Financial and ESG Performance Review
1%
(1%)
143%
82%
83%
83%
90%
91%
96%
96%
108% 112%
58% 61%
0
£ 1
0
EU
average
4
Portugal is favourably positioned in terms of liquidity of the market vs
other EU countries resulting in one of the lowest deposit beta in the EU
Loan to deposit ratio: PT vs. EU peers (2022)
Portugal has one of the lowest L/D ratios in EU
Loan to deposit ratio: novobanco vs portuguese peers (2022)
Limited competition for liquidity driven also by CGD (market leader /
price setter) having significant excess liquidity
2%
(0%)
3%
3%
%L
2%
3%
2%
4%
3%
4%
%8
4%
2%
%9
4%
4%
9%
4%
5%
Customer deposits YoY growth (Jan-23)
Despite increasing interest rates, deposits growth in Portugal remains robust
Corporate deposits
Retail deposits
Total deposits
Blended deposit beta (Jan-23)(1)
As a result, Portuguse banking market is expected to demonstrate lower
deposit beta vs. other EU market, which has been the case as of Jan-23
Corporate deposits
Retail deposits
Total deposits
%9
5%
5%
%L
5%
%6
30%
25%
21%
96%
96%
76%
86%
86%
96%
83%
61%
59%
CGD
BCP
Santander
Totta
24%
16%
13%
9%
9%
BPI novobanco Credito
Agricola
6%
Montepio PT average EU average
4%
Deposits
market share
(5%)
novobanco
EU
00 average
EU
average
@00
Source: Company information, Research analysis, ECB, Associação Portuguesa de Bancos; (1) Calculated as the change in the blended deposit cost for Retail and Corporate (across
overnight / redeemable / term) over 200bps, i.e. the change in ECB rates from Jul-22 to Jan-23
26%
18%
20%
32%
13%
19%
28%
11%
18%
23%
10%
14%
18%
11%
13%
26%
%L
11%
18%
6%
9%
16%
1%
%9
11%
3%
10%
2%
4%
7%
2%
30
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