Madeira Has Only 78 Physical Bank Branches, Down from 182 in 2009
The number of bank branches in Madeira continued to decrease in 2023. Only 78 branches were in operation, four fewer than in 2022. This is the lowest number recorded since 1997. After reaching 182 branches in 2009, the number has steadily dropped over the years. This decline is mainly due to the growing use of online banking services and cost-cutting measures by financial institutions. Many banks have closed physical locations to reduce expenses and adapt to changes in customer behavior.
Interest Income for Banks in Madeira Jumps by Over 135%
Interest income for Madeira’s banks increased sharply in 2023, reaching €110.9 million. This is a 135.8% jump compared to the previous year, marking a major turnaround in bank profits. Customer deposit interest also rose significantly to €16.2 million, six times higher than in 2022, ending a downward trend lasting since 2012.
More Than Half of Madeira’s Banks Are Located in Funchal
More than half of the bank branches (53.8%) are concentrated in Funchal, which has 42 branches. Santa Cruz is the next largest hub, with seven branches. In contrast, Ponta do Sol and Câmara de Lobos have only 1.2 branches per 10,000 residents, while Porto Moniz and Porto Santo offer much better access with 8.0 and 5.5 branches per 10,000 residents, respectively.
Job Losses in the Banking Sector
The reduction in bank branches has also led to fewer jobs. By the end of 2023, 443 people worked in the banking sector in Madeira, down by 21 compared to the previous year. The largest job cuts were in Funchal (-9) and Ribeira Brava (-7). Meanwhile, employment remained stable in Santana and Porto Santo. In total, payroll costs in 2023 amounted to €20.4 million.
Biggest Banks Active in Madeira
Madeira hosts many banks, but these are some of the most well-known, all of which have physical branches on the island.
Caixa Geral de Depósitos: A state-owned bank known for its extensive network and diverse financial products.
Millennium BCP: One of Portugal's largest private banks, providing various personal and business banking services.
Novo Banco: Established from the restructuring of Banco Espírito Santo, it offers comprehensive banking solutions.
Santander: Part of the global Santander Group, offering international banking services.
Banco BPI: A prominent Portuguese bank with a significant presence in Madeira.
Banco Montepio: A mutual savings bank providing various financial services.
Crédito Agrícola: A cooperative financial group serving the agricultural sector and beyond.
Bankinter: a prominent Portuguese bank offering a range of financial services, including personal and business banking.
Source: DREM
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