BCP recorded a profit of 97.2 million euros in the first nine months of the year. The result is 63% higher than the 59.5 million euros received in the same period last year.
In Portugal, net income was $295.7 million “as a result of a 9.3% increase in core income, a 3.4% reduction in operating expenses and an 11 basis point improvement in cost of risk,” the bank explains.
Net interest income increased from 1.91% to 2.38% and reached EUR 1,546 million. In Portugal, the margin remained at 1.45% at 671 million euros. Commissions amounted to 574 million euros (up 7.3%).
Total client funds reached 91.1 billion euros, up 3.5% year-on-year. Of these, demand deposits account for slightly more than half: 48.1 billion. The portfolio of time deposits increased from 20.7 billion euros to 25.7 billion euros.
Loans to customers (gross) increased by 1.1% to 58.6 billion euros.
The share of overdue loans (NPL) for more than 90 days decreased to 1.5% at the end of September (from 2.4% a year earlier).
The total capital ratio was 15.1% and the CET1 capital ratio was 11.4%.
Compulsory contributions to the Portuguese banking sector amounted to 62.2 million euros.
The figures were badly worsened by the operation in Poland, Miguel Maia, the director general of the institution, began by explaining at a press conference to present the results.
Millennium was exposed to extraordinary impacts associated with Millennium Bank, including fees of $393 million related to the Swiss franc mortgage portfolio and loan default provisions of $304.6 million.
The Bank paid a total of 59.1 million contributions to the Institutional Protection Fund in this country and recorded an impairment of Bank Millennium’s goodwill of 102.3 million.
The institution, led by Miguel Maia, has suffered in recent quarters due to the activities of the Polish bank Millennium, which controls 50.1%.
We are talking about loans in Swiss francs issued in 2008. The appreciation of the Swiss currency in the foreign exchange market caused difficulties for the holders of these loans, and in 2019 the European Court of Justice ruled that customers have the right to demand the conversion of foreign currency loans, which led to that Bank Millennium created reserves, which worsened the consolidated results of the Portuguese group.
Last week, Bank Millennium posted a loss of 214 million euros in the third quarter.
In update
