In the first nine months of 2025, Banco Montepio reduced the volume of non-performing loans on its balance sheet by €55 million. The bank closed the third quarter with an NPE ratio of 2.1%.

The bank has released its third quarter results this week, showing that consolidated net income for the first nine months of 2025 fell by 10.1% year-on-year to €86.4 million, compared to €96.1 million a year earlier.

On 30 September 2025, gross customer loans totalled €12,726 million, showing an increase in performing loans of €564 million (4.7%). Non-performing loans remained in line with the end of last year. Gross customer loans increased by 6.3% (€757 million) compared to the same period last year, supported by an increase in performing loans of €811 million (7%), despite a reduction in non-performing loans of €55 million (17.3%).

Following the year-on-year reduction in non-performing exposures (NPEs) of €55 million (-17.3%), the NPE ratio improved by 0.5 percentage points, falling from 2.6% at the end of September 2024 to 2.1%.

In terms of risk, the bank reported a 32% year-on-year reduction in its exposure to real estate risk, falling by €67 million to a total of €145 million. This represents only 0.7% of the bank’s net assets (compared to 1.1% at the end of September 2024) and 9.2% of own funds (compared to 14.1% on 30 September 2024).

Source: Banco Montepio
Edition and translation: Prime Yield