Banco Comercial Português S A : Millennium bcp Earnings release as at 31 December

About this update from Banco Comercial Portugues S.a.

25 February 2026 Millennium bcp Earnings release as at 31 December 2025 Supporting the Economy and Generating Value Profitability Business model In 2025, the Group's net income amounted to EUR 1,018.6 million , corresponding to an increase of 12.4% compared to the previous year. This performance resulted in a ROE of 14.1% (13.8% in 2024) and in a EPS of EUR 0.066 ( +14.3% compared to 2024), reflecting the Bank's capacity to generate value. Net income in the activity in Portugal increased by 10.6% reaching EUR 869.4 million in 2025 , compared to EUR 786.4 million in 2024. Net income 1 from international operations increased by 33.0% , reaching EUR 291.9 million in 2025 , compared to EUR 219.5 million in 2024. Highlight to Bank Millennium , which recorded a net income of EUR 283.7 1 million in 2025 , corresponding to a change of 67.1% 2 compared to 2024. Charges associated with CHF mortgage loan portfolio fell by 34.1% 3 , compared to the last year , standing at EUR 502.4 million in 2025. Solid capital ratios, CET1 4 ratio stood at 15.9% and total capital ratio 4 at 19.9% . Liquidity indicators 5 well above regulatory requirements : LCR at 334% , NSFR at 180% and LtD at 68% . Eligible assets available to discount at ECB of EUR 33 billion. Group's Loans to customers grew 7.3% to EUR 62.6 billion and total Customer funds increased 8.6% to EUR 111.8 billion compared to December 2024. In Portugal, Loans to Customers increased by 9.3% (EUR +3.7 billion) and total customer funds increased by 6.3% (EUR +4.5 billion). Significant reduction in non-performing assets , highlighting the decrease in the NPE of the Group of EUR 322 million , compared to December 2024. Cost of risk of the Group stood at 32 bp in 2025 , which compares with 31 bp 6 in the previous year. In Portugal, cost of risk stood at 31 bp in 2025 , compared to 30 bp 6 in the previous year. More than 7.3 million active Customers , highlighting the 9% increase in mobile Customers, which represented 74% of the Customer base in December 2025. 1 Before non-controlling interests. 2 FX effect excluded. 69.8% with FX effect. 3 Includes provisions for legal risk, costs with out-of-court settlements and legal advice. Does not include provisions for legal risk on CHF mortgages of Euro Bank (guaranteed by a third party). Before taxes, non-controlling interests and FX effect excluded. Reduction of 33.0% with FX effect. 4 Fully implemented estimated ratio including 25% of the unaudited net income of 2025. 5 Liquidity Coverage Ratio (LCR); Net Stable Funding Ratio (NSFR); Loans to Deposits Ratio (LtD). 6 Cost of risk including an impairment reversal occurred in Q2'24. Without this effect cost of risk stood at 39bp in the Group and 42bp in the activity in Portugal in 2024. FINANCIAL HIGHLIGHTS (1) million EUR 31 Dec. 25 31 Dec. 24 Chg. (restated 2 ) 25/24 BALANCE SHEET Total assets 109,333 102,144 7.0 % Equity 9,061 8,193 10.6 % Loans to customers (net) 61,240 56,850 7.7 % Total customer funds 111,782 102,938 8.6 % Balance sheet customer funds 91,287 85,334 7.0 % Deposits and other resources from customers 89,749 84,042 6.8 % Loans to customers (net) / Deposits and other resources from customers 68.2 % 67.6 % Loans to customers (net) / Balance sheet customer funds 67.1 % 66.6 % RESULTS Net interest income 2,898.1 2,830.9 2.4 % Net operating revenues 3,815.2 3,573.5 6.8 % Operating costs 1,415.1 1,306.1 8.3 % Operating costs excluding specific items (3) 1,391.8 1,293.5 7.6 % Results on modification (5.3) (68.5) 92.2 % Loan impairment charges (net of recoveries) 199.5 183.3 8.8 % Other impairment and provisions 625.9 674.2 (7.2 %) Income tax 408.7 341.3 19.8 % Net income 1,018.6 906.4 12.4 % PROFITABILITY AND EFFICIENCY Return on average assets (ROA) 1.1 % 1.0 % Return on equity (ROE) 14.1 % 13.8 % Return on tangible equity (ROTE) 14.7 % 14.4 % Net interest margin 2.89 % 3.04 % Cost-to-core income (3) 37.2 % 35.5 % Cost-to-income 37.1 % 36.5 % Cost-to-income (3) 36.5 % 36.2 % Cost-to-income - Activity in Portugal (3) 34.2 % 33.6 % Staff costs / Net operating revenues (3) 20.2 % 19.9 % CREDIT QUALITY Cost of risk (net of recoveries, in b.p.) (4) 32 31 Non-Performing Exposures (loans to customers) / Loans to customers 2.4 % 3.1 % Total loan impairments (balance sheet) / NPE (loans to customers) 90.9 % 82.2 % Restructured loans / Loans to customers 1.8 % 2.6 % LIQUIDITY Liquidity Coverage Ratio (LCR) 334 % 342 % Net Stable Funding Ratio (NSFR) 180 % 181 % CAPITAL (5) Common equity tier I phased-in ratio 16.1 % 16.4 % Common equity tier I fully implemented ratio 15.9 % 16.3 % Total ratio fully implemented 19.9 % 20.6 % BRANCHES Activity in Portugal 389 398 (2.3 %) International activity 781 801 (2.5 %) EMPLOYEES Activity in Portugal 6,046 6,203 (2.5 %) International activity (6) 9,701 9,461 2.5 % Notes: Some indicators are presented according to management criteria of the Group, with concepts described and detailed in the Glossary. In the first quarter of 2025, the Bank recognised as other net operating income the costs associated with property valuation related to mortgage loans, recognised as credit and guarantees commissions and as other administrative costs in previous periods. The historical amounts of such items considered for the purposes of this analysis have been reclassified with the purpose of ensuring their comparability, differing, therefore, from the disclosed accounting amounts. In 2024, the impact of these reclassifications was EUR -5.3 million in other net operating income, offset by net commissions (EUR +4.2 million) and other administrative costs (EUR -1.1 million). Additionally, in the second quarter of 2025, some amounts booked in commissions were reclassified, in order to improve the quality of the information reported. The historical amounts of such items are presented considering these reclassifications with the purpose of ensuring their comparability. The impact in 2024 was EUR +1.3 million in commissions associated with cards and transfers, offset by EUR -1.6 million in commissions related to management and maintenance of accounts and EUR +0.4 million in other banking commissions. The overall amount of net commissions disclosed in previous periods remains unchanged compared to that published in previous periods. In the second quarter of 2025, the Bank reclassified a portfolio of debt instruments associated to credit operations, previously included in the Securities Portfolio (Debt securities held not associated with credit operations), now recognising them as Loans to Customers (Debt securities held associated with credit operations). The historical amounts considered for the purposes of this analysis are presented according to this reclassification, aiming to ensure their comparability, thus differing from the disclosed accounting amounts (impact of EUR 1,147 million before impairment in December 2024). The balance sheet impairment associated with these operations amounted EUR 4 million in December 2024. Consequently, the impact net of impairment on Loans to Customers portfolio and on Securities portfolio was EUR 1,143 million on 31 December 2024. This accounting reclassification also led to the reclassification of the respective results, namely from other impairment and provisions to loan impairment (EUR 0.9 million in December 2024). The results arising from these operations, associated with both net interest income and net trading income, were also reclassified, although the total amount of each item presented in this analysis did not change compared to the amounts disclosed in previous periods. All indicators associated with the aforementioned reclassifications have been restated accordingly. Excludes the impact of specific items: negative impacts of EUR 23.3 million in 2025 and EUR 12.6 million in 2024. In both years, specific items were recognised in staff costs in the activity in Portugal including costs with employment terminations, namely early retirements and indemnifications and the reversal of costs with mortgage financing to former employees. In 2024, specific items also include income recognised after an agreement related to liabilities with former directors of the Bank. Includes the impact of certain impairments reversal occurred in the activity in Portugal in the second quarter of 2024. Excluding this impact, the Group 's cost of risk in 2024 was 39 b.p. The capital ratios as at 31 December 2025 are estimated, including 25% of the unaudited net income of the year 2025. Of which, in Poland: 7,023 employees as at 31 December 2025 (corresponding to 6,906 FTE - full-time equivalent) and 6,836 employees as at 31 December 2024 (corresponding to 6,714 FTE - full-time equivalent). In 2025, Bank Millennium, S.A. introduced a change in the method of calculating the effective interest rate (EIR) applied to the measurement of mortgage loans with periodically fixed interest rates. The purpose of the introduced change was to ensure a better reflection of the economic substance of the transactions and to enhance consistency between the accounting approach and the interest rate risk management framework, as well as the methodologies applied within the Group. INSTRUCTION No. 16/2004 FROM BANCO DE PORTUGAL Following the publication of Banco de Portugal Instruction No. 17/2025, which amends Instruction No. 16/2004 concerning the indicators to be used by credit institutions in the disclosure of the information to the public, we have included in the table below the relevant indicators calculated in accordance with the version of the instruction currently in force. This amendment aims to align the indicators to be disclosed to the public with the definitions and criteria used by the European Banking Authority (EBA), specifically associating the calculation formulas for these indicators with specific elements of the Financial/Accounting Reporting Framework for Supervisory Purposes (FINREP -Common Reporting Framework). Accordingly, unlike the remaining information disclosed in this release, which is based on the full consolidation perimeter, these indicators are calculated using the prudential perimeter. FINANCIAL HIGHLIGHTS ACCORDING TO INSTRUCTION No. 16/2004 FROM BANCO DE PORTUGAL, AS THE CURRENTLY EXISTING VERSION 31 Dec. 25 31 Dec. 24 PROFITABILITY Net income / Total assets 1.1 % 1.0 % Net operating revenues / Total assets 3.7 % 3.7 % Net income / Equity 13.5 % 13.0 % EFFICIENCY Cost-to-income ratio 36.7 % 36.3 % Staff costs / Net operating revenues 20.5 % 20.0 % LOANS TO DEPOSITS Loans and advances to non financial corporations and households / Deposits from non financial corporations and households 64.4 % 64.0 % PROFITABILITY ANALYSIS NET INCOME In 2025, the consolidated net income of Millennium bcp amounted to EUR 1,018.6 million, corresponding to a 12.4% growth compared to the EUR 906.4 million achieved in the previous year and to a return on equity (ROE) of the Group of 14.1% (13.8% in 2024). The growth of the net income of the Group compared to the previous year was determined by the favourable performance of both the activity in Portugal and the Polish subsidiary, with the results of Millennium bim in Mozambique being lower than those achieved in 2024, influenced by the impacts associated with the local sovereign debt. Compared to the previous year, net income of the Group benefitted from the favourable evolution of core income, net trading income, results on modification, impairments and provisions and other net operating income. On the other hand, operating costs increased compared to 2024. Equity accounted earnings and dividends from equity instruments, in turn, did not change materially having a less significant impact on the evolution of net income of the Group. The performance of net income of the Group compared to the previous year largely benefitted from the growth of 2.8% (EUR +101.9 million) in core income, to EUR 3,745.4 million at the end of the current year. The increase in the core income of the Group was mainly driven by the evolution of net interest income, which stood 2.4% (EUR +67.2 million) above the amount recorded in 2024, reaching EUR 2,898.1 million at the end of 2025, essentially reflecting the contribution of the international activity. Net commissions of the Group, in turn, largely influenced by the evolution of the activity in Portugal, also recorded an increase, of 4.3% (EUR +34.7 million), compared to the previous year, totalling EUR 847.4 million at the end of 2025. The significant increase of net trading income of the Group, from EUR 5.0 million in 2024 to EUR 105.6 million in 2025 (EUR +100.6 million), also contributed largely to the favourable performance of net income of the Group, mainly due to the reduction in costs incurred by the Polish subsidiary in converting mortgage loans granted in Swiss francs, following the agreements with customers, due to the utilisation, in 2025, of provisions booked for this purpose. Results on modification, exclusively recognised in the Polish subsidiary, also contributed largely to the favourable performance of the net income of the Group in the last year, evolving from a negative amount of EUR 68.5 million in 2024 to an also negative amount of EUR 5.3 million at the end of the current year (EUR +63.2 million). This performance reflects, on one hand, the favourable evolution of results associated with contractual modifications negotiated with customers with foreign exchange mortgage loans and, on the other, the fact that, in the previous year, costs in the amount of EUR 26.2 million, arising from the moratorium programme on mortgage loans denominated in Zlotys (credit holidays) were recognised, which did not occur in 2025. The favourable performance of net income of the Group was also the result of the 7.2% reduction (EUR -48.3 million) in other impairment and provisions to EUR 625.9 million at the end of 2025. In this evolution, a significant decrease in other impairments and provisions in the activity in Portugal stands out. However, its impact was offset by the increase observed in the international activity. Other net operating income also contributed favourably to the evolution of net income of the Group, by evolving from a negative amount of EUR 134.9 million in 2024, to an also negative amount of EUR 98.8 million in 2025 (EUR + 36.1 million). This performance, mainly driven by the contribution of the activity in Portugal, was determined by the recognition of income amounting to EUR 30.4 million associated with Additional Solidarity on the Banking Sector paid in previous years, following the ruling by the Constitutional Court that declared this tax unconstitutional. The contribution of the international activity to the evolution of other net operating income was limited. However, it resulted from offsetting impacts, namely the increase in costs with mandatory contributions to which the Polish subsidiary is subject and the favourable evolution of the impacts associated with the foreign exchange mortgage portfolio recognised under this heading, also at the Polish subsidiary.

View stock analysis, news, and events for Banco Comercial Portugues S.a.