For the first time since 2014, aggregated net income of the five largest Portuguese banking groups[1], which account for about 80% of the banking system’s consolidated total assets, was positive in 2018 (EUR 375 millions). Losses recorded in Portugal (EUR -14 millions) were more than offset by profits from international activities (EUR 389 millions).
The assets located abroad of Portuguese banks have, on average since 2014, represented 13% of their total assets. In 2017, the simultaneous decreases in this proportion and the net income from international activities are, amongst other things, due to a valuation effect of assets accounted at their fair value. The international activities of Portuguese banks are mainly located in Spain, France and Portuguese-speaking countries (Angola and Mozambique). They mostly consist of credit lending, accounted at amortized cost.
The positive net income of Portuguese banks in 2018 is attributable to their international activities
