Banco Comercial Portugues S.a. · EURONEXT:BCP
Banco Comercial Portugues — FY2024 Earnings Presentation
60 slides from Banco Comercial Portugues's earnings presentation, Feb 26, 2025
Slide 1: Banco Comercial Portugués Earnings Presentation 2024
Banco Comercial Portugués, S.A. Earnings Presentatio 2024 ial Millennium bcp
Slide 2: Disclaimer
Disclaimer l The information in this presentation has been prepared under the scope of the International Financial Reporting Standards (‘IFRS’) of BCP Group for the purposes of the preparation of the consolidated financial statements under Regulation (CE) 1606/2002, as amended. l The figures present
Slide 3: Agenda
AGENDA 3
Slide 4: Highlights
01 Highlights 4
Slide 5: A Solid and Efficient Bank
A Solid and Efficient Bank ▪ Group’s net income of 906.4 million in 2024, representing an increase of 5.9% when compared to the same period of 2023, ▪ In Portugal, net income amounted to 786.4 million in 2024, corresponding to an increase of 8.5% compared to the same period of 2023 ▪ Bank Millennium
Slide 6: Customer base growth
Customer base growth Based on the quality of the Teams and distinctive digital skills Group ‘000 Customers Customer Active 6,701 6,979 Recognition +456 As % of active 4,980 Customers 4,525 +10% 71% Mobile Dec 23 Dec 24 +388 5,091 5,479 79% +8% Digital Portugal ‘000 Customers Active 2,705 2,780 +189
Slide 7: Innovation focused on Customer needs
Innovation focused on Customer needs translates into accelerated growth in Mobile usage and sales Strong mobile growth Y/Y (Number of operations, Jan-Dec 2024 vs Jan–Dec 2023) +20% +47% P2P +30% National +11% Payments Transactions1 Transfers Transfers +32% +24% +8% +36% Sales Cards Personal loans (#
Slide 8: Net income of 906.4 million in 2024
Resultado líquido de XXX milhões no primeiro trimestre de 2024 Net income of 906.4 million in 2024 (Million euros) 2023 2024 % D Net interest income 2,825.7 2,830.9 +0.2% +5.1 Commissions 771.7 808.5 +4.8% +36.9 Core income 3,597.4 3,639.4 +1.2% +42.0 Operating costs -1,162.6 -1,307.2 +12.4% -144.7
Slide 9: Group: Profitability
02 Group Profitability 9
Slide 10: Net interest income
Net interest income Group Portugal (Consolidated, million euros) (Million euros) Net interest 2.59% 2.21% Net interest margin margin 3.36% 3.04% -9.0% +0.2% 1,466.6 1,335.3 2,825.7 2,830.9 2023 2024 International operations (Million euros) Net interest 4.93% 4.56% margin +10.0% 1,359.1 1,495.6 2023
Slide 11: Fees and commissions
Comissões Fees and commissions Group Portugal (Consolidated, million euros) (Million euros) +4.8% 808.5 771.7 +5.0% 560.3 588.3 Market-related 124.5 108.5 88.9 97.4 fees and commissions 471.4 491.0 2023 2024 International operations (Million euros) Banking fees 663.2 684.1 +4.2% and commissions 211.
Slide 12: Other income
Outros proveitos Other income Group Portugal (Consolidated, million euros) (Million euros) 8.5 37.9 59.1 53.6 14.4 9.1 172.3 -24.8 -65.0 Sale of Millennium Financial 139.1 Services stake (80%)1 2023 2024 Regulatory contributions 72.6 40.0 33.1 -64.7 Of which: Banking sector 37.9 27.8 Resolution Fund
Slide 13: Operating costs
Operating costs Group Portugal (Consolidated, million euros) (Million euros) Cost to income1 32%1 37% Cost to income 30% 34% +9.1% +12.4% 673.1 1,307.2 616.7 73.1 73.5 1,162.6 144.8 188.7 207.9 +10.4% Depreciation 137.5 354.8 391.7 440.5 Other 2023 2024 administrative costs 393.2 International opera
Slide 14: Cost of risk and provisions
Cost of risk and provisions Group Portugal (Consolidated, million euros) (Million euros) Cost of risk 54bp 31bp2 Cost of risk 42bp 1 32bp 2 -36.5% 368.4 -22.0% 160.8 233.9 1,099.8 114.4 207.6 119.4 857.5 2023 2024 CHF mortgage legal -26.2% -11% 623.0 Loan-loss risk (Poland)3 reserves 989 880 459.8 I
Slide 15: Continued decrease of NPEs
Continued decrease of NPEs Group Portugal millioneuros) (Consolidated, billion euros) (Billion (Million euros) euros) -134 million -127 million -12.1% 1.107 0.973 -6.5% NPE 1.95 1.82 Other 1.20 1.03 Dec 23 Dec 24 NPL>90d 0.75 0.80 NPE loans ratio 2.9% 2.5% Dec 23 Dec 24 NPE ratio (EBA) 2.0% 1.7% Dec
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 +8.0% 102.9 +5.8% 66.7 70.5 95.3 15.0 14.2 17.6 1.3 1.3 22.8 25.6 Off-BS funds 16.1 1.3 +5.9% Other BS funds 1.3 28.3 28.7 36.1 Dec 23 Dec 24 Term deposits 32.9 International operations
Slide 18: Loan portfolio
Loan portfolio Group Portugal (Consolidated, billion (Consolidated, millioneuros) euros) (Billion (Millioneuros) euros) -0.25 billion NPE: -6.5% (-0.127 billion) -0.7% 38.62 38.37 +0.7% -0.13 -0.12 56.8 57.2 Dec 23 NPE Performing Performing Dec 24 Mortgage 28.0 28.7 International operations (Billion
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)1 (Fully implemented) Fully implemented vs requirement 16.3% +6.6pp • CET1 capital ratio of 16.3% and total capital ratio 15.4% of 20.6%, including the share buyback programme amounting to 200 million approved +10.4pp 9.74% by the supervisor, correspon
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% 5.4% 3.8% Leverage ratio in comfortable levels (6.4% as of December 2024) higher when comparing to 3.0% European banks FR DE ES IT RWA density (Milhões (RWAs asd
Slide 22: MREL requirements and Funding Plan
MREL requirements and Funding Plan MREL position (BCP Resolution Group - 31 Dec 2024)* 34.4% 12.3% • Resolution strategy: MPE (Multi Point of Entry)2 7.8% SP SP 2.8% • BCP Resolution Group : Perimeter centred in Portugal • Preferred Resolution Measure: Bail-in 3.8% T2 T2 1.4% • No subordination requ
Slide 23: Pension fund
Fundo de pensões Pension fund Pension fund coverage Structure of pension fund (Million euros) (Million euros) Coverage 113% 105% Real-estate: Pension fund 3.470 3.351 17% Cash and other: 5% Pension Equities: 3% liabilities 3,080 3,203 Bonds: 59% Investment Funds: 15% Fundo de pensões Dec 23 Dec 24 P
Slide 24: Robust liquidity position
Robust liquidity position Liquidity ratios (CRD/CRR) Liquidity excess in ECB (Million (Milhõeseuros) de euros) (Billion euros) Eligible assets 25.8 30.9 342% +0.77 billion 2.82 2.05 Dec 23 Dec 24 181% Net loans to deposits ratio 71% 66% 100% NSFR (Net stable LCR (Liquidity Dec 23 Dec 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*) +8.5% 724.9 786.4 -3.6% 2,035.4 1,961.5 2023 2024 2023 2024 Operating Costs Impairment and other provisions (Millioneuros) (Million euros*) (Million (Millioneuros*) euros) +9.1% 616.7
Slide 27: Net interest income
Net interest income (Million euros) -9% 1,466.6 +63.6 +41.2 1,335.3 +166.3 -10.5 -33.9 NIM 2.59% -26.4 2.21% -331.7 2023 Performing Credit rate Impact of Deposit's Impact of Effect of Excess 2024 credit volume including NPE reduction interest securities wholesale cost liquidity effect hedges effect
Slide 28: Commissions and other income
Commissions and other income Commissions Other income (Milhõeseuros) (Million de euros*) (Milhões de euros*) (Million euros) 8.5 2023 2024 YoY 37.9 Banking fees and commissions 471.4 491.0 +4.2% Equity earnings + dividends 59.1 Cards and transfers 158.3 156.9 -0.9% 53.6 Loans and guarantees 81.5 79.
Slide 29: Operating costs
Operating costs Operating Costs Employees (Million (Milhõeseuros) de euros) 6,242 6,203 +9.1% 673.1 616.7 73.5 Depreciation 73.1 207.9 Dec 23 Dec 24 Other administrative 188.7 costs Branches 399 398 391.7 Staff costs 354.8 2023 2024 Dec 23 Dec 24 29
Slide 30: NPEs decrease
NPEs decrease Non-performing exposures (NPE) NPE build-up (Million (Milhõeseuros) de euros*) (Million (Milhõeseuros) de euros*) -134 million (Million euros) Dec 24 Dec 24 vs. Dec 23 vs. Sep 24 -12.1% 1,107 Opening balance 1,107 1,045 973 Net outflows/inflows 220 4 Other NPE 747 Write-offs -116 -17 5
Slide 31: NPE coverage
NPE coverage NPE total coverage* NPL>90d total coverage* 152% 126% 134% 138% 24% 100% 2% Real estate collateral 100% 38% 29% 46% Real estate collateral 2% Cash, other fin. collat.. 1% 52% 1% Cash, other fin. collat. 126% 70% 1% 86% 104% 90% LLRs LLRs 1% 46% 29% 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*) 169 365 344 Turismo Algarve Impairment 68 92 FCR fund * 41 41 Net value -52 million 44 Corporate 325 303 100 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) +5.8% 70.5 66.7 -0.7% 15.0 Off-BS funds 14.2 1.3 38.6 38.4 Other BS funds 1.3 Term deposits 22.8 25.6 Mortgage 18.8 19.5 Personal and other
Slide 34: Performing loans in Portugal
Performing loans in Portugal Performing loans portfolio Performing loans to individuals increase by 4.6%, with a highlight on the mortgage loan portfolio reaching 19.3 billion (Billion euros) The Bank maintains a prominent position in the corporate segment: -0.3% 37.5 37.4 ✓ Leadership in PME Leader
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) 2023 2024 (Million euros) Poland 133.7 167.1 Excluding +2.7% extraordinary 397.9 408.9 Mozambique 3 105.5 48.5 effects of Bank Millennium1 Other 4 -4.2 3.9 Net income international operat
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*) +7.0% 743.8 -10.9% 695.2 1,563.8 Net income Excluding 1,392.9 extraordinary effects2 +24.9% Net income 133.7 167.
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*) +13.0% NIM 4.60% 4.36% 523.3 463.0 +7.2% 1,310.8 245.2 Other 1,222.6 222.6 240.3 278.0 Staff costs 2023 2024 2023 2024
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 157% 149% 374.5 394.8 588.8 587.9 Dec 23 Dec 24 Dec 23 Dec 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*) +11.2% +1.8% 30,021 26,997 2,603 17,808 18,120 Off-BS funds 1,920 9,479 Term deposits 9,121 9,174 Mortgage 9,352 Personal and 4,608 17,939 other
Slide 41: CHF mortgages decrease by 26% year-on-year
CHF mortgages decrease by 26% year-on-year CHF mortgage portfolio Individual lawsuits (Billion euros*) (Number of cases) % of gross loan 54.6% 3.6% 2.9% 2.4% 2.2% 1.5% portfolio after legal risk provisions 20,914 21,854 -26% 7.2 16,008 -9% 11,070 Gross loan 2.0 1.9 1.8 1.6 1.5 portfolio before legal
Slide 42: Millennium bim's results influenced by the context
Millennium bim's results influenced by the context Net income Net operating revenue (Million (Milhõeseuros *) de euros*) (Million (Milhõeseuros*) de euros*) -54.1% -0.9% 105.5 264.8 262.3 48.5 2023 2024 2023 2024 MIMO rate (average) 17.25% 14.97% Operating costs • Net income of 48.5 million, a reduc
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 8.5% 7.9% Cost to income 47.7% 50.2% +4.4% +0.6% 126.2 131.7 202.6 203.8 75.8 78.0 Other Staff costs 50.3 53.7 2023 2024 2023 20
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 3.2% 3.8% NPL>90d 133% 106% 22.5 27.4 29.8 29.0 Dec 23 Dec 24 Dec 23 Dec 24 Loan impairment (net of recoveries) (Million (Milhõeseuros*) de euros)* •
Slide 45: Business volumes
Business volumes Customers funds Loans to Customers (gross) (Million euros*) (Milhões de euros*) (Milhõeseuros (Million de euros*) *) +7.1% +1.9% 2,378 714 700 2,221 11 10 Mortgage Personal and 215 261 1,136 other Term deposits 1,171 Companies 475 443 1,242 Demand deposits 1,050 Dec 23 Dec 24 Dec 23
Slide 46: Key figures
05 Key figures 46
Slide 47: Deliver more value
Deliver more value Main targets for strategic cycle 2025-2028 Metrics 2024 2028 Business volumes 160€bn > 190€bn Portugal 109€bn > 120€bn Healthy Number of customers 7.0mn > 8mn organic Portugal 2.8mn > 3mn growth Mobile customers 71% >80% Portugal 63% > 75% Cost-to-income 37% < 40% Execution Portug
Slide 48: Commitment to People and Society
COMMITMENT TO PEOPLE AND SOCIETY Millennium bcp Foundation Society Sustainability National Museum of Contemporary Social Responsibility Campaign In 2025, Millennium bcp is “Best Art/ Millennium bcp gallery “Millennium Solidário 2024”, brings Bank for Sustainable Finance in inaugurated two exhibition
Slide 49: External Recognition
EXTERNAL RECOGNITION Millennium bcp: Corporate Millennium bcp: 2025 Bank Millennium: Newsweek ranking Responsibility Program distinguished by winner in the categories of “Traditional Consumer’s Choice, in the the Fosun Foundation “Large Banks” category for the Banking” and 'Remote Banking” Millenniu
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*) Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 YoY QoQ >5y, ≤8y: 16% Portugal 5,656 6,357 7,109 6,656 4,903 -13% -26% T-bills and other 104 721 1,466 947 985 >100% +4%
Slide 52: Sovereign debt portfolio breakdown
Sovereign debt portfolio breakdown Million euros Portugal Poland Mozambique Other Total Trading book 892 130 0 271 1,293 ≤ 1 year 883 1 0 271 1,154 > 1 year and ≤ 2 years 1 83 0 0 84 > 2 years and ≤ 5 years 6 27 0 0 33 > 5 years and ≤ 8 years 2 13 0 0 15 > 8 years and ≤ 10 years 0 6 0 0 7 > 10 years
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 guarantees 60-75 Mortgage 9% 25% 28% 50% 80-90 Companies 12% 37% Real >90 guarantees 2% 58% Unsecured 50-60 16% 0-40 16% 21%
Slide 54: Consolidated net income
Consolidated net income Impact on (Million euros) 2023 2024 YoY earnings Net interest income 2,825.7 2,830.9 +0.2% +5.1 Net fees and commissions 771.7 808.5 +4.8% +36.9 Other income* 172.3 -64.7 - -237.0 Net operating revenue 3,769.7 3,574.6 -5.2% -195.0 Staff costs -631.8 -722.0 +14.3% -90.2 Other
Slide 55: Consolidated balance sheet
Consolidated balance sheet 30 December (Million euros) 30 December 31 December 2023 31 December 2023 2024 2024 (restated) * (restated) * LIABILITIES ASSETS Financial liabilities at amortised cost Cash and deposits at Central Banks 5,589.0 4,545.5 Deposits from credit institutions and other funds 777
Slide 56: Consolidated income statement per quarter
Consolidated income statement per quarter Quarterly (Million euros) 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 Net interest income 708.3 696.2 701.3 713.2 720.1 Dividends from equity instruments 0.6 0.0 0.8 0.0 0.2 Net fees and commission income 193.2 196.4 199.6 205.7 206.8 Other operating income 17.9 -31.4 -39
Slide 57: Consolidated income statement
Consolidated income statement (Million euros) For the 12-month periods ended December 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 D ec 2 3 D ec 2 4 Δ % D ec 2 3 D ec 2
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 commissions - net fees and commissions income. Net interest margin (NIM) - net interest income for the period as a percentage of average interest earning assets. Net operating revenues - net interest income, dividends from equity instruments, net commissions, net trading income, o
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
Banco Comercial Português — FY2024 Earnings Presentation on 6ix