrower age and prohibit credit intermediaries from accepting funds directly from consumers.

Starting July 1, new regulations for crypto-assets come into force, granting supervisory powers to the Bank of Portugal (Banco de Portugal) and the Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários or CMVM). Companies failing to comply with the new sector duties or operating without authorization face fines of up to five million euros.

The Portuguese Communist Party (Partido Comunista Português or PCP) has submitted a resolution to the Assembly of the Republic demanding the installation of new ATMs in parishes located more than five kilometres from existing banking services. The party is also seeking government clarification on the status of the Multibanco Social project.

Banco Santander aims to generate over one billion euros in business value through artificial intelligence by 2028. The bank plans to integrate AI across its global operations, including its 185,000 employees, to both create new revenue streams and reduce operational costs.

A new analysis from the Banco de Portugal reveals that credit intermediaries now process 51% of consumer credit and 56% of housing loans in Portugal. The report notes that using these intermediaries is often associated with higher annual percentage rates (APR) compared to contracting directly with a bank.

The Bank of Portugal (Banco de Portugal or BdP) is moving all digital banking complaints to the Electronic Complaints Book (Livro de Reclamações Eletrónico). This change aims to accelerate processing times, with the regulator now requiring financial institutions to respond within 15 days.

Banking unions, including Mais, SBN, and SBC, have expressed outrage at the banking sector's insistence on a 2% salary increase for this year. The unions, affiliated with the General Workers' Union (União Geral de Trabalhadores or UGT), labeled the offer as insensitive given the record profits reported by the country's five largest banks. They have warned of potential industrial action if the proposal is not improved.

The Bank of Portugal (Banco de Portugal or BdP) has issued a new circular requiring banks to respond to all customer complaints within 15 business days. This update standardizes the response timeline, which previously varied depending on whether the complaint was filed through the bank's own book or directly with the regulator.

The Bank of Portugal is consulting with financial institutions on a proposal to reduce the maximum debt-to-income ratio for new home loans from 50% to 45%. This macroprudential measure aims to curb excessive household debt and ensure long-term financial stability in the housing market.

Miguel Maya, CEO of Banco Comercial Português (BCP), expressed support for a potential move by the Bank of Portugal (Banco de Portugal or BdP) to lower the debt-to-income ratio for housing loans. The measure aims to ensure families maintain financial stability and a safety buffer amidst current economic unpredictability.

Financial institutions returned 8.91 million euros to customers in 2025 following interventions by the Bank of Portugal (Banco de Portugal or BdP). The regulator also noted an increase in consumer complaints, particularly regarding digital fraud and difficulties in closing bank accounts.

The Bison Bank has introduced the first Portuguese stablecoin, a digital asset pegged to the euro and dollar. Designed exclusively for regulated financial institutions, the token aims to simplify and streamline international payments and transfers.

The Bank of Portugal (Banco de Portugal) has clarified that national limits on cash payments remain more restrictive than the new €10,000 ceiling recently approved by the European Union. These tighter domestic rules are maintained as part of the country's efforts to combat money laundering.

The General Confederation of the Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses or CGTP) is reportedly planning a general strike for June 2nd. Secretary-General Tiago Oliveira confirmed the union will pursue various forms of protest against recent labor law changes, with a formal announcement expected during upcoming May Day celebrations.

Update: CGTP confirms general strike date for June 3rd

The CGTP has officially set the general strike for June 3rd, following a national council meeting. The protest targets labor law reforms proposed by the government of Prime Minister Luís Montenegro, with the UGT union indicating it may also join the action.

The Banco de Portugal confirmed that its governor, Álvaro Santos Pereira, has sold shares he purchased while in office. The divestment followed contact with the European Central Bank (Banco Central Europeu or BCE), which prohibits such holdings for officials in his position. The governor had previously acquired shares in companies including Galp and Jerónimo Martins.

The Bank of Portugal (Banco de Portugal or BdP) is advising customers to contact their banks if they face difficulties resuming home loan payments. The moratorium, which allowed for a temporary suspension of payments for families affected by severe weather, officially ends on April 28.

Approximately 7,400 families and companies affected by recent severe weather have joined government-decreed bank moratoriums. Deputy Governor of the Bank of Portugal (Banco de Portugal or BdP) Clara Raposo confirmed that the total credit amount covered by these measures reached 930 million euros by the end of March.

A recent conclusion from the Advocate General of the European Union regarding case C-70/25 suggests that banks may no longer use 'gross negligence' as a blanket defense to deny reimbursement for digital fraud. The opinion argues that financial institutions should be required to reimburse unauthorized transactions immediately, shifting the burden of proof onto the banks if they wish to pursue claims of customer negligence.

Bankinter has announced a five-year plan to become one of the six largest banks in Portugal by overtaking competitors like Banco Montepio. The bank's head in Portugal, Alberto Ramos, stated the strategy focuses on growing corporate lending and expanding digital services. The branch, which entered the market ten years ago, currently reports higher efficiency levels than its Spanish parent company.

Minimum banking service accounts (Serviços Mínimos Bancários or SMB) reached a record 265,627 at the end of 2025, according to the Bank of Portugal (Banco de Portugal). These accounts cost approximately €5.37 per year and provide essential services like a debit card, home banking, and MB Way. Residents looking to reduce banking fees should note that existing current accounts (contas de depósito à ordem) can often be converted to this lower-cost format.

Bank of Portugal (Banco de Portugal) Governor Álvaro Santos Pereira stated that a retirement agreement with his predecessor, Mário Centeno, will save the institution €2.2 million in future salary and social security costs. The Governor emphasized that the pension will be paid by the bank's own pension fund and will not cost taxpayers anything. Tax-paying residents should note that the agreement settles the former Governor's status as he transitions out of his remaining consultant role.

André Ventura, leader of the Chega party, has summoned the Governor of the Bank of Portugal (Banco de Portugal), Álvaro Santos Pereira, to explain a pension agreement for his predecessor. The controversy involves former governor Mário Centeno, who reportedly reached a deal to retire at 59 with a pension nearly equal to his full salary of approximately 20,000 euros per month. Residents should note this follows reports of a “hidden agreement” regarding the early retirement.

Severe weather earlier this year has led to 616 loans being placed under moratorium at Crédito Agrícola, totaling €124 million in debt relief for affected customers. The damage was particularly heavy in the central region, with the municipality of Arganil alone reporting €1 million in losses to local roads and infrastructure. Local authorities are still working to restore access to areas like Piódão, where landslides have interrupted traffic. Residents in the central interior should be aware of ongoing road repairs and check with their financial institutions if they require assistance due to weather-related property damage.

Fernando Ulrich, non‑executive president of BPI, told parliament that information exchange among banks accused in the so‑called “banking cartel” was “highly beneficial for consumers,” pointing to historically low mortgage spreads between 2002 and 2013. The comments came during a hearing requested by Chega as a judicial process looks at alleged collusion in mortgage lending. Borrowers and those currently negotiating mortgages should monitor the case: legal outcomes could affect bank practices, compensation claims and reputations. Customers with outstanding mortgages or new loan plans should keep records and follow any consumer guidance from regulators.

Observador reports that using a loan moratorium does not place clients on the Bank of Portugal (Banco de Portugal or BdP)'s list of problematic borrowers, addressing borrower concerns after the calamity. The article aims to clarify whether moratoria affect credit records; borrowers should check communications from their bank and the BdP for details on how measures appear on their files.