Bank loans granted in the Azores to households and non-financial companies totaled €5.1458 billion at the end of December 2025, according to data from the Bank of Portugal released by the Azores Regional Statistics Service (SREA).

Year over year, the overall amount increased by €108.5 million (+2.2%). That headline figure, however, conceals two opposing movements: a continued rise in lending to households and a contraction in credit to non-financial businesses.

Household Credit Reaches 2025 High

In the household segment, outstanding credit climbed to €3.5049 billion in December — the highest level recorded in 2025. Compared to November, the increase amounted to €16.1 million (+0.5%). Against December 2024, the rise was more pronounced: €187.2 million (+5.6%).

Growth remains firmly driven by housing loans, which accounted for €2.4470 billion of the total. Consumer credit and other lending purposes stood at €1.0579 billion.

The number of individual borrowers reached 108,100 at year’s end, up from 107,000 a year earlier.

Meanwhile, overdue loans among households totaled €20.5 million — down €0.8 million from November and €0.2 million compared to December 2024. The non-performing loan ratio held steady at 0.6%.

Within that universe, mortgage lending continued to show a very low default rate, at 0.2%, while consumer credit and other lending posted a higher ratio of 1.5%, confirming the greater relative weight of delinquencies in that segment.

Business Credit Contracts Year Over Year

The picture is different among non-financial companies.

Outstanding credit in that segment stood at €1.6409 billion in December 2025 — virtually unchanged from November (+€1.6 million, roughly +0.1%), but €78.7 million below the level recorded in December 2024 (-4.6%).

In other words, despite some stabilization at the close of the year, business lending ended 2025 below its year-earlier mark.

Overdue loans among non-financial companies fell to €9.7 million, down €0.7 million from the previous month and €2.6 million lower than in December 2024 — a decline of 21.1%.

The non-performing loan ratio improved to 0.6%, down from 0.7% in the same month a year earlier. The percentage of corporate borrowers with overdue loans stood at 8.5%.

A Diverging Credit Landscape

Taken together, the data outline a credit landscape in the Azores marked by expansion in household borrowing — particularly in housing — and a year-over-year contraction in lending to non-financial firms.

At the same time, default indicators remain relatively contained across both segments at the end of 2025, with the most visible improvement occurring in the corporate universe.

In Diário dos Açores- Paulo Viveiros, director

Translated into English as a community outreach program by the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL), in collaboration with Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno. PBBI thanks Luso Financial for sponsoring NOVIDADES.