Banco Comercial Portugues S.a. · EURONEXT:BCP
Banco Comercial Portugues — Investor Presentation (November 2023)
101 slides from Banco Comercial Portugues's investor presentation, November 2023
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. Macro and Business 02. Performance 03. Strategic 04. 9M’23 05.Other Overview 2013-9M’23 Plan Earnings information 3
Slide 4: Macro and Business Overview
01 MACRO AND BUSINESS OVERVIEW 4
Slide 5: Key highlights
Key highlights In Portugal, in 2023, public finance metrics are expected to continue to exhibit a favorable evolution (State budget 1 deficit at -0.4% in 2022, with -0.2% forecasted to 2023; Public debt at 114% of GDP in 2022, with 108% forecasted to 2023) after the interruption of consolidation tre
Slide 6: Fiscal consolidation back on track after a difficult period
1 Fiscal consolidation back on track after a difficult period constrained by the pandemic and the Russia-Ukraine war Budget deficit invs%3m ofEuribor the GDP Debt level (Public debt, % of GDP) Including Budget recapitalisation surplus of CGD 0.1 129 131 133 131 132 126 122 117 135 126 114 114 108 10
Slide 7: Portugal has implemented profound structural reforms withstanding sustained growth
1 Portugal has implemented profound structural reforms withstanding a sustained economic growth, except for 2020 due to the Covid-19 pandemic Real GDP growthvsrate 3m Euribor Unemployment rate (Year-on-Year) (%) +5.7 +6.8 +1.7 +0.8 +1.8 +2.0 +3.5 +2.9 +2.7 +2.3 16.5 17.1 13.4 14.5 13.0 10.8 11.4 -1.
Slide 8: Portuguese financial system market shares
2 Portuguese financial system market shares Gross loans + Customer funds vs 3m Euribor Core operating income* (June 2023) (June 2023) 22% 18% 15% 21% 12% 11% 16% 13% 10% 8% Bank 1 BCP Bank 3 Bank 4 Bank 5 Bank 1 BCP Bank 3 Bank 4 Bank 5 Branches • Concentrated Portuguese banking market. The 5 (June
Slide 9: Portuguese financial system
2 Portuguese financial system LTD (Loans-to-deposits ratio) CET1 ratio 15.5% 15.4% 16.4% 13.9% 13.2% 14.3% 15.3% 102% 96% 96% 93% 89% 87% 11.3% 12.4% 11.4% 85% 81% 78% 80% Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Jun 23 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 De
Slide 10: Building the leading private sector bank in Portugal
3 Building the leading private sector bank in Portugal and a relevant player in selected markets From foundation… 2017- … 2012–2017 Leading bank in Portugal and strong 2005–2012 position in Poland and Mozambique Consolidation 2000-2005 of international Focus on Portugal Business model Leadership in
Slide 11: Millennium bcp has a relevant presence in the core geographies
3 Millennium bcp has a relevant presence in the core geographies under its growth strategy Millennium bcp Market share: 17.3% on loans, 19.0% on deposits Loans to Customers (gross): €39.4 billion On-shore branch in Macao, China Customer funds: €65.6 billion Loans to Customers (gross): €528 million E
Slide 12: Diversified shareholder base, geographically scattered
3 Diversified shareholder base, geographically scattered Number of Shareholders Shareholders structure Per geography (Thousands) (Last available information) (Last available information) 170.9 Non-PT institutionals Other 22.3% 13.2% Portugal UK / USA 24.9% 129.9 Fosun 12.2% PT institutionals 29.9% 2
Slide 13: One-tier management and supervisory model
3 One-tier management and supervisory model, composed by a Board of Directors 13
Slide 14: Performance 2013-9M'23
02 PERFORMANCE 2013-9M’23 14
Slide 15: Main highlights
Main highlights 1 Robust business model with a recurring capacity to generate operating results ≈€2.5 billion per annum ▪ Net interest income benefited from the interest rates normalization: Nim of 3.4% in the first nine months of 2023 (Portugal: 2.6% up from 0.6% in 2013) ▪ Consistent track record
Slide 16: BCP: A Bank prepared for the future
BCP: A Bank prepared for the future 9M 2023 Results NII Cost-to-Income Cost of Risk +37.0% y/y ROE 32%* 50 bp NIM + 101 bp y/y Group 16.7% Portugal 18.0% Poland 10.0% NPE ratio Active Mozambique 18.1% CET1 Customers 14.9% 3.6% (Portugal 3.0%) +3.6% y/y *Adjusted cost to income: without the positive
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) 1,938 +57% 1,784 +47% 1,019 970 908 888 1,286 1,317 1,243 1,219 1,143 1,159 1,169 1,166 764 721 666 672 687 660 474 54 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M'2
Slide 18: Net interest income benefits from interest rate normalization
1 Net interest income benefits from recent interest rate normalization Net Interest Income NIM (€ mln) 2.6% 1,098 808 803 789 831 951 1.8% 1.8% 1.7% 711 736 805 1.5% 1.6% 1.6% 1.4% 1.5% 527 343 0.6% 1.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9M'23 2013 2014 2015 2016 2017 2018 2019 2020
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 ≈35% ... with a ≈55% reduction in branches... Operating costs (€ mln) Branches (#) 910 690 638 624 602 609 631 619 602 585 885 448 695 671 618 578 546 505 478 434 408 400 2011 2014 2015 2016 2017 2018 2019 20
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% 138% coverage* -11.6 billion +58 pp 81% 12,783 68% 69% 10,921 58% 63% 9,777 50% 8,538 42% 6,754 39% 4,797 28% 31% 3,246 2,363 Coverage by 23% 1,878 1,361 1,192 LL
Slide 21: Whilst strengthening coverage levels
2 ... whilst strengthening coverage levels NPE breakdown Total NPEs NPE total coverage* (September 2023) (September 2023) (September 2023) 154% Individuals 138% 29% NPLs >90d 100% 49% 33% 2% 55% Real estate collateral Companies 71% 2% Cash, other fin.collat. 70% Other NPE 103% 67% 1% 81% LLRs 28% In
Slide 22: Strong balance sheet
3 Strong balance sheet Balance sheet breakdown Securities portfolio (€ bln) (€ bln) Other 6.8 Equity 3.2 4.4 (net) 5.9 5.1 12.1 18.5 Debt issued 24.7 Securities 24.7 5.2 12.9 Other 12.1 68.0 75.5 Deposits 47.5 Loans 52.9 4.8 19.6 Sovereign debt 7.3 -3.9 IMM (net)* 1 Dec 11 2 3 4 Sep 23 5 Dec 11 Sep
Slide 23: Reinforcement of liquidity position
3 Reinforcement of liquidity position Deposits Net loans (€ bln) (€ bln) +53% -12% 62.6 56.8 53.7 52.0 48.0 47.6 48.1 52.3 54.0 56.4 56.2 55.1 69.6 75.9 75.5 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 Sep23 Dec12 Dec13 Dec14 Dec15 D
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 5.1 0.6 Retail Bonds 25.5 23.9 LA Total 22.3 24.4 0,1 0.3 19.9 22.5 Securitizations collateral 1.0 Certificates 15.7 14.2 16.9 17.1 2.3 13.9 12.1 12.8 1.7 MTN B
Slide 25: Stronger capital position
4 Stronger capital position CET1 fully implemented CET1 fully implemented RWAs density RWAs(fully implemented) density (fully implemented) +5.6 pp -8 pp 14.9% 11.9% 12.0% 12.2% 12.2% 11.7% 12.5% 56% 57% 52% 54% 55% 55% 55% 54% 10.2% 9.7% 49% 48% 9.3% 8.9% 44% 2013 2014 2015 2016 2017 2018 2019 2020
Slide 26: Robust capital ratios
4 Robust capital ratios Common equity tier 1 (CET1) (Fully implemented) Fully implemented vs CET1 mandatory requirement • Significant strengthening of capital ratios. +5.5pp CET1 ratio stood at 14.9% and total capital 14.9% ratio at 19.4%, representing an increase of 11.4% 357bp and 431bp compared w
Slide 27: Capital requirements
4 Capital requirements Capital above regulatory requirements MDA Buffer September 2023 19.4% +554 bp CET 1 3.3% 14.0% 1.2% Tier 2 2.62% AT1 1.97% T1 +481 bp 14.9% CET1 9.41% Total +545 bp SREP Requirements Group ratios Sep23 Fully Implemented • Total Capital requirement of 14.00% and CET1 requiremen
Slide 28: MREL requirements and execution of the Funding Plan
4 MREL requirements and execution of the Funding Plan (Million euros) MREL position (BCP Resolution Group - 30 Sep 2023) • Resolution strategy: MPE (Multi Point of Entry)2. • BCP Resolution Group : Perimeter centred in Portugal Proforma ~31.6% * ~12.5% * • Preferred Resolution Measure: Bail-in SP 3N
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 94 Market share: 5.6% on loans, 5.6% on deposits 49** Loans to Customers (gross): €16.6 billion Customer funds: €2
Slide 30: Bank Millennium: Positive evolution of net income
5 Bank Millennium: Positive evolution of net income Net income Net operating revenue (Million euros1) (Million euros1) +43.6% +32.1% 492.0 1,126.6 Adjusted net income2 342.5 852.6 100.7 Net income -276.1 9M22 9M23 9M22 9M23 • Net income of 100.7 million in 9M23 which compares with -276.1 million in
Slide 31: Bank Millennium: CHF mortgages
5 Bank Millennium: 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% 9.4% 8.1% 6.6% 5.5% 4.6% 36.3% 41.3% 46.8% 55.8% 64.7% 73.5% (gross after legal mortg
Slide 32: Millennium BIM: Net income reflects resilience
5 Millennium BIM: Net income reflects resilience in challenging environment Net income Net operating revenue (Million euros*) (Million euros*) +6.5% -2.6% 197.3 69.0 67.2 185.3 9M22 9M23 9M22 9M23 MIMO rate (average) 14.60% 17.25% Operating Costs • Net income of 67.2 million in 9M23, a 2.6% (Million
Slide 33: Strategic Plan
Vv s f / C S s Y \ }\ all q | f y LS Y % \ STRATEGIC
Slide 34: Strategic Plan: Excelling 24
Strategic Plan: Excelling 24 9M23 2024 C/I ratio 32%* ✓ ≈40% Cost of risk 50 bp ✓ ≈50 bp RoE 16.7% ✓ ≈10% CET1 ratio 14.9% ✓ >12.5% NPE ratio 3.6% ✓ ≈4% Share of mobile Customers 66% ✓ >65% Growth of high engagement Customers** (vs 2020) +12.6% ✓ +12% Average ESG rating*** 69% >80% *Adjusted cost to
Slide 35: Investment case: Return to normalization
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: 9M'2023 Earnings
APRESENTAÇÃO04 DE RESULTADOS 1S 2021 9M’2023 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: Highlights: A Bank prepared for the future
Highlights: A Bank prepared for the future ▪ Net income of 650.7 million in 9M23 ▪ Group’s core operating profit increase 38.2% to 1,841.3 million, supported by the increase of 27.2% on core income and by the strict management of operating costs, which grew 8.5% compared to 9M22 Profitability ➢ Effe
Slide 41: Customer base growth
Customer base growth Based on the quality of the Teams and distinctive digital skills ‘000 Customers Customer Active 6,416 6,644 recognition +448 4,416 As % of active 3,968 +11% Customers 66% Mobile Sep. 22 Sep. 23 +330 Digital 4,672 5,003 75% +7% Portugal Active 2,633 2,688 +163 1,338 1,501 As % of
Slide 42: Innovation focused on Customer needs and 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-Sep 2023 vs Jan–Sep 2022) +29% +61% P2P +18% National +14% Payments Transactions1 Transfers Transfers +27% +17% +8% +30% Sales Cards Personal loans Sa
Slide 43: Net income of 650.7 million in the first nine months of 2023
Net income of 650.7 million in the first nine months of 2023 (Million euros) 9M22 9M23 % D Net interest income 1,545.8 2,117.5 +37.0% +571.6 Commissions 573.8 578.5 +0.8% +4.7 Core income 2,119.6 2,695.9 +27.2% +576.3 Operating costs -787.4 -854.6 +8.5% -67.2 Core operating profit 1,332.2 1,841.3 +3
Slide 44: Group Profitability
02 Group Profitability 44
Slide 45: Net interest income
Net interest income Net interest income Portugal (Consolidated, million euros) (Million euros) Net interest margin 1.45% 2.59% Net interest margin 2.38% 3.39% +63.6% 1,097.7 670.9 +37.0% 2,117.5 9M22 9M23 1,545.8 International operations (Million euros) Net interest margin 4.66% 5.06% +16.5% 1,019.7
Slide 46: Fees and commissions
Fees and commissions Fees and commissions Portugal (Consolidated, million euros) (Million euros) +0.5% +0.8% 417.7 419.8 573.8 578.5 Market-related 63.1 64.5 fees and 78.5 78.7 commissions 354.6 355.4 9M22 9M23 International operations Banking fees (Million euros) and commissions 495.3 499.7 +1.6% 1
Slide 47: Other income
Other income Other income Portugal (Consolidated, million euros) (Million euros) 74.7 -38.9 47.1 Total -55.0 96.7 98.9 45.7 -17.8 -71.3 Sale of Millennium -66.7 Equity earnings + 127.0 Financial Services Mandatory contributions 9M22 9M23 46.9 stake (80%)3 dividends 88.5 72.6 Net trading income1 74.9
Slide 48: Operating costs
Operating costs Operating costs Portugal (Consolidated, million euros) (Million euros) Cost to income1 38% 30% Cost to income1 38% 32% +3.5% 460.0 +8.5% 854.6 Non-recurring2 444.2 12.2 787.4 12.2 6.1 Non-recurring2 6.1 103.2 438.2 447.8 Depreciation 103.9 283.4 9M22 9M23 Other 251.8 administrative c
Slide 49: Cost of risk and provisions
Cost of risk and provisions Portugal Impairment and provision charges (Million euros) (Consolidated, million euros) Cost of risk 57bp 53bp -15.3% Cost of risk 55bp 50bp 273.9 +5.2% 231.9 813.9 99.7 773.6 74.2 Goodwill Bank 102.3 174.1 157.7 Millennium 9M22 9M23 482.5 -4.6% Loan-loss CHF mortgage leg
Slide 50: Relevant reduction of NPEs
Relevant reduction of NPEs Credit quality Portugal (Consolidated, billion euros) (Billion euros) -344 million -398 million -22.4% 1.54 -16.4% 1.19 NPE 2.42 2.03 Other 1.54 1.23 Sep 22 Sep 23 NPL>90d 0.88 0.79 NPE loans ratio 3.7% 3.0% Sep 22 Sep 23 NPE ratio (EBA) 2.5% 2.2% Sep 22 Sep 23 Internation
Slide 51: Group Business activity
02 Group Business activity 51
Slide 52: Customer funds
Customer funds Total Customers Funds* Total Customers Funds* Portugal (Billion euros) (Consolidated, billion euros) +1.4% -2.3% 67.17 65.64 92.38 91.07 14.56 13.90 1.34 1.34 15.50 17.59 20.89 Off-BS funds 15.89 Other BS funds 1.34 1.34 33.68 29.51 Sep 22 Sep 23 Term deposits 25.69 30.51 Total Custom
Slide 53: Loan portfolio
Loan portfolio Loans to Customers (gross) Portugal (Consolidated, billion euros) (Billion euros) -1.63 billion NPE: -16.4% (-0.4 billion) -4.0% 41.03 39.40 -3.3% -0.34 -1.29 58.62 56.66 Mortgage 27.94 Sep 22 NPE Performing Sep 23 27.53 International operations (Billion euros) Personal and 5.91 -0.33
Slide 54: Group Capital and liquidity
02 Group Capital and liquidity 54
Slide 55: Robust capital ratios
Robust capital ratios Common equity tier 1 (CET1) (Fully implemented) Fully implemented vs CET1 mandatory requirement • Significant strengthening of capital ratios. +5.5pp CET1 ratio stood at 14.9% and total capital 14.9% ratio at 19.4%, representing an increase of 11.4% 357bp and 431bp compared wit
Slide 56: Stronger capital position
Stronger capital position Leverage ratio (Fully implemented, latest available data) 6.4% 6.5% 5.3% 5.5% Leverage ratio in comfortable levels (6.5% as of 3.8% September 2023) higher when comparing to European 3.0% banks FR DE ES IT RWA density (RWAs as a % of assets, latest available data) 44% 39% RW
Slide 57: MREL requirements and execution of the Funding Plan
MREL requirements and execution of the Funding Plan (Million euros) MREL position (BCP Resolution Group - 30 Sep 2023) • Resolution strategy: MPE (Multi Point of Entry)2. • BCP Resolution Group : Perimeter centred in Portugal Proforma ~31.6% * ~12.5% * • Preferred Resolution Measure: Bail-in SP 3NC2
Slide 58: Robust liquidity position
Robust liquidity position Liquidity ratios (CRD/CRR) Liquidity excess in ECB (Billion euros) Eligible assets 24.4 24.4 244% +2.4 billion 1.0 -1.3 160% Sep 22 Sep 23 Net loans to deposits ratio 77% 73% 100% NSFR (Net stable LCR (Liquidity Sep 22 Sep 23 funding ratio) coverage ratio) 58
Slide 59: Portugal
03 Portugal 59
Slide 60: Profitability in Portugal
Profitability in Portugal Net income Net operating revenue (Million euros) (Million euros) +27.1% 1,478.7 1,163.3 +93.1% 556.8 288.4 9M22 9M23 9M22 9M23 Operating costs (Million euros) • Net income of 556.8 million in 9M23 an increase of +3.5% 93.1% from last year same period 444.2 460.0 • Net incom
Slide 61: Net interest income
Net interest income (Million euros) +63.6% +458.6 +179.0 +10.4 1,097.7 -4.5 -91.0 -122.9 670.9 2.59% -2.7 NIM 1.45% 9M22 Performing Credit rate Impact of Deposit's rate Impact of Effect of Excess liquidity 9M23 credit volume effect NPE reduction effect securities wholesale cost and other effect port
Slide 62: Commissions and other income
Commissions and other income Commissions Other income (Million euros) (Million euros) 9M22 9M23 YoY Total 74.7 -38.9 Banking fees and commissions 354.6 355.4 +0.2% Cards and transfers 110.7 120.9 +9.2% Equity earnings+ dividends 47.1 Loans and guarantees 71.8 60.2 -16.1% Bancassurance 64.1 64.0 -0.1
Slide 63: Operating costs
Operating costs Operating costs Employees (Million euros) +18 6,257 6,275 +3.5% 460.0 444.2 12.2 Non-recurring1 6.1 Depreciation 55.1 59.1 Other administrative 140.6 Sep 22 Sep 23 costs 133.5 Branches -8 408 400 Staff costs 245.5 252.0 9M22 9M23 Sep 22 Sep 23 63 1 Includes mainly costs related with
Slide 64: Continued decrease of NPEs
Continued decrease of NPEs Non-performing exposures (NPE) NPE build-up (Million euros) -344 million Sep 23 Sep 23 (Million euros) -22.4% vs. Sep 22 vs. Dec 22 1,537 Opening balance 1,537 1,361 1,192 Net outflows/inflows 9 6 Other NPE 1,091 Write-offs -175 -103 799 Sales -179 -72 NPL>90d 446 394 Endi
Slide 65: NPE coverage
NPE coverage NPE total coverage* NPL>90d total coverage* 154% 138% 203% 100% 49% 158% 55% Real estate collateral 37% Real estate collateral 2% 3% 2% Cash, other fin.collat. 100% 46% Cash, other fin.collat. 70% 2% 103% 58% 163% 1% 81% LLRs 110% LLRs 1% 28% 41% Individuals Companies Total Individuals
Slide 66: Foreclosed assets and corporate restructuring funds
Foreclosed assets and corporate restructuring funds Foreclosed assets Corporate restructuring funds (Million euros) (Million euros) 335 -50.9% Impairment 69 793 181 82 390 Net value 265 -149 million 64 711 31 Industry 117 359 RE/tourism -56.0% Sep 22 Sep 23 Sep 22 Sep 23 Sales of foreclosed assets (
Slide 67: Customer funds and loans to Customers
Customer funds and loans to Customers Total Customers Funds* Loans to Customers (gross) (Billion euros) (Billion euros) -2.28% NPE: -22.4% (-0.3 billion) 67.17 65.64 Performing: -3.3% (-1.3 billion) -3.97% Off-BS funds 14.56 13.90 41.03 39.40 Other BS funds 1.34 1.34 Term deposits 17.59 Mortgage 18.
Slide 68: Performing loans in Portugal
Performing loans in Portugal Performing loans portfolio (Billion euros) -3.3% • The Bank maintains a prominent position in the corporate segment: 39.5 38.2 ✓ Leadership in PME Leader programme for the 5th consecutive year with a 31% market share, supporting more than 3,200 companies to achieve this
Slide 69: International operations
04 International operations 69
Slide 70: Contribution from operations to consolidated net income
Contribution from operations to consolidated net income (Million euros*) 9M22 9M23 Contribution from international operations (Million euros) Poland -276.1 100.7 Mozambique 69.0 67.2 Excluding effects of +39.8% Bank Millennium2 207.4 290.0 Other -6.1 -2.5 Net income international operations -213.2 1
Slide 71: Positive evolution of net income
Positive evolution of net income Net income Net operating revenue (Million euros1) (Million euros1) +43.6% +32.1% 492.0 1,126.6 Adjusted net income2 342.5 852.6 100.7 Net income -276.1 9M22 9M23 9M22 9M23 • Net income of 100.7 million in 9M23 which compares with -276.1 million in 9M22 3m WIBOR (aver
Slide 72: Net interest income increase significantly
Net interest income increase significantly Net interest income Operating costs (Million euros*) (Million euros*) -9.9% 355.0 NIM 4.36% 4.72% 319.9 +16.4% 86.7 *** 13.1 Resol. Fund + DGF + 867.4 IPS*** 745.4 139.3 Other 120.1 148.2 167.5 Staff costs 9M22 9M23 9M22 9M23 Commissions and other income Co
Slide 73: Credit quality
Credit quality NPL>90d Loan-loss reserves (Million euros*) (Million euros*) Credit ratio Coverage ratio NPL>90d 2.2% 2.2% NPL>90d 144% 153% 549.6 560.0 381.0 365.9 Sep 22 Sep 23 Sep 22 Sep 23 Loan impairment (net of recoveries) (Million euros*) Cost of risk 40bp 44bp • NPL>90d accounted for 2.2% of
Slide 74: Customers funds and loans to Customers
Customers funds and loans to Customers Customers funds Loans to Customers (gross) (Million euros*) (Million euros*) +9.0% 24,587 -6.1% 22,547 1,605 Off-BS funds 1,385 17,641 16,573 8,523 Term deposits 7,084 Mortgage local currency 7,633 7,837 Mortgage foreign exchange 1,804 862 Personal and Demand d
Slide 75: 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% 9.4% 8.1% 6.6% 5.5% 4.6% 36.3% 41.3% 46.8% 55.8% 64.7% 73.5% (gross after legal mortgage portfolio -15%
Slide 76: Net income reflects resilience in challenging environment
Net income reflects resilience in challenging environment Net income Net operating revenue (Million euros*) (Million euros*) +6.5% -2.6% 197.3 69.0 67.2 185.3 9M22 9M23 9M22 9M23 MIMO rate (average) 14.60% 17.25% Operating Costs • Net income of 67.2 million in 9M23, a 2.6% (Million euros*) reduction
Slide 77: Increased net interest income
Increased net interest income Net Interest income Operating costs (Million euros*) (Million euros*) NIM 7.9% 8.6% Cost to income 43.8% 46.7% +7.5% 141.6 152.3 +13.5% 92.1 81.2 Other 47.2 55.1 Staff costs 34.0 37.0 9M22 9M23 9M22 9M23 Commissions and other income Employees Branches (Million euros*) +
Slide 78: Credit quality
Credit quality NPL>90d Loan-loss reserves (Million euros*) (Million euros*) Credit ratio Coverage ratio NPL>90d 9.7% 4.9% NPL>90d 103% 79% 67.5 69.5 33.7 26.8 Sep 22 Sep 23 Sep 22 Sep 23 Loan impairment (net of recoveries) (Million euros*) Cost of risk 181bp 167bp • NPL>90d ratio of 4.9% as of Septe
Slide 79: Business volumes
Business volumes Customers funds Loans to Customers (gross) (Million euros*) (Million euros*) -2.0% -0.8% 2,108 2,066 697 692 Mortgage 11 11 Personal and other 156 196 Term deposits 1,155 1,049 Companies 530 485 Demand deposits 953 1,018 Sep 22 Sep 23 Sep 22 Sep 23 *FX effect excluded. €/Metical con
Slide 80: Key figures
05 Key figures 80
Slide 81: Strategic Plan: Excelling 24
Strategic Plan: Excelling 24 9M23 2024 C/I ratio 32%* ✓ ≈40% Cost of risk 50 bp ✓ ≈50 bp RoE 16.7% ✓ ≈10% CET1 ratio 14.9% ✓ >12.5% NPE ratio 3.6% ✓ ≈4% Share of mobile Customers 66% ✓ >65% Growth of high engagement Customers** (vs 2020) +12.6% ✓ +12% Average ESG rating*** 69% >80% *Adjusted cost to
Slide 82: Commitment to people and society
COMMITMENT TO PEOPLE AND SOCIETY Millennium bcp Foundation Society Sustainability National Museum Soares dos Reis: Portreto de Millennium bcp is, according to Global Millennium Volunteers with Bipp/SEMEAR, in la animo exhibition, which presents portraits Finance magazine, “Best Bank for another pres
Slide 83: Awards
Awards new Bank Millennium: Second place on the Millennium bcp: “Best Digital Bank 2023” Forbes “Poland´s Best Employers 2023” App Millennium: “2023 Product of the Year", in Portugal ranking, on Banks and Financial Services on the “Banking App” category category Millennium bcp: “Best Investment Bank
Slide 84: Appendix
Appendix 84
Slide 85: Sovereign debt portfolio
Sovereign debt portfolio Sovereign debt portfolio Sovereign debt maturity (Consolidated, million euros) >5y, ≤8y: 32% Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 YoY QoQ Portugal 6,882 6,295 6,908 6,534 6,188 -10% -5% >8y, ≤10y: 8% T-bills and other 461 310 810 421 109 -76% -74% Bonds 6,421 5,985 6,098 6,113
Slide 86: Sovereign debt portfolio
Sovereign debt portfolio (Million euros) Portugal Poland Mozambique Other Total Trading book 188 51 0 413 652 ≤ 1 year 135 1 0 408 543 > 1 year and ≤ 2 years 4 2 0 0 6 > 2 years and ≤ 5 years 39 4 0 5 48 > 5 years and ≤ 8 years 6 7 0 0 12 > 8 years and ≤ 10 years 2 2 0 0 4 > 10 years 3 35 0 1 38 Ban
Slide 87: Diversified and collateralised portfolio
Diversified and collateralised portfolio Loan portfolio (Consolidated) LTV of the mortgage portfolio Breakdown Loans per collateral in Portugal Other 75-80 Mortgage guarantees 60-75 9% 49% 27% 28% 80-90 Companies 12% 40% Real >90 guarantees 3% 58% 50-60 Unsecured 0-40 15% 15% 21% 40-50 12% Personal/
Slide 88: Consolidated net income
Consolidated net income Impact on (Million euros) 9M22 9M23 YoY earnings Net interest income 1,545.8 2,117.5 +37.0% +571.6 Net fees and commissions 573.8 578.5 +0.8% +4.7 Other income* -55.0 96.7 +151.7 Net operating revenue 2,064.7 2,792.7 +35.3% +728.0 Staff costs -431.8 -468.0 +8.4% -36.2 Other a
Slide 89: Consolidated balance sheet
Consolidated balance sheet (Million euros) 30 September 30 September 2022 30 September 30 September 2022 2023 (restated) 2023 (restated) ASSETS LIABILITIES Cash and deposits at Central Banks 3,525.8 3,122.9 Financial liabilities at amortised cost Loans and advances to credit institutions repayable o
Slide 90: Consolidated income statement per quarter
Consolidated income statement per quarter (Million euros) Quarterly 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Net interest income 560.7 603.9 664.6 709.8 743.1 Dividends from equity instruments -3.6 0.8 0.0 1.1 0.0 Net fees and commission income 186.2 198.1 195.4 191.6 191.4 Other operating income -1.5 -6.2 -6.
Slide 91: Income statement
Income statement (Million euros) For the 9-month periods ended September 30th, 2022 and 2023 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 2 Sep 2 3 Δ % Sep 2 2 Sep 2 3 Δ % Sep 2 2 Sep
Slide 92: Glossary (1/2)
Glossary (1/2) Assets placed with Customerss – 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. Bu
Slide 93: 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 94: Other information
l= < @ 05) OTHER INFORMATION
Slide 95: The NPE reduction plan is being implemented
The NPE reduction plan is being implemented Reconciliation of NPLs>90d with NPEs (EBA definition) NPEs down €11.6 billion from end-2013 NPLs>90d vs NPEs (Portugal, billion euros) (Portugal, billion euros, September 2023) 12.8 -2.9 -4.9 +0.1 +0.5 1.2 +0.2 1.2 +0.0 0.4 -3.9 Dec 13 Net new Write-offs S
Slide 96: 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 Stable Outlook BBB- Baa3 Outlook BB+ Ba1 BB Ba2 BB- Ba3 B+ B1 B B2 2016 2017 2018 2019 2020 2021 2022 2
Slide 97: Senior debt Ratings
Senior debt Ratings BCP has been upgraded by Rating Agencies reflecting the progress in NPA reduction, strengthening of capitalization levels and improvement in profitability Negative Stable Negative Stable Stable Upgrade Upgrade Positive Upgrade Positive Positive Positive Upgrade Upgrade Upgrade Ou
Slide 98: 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 99: Progress recognised by the market
Progress recognised by the market CDS 5 yr Portuguese vs 3m Republic Euribor CDS 5 yr BCP (Basis points) (Basis points) 400 1000 300 800 600 200 400 100 200 0 0 J-17 J-17 J-18 J-18 J-19 J-19 J-20 J-20 J-21 J-21 J-22 J-22 J-23 J-23 S-16 M-17 S-17 M-18 S-18 M-19 S-19 M-20 S-20 M-21 S-21 M-22 S-22 M-23
Slide 100: Wholesale funding - Deals executed in 2023, 2022 and 2021
Wholesale funding - Deals executed in 2023, 2022 and 2021 in Euro Capital Markets 6.5nc5.5 Social Sen .Pref. Notes 10.5nc5.5 Tier2 Notes 3nc2 Senior Preferred Notes 3nc2 Senior Preferred Notes Issuer: Banco Comercial Português, S.A. Issuer: Banco Comercial Português, S.A. Issuer: Banco Comercial Por
Slide 101: 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 — Investor Presentation (November 2023) on 6ix