Banco Comercial Portugues S.a. · EURONEXT:BCP
Banco Comercial Portugues — Q1 2024 Earnings Presentation
59 slides from Banco Comercial Portugues's earnings presentation, May 15, 2024
Slide 1: Banco Comercial Português, S.A. Earnings Presentation Q1 2024
Banco Comercial Portugués, S.A. eM Earnings Presentation Q1 2024 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 ▪ Net income of 234.3 million in the first three months of 2024, which compares with 216.1 million in the same period of 2023 ▪ Group’s core operating profit stood at 584.6 million ▪ In the activity in Portugal, net income amounted to 203.5 million in the first quarter of
Slide 6: Customer base growth
Customer base growth Based on the quality of the Teams and distinctive digital skills Group ‘000 Customers Customer Active 6,511 6,711 Recognition +455 4,661 As % of active +11% 4,206 Customers 69% Mobile Mar 23 Mar 24 +366 Digital 4,847 5,214 77% +8% Portugal ‘000 Customers Active 2,649 2,716 +187
Slide 7: Innovation focused on Customer needs translates into accelerated growth in Mobile usage and sales
Innovation focused on Customer needs translates into accelerated growth in Mobile usage and sales Strong mobile growth Y/Y (Number of operations, Jan-Mar 2024 vs Jan–Mar 2023) +17% +40% P2P +28% National +9% Payments Transactions1 Transfers Transfers +53% +21% +20% +55% Sales Cards Personal loans Sa
Slide 8: Net income of 234.3 million in the first quarter of 2024
Resultado líquido de XXX milhões no primeiro trimestre de 2024 Net income of 234.3 million in the first quarter of 2024 (Million euros) Q1'23 Q1'24 % D Net interest income 664.6 696.2 +4.8% +31.7 Commissions 195.4 196.4 +0.5% +1.0 Core income 860.0 892.6 +3.8% +32.7 Operating costs -268.5 -308.1 +14
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 2.44% 2.34% Net interest margin margin 3.25% 3.12% -0.2% 339.9 339.1 +4.8% 696.2 664.6 Q1'23 Q1'24 International operations (Million euros) Net interest 4.98% 4.57% margin +10.0% 324.7 357.2 Q1'23 Q1'24 Q1'
Slide 11: Fees and commissions
Comissões Fees and commissions Group Portugal (Consolidated, million euros) (Million euros) -0.2% 141.7 141.4 20.7 23.7 +0.5% 195.4 196.4 Market-related 121.0 25.0 29.7 117.7 fees and comissions Q1'23 Q1'24 International operations (Million euros) Banking fees and commissions 170.4 166.7 +2.4% 55.0
Slide 12: Other income
Outros proveitos Other income Group Portugal (Consolidated, million euros) (Million euros) 140.2 -23.8 25.9 11.7 1.7 14.0 6.9 10.2 9.1 Sale of Millennium 127.0 Financia Services -4.3 stake (80%)3 Q1'23 Q1'24 Equity earnings + dividends 15.0 International operations (Million euros) Net trading income
Slide 13: Operating costs
Operating costs Group Portugal (Consolidated, million euros) (Million euros) Cost to income1 31% 35% Cost to income 29% 31% +5.5% 146.4 154.6 +14.7% 308.1 18.4 18.3 47.9 50.0 268.5 35.4 80.2 86.2 Depreciation 33.9 107.0 Q1'23 Q1'24 Other 90.3 International operations administrative costs (Million eu
Slide 14: Cost of risk and provisions
Cost of risk and provisions Group Portugal (Consolidated, million euros) (Million euros) Cost of risk 53bp 48bp Cost of risk 56bp 52bp -37.7% 102.2 -31.2% 318.2 49.2 63.7 17.5 53.0 46.2 CHF mortgage legal Q1'23 Q1'24 risk (Poland)1 174.5 218.7 +1.3% Loan-loss reserves 951 963 International operation
Slide 15: Continued decrease of NPEs
Continued decrease of NPEs Group Portugal millioneuros) (Consolidated, billion euros) (Million euros) -192 million -223 million 1.28 -15.0% 1.09 -10.3% NPE 2.17 1.95 Other 1.44 1.19 Mar 23 Mar 24 NPL>90d 0.73 0.75 NPE loans ratio 3.2% 2.8% Mar 23 Mar 24 NPE ratio (EBA) 2.3% 2.0% Mar 23 Mar 24 Intern
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 +7.0% +1.5% 67.00 67.98 98.54 92.06 14.19 14.34 1.40 1.34 16.39 19.45 24.87 Off-BS funds 15.65 1.34 31.96 Other BS funds 27.43 1.40 Mar 23 Mar 24 Term deposits 28.18 36.30 International
Slide 18: Loan portfolio
Loan portfolio Group Portugal (Consolidated, billion (Consolidated, millioneuros) euros) (Billion (Millioneuros) euros) -1.53 billion NPE: : -10.3% (-0.22 billion) -3.8% 39.94 38.41 -0.8% -0.19 -1.34 57.29 56.82 Mar 23 NPE Performing Mar 24 Mortgage 27.73 28.10 International operations (Billion (Mil
Slide 19: Group Capital and liquidity
02 Group Capital and liquidity 19
Slide 20: Significant strengthening of capital ratios
Significant strengthening of capital ratios • Significant strengthening of capital ratios. Common equity tier 1 (CET1) CET1 capital ratio of 16.0% and total capital (Fully implemented) Fully implemented ratio of 20.5%, corresponding respectively to an vs requirement increase of 246bp and 255bp compa
Slide 21: Stronger capital position
Stronger capital position Leverage ratio (Milhões (Fully de euros) latest available data) implemented, (Milhões de euros) 6.9% 6.4% 5.5% 5.2% Leverage ratio in comfortable levels (6.4% as of 3.9% March 2024) higher when comparing to European 3.0% banks FR DE ES IT RWA density (Milhões (RWAs asde a%e
Slide 22: MREL requirements and Funding Plan
MREL requirements and Funding Plan MREL position (BCP Resolution Group - 31 Mar 2024) 33.6% 12.5% • Resolution strategy: MPE (Multi Point of Entry)2 • BCP Resolution Group : Perimeter centred in Portugal 7.3% SP 2.7% SP • Preferred Resolution Measure: Bail-in • No subordination requirements have bee
Slide 23: Robust liquidity position
Robust liquidity position Liquidity ratios (CRD/CRR) Liquidity excess in ECB (Million (Milhõeseuros) de euros) (Billion euros) Eligible assets 25.3 27.7 299% +0.9 billion 1.6 0.7 172% Mar 23 Mar 24 Net loans to deposits ratio 100% 74% 68% NSFR (Net stable LCR (Liquidity Mar 23 Mar 24 funding ratio)
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*) -3.0% +18.4% 507.4 492.2 203.5 172.0 Q1'23 Q1'24 Q1'23 Q1'24 Operating Costs (Millioneuros) (Million euros*) +5.5% • Net income reached 203.5 million in Q1’24 146.4 154.6 representing
Slide 26: Net interest income
Net interest income (Million euros) -0.2% +75.4 339.9 +51.3 +2.7 339.1 -1.8 -10.5 -19.3 NIM 2.44% -98.6 2.34% Q1'23 Performing Credit rate Impact of Deposit's rate Impact of Effect of Excess liquidity Q1'24 credit volume including NPE reduction effect securities wholesale cost and other effect hedge
Slide 27: Commissions and other income
Commissions and other income Commissions Other income (Milhõeseuros) (Million de euros) (Milhões de euros) (Million euros) Q1'23 Q1'24 YoY Banking fees and commissions 121.0 117.7 -2.8% 25.9 Cards and transfers 41.6 39.7 -4.5% Other operating income 1.7 Loans and guarantees 20.2 19.3 -4.3% 11.7 Equi
Slide 28: Operating costs
Operating costs Operating Costs Employees (Million (Milhõeseuros) de euros) -4 +5.5% 6,273 6,269 154.6 146.4 18.3 Depreciation 18.4 Other administrative 50.0 costs 47.9 Mar 23 Mar 24 Branches -9 408 399 Staff costs 80.2 86.2 Q1'23 Q1'24 Mar 23 Mar 24 28
Slide 29: Continued decrease of NPEs
Continued decrease of NPEs Non-performing exposures (NPE) NPE build-up (Million (Milhõeseuros) de euros) (Million (Milhõeseuros) de euros) Mar 24 Mar 24 -192 million (Million euros) vs. Mar 23 vs. Dec 23 -15.0% 1,279 Opening balance 1,279 1,107 1,087 Net outflows/inflows 77 67 Other NPE 941 Write-of
Slide 30: NPE coverage
NPE coverage NPE total coverage* NPL>90d total coverage* 164% 191% 142% 31% 147% 100% 42% 2% 52% Real estate collateral 100% 2% Real estate collateral 44% 1% Cash, other fin. collat. 2% Cash, other fin. collat.. 74% 121% LLRs 57% 158% 89% 2% 102% LLRs 1% 25% 41% Individuals Companies Total Individua
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) -10,3% 416 373 55 220 24 Industry 158 Impairment 67 -60 million 65 361 350 RE / tourism Net value 153 -39.0% 93 Mar 23 Mar 24 Mar 23
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) +1.46% 67.00 67.98 -3.83% Off-BS funds 14.19 14.34 39.94 38.41 Other BS funds 1.40 1.34 Term deposits 19.45 24.87 Mortgage 18.92 18.84 Persona
Slide 33: Performing loans in Portugal
Performing loans in Portugal Performing loans portfolio The Bank maintains a prominent position in the corporate segment: (Billion euros) -3.5% ✓ Leadership in PME Leader programme for the 6th 38.7 37.3 consecutive year with a 33% market share ✓ Leadership in Inovadora COTEC programme for the 4th Mo
Slide 34: International operations
04 International operations 34
Slide 35: Contribution from international operations
Contribution from international operations (Million euros*) Q1’23 1T23 Q1’24 1T24 Contribution from international operations (Million euros) Poland 58.4 29.7 Mozambique 28.8 22.6 +11.1% Excluding effects of 88.9 98.7 Bank Millennium1 Other -3.2 0.8 Net income international operations 83.9 53.1 Non-c
Slide 36: Bank Millennium positive results for the sixth consecutive quarter
Bank Millennium Evolução positiva with positive líquido do resultado results for the sixth consecutive quarter Net income Net operating revenue (Million euros1) (Milhões de euros) (Million (Milhõeseuros1) de euros) +6,3% Adjusted net 165.2 -31.1% income 2 155.5 476.1 327.9 Net income 58.4 29.7 Q1'23
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*) +14.7% NIM 4.58% 4.36% 138.5 120.8 +7.3% 313.4 71.5 292.1 Other 63.8 Staff costs 56.9 67.0 Q1'23 Q1'24 Q1'23 Q1'24 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 2.0% 2.2% NPL>90d 159% 156% 366.4 385.7 582.1 601.8 Mar 23 Mar 24 Mar 23 Mar 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) +13.3% 28,327 -1.8% 24,996 2,058 Off-BS funds 1,584 18,077 17,756 10,191 Term deposits 8,345 Mortgage 9,563 9,247 Personal and Demand deposits 15,0
Slide 40: CHF mortgages
CHF mortgages CHF mortgage portfolio (gross w/o legal risk provisions Cumulative provisions for legal risks** (Billion euros*) (Million euros*) As a % of total loan portfolio As a % of CHF 54.6% 6.6% 5.5% 4.6% 3.6% 2.9% 46.8% 55.8% 64.7% 73.5% 82.5% 91.5% mortgage portfolio (gross after legal -16% r
Slide 41: Net income reflects Millennium bim's resilience in challenging environment
Net income reflects Millennium bim’s resilience in challenging environment Net income Net operating revenue (Million (Milhõeseuros *) de euros) (Million (Milhõeseuros*) de euros) -21.4% -14.6% 28.8 74.0 22.6 63.2 Q1'23 Q1'24 Q1'23 Q1'24 MIMO rate (average) 17.25% 16.72% • Net income of 22.6 million
Slide 42: Net interest income reflects the interest rate environment
Net interest income reflects the interest rate environmet Net interest income Operating costs (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) NIM 9.5% 8.1% Cost to income 41.1% 49.9% -11.6% +3.7% 56.5 30.4 31.6 49.9 Other 18.3 18.7 Staff costs 12.1 12.9 Q1'23 Q1'24 Q1'23 Q1'
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 7.7% 3.2% NPL>90d 107% 134% 55.4 59.4 21.0 28.2 Mar 23 Mar 24 Mar 23 Mar 24 Loan impairment (net of recoveries) (Million (Milhõeseuros*) de euros) Cost
Slide 44: Business volumes
Business volumes Customers funds Loans to Customers (gross) (Million euros*) (Milhões de euros) (Milhõeseuros (Million de euros) *) +3.6% -8.2% 2,150 718 2,076 Mortgage 11 659 Personal and 10 168 other Term deposits 1,062 1,148 215 Companies 540 435 Demand deposits 1,014 1,002 Mar 23 Mar 24 Mar 23 M
Slide 45: Key figures
05 Key figures 45
Slide 46: Strategic Plan: Excelling 24
Strategic Plan: Excelling 24 Q1’24 2024 C/I ratio 35% ✓ ≈40% Cost of risk 52 bp ✓ ≈50 bp RoE 15.0% ✓ ≈10% CET1 ratio1 16.0% ✓ >12.5% NPE ratio 3.4% ≈4% ✓ Share of mobile Customers 69% ✓ >65% Growth of high engagement Customers1 (vs 2020) +14.7% ✓ +12% Average ESG rating2 67% >80% 1Fully implemented
Slide 47: Commitment to People and Society
COMMITMENT TO PEOPLE AND SOCIETY Millennium bcp Foundation Society Sustainability BCP Group publishes its 20th Millennium bcp begins to issue Biennal of Coimbra: anozero “The Sustainability Report, disclosing cards with cuts for visually Freedom Ghost” is the theme of the 2023 aggregate indicators o
Slide 48: External Recognition
EXTERNAL RECOGNITION Millennium bcp: 2024 Bank Millennium: For the 10th Consumer’s Choice, in the ActivoBank: Winner in the consecutive time, was “Large Banks” category for “Digital Banking” category distinguished with the title the 4th consecutive Reliable Employer year Bank Millennium: “Institutio
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) >5y, ≤8y: 23% Mar 23 Jun 23 Sep 23 Dec 23 Mar 24 YoY QoQ Portugal 6,908 6,534 6,188 5,656 6,357 -8% +12% T-bills and other 810 421 109 104 721 -11% >100% Bond
Slide 51: Sovereign debt portfolio breakdown
Sovereign debt portfolio breakdown Million euros Portugal Poland Mozambique Other Total Trading book 778 103 0 244 1,126 ≤ 1 year 725 9 0 244 977 > 1 year and ≤ 2 years 35 38 0 0 74 > 2 years and ≤ 5 years 4 19 0 0 23 > 5 years and ≤ 8 years 5 9 0 0 14 > 8 years and ≤ 10 years 1 28 0 0 29 > 10 years
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% 49% 26% 28% 80-90 Companies 11% 38% Real >90 guarantees 3% 58% 50-60 Unsecured 0-40 16% 16% 21%
Slide 53: Consolidated net income
Consolidated net income Impact on (Million euros) Q1'23 Q1'24 YoY earnings Net interest income 664.6 696.2 +4.8% +31.7 Net fees and commissions 195.4 196.4 +0.5% +1.0 Other income* 140.2 -23.8 - -164.0 Net operating revenue 1,000.1 868.8 -13.1% -131.3 Staff costs -144.3 -165.7 +14.8% -21.4 Other adm
Slide 54: Consolidated balance sheet
Consolidated balance sheet (Million euros) 31 March 31 March 2023 31 March 31 March 2023 2024 (restated) 2024 (restated) ASSETS LIABILITIES Cash and deposits at Central Banks 4,108.7 3,035.3 Financial liabilities at amortised cost Loans and advances to credit institutions repayable on demand 195.3 2
Slide 55: Consolidated income statement per quarter
Consolidated income statement per quarter Quarterly (Million euros) 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 Net interest income 664.6 709.8 743.1 708.3 696.2 Dividends from equity instruments 0.0 1.1 0.0 0.6 0.0 Net fees and commission income 195.4 191.6 191.4 193.2 196.4 Other operating income -6.4 -65.8 15.
Slide 56: Consolidated balance sheet
Consolidated balance sheet (Million euros) For the 3-month periods ended March 31st, 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 M ar 2 3 M ar 2 4 Δ % M ar 2 3 M ar 2 4 Δ % M
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
Banco Comercial Português — Q1 2024 Earnings Presentation on 6ix