Banco Comercial Português (BCP) Q1 2026 earnings summary

Executive summary

• Net income rose 25.6% year-over-year to EUR 305.8 million, with ROE at 15.9% and strong growth in both Portugal and international operations, notably Poland.

• Portugal contributed EUR 265.4 million in net income (+21.2% YoY), while international operations surged 65% to EUR 77.7 million, led by Bank Millennium in Poland.

• Customer loans grew 7.2% and customer funds 7.9% year-over-year, with mobile customers now 75% of the base.

• Solid capital position with CET1 at 15.1% and total capital ratio at 19.3%, after accounting for planned shareholder distributions.

• Significant reduction in non-performing exposures and improved credit quality metrics.

Financial highlights

• Net interest income grew 2.4% year-over-year to EUR 738.4 million, with Portugal NII up 9.8%.

• Commissions increased 8.2% to EUR 218.0 million; core operating profit up 3.2% to EUR 601.4 million.

• Operating costs rose 4.5% to EUR 354.9 million, mainly due to IT investments, but cost-to-income ratio improved to 36%.

• EPS increased 29.1% year-over-year; book value per share plus dividends up 18.2%.

• Cost of risk improved to 35 bps from 38 bps; NPE ratio dropped to 2.3% from 2.9%.

Outlook and guidance

• NII guidance for Portugal upgraded to high single-digit growth for 2026 and 2027, assuming current rate curve.

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

• Cost-to-income ratio targeted below 40% and CET1 ratio above 13.5% through 2028.

• Shareholder distributions to increase, with 50% of 2025 net profit as dividends and 40% as share buybacks.

• Corporate loan growth in Portugal expected at mid-single digits, with some volatility due to macro uncertainty.