Banking - Portugal

Portugal

In 2024, it is projected that the Net Interest Income in the Banking market of Portugal will reach US$12.85bn.
Traditional Banks are expected to dominate the market with a projected market volume of US$8.56bn in 2024.
Looking ahead, the Net Interest Income is expected to show an annual growth rate (CAGR 2024-2029) of -2.14%, resulting in a market volume of US$11.53bn by 2029.
When compared globally, it is worth noting that China will generate the most Net Interest Income, with an estimated amount of US$4,332.0bn in 2024.
Portugal's banking sector is experiencing a rise in digital banking services, with increased adoption of online and mobile banking platforms.

Key regions: United States, China, Japan, Brazil, United Kingdom

Definition:

The Banking market refers to the financial services sector providing financial products and services to individuals and businesses. Retail banking focuses on offering financial services to individual consumers, such as personal loans, savings and checking accounts, credit cards, and mortgages. Commercial banking, on the other hand, provides financial services to small and large businesses, including loans, lines of credit, and other financial products designed specifically for businesses.

Structure:

The market consists of two segments:
- The Traditional Banking market refers to the financial services sector that provides a range of financial products and services to individuals and businesses through store-based branches and other traditional channels.
- The Digital Banking market refers to the emerging market for digital-only banks that offer financial services through online and mobile platforms.

The market data comprises Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:

The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the Retail & Commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.
Key players in this market are companies such as the Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

Use the info button next to the boxes for more information on the data displayed.

Market

Region

Region comparison

Currency

Analyst Opinion

Portugal, known for its rich history and beautiful landscapes, has a dynamic banking market that reflects the country's economic growth and stability.

Customer preferences: Portuguese customers in the banking sector have shown a growing preference for digital banking services, such as online banking and mobile apps. This shift towards digital platforms is driven by the convenience and accessibility they offer to customers in managing their finances. Additionally, there is an increasing demand for personalized banking services tailored to individual needs and preferences.

Trends in the market: One noticeable trend in the banking market in Portugal is the consolidation of banks to improve efficiency and competitiveness. This trend is driven by the need to adapt to changing customer preferences and technological advancements. Another trend is the focus on sustainability and ethical banking practices, with more banks incorporating environmental and social considerations into their business strategies.

Local special circumstances: Portugal's banking market has been influenced by the aftermath of the global financial crisis, leading to increased regulatory scrutiny and risk management practices. Additionally, the country's aging population and emigration trends have impacted the demand for banking services, with a growing focus on retirement planning and international money transfers.

Underlying macroeconomic factors: The development of the banking market in Portugal is also influenced by macroeconomic factors such as interest rates, inflation, and economic growth. Low interest rates set by the European Central Bank have affected the profitability of banks, leading to a focus on cost-cutting and diversification of revenue streams. Economic growth and stability play a crucial role in shaping the demand for banking services, as consumer confidence and investment levels impact the overall performance of the banking sector.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.