Banco Comercial Português (BCP) Q4 2024 earnings summary

Executive summary

• Net income reached €906.4 million in 2024, up 5.9% year-on-year, with Portugal contributing €786.4 million (+8.5%) and Poland €167.1 million, despite €750.2 million in CHF mortgage-related charges.

• Customer funds grew 8% to €102.9 billion, with a 4% increase in customer base and mobile customers up 10% year-on-year.

• CET1 ratio at 16.3% and total capital ratio at 20.6%, both improved year-on-year, with LCR at 342% and NSFR at 181%.

• Cost of risk declined to 32 bps from 42 bps, and NPE stock reduced by €127 million.

• International operations contributed €119.9 million to net income, with Mozambique facing challenges from sovereign debt downgrade.

Financial highlights

• Net interest income was stable at €2,830.9 million (+0.2%), with commissions up 4.8% to €808.5 million.

• Core operating profit reached €2.3 billion, with operating costs up 12.4% to €1,307.2 million.

• Other impairments and provisions fell 21.5% to €675.1 million, mainly from lower legal risk provisions in Poland.

• EPS rose to €0.058 from €0.054 year-on-year.

• Customer funds in Portugal rose 5.8% to €70.5 billion; loan portfolio stable at €57.2 billion (+0.7%).

Outlook and guidance

• Strategic plan targets >€190 billion in business volumes and >8 million customers by 2028, with CET1 ratio to remain above 13.5%.

• Up to 75% of cumulative net income to be distributed to shareholders, subject to capital and business targets.

• Cost-to-income ratio expected to stay below 40% at group level and below 37% in Portugal.

• Net income for 2025 expected to be resilient and aligned with 2024, barring major external shocks.