Portuguese Banking: Carving out a new role
At Banco Português de Investimento, banking consolidation is a major preoccupation of board member Vitor Constâncio. There's been some merger activity, but not as much as necessary, he says. BPI itself is the result of several Portuguese banks merging, but it's still only the fifth-largest group in the local market.
Constâncio doubts whether a domestic merger would suffice. "Even to reach their present size Portuguese banks have required a major investment of foreign capital," he says. BPI is a prime example: its three big shareholders - German financial group Allianz, Spanish banking group La Caixa and Brazilian group Itaú - own roughly 10% each.
Unlike some other bankers in Lisbon, Constâncio does not rule out a hostile takeover bid for one of the main Portuguese players.
But BPI would be a good catch itself. Like its peers, it has benefited extraordinarily from Portugal's buoyant economic growth. Provisions have dropped, with defaults on just 2.3% of credit extended. Last year BPI, like all local banks, increased fees and commissions payable by retail customers.