The Canadian rating agency DBRS said in a note that the reduction of nonperforming loans (NPL) and non-essential assets will continue to be a key priority for Portuguese banks, also warning about the quality of assets.
The Canadian rating agency attributes its position to asset quality ratios of the sector, which remain weaker compared to the European average.
Still, DBRS points to greater progress in asset quality in the first nine months of 2019 in Portuguese banking, with all banks reporting lower NPL ratios.
«Supported by a combination of sales, write-offs and recoveries, the combined stock of gross NPL, excluding off-balance sheet exposures, fell by around €9 Bn to €19 Bn in the first nine months of 2019, corresponding to a 32% year-on-year reduction,» the agency said.
DBRS also noted that the gross ratio of non-performing loans fell to around 8% in the first nine months of 2019, which compares with 12% in the same period of 2018.
Original Story: The Portugal News | News
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Edition: Prime Yield