1H22 Financial Performance slide image

1H22 Financial Performance

Portuguese macroeconomic environment 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 20 18 Macroeconomic environment Improvement in public accounts has allowed for policy measures, mitigating the impacts from the pandemic and from the war in Ukraine. Unemployment, NPLs and sovereign spreads remain contained. Unemployment rate (% labour force) INE house price index (% YoY) & Housing bank appraisals (median, % YoY) 15 10 13.9 House Price index 12.9 16 14 5 Housing bank appraisals 12 0 10 8 -5 5.9 6 -10 4 2 -15 0 2012 2014 2016 2018 2020 2022 2000 2003 2006 2009 2012 2015 2018 2021 10Y Periphery Government bond yield spreads vs. Bund (bps) Annual GDP growth (%) 8 6.3 1 800 6 4.9 1 600 Portugal 3.5 4 2.8 1 400 2.7 2.6 1.8 2.0 1 200 2 0.8 12.8 1.000 0 11.7 11.3 800 9.4 8.9 8.3 7.7 Spain -2 600 -4 6.2 6.0 400 Italy 213 5.5 5.3 4.9 4.6 4.3 4.0 3.7 3.6 Bank of Portugal forecasts 200 118 -6 118 0 -8 62 Ireland -8.4 -200 -10 2018 2019 2020 2021 2022 2007 2010 2013 2016 2019 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 novobanco Sources: INE, Bank of Portugal, DDAE. 47
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