The Abanca group’s strategic move involving EuroBic unfolded over nearly four years, marking the longest corporate undertaking in its eight-deal portfolio. In February 2020, a binding agreement was announced to acquire 95% of EuroBic’s capital, announced in the same week as leadership meetings in Silleda and site visits to a regional cattle farm and the Semana Verde Foundation. The bank’s president stated that the firm would stay deeply connected to the territory and customers, underscoring a proud milestone that aligned with a clear Iberian vocation. The purchase was described as highly aligned with strategic goals, signaling a strong commitment to Iberian expansion. By mid-year, the deal appeared stalled after the agreement was allegedly breached, prompting questions about a potential path forward. The shadow of Isabel dos Santos, the largest shareholder and the daughter of a former Angolan president, loomed large as the investigations around Luanda Leaks cast a broad pall over the negotiations.
Interest in a successful close persisted within Abanca, which emphasized the importance of state supervision for the deal to proceed. A renewal of efforts culminated in a different outcome in late 2023, with a full acquisition of EuroBic and the integration of all shares. The group pointed to the Bank of Portugal’s active involvement and thorough briefing on the terms, noting that this arrangement would greatly strengthen Abanca’s foothold on the Portuguese side of the Miño River, positioning it among the principal banks in Portugal.
The completion is expected within the year, and the plan projects substantial growth in Portugal. Abanca would reach about 18.5 billion euros in business activity and operate around 249 points of sale. Customer numbers are projected to rise more than fourfold, surpassing 300,000. With a network of 45 offices and 27 agents in Portugal, the lender’s footprint there had already expanded in 2018 after acquiring a local Deutsche Bank subsidiary. Historically, the gross margin in Portugal had approached 89 million euros, while pre-tax profit in the country was reported at over 20 million euros in the most recent annual accounts, reflecting a strong performance across its consolidated operations with headquarters in Betanzos.
Credit provision in Portugal increased by more than 15% as deposits market share inched higher. Currently, Portugal accounts for about 6% of Abanca’s overall business. The majority of activity remains in Spain (roughly 92.8%), with a small share distributed across France, the United Kingdom, Germany, Switzerland, Portugal, and several other countries including the Americas. In the Business Banking segment, Portugal contributes around 4% of activity, with real estate, manufacturing, and construction as its key client sectors. As in its home market, the largest liability base comes from senior clients, typically those aged 60 and above.
Abanca reinforces that the near-term future hinges on Iberian growth. The outlook emphasizes a strengthened presence in Portugal focused on private banking, small and medium-sized enterprises, insurance, consumer finance, and integrated financial solutions. The integration of EuroBic is expected to accelerate expansion into commercial banking, corporate services, and payments, broadening the bank’s capabilities across both markets.
In a broader context, authorities have observed that a tax regime affecting the financial sector has produced robust results in recent years. Officials highlighted that this fiscal framework did not destabilize the sector and did not derail performance relative to European peers. Abanca’s own accounts show that it contributed to the sector through extraordinary taxes in 2023, alongside record profits across all business lines. The retail banking arm, wholesale banking operations, and non-financial subsidiaries all posted solid pre-tax results, underscoring the resilience and profitability of the group across its diversified footprint.
Across the Iberian and cross-border footprint, Abanca’s trajectory emphasizes sustained growth, strengthened by strategic integration, robust risk management, and a commitment to serving a broad client base. The bank’s future lies in expanding its Iberian presence, deepening relationships with corporate and consumer clients, and delivering end-to-end financial solutions that leverage its integrated platform across Spain, Portugal, and beyond.