In This Article:
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Consolidated Net Income: EUR906 million, a year-on-year growth of 5.9%.
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Core Operating Profit: EUR2.3 billion.
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Net Income in Portugal: EUR86 million, increased by 8.5% year on year.
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Net Income in Poland: EUR167 million, a year-on-year growth of 25%.
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Net Income in Mozambique: EUR48.5 million, a year-on-year decrease of 54%.
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Customer Funds Growth: 8% at the consolidated level, reaching EUR102.9 billion.
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NPE Ratio: Reduced to 3.2%.
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CET1 Ratio: 16.3%.
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Total Capital Ratio: 20.6%.
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Net Interest Income (NII) in Portugal: Decreased by 9% to EUR1,335 million.
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Net Commissions in Portugal: EUR588 million, a growth of 5%.
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Operating Costs in Portugal: EUR673 million, 9% higher than the previous year.
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Cost of Risk in Portugal: 31 basis points.
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Net Profit in International Operations: EUR120 million, a decrease of 8.6%.
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Net Profit in Bank Millennium (Poland): EUR167 million, a growth of 25%.
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Net Profit in Millennium bim (Mozambique): EUR48.5 million, a decrease of 54%.
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Customer Funds in Bank Millennium (Poland): Grew 11% year on year.
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Swiss Franc Mortgage Portfolio Reduction: 26% since December 2023.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Banco Comercial Portugues SA (BPCGY) reported a consolidated net income of EUR906 million for 2024, marking a year-on-year growth of 5.9%.
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The bank's net income in Portugal increased by 8.5% year-on-year, reaching EUR86 million.
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Customer funds grew by 8% at the consolidated level, reaching EUR102.9 billion, indicating strong business model quality.
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The NPE ratio was reduced to 3.2%, with NPE coverage by total impairment exceeding 80%, showcasing improved asset quality.
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The CET1 ratio improved to 16.3%, and the total capital ratio reached 20.6%, reflecting a solid capital position.
Negative Points
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The Polish market continues to face challenges due to FX loans litigation, impacting banking activities with charges amounting to EUR750 million.
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In Mozambique, net income decreased by 54% year-on-year due to economic challenges and a downgrade of the public debt rating.
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Operating costs in international operations grew by 16.2%, driven by salary dynamics in Poland, which remains a hot job market.
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Net interest income in Portugal decreased by 9% due to increased deposit costs, despite higher income from customer loans and securities.
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The bank's loan portfolio growth remains stable, with no significant increase, particularly in the corporate sector in Portugal.
Q & A Highlights
Q: How much headwinds remain for state guaranteed lines in your corporate loan book in Portugal, and what are your expectations for 2025? A: We anticipate a cumulative annual growth rate of around 5% for the strategic period, although it may be somewhat backward-ended. For 2025, we expect growth in the low single-digit area, with higher growth in subsequent years.