Instruction (Archive) No. 17/2025

Instruction No. 17/2025
BO No. 12/2025 Supplement • 2025/12/19
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Topics
Supervision :: Information Elements
Mod. 99999911/T – 01/14
Index
Text of the Instruction
Annex to the Instruction - Republication of Instruction No. 16/2004
Text of the Instruction
Subject: Amendment of Bank of Portugal Instruction No. 16/2004, which establishes indicators to be used in the disclosure of information

Bank of Portugal Instruction No. 16/2004, of August 16 (“Instruction No. 16/2004” or “Instruction”), aims to achieve greater harmonization in the quantitative information disclosed by credit institutions.

Since its publication, the text of the Instruction has been subject to several revisions, notably the amendments introduced by Bank of Portugal Instruction No. 6/2018, of March 12. With these amendments, Instruction No. 16/2004 came to focus on a set of indicators that credit institutions must use in the disclosure of information regarding profitability, efficiency, and transformation matters. Within the scope of that amendment, several provisions of Instruction No. 16/2004 were repealed, either tacitly or because they concerned matters covered by other prudential and accounting disclosure requirements. Contributing to this were the entry into force of Regulation (EU) No 575/2013 of the European Parliament and of the Council, of June 26, 2013, which introduced a common regulatory framework, notably regarding public disclosure of information, and Bank of Portugal Notice No. 5/2015, of December 30, according to which all credit institutions became subject to the disclosure duties established in International Accounting Standards.

In recent years, the efforts made by regulatory and supervisory authorities have contributed to greater homogeneity at the European level in the information disclosed by credit institutions. Among these efforts, the emphasis placed by the European Banking Authority (EBA) on the harmonization of reporting requirements to ensure the availability and comparability of data stands out. Indeed, the action conducted by the EBA has facilitated the collection, compilation, and disclosure of supervisory information on European credit institutions, notably the quarterly publication of the EBA Risk Dashboard, which aggregates information regarding solvency, credit risk, and asset quality indicators, profitability, funding, and liquidity. The information used by the EBA in the preparation of these indicators is based on

Instruction No. 17/2025 BO No. 12/2025 Supplement • 2025/12/19 Topics Supervision :: Information Elements
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Mod. 99999911/T – 01/14 the COREP1
(model for reporting prudential information) and FINREP2 (model for reporting financial and accounting information)3 .

Thus, the harmonization effort developed by regulatory and supervisory authorities allows for greater convergence with one of the objectives that was at the genesis of Instruction No. 16/2004. In fact, not only do COREP and FINREP rely on a set of concepts and definitions widely disseminated in the sector and presenting a high degree of harmonization/standardization, but it is also common practice for credit institutions to publicly disclose some of their financial indicators in line with the definitions and criteria used by the EBA.4

In view of the above and the importance of continuing to ensure that credit institutions disclose a minimum set of relevant and comparable financial indicators, this Instruction proceeds to align the indicators to be disclosed with the definitions and criteria used by the EBA.

The draft of this Instruction was subject to stakeholder consultation in accordance with legal provisions.

In the exercise of the competence conferred upon it by Article 17 of its Organic Law, approved by Law No. 5/98, of January 31, in its current wording, and by paragraph 1 of Article 115 of the General Regime of Credit Institutions and Financial Companies, approved by Decree-Law No. 298/92, of December 31, in its current wording, the Bank of Portugal approves the following Instruction:

Article 1.
Object

This Instruction amends Bank of Portugal Instruction No. 16/2004, of August 16 (Instruction No. 16/2004), which establishes indicators to be used in the disclosure of information.

Article 2.
Amendment of Bank of Portugal Instruction No. 16/2004

1- Paragraph 2 of Instruction No. 16/2004 shall have the following wording:

“The disclosure of the information referred to in the preceding paragraph shall not prejudice the presentation of other information that institutions consider appropriate, provided that both are given the same relevance in the publications in which they are included. The disclosure of the indicators contained in this regulation shall be accompanied by a footnote stating “calculated in accordance with the current version of Instruction No. 16/2004”. ”

2- Paragraph 3 of Instruction No. 16/2004 shall have the following wording:

1 COREP – Common Reporting Framework.
2 FINREP – Financial Reporting Framework.
3 Commission Implementing Regulation (EU) 2021/451 of December 17, 2020, established implementing technical standards for the application of Regulation (EU) No 575/2013 of the European Parliament and of the Council regarding reporting for supervisory purposes of institutions (repealing Commission Implementing Regulation (EU) No 680/2014 of April 16, 2014). 4 For example, in the calculation of the non-performing loans (NPL) ratio, NPL coverage ratio, non-performing exposures (NPE) ratio, NPE coverage ratio, and restructured credit ratio (forborne).

Instruction No. 17/2025 BO No. 12/2025 Supplement • 2025/12/19 Topics Supervision :: Information Elements
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Mod. 99999911/T – 01/14

“3. The indicators that credit institutions shall disclose, in accordance with the preceding paragraphs, are the following:

Profitability
Whenever any profitability indicator is disclosed, the following three indicators shall additionally be published:

• Return on Assets (in %)
  Calculation Formula Data Point (A) Data Point (B) Net Income (A) / Total Assets (B) Note: annualized numerator and denominator as average; for the calculation of the average, the value for the previous December month must be used as the “anchor”, while the second observation corresponds to the most recent quarter. FINREP DataPoint ID 57025 FINREP DataPoint ID 32354

• Weight of Banking Product in Total Assets (in %)
  Calculation Formula Data Point (A) Data Point (B) Banking Product (A) / Total Assets (B) Note: annualized numerator and denominator as average; for the calculation of the average, the value for the previous December month must be used as the “anchor”, while the second observation corresponds to the most recent quarter. FINREP DataPoint ID 46612 FINREP DataPoint ID 32354

• Return on Equity (in %)
  Calculation Formula Data Point (A) Data Point (B) Net Income (A) / Equity (B) Note: annualized numerator and denominator as average; for the calculation of the average, the value for the previous December month must be used as the “anchor”, while the second observation corresponds to the most recent quarter. FINREP DataPoint ID 57025 FINREP DataPoint ID 32464

Efficiency
Whenever any efficiency indicator is disclosed, the following two indicators shall additionally be published:

• Cost-to-Income Ratio (in %)
  Calculation Formula Data Point (A) Data Point (B) [Administrative Costs + Amortization (A)] / Banking Product (B) Note: administrative costs correspond to the sum of personnel costs and other general administrative expenses. FINREP

• Administrative Costs:
  DataPoint ID 33816

• Amortization:
  DataPoint ID 57016
  FINREP
  DataPoint ID 46612

• Weight of Personnel Costs in Banking Product (in %)
  Calculation Formula Data Point (A) Data Point (B) Personnel Costs (A) / Banking Product (B) FINREP DataPoint ID 33818 FINREP DataPoint ID 46612

Transformation
Whenever any transformation indicator is disclosed, the following indicator shall additionally be published:

• Loan and Advance Ratio to Deposits (only for non-financial corporations and individuals; in %)
  Calculation Formula Data Point (A) Data Point (B) Data Point (C) Loans and advances to non-financial corporations and individuals (A+B) / Deposits of non-financial corporations and individuals (C) FINREP
• Non-financial corporations:
  DataPointID 152462
• Individuals:
  DataPoint ID 152449
  FINREP
• Non-financial corporations:
  DataPoint ID 11091
• Individuals:
  DataPoint ID 11088
  FINREP
• Non-financial corporations:
  DataPoints IDs 11307 +
  11215 + 11418 + 45948 +
  45817
• Individuals:
  DataPoints IDs 11302 +
  11210 + 11413 + 45943 +
  45812
  ”

Article 3.
Republication

Instruction No. 16/2004, with its current consolidated wording, is republished in the annex to this Instruction, which forms an integral part thereof.

Article 4.
Entry into Force

This Instruction enters into force on the day following its publication, establishing December 31, 2025, as the first reference date for the disclosure of the information provided for in the preceding paragraphs.

Annex to Instruction No. 17/2025 BO No. 12/2025 Supplement • 2025/12/19
Topics Supervision :: Information Elements
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Mod. 99999911/T – 01/14

Annex to the Instruction - Republication of Instruction No. 16/2004
(as referred to in Article 3)
Subject: Disclosure of benchmark indicators

Considering the need to achieve greater homogeneity in the information disclosed to the public, the Bank of Portugal considers that credit institutions should include a minimum set of indicators whenever they publish quantitative information on any of the matters to which these indicators refer.

Thus, the Bank of Portugal, in the exercise of the competence attributed to it by paragraph 1 of Article 115 of the General Regime of Credit Institutions and Financial Companies, approved by Decree-Law No. 298/92, of December 31, determines the following.

1. Credit institutions must adopt the methodology described in paragraph 3, in the preparation of information to be disclosed to the public, whenever, in that information, reference is made to any of the following matters:

• Profitability;
• Efficiency;
• Transformation.

2. The disclosure of the information referred to in the preceding paragraph shall not prejudice the presentation of other information that institutions consider appropriate, provided that both are given the same relevance in the publications in which they are included. The disclosure of the indicators contained in this regulation shall be accompanied by a footnote stating “calculated in accordance with the current version of Instruction No. 16/2004”.

3. The indicators that credit institutions shall disclose, in accordance with the preceding paragraphs, are the following:

Profitability
Whenever any profitability indicator is disclosed, the following three indicators shall additionally be published:

• Return on Assets (in %)
  Calculation Formula Data Point (A) Data Point (B) Net Income (A) / Total Assets (B) Note: annualized numerator and denominator as average; for the calculation of the average, the value for the previous December month must be used as the “anchor”, while the second observation corresponds to the most recent quarter. FINREP DataPoint ID 57025 FINREP DataPoint ID 32354

• Weight of Banking Product in Total Assets (in %)
  Calculation Formula Data Point (A) Data Point (B) Banking Product (A) / Total Assets (B) Note: annualized numerator and denominator as average; for the calculation of the average, the value for the previous December month must be used as the “anchor”, while the second observation corresponds to the most recent quarter. FINREP DataPoint ID 46612 FINREP DataPoint ID 32354

• Return on Equity (in %)
  Calculation Formula Data Point (A) Data Point (B) Net Income (A) / Equity (B) Note: annualized numerator and denominator as average; for the calculation of the average, the value for the previous December month must be used as the “anchor”, while the second observation corresponds to the most recent quarter. FINREP DataPoint ID 57025 FINREP DataPoint ID 32464

Efficiency
Whenever any efficiency indicator is disclosed, the following two indicators shall additionally be published:

• Cost-to-Income Ratio (in %)
  Calculation Formula Data Point (A) Data Point (B)

Annex to Instruction No. 17/2025 BO No. 12/2025 Supplement • 2025/12/19
Topics Supervision :: Information Elements
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Mod. 99999911/T – 01/14

[Administrative Costs +
Amortization (A)] / Banking
Product (B)
Note: administrative costs correspond to the sum of personnel costs and other general administrative expenses.
FINREP

• Administrative Costs:
  DataPoint ID 33816

• Amortization:
  DataPoint ID 57016
  FINREP
  DataPoint ID 46612

• Weight of Personnel Costs in Banking Product (in %)
  Calculation Formula Data Point (A) Data Point (B) Personnel Costs (A) / Banking Product (B) FINREP DataPoint ID 33818 FINREP DataPoint ID 46612

Transformation
Whenever any transformation indicator is disclosed, the following indicator shall additionally be published:

• Loan and Advance Ratio to Deposits (only for non-financial corporations and individuals; in %)
  Calculation Formula Data Point (A) Data Point (B) Data Point (C) Loans and advances to non-financial corporations and individuals (A+B) / Deposits of non-financial corporations and individuals (C) FINREP
• Non-financial corporations:
  DataPointID 152462
• Individuals:
  DataPoint ID 152449
  FINREP
• Non-financial corporations:
  DataPoint ID 11091
• Individuals:
  DataPoint ID 11088
  FINREP
• Non-financial corporations:
  DataPoints IDs 11307 +
  11215 + 11418 + 45948 +
  45817
• Individuals:
  DataPoints IDs 11302 +
  11210 + 11413 + 45943 +
  45812

4. This instruction enters into force on October 1, 2004, with the first reference date for the disclosure of the information referred to in the preceding paragraphs being September 30, 2004.