Pandemic forces Portuguese banks to make 200 million in provisions

  • ECO News
  • 20 May 2020

Four of the major national banks saw their profits halved in the first quarter because of the money they had to put aside to deal with the pandemic crisis.

Four of the main national banks that have already presented results registered generic provisions of 200.8 million euros to face the economic crisis caused by the pandemic, according to Jornal de Negócios. BCP was the one that put most money aside: 78.8 million euros.

After BCP, with provisions of almost 80 million, comes CGD with 60 million. Santander and BPI set aside 30 million each, in what, the Portuguese banks say, is a cautionary exercise before what they expect to be an increase in the number of defaults.

Nevertheless, the effect of provisions on the results of the first quarter of Caixa Geral de Depósitos (CGD), BCP, Santander and BPI has already been felt with intensity: profits have fallen by half in relation to the same period of last year, from 466 million euros to 246 million euros.