Banco Comercial Portugues S.a. · EURONEXT:BCP
Banco Comercial Portugues — Investor Presentation (September 2024)
103 slides from Banco Comercial Portugues's investor presentation, September 2024
Slide 1: Corporate Presentation
Millennium bcp CORPORATE PRESENTATION
Slide 2: Disclaimer
Disclaimer l This document is not an offer of securities for sale in the United States, Canada, Australia, Japan or any other jurisdiction. Securities may not be offered or sold in the United States unless they are registered pursuant to the US Securities Act of 1933 or are exempt from such registra
Slide 3: Agenda
AGENDA 01. 02. 03. 04. 05. Macro and Business Performance Strategic H1’24 Other Overview 2013-H1’24 Plan Earnings information
Slide 4: Macro and Business Overview
01 MACRO AND BUSINESS OVERVIEW 4
Slide 5: Key highlights
Key highlights In Portugal, in 2024, public finance metrics should continue to exhibit a favorable evolution (State budget surplus 1 at 1.2% in 2023, with 0.2% forecasted to 2024; Public debt at 99% of GDP in 2023, with 96% forecasted to 2024) after the interruption of consolidation trend during 202
Slide 6: Fiscal consolidation back on track after a difficult period
Fiscal consolidation back on track after a difficult period 1 constrained by the pandemic and the Russia-Ukraine war Budget deficit in % of the GDP Debt level (Public debt, % of GDP) Including Budget recapitalisation surplus of CGD 1.2 129 131 133 131 132 126 122 135 125 0.1 0.2 114 117 112 100 99 9
Slide 7: Portugal has implemented profound structural reforms withstanding sustained economic growth
Portugal has implemented profound structural reforms withstanding a 1 sustained economic growth, except for 2020 due to the Covid-19 pandemic Real GDP growth rate Unemployment rate (Year-on-Year) (%) +5.7 +6.8 +3.5 +2.9 +2.7 +1.7 +0.8 +1.8 +2.0 +2.3 +2.0 16.5 17.1 14.5 13.4 12.9 10.8 11.5 -1.7 -0.9
Slide 8: Portuguese financial system market shares
22 Portuguese financial system market shares Gross loans + Balance Sheet Customer funds Core operating income* (June 2024) (March 2024) 25% 18% 16% 12% 11% 20% 18% 14% 11% 8% Bank 1 BCP Bank 3 Bank 4 Bank 5 Bank 1 Bank 2 BCP Bank 4 Bank 5 Branches (December 2023) • Concentration of the Portuguese ba
Slide 9: Portuguese financial system
2 Portuguese financial system LTD (Loans-to-deposits ratio) CET1 ratio 17.1% 17.1% 102% 96% 13.9% 13.2% 14.3% 15.3% 15.5% 15.4% 96% 93% 89% 87% 85% 81% 78% 78% 77% 11.3% 12.4% 11.4% Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Mar 24 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19
Slide 10: Building the leading private sector bank in Portugal and a relevant player in selected markets
Building the leading private sector bank in Portugal and a relevant 3 player in selected markets From foundation… 2017- … 2012–2017 Leading bank in Portugal and strong position in Poland 2005–2012 and Mozambique 2000-2005 Consolidation Business model of international Focus on Portugal transformation
Slide 11: Millennium bcp has a relevant presence in the core geographies under its growth strategy
Millennium bcp has a relevant presence in the core geographies 3 under its growth strategy Millennium bcp Market share: 16.7% on loans, 19.0% on deposits Loans to Customers (gross): €38.6 billion On-shore branch in Macao, China Customer funds: €69.1 billion Loans to Customers (gross): €503 million E
Slide 12: Diversified shareholder base, geographically scattered
33 Diversified shareholder base, geographically scattered Number of Shareholders Shareholder structure Per geography (Thousands) (Last available information) (Last available information) 170.9 Other Non-PT institutionals 9.0% Portugal 31.2% Fosun UK / USA 25.6% 127.0 20.0% 25.7% Sonangol 19.5% China
Slide 13: Governance model
Modelo One-tierde administração management e fiscalização and supervisorymonista, composto by model, composed pora um 3 Conselho de Administração Board of Directors General Meeting of Shareholders Remuneration and Welfare Board Client Strategic Board Board of Directors Ombudsman Committee for Nomina
Slide 14: Performance 2013-H1'24
02 PERFORMANCE 2013-H1’24 14
Slide 15: Main highlights
Main highlights 1 Robust business model with a recurring capacity to generate operating results ≈€2.2 billion per annum ▪ Net interest income benefited from the interest rates normalization: NIM of 3.1% in the first half of 2024 (Portugal: 2.2% up from 0.6% in 2013) ▪ Consistent track record in redu
Slide 16: BCP: A Bank prepared for the future
BCP: A Bank prepared for the future H1 2024 Results NII Cost-to-Income Cost of Risk +1.7% y/y 35% 341 bp ROE NIM: 3.1% Group 15.8% Portugal 16.2% Poland 12.8% Mozambique 19.5% CET1 NPE ratio Active Customers 16.2% 3.4% (Portugal 2.9%) +4.1% y/y 1 Incudes an impairment reversal occurred in Q2’24, wit
Slide 17: Robust business model with a strong Pre-Provision Profit
1 Robust business model with a strong Pre-Provision Profit (PPP) BCP Consolidated BCP Portugal (Million euros) (Million euros) +128% +113% 2,607 1,419 1,784 970 908 888 764 1,286 1,317 1,243 721 1,219 666 672 660 687 644 1,143 1,159 1,169 1,166 1,131 474 54 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 18: Net interest income benefits from recent interest rate normalization
11 Net interest income benefits from recent interest rate normalization Net Interest Income NIM (Million euros) 2.6% 1,467 2.3% 1.8% 1.8% 1.7% 951 1.5% 1.6% 1.6% 1.4% 1.5% 711 736 808 803 789 805 831 673 1.0% 527 343 0.6% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1'24 2013 2014 2015 20
Slide 19: Strong improvement in operating costs and cost of risk
1 Strong improvement in operating costs and cost of risk Recurring* operating costs down by ≈38% ... with a ≈55% reduction in branches... Operating costs (€ mln) Branches (#) 910 690 638 624 602 609 631 619 602 585 601 885 695 671 618 314 578 546 505 478 434 408 399 398 2011 2014 2015 2016 2017 2018
Slide 20: BCP has significantly outperformed its NPE reduction plan
2 BCP has significantly outperformed its NPE reduction plan... NPEs NPE coverage (€ mln) Total 87% 89% 100% 100% 108% 112% 120% 130% 126% 142% 140% coverage* - 11.7 billion +65 pp 89% 87% 12,783 10,921 68% 69% 9,777 58% 63% 8,538 50% 6,754 Coverage by 39% 42% 4,797 31% 3,246 LLRs 23% 28% 2,363 1,878
Slide 21: Whilst strengthening coverage levels
2 ... whilst strengthening coverage levels NPE breakdown Total NPEs NPE total coverage* (June 2024) (June 2024) (June 2024) 162% 140% Individuals 39% NPLs >90d 100% 36% 33% 2% 51% Real estate collateral Companies 64% 1% Cash, other fin.collat. 72% 122% Other NPE 87% LLRs 67% 1% 28% Individuals Compa
Slide 22: Strong balance sheet
3 Strong balance sheet Balance sheet breakdown Securities portfolio (€ bln) (€ bln) Other 7.6 Equity 2.6 3.2 4.4 (net) 5.5 Debt issued* 12.1 35.7 18.5 Securities 35.7 12.9 8.4 Other 82.6 Deposits 68.0 12.1 Sovereign 47.5 Loans 53.7 27.3 4.8 debt 7.3 -3.7 IMM (net)** Dec 11 Jun 24 1 Dec 11 2 3 4 Jun
Slide 23: Reinforcement of liquidity position
3 Reinforcement of liquidity position Deposits Net loans (€ bln) (€ bln) +67% -11% 62.6 56.8 53.7 52.0 48.0 47.6 48.1 52.3 54.0 56.4 56.2 55.2 55.6 69.6 75.9 77.9 82.6 49.4 49.0 49.8 51.5 48.8 51.2 55.2 60.8 63.3 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Jun24 Dec12 Dec
Slide 24: Continued reduction of ECB funding
3 Continued reduction of ECB funding Outstanding debt repayments (medium-long term) ECB funding (€ bln) (€ bln) Already repaid To be repaid 6.2 28.9 0.3 Retail Bonds 0.3 LA Total 25.5 23.9 25.8 0,1 Securitizations 22.3 22.5 1.2 collateral 19.9 Certificates 15.7 16.9 17.1 2.3 14.2 13.9 12.1 12.8 2.6
Slide 25: Stronger capital position
4 Stronger capital position CET1 fully implemented RWAs density (fully implemented) +6.9 pp -12 pp 15.4% 16.2% 56% 57% 54% 55% 55% 55% 54% 52% 11.9% 12.0% 12.2% 12.2% 11.7% 12.5% 49% 48% 10.2% 9.7% 42% 40% 9.3% 8.9% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1'24 2013 2014 2015 2016 201
Slide 26: Robust capital ratios
4 Robust capital ratios Common equity tier 1 (CET1) • CET1 capital ratio of 16.2% and total capital (Fully implemented) Fully implemented ratio of 20.6%, corresponding respectively to an vs requirement increase of 219bp and 225bp compared to the 16.2% +6.8pp same period last year, reflecting the str
Slide 27: Capital requirements
4 Capital requirements Capital above regulatory requirements MDA Buffer June 2024 20.6% CET 1 +679 bp 3.2% 1.2% 14.0%* Tier 2 2.63% AT1 1.97% T1 +605 bp 16.2% CET1 9.41% Total +659 bp SREP requirements SREP Requirements Group ratios Jun24 Group ratios Jun24Fully FullyImplemented Implemented • Total
Slide 28: MREL requirements and Funding Plan
4 MREL requirements and Funding Plan MREL position (BCP Resolution Group - 30 Jun 2024)* 33.6% 12.4% • Resolution strategy: MPE (Multi Point of Entry)2 7.3% • BCP Resolution Group : Perimeter centred in Portugal SP SP 2.7% • Preferred Resolution Measure: Bail-in T2 3.8% 1.4% • No subordination requi
Slide 29: Focused international operations, providing diversification
5 Focused international operations, providing diversification Key international operations Contribution to consolidated results* (€ mln) 178 170 173 175 186 ** 159 144 ** Bank Millennium 131 Market share: 5.6% on loans, 6.0% on deposits 74 Loans to Customers (gross): €18.0 billion 49 ** Customer fun
Slide 30: Bank Millennium with resilient net income
5 Bank Millennium with resilient net income Net income Net operating revenue (Million euros1) +5.9% Adjusted net 348.2 -23.3% income 2 328.9 829.0 635.7 Net income 83.0 82.8 H1'23 H1'24 H1'23 H1'24 3m WIBOR (average) 6.91% 5.86% • Recovery plan concluded Operating Costs • Net income of 82.8 million
Slide 31: CHF mortgages
5 CHF mortgages CHF mortgage portfolio Individual lawsuits (Billion euros*) (Million euros*) % of gross loan 54.6% 5.5% 4.6% 3.6% 2.9% 2.4% portfolio after legal risk -19% provisions 20,914 22,141 7.0 16,008 -7% 11,070 2.1 2.0 1.9 1.8 1.7 Gross loan portfolio before legal risk provisions 2008 6M23 9
Slide 32: Net income reflects Millennium bim's robustness in challenging environment
5 Net income reflects Millennium bim’s robustness in challenging environment Net income Net operating revenue (Million euros*) (Million euros*) 48.9 -4.3% -4.6% 46.8 136.1 129.8 H1'23 H1'24 H1'23 H1'24 MIMO rate 17.25% 16.10% (average) • Net income of 46.8 million in the first six Operating costs mo
Slide 33: Strategic Plan
i ( = Me 4 ‘Al N ) \ | @ } if 7. I f f == 4 “SS )- ™ ~ STRATEGIC
Slide 34: Strategic Plan: Excelling 24
Strategic Plan: Excelling 24 H1’24 2024 C/I ratio 35% ✓ ≈40% Cost of risk 1 34 bp ≈50 bp ✓ RoE 15.4% ✓ ≈10% CET1 ratio 2 16.2% >12.5% ✓ NPE ratio 3.4% ≈4% ✓ Share of mobile Customers 70% ✓ >65% Growth of high engagement Customers 3 (vs 2020) +15.9% ✓ +12% Average ESG rating 4 67% >80% 1Includes an i
Slide 35: Investment case: Return to normalization allows focus on core strengths
Investment case: Return to normalization allows Millennium bcp to focus on its core strengths Reference private bank in Portugal, and well-positioned in a rapidly changing landscape, following the ongoing 1 implementation of the restructuring plan over the last years: one of the most efficient banks
Slide 36: H1'24 Earnings
04 APRESENTAÇÃO DE RESULTADOS 1S 2021 H1’24 EARNINGS Banco Comercial Português 36
Slide 37: 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 38: Agenda
AGENDA 38
Slide 39: Highlights
01 Highlights 39
Slide 40: A Solid and Efficient Bank
A Solid and Efficient Bank ▪ Net income of 485.3 million in the first half of 2024, 14.7% above first half of 2023 ▪ Group’s core operating profit stood at 1,174.1 million ▪ In Portugal, net income amounted to 411 million in the first half of 2024, corresponding to an increase of 16.2% compared to t
Slide 41: Customer base growth
Customer base growth Based on the quality of the Teams and distinctive digital skills Group ‘000 Customers Customer Active Recognition 6,570 6,840 As % of active +459 4,769 Customers 4,310 +11% Mobile 70% Jun 23 Jun 24 Digital +374 4,926 5,300 77% +8% Portugal ‘000 Customers Active 2,666 2,737 As %
Slide 42: Innovation focused on Customer needs translates into accelerated mobile growth
Innovation focused on Customer needs translates into accelerated growth in Mobile usage and sales Strong mobile growth Y/Y (Number of operations, Jan-Jun 2024 vs Jan–Jun 2023) +26% +39% P2P +31% National +10% Payments Transactions1 Transfers Transfers +49% +33% +18% +53% Sales Cards Personal loans (
Slide 43: Net income of 485.3 million in the first half of 2024
Resultado líquido de XXX milhões no primeiro trimestre de 2024 Net income of 485.3 million in the first half of 2024 (Million euros) H1'23 H1'24 % D Net interest income 1,374.4 1,397.5 +1.7% +23.2 Commissions 387.0 396.0 +2.3% +9.0 Core income 1,761.4 1,793.6 +1.8% +32.2 Operating costs -561.5 -619.
Slide 44: Group Profitability
02 Group Profitability 44
Slide 45: Net interest income
Net interest income Group Portugal (Consolidated, million euros) (Million euros) Net interest 2.52% 2.29% Net interest margin margin 3.34% 3.08% -4.8% 707.5 673.3 +1.7% 1,397.5 1,374.4 H1'23 H1'24 International operations (Million euros) Net interest 5.07% 4.53% margin +8.6% 666.8 724.3 H1'23 H1'24
Slide 46: Fees and commissions
Comissões Fees and commissions Group Portugal (Consolidated, million euros) (Million euros) +2.3% +2.0% 387.0 396.0 286.0 280.2 Market-related 61.3 43.7 48.8 fees and 52.7 commissions 236.5 237.1 H1'23 H1'24 International operations (Million euros) Banking fees and commissions 334.3 334.8 +3.1% 106.
Slide 47: Other income
Outros proveitos Other income Group Portugal (Consolidated, million euros) (Million euros) -35.9 1.5 82.9 26.5 29.0 4.5 -4.7 -66.8 -22.8 Sale of Millennium Financia Services stake (80%)1 127.0 H1'23 H1'24 Mandatory contributions 72.6 39.7 -44.1 -43.4 Das quais: Setor bancário 37.9 27.9 Equity earnin
Slide 48: Operating costs
Operating costs Group Portugal (Consolidated, million euros) (Million euros) Cost to income1 32%1 35% Cost to income 32% 33% +3.1% 306.8 316.3 +10.3% 619.4 36.8 36.7 561.5 94.3 101.2 71.2 68.6 175.7 178.4 Depreciation 208.6 H1'23 H1'24 Other 184.9 International operations administrative costs (Milli
Slide 49: Cost of risk and provisions
Cost of risk and provisions Group Portugal (Consolidated, million euros) (Million euros) Cost of risk 53bp 28bp1 Cost of risk 50bp 34bp 1 -44.9% -28.9% 154.7 548.5 48.7 85.3 106.0 30.7 54.5 389.9 H1'23 H1'24 +2.0% Loan-loss CHF mortgage legal 331.6 947 966 reserves risk (Poland)2 International opera
Slide 50: Continued decrease of NPEs
Continued decrease of NPEs Group Portugal millioneuros) (Consolidated, billion euros) (Billion (Million euros) euros) -152 million -176 million 1.26 -12.1% 1.11 -8.2% NPE 2.14 1.97 Other 1.35 1.19 Jun 23 Jun 24 NPL>90d 0.79 0.77 NPE loans ratio 3.2% 2.9% Jun 23 Jun 24 NPE ratio (EBA) 2.3% 1.9% Jun 2
Slide 51: Group Business activity
02 Group Business activity 51
Slide 52: Customer funds
Customer funds Group Portugal (Consolidated, billion (Consolidated, millioneuros) euros) (Billion euros) (Million +8.9% +4.6% 100.6 66.0 69.1 92.5 14.1 14.5 1.4 1.3 16.8 19.7 25.2 Off-BS funds 15.7 1.3 +5.0% Other BS funds 30.8 28.0 1.4 Jun 23 Jun 24 36.8 Term deposits 28.7 International operations
Slide 53: Loan portfolio
Loan portfolio Group Portugal (Consolidated, billion (Consolidated, millioneuros) euros) (Billion (Millioneuros) euros) -1.32 billion NPE: : -8.2% (-0.18 billion) -3.3% 39.88 38.57 -1.2% -0.15 -1.16 57.9 57.2 Jun 23 NPE Performing Jun 24 Mortgage 28.0 28.3 International operations (Billion (Millione
Slide 54: Group Capital and liquidity
02 Group Capital and liquidity 54
Slide 55: Solid capital ratios
Solid capital ratios Common equity tier 1 (CET1) • CET1 capital ratio of 16.2% and total capital (Fully implemented) Fully implemented ratio of 20.6%, corresponding respectively to an vs requirement increase of 219bp and 225bp compared to the 16.2% +6.8pp same period last year, reflecting the strong
Slide 56: Stronger capital position
Stronger capital position Leverage ratio (Milhões (Fully de euros*) latest available data) implemented, (Milhões de euros*) 6.8% 6.4% 5.4% 5.2% 3.9% Leverage ratio in comfortable levels (6.4% as of June 2024) higher when comparing to European 3.0% banks FR DE ES IT RWA density (Milhões (RWAs asde a%
Slide 57: MREL requirements and Funding Plan
MREL requirements and Funding Plan MREL position (BCP Resolution Group - 30 Jun 2024)* 33.6% 12.4% • Resolution strategy: MPE (Multi Point of Entry)2 7.3% • BCP Resolution Group : Perimeter centred in Portugal SP SP 2.7% • Preferred Resolution Measure: Bail-in T2 3.8% 1.4% • No subordination require
Slide 58: Pension fund
Fundo de pensões Pension fund Pension fund coverage Structure of pension fund (Million euros) (Million euros) Coverage 113% 112% Real-estate: 17% Pension fund 3,470 3,327 Excess 390 Cash and other: 349 4% Bonds: 55% Equities: 5% Pension liabilities 3,080 2,978 Investment Funds: 19% Fundo de pensões
Slide 59: Robust liquidity position
Robust liquidity position Liquidity ratios (CRD/CRR) Liquidity excess in ECB (Million (Milhõeseuros) de euros) (Billion euros) Eligible assets 24.2 28.9 296% +0.05 billion 0.90 0.85 175% Jun 23 Jun 24 Net loans to deposits ratio 100% 75% 67% NSFR (Net stable LCR (Liquidity Jun 23 Jun 24 funding rati
Slide 60: Portugal
03 Portugal 60
Slide 61: Profitability in Portugal
Profitability in Portugal Net income Net operating revenue (Million euros) euros*) (Million euros) euros*) +16.2% 411.0 +0.9% 353.7 951.9 960.7 H1'23 H1'24 H1'23 H1'24 Operating Costs (Millioneuros) (Million euros*) +3.1% 306.8 316.3 • Net income reached 411 million in H1’24 representing an increase
Slide 62: Net interest income
Net interest income (Million euros) -4.8% +128.5 707.5 673.3 -4.2 +98.4 +22.2 -23.4 NIM 2.52% -28.8 2.29% -227.0 H1'23 Performing Credit rate Impact of Effect of Impact of Effect of Excess H1'24 credit volume including NPE reduction Deposit's cost securities wholesale cost liquidity effect hedges po
Slide 63: Commissions and other income
Commissions and other income Commissions Other income (Milhõeseuros) (Million de euros*) (Milhões de euros*) (Million euros) H1'23 H1'24 YoY -35.9 1.5 Banking fees and commissions 236.5 237.1 +0.3% Equity earnings + dividends Cards and transfers 78.6 82.5 +5.0% 26.5 29.0 Loans and guarantees 40.9 38
Slide 64: Operating costs
Operating costs Operating Costs Employees (Million (Milhõeseuros) de euros) +18 +3.1% 316.3 6,256 6,274 306.8 36.7 Depreciation 36.8 Other administrative 94.3 101.2 costs Jun 23 Jun 24 Branches -4 402 398 Staff costs 175.7 178.4 H1'23 H1'24 Jun 23 Jun 24 64
Slide 65: NPEs decrease
NPEs decrease Non-performing exposures (NPE) NPE build-up (Million (Milhõeseuros) de euros*) (Million (Milhõeseuros) de euros*) -152 million Jun 24 Jun 24 (Million euros) vs. Jun 23 vs. Dez 23 -12.1% 1,262 Opening balance 1,262 1,107 1,109 Net outflows/inflows 106 140 Other NPE 879 747 Write-offs -9
Slide 66: NPE coverage
NPE coverage NPE total coverage* NPL>90d total coverage* 165% 162% 26% 132% 140% 3% 100% 100% 39% 40% Real estate collateral 2% 51% Real estate collateral 2% Cash, other fin. collat.. 1% Cash, other fin. collat. 54% 136% 72% 122% 1% 89% LLRs 87% LLRs 1% 45% 28% Individuals Companies Total Individual
Slide 67: 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*) 393 393 50 74 Turismo Algarve 191 FCR fund * Impairment 66 111 -59 million 343 319 Corporate Net value 124 45 restructuring funds
Slide 68: 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) +4.6% 69.1 66.0 -3.3% Off-BS funds 14.5 14.1 39.9 1.3 38.6 Other BS funds 1.4 Term deposits 19.7 25.2 Mortgage 18.9 19.0 Personal and other
Slide 69: Performing loans in Portugal
Performing loans in Portugal Performing loans portfolio 1 The Bank maintains a prominent position in the corporate segment: (Billion euros) ✓ Leadership in PME Leader programme for the 6th consecutive -3.0% year with a 33% market share 38.6 37.5 ✓ Leadership in Inovadora COTEC programme for the 4th
Slide 70: International operations
04 International operations 70
Slide 71: Contribution from international operations
Contribution from international operations 1T23 Contribution from international operations 1T24 (Million euros2) H1’23 H1’24 (Million euros) Excluding effects of +12.5% Poland 83.0 82.8 Bank Millennium1 184.2 207.2 Mozambique 48.9 46.8 Other -3.0 1.6 Net income international operations 128.9 131.1 7
Slide 72: Contribution from international operations
Contribution from international operations Portugal 1T23 1T24 (Million euros2) H1’23 H1’24 (Million euros) +16.2% 411.0 353.7 Poland 83.0 82.8 Mozambique 48.9 46.8 Other -3.0 1.6 H1'23 H1'24 International operations Net income international operations 128.9 131.1 (Million euros) Non-controlling int.
Slide 73: 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*) +5.9% Adjusted net 348.2 -23.3% income 2 328.9 829.0 635.7 Net income 83.0 82.8 H1'23 H1'24 H1'23 H1'24 3m WIBOR
Slide 74: 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*) +13.7% NIM 4.71% 4.32% 255.9 225.0 +5.3% 602.6 634.8 120.5 Other 108.6 116.4 135.5 Staff costs H1'23 H1'24 H1'23 H1'24 Com
Slide 75: Credit quality
Credit quality NPL>90d Loan-loss reserves (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) Credit ratio Coverage ratio NPL>90d 2.1% 2.2% NPL>90d 159% 156% 369.4 385.9 586.0 603.8 Jun 23 Jun 24 Jun 23 Jun 24 Loan impairment (net of recoveries) (Milhõeseuros (Million de euros)*
Slide 76: 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*) +17.0% 29,281 +0.7% 2,224 25,035 Off-BS funds 1,679 17,802 17,934 10,399 Term deposits 8,175 Mortgage 9,370 9,264 Personal and 16,659 4,107 4,442
Slide 77: CHF mortgages
CHF mortgages CHF mortgage portfolio Individual lawsuits (Billion euros*) (Number of lawsuits) % of gross loan 54.6% 5.5% 4.6% 3.6% 2.9% 2.4% portfolio after legal risk provisions 20,914 22,141 -19% 7.0 16,008 -7% 11,070 2.1 2.0 1.9 1.8 1.7 Gross loan portfolio before legal risk provisions 2008 6M23
Slide 78: Net income reflects Millennium bim's robustness
Net income reflects Millennium bim’s robustness in challenging environment Net income Net operating revenue (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) -4.3% 48.9 -4.6% 46.8 136.1 129.8 H1'23 H1'24 H1'23 H1'24 MIMO rate 17.25% 16.10% (average) • Net income of 46.8 millio
Slide 79: 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 8.9% 8.1% Cost to income 45.3% 49.9% -5.2% 106.5 101.0 +5.2% 61.6 64.8 Other 37.0 38.3 Staff costs 26.5 24.6 H1'23 H1'24 H1'23 H1
Slide 80: Credit quality
Credit quality NPL>90d Loan-loss reserves (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) Credit ratio Coverage ratio NPL>90d 7.1% 3.8% NPL>90d 117% 114% 52.3 61.1 25.7 29.4 Jun 23 Jun 24 Jun 23 Jun 24 Loan impairment (net of recoveries) (Million (Milhõeseuros*) de euros)* C
Slide 81: Business volumes
Business volumes Customers funds Loans to Customers (gross) (Million euros*) (Milhões de euros*) (Milhõeseuros (Million de euros*) *) +10.2% -8.7% 2,262 741 Mortgage 11 677 2,052 10 Personal and 184 other 228 1,217 Term deposits 973 Companies 547 439 Demand deposits 1,079 1,045 Jun 23 Jun 24 Jun 23
Slide 82: Key figures
05 Key figures 82
Slide 83: Strategic Plan: Excelling 24
Strategic Plan: Excelling 24 H1’24 2024 C/I ratio 35% ✓ ≈40% Cost of risk 1 34 bp ✓ ≈50 bp RoE 15.4% ✓ ≈10% CET1 ratio 2 16.2% ✓ >12.5% NPE ratio 3.4% ≈4% ✓ Share of mobile Customers 70% ✓ >65% Growth of high engagement Customers 3 (vs 2020) +15.9% ✓ +12% Average ESG rating 4 67% >80% 1Includes an i
Slide 84: Commitment to people and society
COMMITMENT TO PEOPLE AND SOCIETY Millennium bcp Foundation Society Sustainability Câmara Municipal de Elvas - FARRA: Millennium Festival ao Largo returns, Millennium bcp distinguished in the Network Art Festival in the Alentejo in its 16th edition, to promote culture Ranking of Companies Committed R
Slide 85: External recognition
EXTERNAL RECOGNITION Millennium bcp: 2024 Millennium bcp : APCC Contact Centers Consumer’s Choice, in the Bank Millennium: 3rd place in "ESG 2024 Best Banking Contact Center in Portugal Responsible Management Ranking" “Large Banks” category for the 4th consecutive year Bank Millennium: 3rd place in
Slide 86: Appendix
06 Appendix 86
Slide 87: Sovereign debt portfolio
Sovereign debt portfolio Sovereign debt portfolio Sovereign debt maturity (Milhões de euros*) (Consolidated, million euros) (Milhões de euros*) Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 YoY QoQ >5y, ≤8y: 17% Portugal 6,534 6,188 5,656 6,357 7,109 +9% +12% T-bills and other 421 109 104 721 1,466 >100% >100%
Slide 88: Sovereign debt portfolio breakdown
Sovereign debt portfolio breakdown Million euros Portugal Poland Mozambique Other Total Trading book 1,524 39 0 268 1,832 ≤ 1 year 1,469 1 0 268 1,738 > 1 year and ≤ 2 years 37 3 0 0 39 > 2 years and ≤ 5 years 5 16 0 0 21 > 5 years and ≤ 8 years 4 9 0 0 13 > 8 years and ≤ 10 years 1 8 0 0 9 > 10 yea
Slide 89: 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% >90 Real guarantees 3% 58% 50-60 Unsecured 0-40 16% 16% 21%
Slide 90: Consolidated net income
Consolidated net income Impact on (Million euros) H1'23 H1'24 YoY earnings Net interest income 1,374.4 1,397.5 +1.7% +23.2 Net fees and commissions 387.0 396.0 +2.3% +9.0 Other income* 82.9 -43.4 - -126.3 Net operating revenue 1,844.3 1,750.2 -5.1% -94.1 Staff costs -308.0 -339.7 +10.3% -31.8 Other
Slide 91: Consolidated balance sheet
Consolidated balance sheet 30 June 30 June 2023 (Million euros) 30 June 30 June 2023 2024 (restated) * 2024 (restated) * LIABILITIES ASSETS Financial liabilities at amortised cost Cash and deposits at Central Banks 3,710.4 3,884.3 Loans and advances to credit institutions repayable on demand Resourc
Slide 92: Consolidated income statement per quarter
Consolidated income statement per quarter Quarterly 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 (Million euros) Net interest income 709.8 743.1 708.3 696.2 701.3 Dividends from equity instruments 1.1 0.0 0.6 0.0 0.8 Net fees and commission income 191.6 191.4 193.2 196.4 199.6 Other operating income -65.8 15.7 17.
Slide 93: Consolidated income statement
Consolidated income statment (Million euros) For the 6-month periods ended June 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 Jun 2 3 Jun 2 4 Δ % Jun 2 3 Jun 2 4 Δ % Jun
Slide 94: 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 95: 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 96: Other information
l= < @ 05) OTHER INFORMATION
Slide 97: The NPE reduction plan is being implemented
The NPE reduction plan is being implemented Reconciliation of NPLs>90d with NPEs (EBA definition) NPEs down €11.7 billion from end-2013 NPLs>90d vs NPEs (Portugal, billion euros) (Portugal, billion euros, June 2024) 12.8 -3.0 -4.8 +0.5 +0.1 1.1 +0.1 +0.1 1.1 0.4 -3.9 Dec 13 Net new Write-offs Sales
Slide 98: Senior debt Ratings
Senior debt Ratings Moody’s - Investment Grade S&P - Investment Grade Last rating action 22 Nov 23 (Upgrade) Baa2 Last rating action 12 Sep 23 (Upgrade) BBB- +5 notches +4 notches BBB Baa20 Stable Positive Outlook BBB- Baa3 Outlook Ba1 BB+ (12 Mar 24) BB Ba2 BB- Ba3 B+ B1 B B2 2016 2017 2018 2019 20
Slide 99: Senior debt Ratings
Senior debt Ratings BCP is rated Investment Grade by the four main rating agencies BCP has been upgraded by Rating Agencies reflecting the progress in NPA reduction, strengthening of capitalization levels and improvement in profitability Stable Stable Upgrade Upgrade Positive Upgrade Positive Positi
Slide 100: Ratings
Ratings Moody's Standard & Poor's Intrinsic Baseline Credit Assessment/ Adjusted BCA ba1/ Ba1 Stand-alone credit profile (SACP) bbb- Counterparty Risk Assessment LT/ST A3 / P-2 (cr) Resolution Counterparty Credit Rating LT/ST BBB / A-2 Counterparty Risk LT/ST A3 / P-2 Issuer Credit Rating LT/ST BBB-
Slide 101: Progress recognised by the market
Progress recognised by the market CDS 5 yr Portuguese Republic CDS 5 yr BCP (Basis points) (Basis points) 300 500 400 200 300 100 200 100 0 0 M-18 N-18 M-19 N-19 M-20 N-20 M-21 N-21 M-22 N-22 M-23 N-23 M-24 M-18 N-18 M-19 N-19 M-20 N-20 M-21 N-21 M-22 N-22 M-23 N-23 M-24 CDS BCP yield curve (senior)
Slide 102: Wholesale funding – last deals executed
Wholesale funding – Last deals executed in 2024, 2023, 2022 and 2021 in Euro Capital Markets 10.5nc5.5 Tier2 Notes 3nc2 Senior Preferred Notes 3nc2 Senior Preferred Notes Additional Tier 1 Issuer: Banco Comercial Português, S.A. Issuer: Banco Comercial Português, S.A. Issuer: Banco Comercial Portugu
Slide 103: Investor Relations contacts
INVESTOR RELATIONS DIVISION Bernardo Collaço, Head EQUITY DEBT AND Alexandre Moita RATINGS +351 211 131 321 Luís Morais +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, S.A. (Millennium bcp) — Investor Presentation (September 2024) on 6ix