Banco Comercial Português (BCP) Q1 2025 earnings summary

Executive summary

• Net income rose 3.9% year-on-year to EUR 243.5 million in Q1 2025, with ROE at 13.9%; Portugal contributed EUR 218.9 million (+7.6%), Poland EUR 42.8 million (+40%), and Mozambique saw an 84% decline due to sovereign debt downgrades.

• Group customer base surpassed 7 million, with mobile customers up 9% year-on-year, now representing 72% of the base.

• Digital transactions and sales saw double-digit growth, with 99.6% of transactions now digital.

Financial highlights

• Net interest income increased 3.6% to EUR 721.1 million; commissions up 2.1% to EUR 201.4 million year-on-year.

• Operating costs rose 10.4% to EUR 339.7 million, mainly due to inflation and higher staff/admin costs; cost-to-income ratio improved to 37.4%.

• Group customer funds grew 6.1% to EUR 104.6 billion; loans to customers up 2.2% to EUR 58.1 billion.

• Cost of risk improved to 38 bps from 52 bps year-on-year; loan impairment charges dropped 24.1% to EUR 55.8 million.

• Group ROE reached 13.9%, ROTE 14.5%, and dividend yield was 5.4%.

Outlook and guidance

• Strategic plan targets over EUR 190 billion in business volumes and over 8 million customers by 2028.

• CET1 ratio target above 13.5% and up to 75% payout of cumulative net income 2025–2028, subject to capital and business targets.

• NII in Portugal expected to remain broadly aligned with last year, with stable earnings after tax; cost of risk in Portugal guided at 30–40 bps barring major crises.

• Loan growth in Portugal guided at mid-single digits over the plan period, with some green shoots in corporate lending.

• NII in Portugal expected to grow in line with volumes in 2026; NII in Poland and Mozambique also expected to remain resilient.