Banco Comercial Português (BCP) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months of 2024 reached €714.1M, up 9.7% year-over-year, with core operating profit at €1,765.9M.

• Portugal contributed €606M in net income (+8.8% YoY), Mozambique €63.6M, and Poland €127M despite significant CHF mortgage charges.

• Customer funds grew 9.1% to €100.8B, customer base expanded 4% to 6.9 million, and mobile customers increased 11%.

• Capital and liquidity positions remain robust, with CET1 at 16.5% and LCR at 314%.

Financial highlights

• Net interest income was €2,110.8M, nearly flat year-over-year, while commissions rose 4% to €601.8M.

• Operating costs increased 10.8% to €946.6M, mainly due to inflation and higher expenses in Poland; cost-to-income ratio at 32–35%.

• Cost of risk improved to 39 bps from 50 bps, with impairments and provisions down 22.9% YoY.

• CET1 ratio at 16.5% (fully loaded), total capital at 20.8%, and LCR at 314%.

• Customer funds at €100.8B (+9.1% YoY); loan portfolio at €57.5B (+1.5% YoY).

Outlook and guidance

• Strategic plan for 2025-2028 targets ROE above 13.5%, cumulative net income of €4–4.5B, and up to 75% shareholder payout, subject to regulatory approval.

• Business volumes targeted to exceed €119B, with over 8 million customers and 80%+ mobile usage.

• Cost of risk to remain below 50 bps, CET1 ratio above 13.5%, and cost-to-income ratio well below 40%.

• Focus on digital transformation, customer growth, and maintaining strong capital and liquidity buffers.

• NII expected to grow €500–700M, commissions €100–200M, with NII in the range of €3–3.4B by 2028.