Competing as a Strong and Independent Portuguese Bank
Macroeconomic environment
Macroeconomic environment
Improvement in public accounts has created room for policy support. NPLs and sovereign spreads remain
contained. Resilient growth in house prices, supported by strong external demand.
The improvement in public accounts has allowed for
policy measures, mitigating the impacts from the
pandemic and from the war in Ukraine.
Unemployment and NPLs have remained contained.
Resilient growth in house prices, supported by
strong external demand.
Contained rise in sovereign spreads reflects
improved fundamentals vs. previous crisis.
Non-performing loans
(% of total gross loans)
Mortgage
Consumption and other
NFCs
Total
15
10
50
INE house price index
(market prices, % YoY)
12.8
11.7 11.3
9.4 8.9 8.3 7.7
6.2 6.0
5.5 5.3 4.9 4.6 4.3 4.0 3.7 3.6
-5
3.4
-10
2010
2012
2014
2016
2018
2020
2022
2018
2019
2020
2021
2022
Public deficit and debt
(% GDP)
Budget Balance
160
Public Debt
80
60
40
20
៖ ៖ ៖ ៖ ៖ ៖ ៖ 8 °
140
120
100
2008
2009
Sources: INE, Bank of Portugal, DDAE.
novobanco
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
1 800
1 600
1 400
-10
1 200
21% 44 NON
10Y Periphery Government bond
yield spreads vs. Bund (bps)
Portugal
1 000
800
Spain
600
400
200
0
Ireland
-200
2007
2010
2013
2016
2019
2022
Annual GDP growth
(%)
2022 2023
6.2
5.5
6.7
6.5
13.2
LLL
0.7
1.2
Pub FinCouncil
(Sep)
1.3
Budget 2023
(Oct)
Italy
239
115
106
54
2021
IMF
(Oct)
47View entire presentation