Banco Comercial Portugues S.a. · EURONEXT:BCP
Banco Comercial Portugues — 9M 2024 Earnings Presentation
59 slides from Banco Comercial Portugues's earnings presentation, Oct 30, 2024
Slide 1: Banco Comercial Portugués 9M 2024 Earnings Presentation
Banco Comercial Portugués, S.A. 9M 2024 Earnings Presentation DELIVER MORE VALUE Main guidelines of the Strategic Plan 25-28 Millennium bep
Slide 2: Disclaimer
Disclaimer l The information in this presentation has been prepared under the scope of the International Financial Reporting Standards (‘IFRS’) of BCP Group for the purposes of the preparation of the consolidated financial statements under Regulation (CE) 1606/2002, as amended. l The figures present
Slide 3: Agenda
AGENDA 3
Slide 4: Highlights
01 Highlights 4
Slide 5: A Solid and Efficient Bank
A Solid and Efficient Bank ▪ Group’s net income of 714.1 million in the first nine months of 2024, representing an increase of 9.7% when compared to the same period of 2023, with the core operating profit reaching 1,765.9 million ▪ In Portugal, net income amounted to 606 million in the first nine mo
Slide 6: Customer base growth
Customer base growth Based on the quality of the Teams and distinctive digital skills Group ‘000 Customers Customer Active 6,644 6,917 Recognition As % of active +470 4,886 Customers 4,416 +11% Mobile 71% Sep 23 Sep 24 +397 Digital 5,003 5,400 78% +8% Portugal ‘000 Customers Active 2,688 2,763 As %
Slide 7: Innovation focused on Customer needs translates into accelerated growth in Mobile
Innovation focused on Customer needs translates into accelerated growth in Mobile usage and sales Strong mobile growth Y/Y (Number of operations, Jan-Sep 2024 vs Jan–Sep 2023) +24% +36% P2P +28% National +10% Payments Transactions1 Transfers Transfers +45% +33% +12% +50% Sales Cards Personal loans (
Slide 8: Net income of 714.1 million in the first nine months of 2024
Resultado líquido de XXX milhões no primeiro trimestre de 2024 Net income of 714.1 million in the first nine months of 2024 (Million euros) 9M23 9M24 % D Net interest income 2,117.5 2,110.8 -0.3% -6.7 Commissions 578.5 601.8 +4.0% +23.3 Core income 2,695.9 2,712.5 +0.6% +16.6 Operating costs -854.6
Slide 9: Group: Profitability
02 Group Profitability 9
Slide 10: Net interest income
Net interest income Group Portugal (Consolidated, million euros) (Million euros) Net interest 2.59% 2.24% Net interest margin margin 3.39% 3.05% -8.6% -0.3% 1,097.7 1,003.4 2,117.5 2,110.8 9M23 9M24 International operations (Million euros) Net interest 5.06% 4.55% margin +8.6% 1,019.7 1,107.3 9M23 9
Slide 11: Fees and commissions
Comissões Fees and commissions Group Portugal (Consolidated, million euros) (Million euros) +4.0% +3.6% 601.8 419.8 434.9 578.5 64.5 70.3 Market-related 90.0 fees and 78.7 commissions 355.4 364.5 9M23 9M24 International operations (Million euros) Banking fees 511.8 +5.2% 499.7 and commissions 158.6
Slide 12: Other income
Outros proveitos Other income Group Portugal (Consolidated, million euros) (Million euros) 44.8 -38.9 40.3 43.8 28.4 96.7 -23.9 -16.0 -66.7 Sale of Millennium Financial 127.0 Services stake (80%)1 9M23 9M24 -20.3 Regulatory contributions 72.6 40.1 -30.2 44.6 Of which: Banking sector 37.9 27.9 Resolu
Slide 13: Operating costs
Operating costs Group Portugal (Consolidated, million euros) (Million euros) Cost to income1 32%1 35% Cost to income 31% 33% +10.8% +5.0% 946.6 460.0 483.2 55.1 54.8 854.6 107.3 140.6 150.8 Depreciation 103.2 264.2 277.5 316.6 Other 9M23 9M24 283.4 administrative costs International operations (Mill
Slide 14: Cost of risk and provisions
Cost of risk and provisions Group Portugal (Consolidated, million euros) (Million euros) Cost of risk 53bp 34bp1 Cost of risk 50bp 39bp 1 -29.5% -22.9% 231.9 813.9 74.2 163.6 66.1 157.7 97.5 627.4 9M23 9M24 CHF mortgage legal 482.5 -6.1% Loan-loss risk (Poland)2 reserves 966 907 347.6 International
Slide 15: Continued decrease of NPEs
Continued decrease of NPEs Group Portugal millioneuros) (Consolidated, billion euros) (Billion (Million euros) euros) -147 million -92 million 1.19 -12.3% 1.05 -4.6% NPE 2.03 1.93 Other 1.23 1.11 Sep 23 Sep 24 NPL>90d 0.79 0.83 NPE loans ratio 3.0% 2.7% Sep 23 Sep 24 NPE ratio (EBA) 2.2% 1.8% Sep 23
Slide 16: Group: Business activity
02 Group Business activity 16
Slide 17: Customer funds
Customer funds Group Portugal (Consolidated, billion (Consolidated, millioneuros) euros) (Billion euros) (Million +9.1% +6.0% 100.8 69.6 65.6 92.4 13.9 14.8 1.3 1.3 17.3 20.9 26.0 Off-BS funds 15.5 1.3 +5.8% 29.5 27.5 Other BS funds 1.3 Sep 23 Sep 24 36.0 Term deposits 30.5 International operations
Slide 18: Loan portfolio
Loan portfolio Group Portugal (Consolidated, billion (Consolidated, millioneuros) euros) (Billion (Millioneuros) euros) -0.82 billion NPE: -4.6% (-0.09 billion) -2.1% 39.40 38.58 +1.5% -0.15 -0.67 56.7 57.5 Sep 23 NPE Performing Sep 24 Mortgage 27.5 28.6 International operations (Billion (Millioneur
Slide 19: Group: Capital and liquidity
02 Group Capital and liquidity 19
Slide 20: Solid capital ratios
Solid capital ratios Common equity tier 1 (CET1) • CET1 capital ratio of 16.5% (official ratio, without the (Fully implemented) (16.2% official ratio, without the Q3’24 Fully implemented Q3’24 net income, of 16.2%) and total capital ratio net income) vs requirement of 20.8% (official ratio, without
Slide 21: Stronger capital position
Stronger capital position Leverage ratio (Milhões (Fully de euros*) latest available data) implemented, (Milhões de euros*) 6.8% 6.5% 5.5% 5.3% 3.8% Leverage ratio in comfortable levels (6.5% as of September 2024) higher when comparing to 3.0% European banks FR DE ES IT RWA density (Milhões (RWAs as
Slide 22: MREL requirements and Funding Plan
MREL requirements and Funding Plan MREL position (BCP Resolution Group - 30 Sep 2024)* 34.2% • Resolution strategy: MPE (Multi Point of Entry)2 12.4% • BCP Resolution Group : Perimeter centred in Portugal 7.4% 2.7% • Preferred Resolution Measure: Bail-in SP SP • No subordination requirements have be
Slide 23: Robust liquidity position
Robust liquidity position Liquidity ratios (CRD/CRR) Liquidity excess in ECB (Million (Milhõeseuros) de euros) (Billion euros) 314% Eligible assets 24.4 28.2 +0.16 billion 1.20 1.04 175% Sep 23 Sep 24 Net loans to deposits ratio 100% 73% 68% NSFR (Net stable LCR (Liquidity Sep 23 Sep 24 funding rati
Slide 24: Portugal
03 Portugal 24
Slide 25: Profitability in Portugal
Profitability in Portugal Net income Net operating revenue (Million euros) euros*) (Million euros) (Million euros*) +8.8% +0.3% 1,478.7 1,483.1 606.0 556.8 9M23 9M24 9M23 9M24 Operating Costs (Millioneuros) (Million euros*) +5.0% • Net income reached 606 million in 9M24 460.0 483.2 representing an i
Slide 26: Net interest income
Net interest income (Million euros) -8.6% +83.3 1,097.7 +37.1 1,003.4 -6.4 +140.7 -33.4 -35.3 NIM 2.59% -280.3 2.24% 9M23 Performing Credit rate Impact of Effect of Impact of Effect of Excess 9M24 credit volume including NPE reduction Deposit's cost securities wholesale cost liquidity effect hedges
Slide 27: Commissions and other income
Commissions and other income Commissions Other income (Milhõeseuros) (Million de euros*) (Milhões de euros*) (Million euros) 44.8 9M23 9M24 YoY -38.9 40.3 Banking fees and commissions 355.4 364.5 +2.6% Equity earnings + dividends 43.8 Cards and transfers 120.9 118.3 -2.2% 28.4 Loans and guarantees 6
Slide 28: Operating costs
Operating costs Operating Costs Employees (Million (Milhõeseuros) de euros) 6,275 6,275 +5.0% 483.2 460.0 54.8 Depreciation 55.1 Other administrative 150.8 Sep 23 Sep 24 140.6 costs Branches -3 400 397 Staff costs 264.2 277.5 9M23 9M24 Sep 23 Sep 24 28
Slide 29: NPEs decrease
NPEs decrease Non-performing exposures (NPE) NPE build-up (Million (Milhõeseuros) de euros*) (Million (Milhõeseuros) de euros*) Sep 24 Sep 24 -147 million (Million euros) vs. Sep 23 vs. Dec 23 -12.3% Opening balance 1,192 1,107 1,192 1,045 Net outflows/inflows 174 206 Other NPE 799 Write-offs -94 -8
Slide 30: NPE coverage
NPE coverage NPE total coverage* NPL>90d total coverage* 174% 24% 136% 142% 136% 2% 100% 100% 39% Real estate collateral 32% 1% Cash, other fin. collat.. 1% 48% Real estate collateral 1% Cash, other fin. collat. 52% 148% 70% 109% 1% 96% LLRs 87% LLRs 1% 47% 30% Individuals Companies Total Individual
Slide 31: Foreclosed assets and corporate restructuring funds
Foreclosed assets and corporate restructuring funds Foreclosed assets Corporate restructuring funds (Million (Milhõeseuros) de euros*) (Million (Milhõeseuros) de euros*) 181 390 390 Impairment 64 50 74 Turismo Algarve 92 FCR fund * -60 million 35 339 316 Corporate Net value 117 restructuring funds -
Slide 32: Customer funds and loans to Customers
Customer funds and loans to Customers Total Customers Funds* Loans to Customers (gross) (Milhões (Billion de euros*) euros) (Milhões de euros*) (Billion euros) +6.0% 69.6 65.6 -2.1% 14.8 Off-BS funds 13.9 39.4 1.3 38.6 Other BS funds 1.3 Term deposits 20.9 26.0 Mortgage 18.8 19.2 Personal and other
Slide 33: Performing loans in Portugal
Performing loans in Portugal Performing loans portfolio 1 (Billion euros) The Bank maintains a prominent position in the corporate segment: -1.8% ✓ Leadership in PME Leader programme for the 6th consecutive 38.2 37.5 year with a 33% market share Mortgage ✓ Leadership in Inovadora COTEC programme for
Slide 34: International operations
04 International operations 34
Slide 35: Contribution from international operations
Contribution from international operations 1T23 Contribution from international operations 1T24 (Million euros2) 9M23 9M24 (Million euros) Poland 107.0 127.0 Excluding extraordinary +8.2% effects of Bank 288.3 311.9 Mozambique 67.5 63.6 Millennium1 Other -2.7 2.0 Net income international operations
Slide 36: Bank Millennium with resilient net income
Evolução positiva do resultado líquido Bank Millennium with resilient net income Net income Net operating revenue (Million euros1) (Milhões de euros*) (Million (Milhõeseuros1) de euros*) -14.6% Net income Excluding +2.7% 1,198.0 extraordinary effects2 519.7 533.8 1,022.6 Net income 107.0 127.0 9M23
Slide 37: Net interest income increase
Aumento expressivo Net interest da margem financeira income increase Net interest income Operating costs (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) NIM 4.72% 4.35% +13.2% +5.4% 971.8 340.1 384.9 922.4 178.7 Other 162.0 206.2 Staff costs 178.1 9M23 9M24 9M23 9M24 Commiss
Slide 38: Credit quality
Credit quality NPL>90d Loan-loss reserves (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) Credit ratio Coverage ratio NPL>90d 2.2% 2.2% NPL>90d 153% 154% 394.8 395.4 604.2 608.9 Sep 23 Sep 24 Sep 23 Sep 24 Loan impairment (net of recoveries) (Milhõeseuros (Million de euros)*
Slide 39: Customers funds and loans to Customers
Customers funds and loans to Customers Customers funds Loans to Customers (gross) (Million euros*) (Milhões de euros*) (Million (Milhõeseuros*) de euros*) +9.5% 29,062 +2.1% 26,529 2,443 Off-BS funds 1,732 18,251 17,882 9,521 Term deposits 9,196 9,356 Mortgage 9,386 17,098 Personal and Demand deposi
Slide 40: CHF mortgages
CHF mortgages CHF mortgage portfolio Individual lawsuits (Billion euros*) (Million euros*) % of gross loan 54.6% 4.6% 3.6% 2.9% 2.4% 2.2% portfolio after legal risk provisions 20,914 22,260 -22% 7.1 16,008 -7% 11,070 Gross loan 2.1 2.0 1.9 1.8 1.6 portfolio before legal risk provisions 2008 9M23 202
Slide 41: Net income reflects Millennium bim's robustness in challenging environment
Net income reflects Millennium bim’s robustness in challenging environment Net income Net operating revenue (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) -5.7% 67.5 63.6 -0.9% 198.1 196.2 9M23 9M24 9M23 9M24 MIMO rate 17.25% 15.56% (average) • Net income of 63.6 million in
Slide 42: Net interest income reflects the interest rate environment
Net interest income reflects the interest rate environment Net interest income Operating costs (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) NIM 8.6% 8.0% Cost to income 46.7% 49.9% 152.8 -0.9% 151.4 +5.8% 92.5 97.8 Other 55.3 57.9 Staff costs 37.2 40.0 9M23 9M24 9M23 9M24
Slide 43: Credit quality
Credit quality NPL>90d Loan-loss reserves (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) Credit ratio Coverage ratio NPL>90d 4.9% 3.6% NPL>90d 79% 115% 32.0 24.2 27.7 25.4 Sep 23 Sep 24 Sep 23 Sep 24 Loan impairment (net of recoveries) (Million (Milhõeseuros*) de euros)* Co
Slide 44: Business volumes
Business volumes Customers funds Loans to Customers (gross) (Million euros*) (Milhões de euros*) (Milhõeseuros (Million de euros*) *) +10.4% 2,164 +1.4% 1,959 656 665 Mortgage 10 9 1,038 Personal and Term deposits 994 185 235 other Companies 460 1,126 421 Demand deposits 965 Sep 23 Sep 24 Sep 23 Sep
Slide 45: Key figures
05 Key figures 45
Slide 46: Strategic Plan: Excelling 24
Strategic Plan: Excelling 24 9M24 2024 C/I ratio 35% ✓ ≈40% Cost of risk 1 39 bp ✓ ≈50 bp RoE 14.9% ✓ ≈10% CET1 ratio 2 16.5% ✓ (16.2% official ratio, without the Q3’24 net income) >12.5% NPE ratio 3.4% ≈4% ✓ Share of mobile Customers 71% ✓ >65% Growth of high engagement Customers 3 (vs 2020) +17.2%
Slide 47: Commitment to People and Society
COMMITMENT TO PEOPLE AND SOCIETY Millennium bcp Foundation Society Sustainability Millennium bcp signs the “Carta para Millennium bcp has been named Millennium bcp Foundation and a Diversidade”, an initiative of the “Best Bank for Sustainable Finance Lisboa Cultura: Exhibition “Não Vá o European Com
Slide 48: External Recognition
EXTERNAL RECOGNITION Bank Millennium: 3rd place in the Millennium bcp: 2024 Millennium bcp : Best Consumer Consumer’s Choice, in the “Customer Relationship” category in Digital Bank 2024 the Stars of Banking 2024 study “Large Banks” category for the 4th consecutive Millennium bcp : APCC Contact Cent
Slide 49: Appendix
06 Appendix 49
Slide 50: Sovereign debt portfolio
Sovereign debt portfolio Sovereign debt portfolio Sovereign debt maturity (Milhões de euros*) (Consolidated, million euros) (Milhões de euros*) Sep 23 Dec 23 Mar 24 Jun 24 Sep 24 YoY QoQ >5y, ≤8y: 15% Portugal 6,188 5,656 6,357 7,109 6,656 +8% -6% >2y, ≤5y: 46% T-bills and other 109 104 721 1,466 94
Slide 51: Sovereign debt portfolio breakdown
Sovereign debt portfolio breakdown Million euros Portugal Poland Mozambique Other Total Trading book 1,006 77 0 270 1,352 ≤ 1 year 950 0 0 269 1,220 > 1 year and ≤ 2 years 37 4 0 0 41 > 2 years and ≤ 5 years 5 49 0 0 55 > 5 years and ≤ 8 years 5 16 0 0 21 > 8 years and ≤ 10 years 0 6 0 0 6 > 10 year
Slide 52: Diversified and collateralised portfolio
Diversified and collateralised portfolio Carteira de crédito Breakdown Loans per collateral LTV of the mortgage portfolio (Consolidated) (Consolidated) (Portugal) Other 75-80 Mortgage guarantees 60-75 8% 50% 25% 28% 80-90 Companies 11% 37% >90 Real guarantees 2% 58% Unsecured 50-60 16% 0-40 17% 21%
Slide 53: Consolidated net income
Consolidated net income Impact on (Million euros) 9M23 9M24 YoY earnings Net interest income 2,117.5 2,110.8 -0.3% -6.7 Net fees and commissions 578.5 601.8 +4.0% +23.3 Other income* 96.7 -20.3 - -117.1 Net operating revenue 2,792.7 2,692.2 -3.6% -100.4 Staff costs -468.0 -522.7 +11.7% -54.7 Other a
Slide 54: Consolidated balance sheet
Consolidated balance sheet 30 September 30 September 30 September 30 September 2023 (Million euros) 2023 2024 2024 (restated) (restated) * * LIABILITIES ASSETS Financial liabilities at amortised cost Cash and deposits at Central Banks 4,305.5 3,525.8 Resources from credit institutions 972.4 1,240.2
Slide 55: Consolidated income statement per quarter
Consolidated income statement per quarter Quarterly (Million euros) 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 Net interest income 743.1 708.3 696.2 701.3 713.2 Dividends from equity instruments 0.0 0.6 0.0 0.8 0.0 Net fees and commission income 191.4 193.2 196.4 199.6 205.7 Other operating income 15.7 17.9 -31.
Slide 56: Consolidated income statement
Consolidated income statment (Million euros) For the 9-month periods ended September 30th, 2023 and 2024 Int e rna t io na l o pe ra t io ns G ro up P o rt uga l T o tal B a nk M ille nnium ( P o la nd) M ille nnium bim ( M o z.) O t he r int . o pe ra t io ns Sep 2 3 Sep 2 4 Δ % Sep 2 3 Sep 2 4 Δ %
Slide 57: Glossary (1/2)
Glossary (1/2) Assets placed with Customers – amounts held by Customers in the context of the placement of third-party products that contribute to the recognition of commissions. Balance sheet Customer funds – deposits and other resources from Customers and debt securities placed with Customers. Bus
Slide 58: Glossary (2/2)
Glossary (2/2) Net trading income – results from financial operations at fair value through profit or loss, results from foreign exchange, results from hedge accounting operations, results from derecognition of financial assets and financial not measured at fair value through profit or loss. Non-per
Slide 59: Investor Relations Division
INVESTOR RELATIONS DIVISION Bernardo Collaço, Head EQUITY DEBT AND RATINGS Alexandre Moita Luís Morais +351 211 131 321 +351 211 131 337 investors@millenniumbcp.pt BANCO COMERCIAL PORTUGUÊS, S.A. Registered Office: Praça D. João I, 28, Oporto, Share Capital: EUR 3,000,000,000.00. Registered at the C
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