Western Europe: Portugal - Buoyancy In A Weak Economy - Banks Are Displaying Considerable...

Portuguese banks are nothing if not resilient. This will be the fifth year in which the economy has underperformed average EU growth. Recovery since a deep recession in 2003, when GDP growth contracted by 1.1%, has been weak and the outlook for the coming two years is less than buoyant. Banks, however, are weathering the protracted slump with remarkable composure.

Between 2000 and 2004, net profit for the top four listed financial groups grew by an average of 5.3% and return on equity by 15.3%. Net profit as a percentage of total assets rose from 0.73% to 0.99% over the