Portuguese Banks: Bank Watch – BoP May Data. Mon Jul 06 2026

Research evidence excerpt

Portuguese Banks: Bank Watch – BoP May Data. Mon Jul 06 2026

J P M O R G A N Europe Equity Research

06 July 2026

Portuguese Banks

Bank Watch – BoP May Data

Portugal’s banking market is still the fastest-growing in Western Europe. Private European Banks

ACsector loan growth held broadly steady at a healthy +7.9% YoY in May (Figure 1Portugal Marta Sanchez Romero

–PrivateSectorLoanGrowth), led by mortgages (Figure 5Portugal–LoanGrowthbySegment). Lending kept expanding faster than deposits— (44-20) 3493-2517

though these, too, grew a solid +6.6% YoY (Figure 2Portugal–PrivateSectorDepositGrowth)—leaving the sector sitting marta.sanchezromero@jpmorgan.com

on €55bn surplus deposits (20% of the stock, Figure 4Portugal–ComercialGap). Meanwhile, the lending Mariana Andrade

stock repriced to higher Euribor faster than deposits did, widening the customer (44-20) 3493-9303

spread to 338bps (+2bps MoM). The overall cost of deposits, at 66bps, barely mariana.andrade@jpmorgan.com

moved (+1bp MoM, Figure 15Portugal–CostofDepositsbySegment), a beta of 33%. Time deposits were flat MoM and Kian Abouhossein

their weight steady at 52% of the total (Figure 11Portugal–PrivateSectorDeposits,breakdown), after only small tweaks (~5bps) (44-20) 7134-4575

kian.abouhossein@jpmorgan.com

to the front book offering. We rate BCP Neutral. Spanish banks with a meaningful J.P. Morgan Securities plc

Portuguese footprint include Caixabank through BPI (Overweight), Bankinter

(Overweight), and Santander (NR). Figure 15Portugal–CostofDepositsbySegment Specialist Sales contact details:

Gigi Sparling - Specialist Sales -

Mortgages: the growth engine. The book expanded at 10.4% YoY (April: European Financials

+10.3% YoY) while the pull from higher Euribor lifted yields—back-book up 2bps (44-20) 7134-0355