Portugal’s banking sector has shrunk to its lowest number of branches since 1994, closing 36 locations in 2024 and ending the year with 4,502 branches. This marks the 14th consecutive year of closures, down from a peak of 8,100 branches in 2010.
Key Drivers Behind the Trend:
- Sector-wide restructuring following the financial crisis and bank failures (BES in 2014, Banif in 2015)
- Continued digitalization and automation of banking services
- Shift in consumer behavior toward online banking
Impact on Employment:
Since 2011:
- Over 20,000 banking jobs have been cut, including 12,000 in Portugal
- The domestic workforce is now 59,846, but saw a modest increase of 759 workers in 2024, the third year of growth
- Much of this growth is attributed to BNP Paribas, now the largest sector employer with over 8,700 staff in Porto and Lisbon
While branches in Portugal continue to decline, international expansion saw a modest uptick, with seven new branches opened abroad in 2024, totaling 1,218 foreign locations.
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