Portugal’s banking sector is shrinking its physical footprint. By the end of 2024, the number of bank branches fell to 4,502, the lowest level since 1994, according to the Bank of Portugal. Last year alone, 36 branches were closed, marking the 14th consecutive year of reductions. Since the 2010 peak of over 8,100 branches, more than 3,600 have been shuttered.
The closures reflect a broader shift: post-crisis restructuring, mounting loan losses, collapses of major institutions like BES (2014) and Banif (2015), and the rapid digitalization of banking. Customers increasingly favor online services, reducing the need for physical locations.
The domestic network is now down to 3,284 branches, a level not seen since 1993. Abroad, however, there’s a slight reversal: banks opened seven new branches, bringing the total to 1,218 international locations.
Staff Cuts Continue—But Stabilization Appears
The ongoing network downsizing coincides with deep staff reductions. From more than 80,000 employees in 2011, banks have cut over 20,000 jobs, including 12,000 in Portugal. That said, the last three years have shown modest growth, with 759 new hires in 2024, reaching a total of 59,846 workers.
This uptick is mainly due to BNP Paribas, which has over 8,700 employees in Lisbon and Porto. The French group has been growing rapidly in Portugal, providing global services to entities within its international network.
Despite some regional banks emphasizing customer proximity, most banking groups continue closing branches, maintaining a long-term trend toward leaner, more digital operations.
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