Portugal Banks’ Concern: Still Wobbly After All These Years
- Country’s lenders still being hurt by high burden of bad loans
- Low profitability is likely to remain a challenge for banks
This article is for subscribers only.
For all the capital they are raising, Portuguese banks are not out of the woods yet.
Banco Comercial Portugues SA, the country’s biggest publicly traded lender by assets, last week raised 1.3 billion euros ($1.4 billion) in capital, while state-owned lender Caixa Geral de Depositos SA is set to get the rest of its 5 billion-euro capital boost from March. Meanwhile, Novo Banco SA, which emerged from the breakup of Banco Espirito Santo SA, still carries a “for sale” sign more than two years after it was put on the block.