Banco Comercial Português (BCP) Q2 2025 earnings summary

Executive summary

• Net income reached €502.3 million in H1 2025, up 3.5% year-on-year, with ROE at 14.3% and ROTE at 14.9%.

• Portugal net income was €424 million (+3.2% YoY); international operations contributed €146.6 million (+11.8% YoY), with Poland net income at €121.1 million (+43% YoY) and Mozambique at €23.7 million (down 48.8% YoY due to sovereign downgrade).

• Customer funds grew 5.5% to €106.2 billion; loans to customers increased 3.4% to €60.3 billion.

• Non-performing exposures reduced by €336 million year-over-year; cost of risk at 30bp for the group.

• Mobile customer base grew 9%, now representing 73% of active customers.

Financial highlights

• Net interest income rose 3.3% to €1,444.1 million; commissions up 4.0% to €413.8 million year-over-year.

• Core income increased 3.5% to €1,857.9 million; operating costs up 10.5% to €683.5 million, mainly due to staff costs.

• Cost-to-income ratio at 37% group-wide, 35% in Portugal; cost-to-core income at 36.6%.

• Dividend yield at 8.9% with a €0.03/share payout for 2024 earnings; book value per share plus dividend per share up 14.5%.

• Profit before impairment and provisions up 3.0% to €1,164.4 million; profit before tax up 16.0% to €788.9 million.

Outlook and guidance

• Expectation of stable NII in 2025 and low to mid-single-digit growth in 2026, especially in Portugal.

• Corporate lending growth in Portugal seen as sustainable at mid-single digits; overall loan book growth guidance maintained at 5% YoY.

• Fee and commission growth guidance at mid-single digits, with a slight positive bias if markets perform well.

• Cost of risk guidance maintained at around 35 basis points.

• Strategic plan targets over €190 billion in business volumes, over 8 million customers, CET1 ratio above 13.5%, and ROE above 13.5% by 2028, with up to 75% of cumulative net income distributed.