Consumer Credit in Portugal 2006

Consumer Credit in Portugal 2006 is an invaluable guide to a fast recovering consumer credit market. There is detailed information on market size, competitor market shares and key regulatory and competitor developments in the market. Furthermore, a five year market forecast and a SWOT analysis look to the future of the market are provided.

• Covers the consumer credit market (not including any loans secured on property)
• Provides market sizing data in terms of gross advances and balances outstanding
• Provides competitor market shares for the top five players in terms of balances outstanding; short profiles of the top players are also provided
• Provides competitor market share for the top five credit card lenders in terms of balances outstanding

The Portuguese consumer credit market still remains relatively under-exploited compared to the rest of Western Europe, having only truly begun expanding in the late 1990s. This was stimulated not only by good economic conditions, but also due to the marked increase in both the quality and quantity of banking products on offer.

Motor finance remains the leading consumer credit product in Portugal. A large proportion of vehicles continue to be financed through motor finance deals, and while there is competition from personal loans, there is not yet the same level of competition as is found in other European markets, for example the UK.

The Portuguese banking market is one of the most concentrated in Western Europe. As a result, the leading Portuguese banks tend to play a very important role in the consumer credit market. Nevertheless, traditionally, banks have not focused on consumer credit as a sector, preferring to focus on mortgage lending or private banking.

• Learn how the Portuguese consumer credit market has developed over the last five years
• Understand the recent developments in the market in terms of regulation, competition and product innovations
• Find out Datamonitor's opinion on the future performance of the Portuguese consumer credit market over the next five years and its future prospects

OVERVIEW

Market size

Future growth indicators

Key market players

CHAPTER 1 INTRODUCTION

What is this report about?

Scope of the report

Structure of report

CHAPTER 2 MARKET CONTEXT

Country overview

Economy

GDP

Inflation

Distribution of income

Unemployment

Demographics

Population and demographic split

Structure of the Portuguese retail banking market

Universal banks

Savings banks

Agricultural credit institutions (co-operative banks)

Market size

Total consumer credit

Consumer credit gross advances in Portugal

Consumer credit balances outstanding in Portugal

Consumer credit as a proportion of total retail lending

Consumer credit as a proportion of GDP

Consumer credit per capita

Portugal's consumer credit market remains underdeveloped mainly because it is a relatively new market

Consumer credit product statistics

Consumer credit balances outstanding by product

Motor finance remains the dominant consumer credit product

Credit cards have grown quickly in particular

Regulatory environment

Industry regulators

Banco de Portugal

Conselho Nacional de Supervisores Financeiros

Industry associations

ASB

ASFAC

Caixa Central de Crédito Agrícola Mútuo

FENACAM

Credit bureaux

Regulatory issues in the market

European consumer credit directive

CHAPTER 3 COMPETITOR AND PRODUCT OVERVIEW

Consumer credit market shares by institution

Banks are the leading players in the Portuguese consumer credit market

Consumer credit market shares by competitor

Millennium BCP is the leading consumer credit provider in Portugal

However finance houses command a large portion of the market

Profiles of the top five consumer credit providers

Millennium BCP

Banco Espírito Santo

Caixa Geral de Depósitos

Banco Santander Totta

Banco Português de Investimento

Top five credit card lenders

Credit card market share by balances outstanding

Competitor developments

The Portuguese banking market has gone through a process of significant consolidation

Portuguese banks have traditionally focused on other sectors, rather than consumer credit

In fact, finance houses are leading the way in terms of the development of the Portuguese consumer credit market

Moreover, foreign players have entered the Portuguese consumer credit market

Product analysis

Typical product design of personal loans

Product innovations in the market

Using the Internet as a customer acquisition tool has become increasingly common

Promotions and loyalty schemes are common to the market

CHAPTER 4 FORECASTING THE CONSUMER CREDIT MARKET IN PORTUGAL

Forecasting gross advances

Gross advances in the Portuguese consumer credit market will reach €7.5 billion in 2010

A number of factors will determine this growth

Future prospects

Strengths

Weakness

Opportunities

Threats

CHAPTER 5 APPENDIX

Supplementary data

Definitions

Balances outstanding

CAGR

Consumer credit

Gross advances

Point of sale motor finance

Retail finance

Research methodology

Forecasting methodology

Relevant readings

Reports

Relevant links

Datamonitor's custom research capabilities

Retail Banking Team contact details

How to contact experts in your industry

List of Tables

Table 1: Consumer credit gross advances and balances outstanding in Portugal, 2001-2005

Table 2: Ranking of selected European countries by GDP, 2005

Table 3: GDP per capita for selected European countries, 2005

Table 4: Composition of Portugal's GDP by sector, 2005

Table 5: GINI Coefficient for selected European countries

Table 6: Population distribution by age group in Portugal, 2005

Table 7: Consumer credit balances outstanding compared to GDP of selected European countries, 2005

Table 8: Consumer credit balances outstanding per capita of selected European countries, 2005

Table 9: Forecast of Portuguese consumer credit gross advances, 2004-2010f

Table 10: Real GDP growth in Portugal, 2001-2005

Table 11: Consumer credit gross advances in Portugal, 2001-2005

Table 12: Consumer credit balances outstanding in Portugal, 2001-2005

Table 13: Consumer credit balances outstanding as a proportion of total retail lending in Portugal, 2001-2005

Table 14: Consumer credit balances outstanding per capita, 2001-2005

Table 15: Market shares by consumer credit balances outstanding in Portugal, 2004

Table 16: Credit card market shares by balances outstanding, 2004

List of Figures

Figure 1: Gross advances in the Portuguese consumer credit market will grow at a CAGR of 6.5 per cent to reach €7.5 billion in 2010, 2001-2010f

Figure 2: Millennium BCP is the leading consumer credit provider in Portugal, 2004

Figure 3: Key statistics for the Portuguese consumer credit market, 2005

Figure 4: Despite experiencing positive economic growth in 2004-5, the Portuguese economy remains fragile, 2001-2005

Figure 5: Despite declining significantly in recent years, inflation is still running at a relatively high level, 2000-2005

Figure 6: Unemployment in Portugal has risen in recent years, 2001-2005

Figure 7: The structure of the Portuguese banking industry, 2005

Figure 8: In terms of new lending, consumer credit growth has been weak, 2001-2005

Figure 9: The Portuguese consumer credit market has performed poorly over the last five years, but balances have increased, 2001-2005

Figure 10: Consumer credit as a proportion of total lending has fallen in Portugal over the last five years, 2001-2005

Figure 11: Motor finance accounts for the largest proportion of consumer credit balances in Portugal, 2004

Figure 12: Regulatory overview of Portugal, 2004

Figure 13: Banks have the largest share of balances outstanding of consumer credit in Portugal, 2004

Figure 14: Millennium BCP is the leading consumer credit provider in Portugal, 2004

Figure 15: Millennium BCP is the leading credit card lender in Portugal, 2004

Figure 16: Consolidation in the Portuguese consumer credit market, 2000-2005

Figure 17: Gross advances in the Portuguese consumer credit market will grow at a CAGR of 6.5 per cent to reach €7.5 billion in 2010, 2001-2010f

Figure 18: Datamonitor's core consulting capabilities