Banco Comercial Portugues S.a. · EURONEXT:BCP
Banco Comercial Portugues — H1 2024 Earnings Presentation
60 slides from Banco Comercial Portugues's earnings presentation, Jul 31, 2024
Slide 1: Earnings Presentation
Earnings Presentation M Millennium ~
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 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 6: 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 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-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 8: 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 9: Group Profitability
02 Group Profitability 9
Slide 10: Net interest income
Net interest income Group Portugal (Consolidated, million euros) (Million euros) Net interest 2.52% 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 11: 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 12: 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 13: 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 14: 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 15: 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 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 +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 18: 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 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 16.2% 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 21: 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 22: 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 23: 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 24: 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 25: Portugal
03 Portugal 25
Slide 26: Profitability in Portugal
Profitability in Portugal Net income Net operating revenue (Million euros) euros*) (Million euros) (Million 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
Slide 27: 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 28: 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 29: 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 29
Slide 30: 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 31: 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 32: 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 33: 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 34: Performing loans in Portugal
Performing loans in Portugal Performing loans portfolio 1 (Billion euros) The Bank maintains a prominent position in the corporate segment: -3.0% 38.6 ✓ Leadership in PME Leader programme for the 6th consecutive 37.5 year with a 33% market share ✓ Leadership in Inovadora COTEC programme for the 4th
Slide 35: International operations
04 International operations 35
Slide 36: 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 37: 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 38: 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 39: 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 40: 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 41: CHF mortgages
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 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 9M2
Slide 42: 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*) -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 43: 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 8.9% 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 H
Slide 44: 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 45: 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 46: Key figures
05 Key figures 46
Slide 47: 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 48: 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 49: 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 50: Appendix
06 Appendix 50
Slide 51: 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 52: 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 53: 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 54: 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 55: 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 56: 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 57: 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 58: 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 59: 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 60: 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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