Banco Comercial Português (BCP) Q2 2025 earnings summary

Executive summary

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

• Portugal net income was €424M (+3.2% YoY); international operations contributed €146.6M (+11.8% YoY), with Poland net income at €121.1M (+46.2% YoY) and Mozambique at €23.7M (down 49% YoY due to sovereign downgrade).

• Customer funds increased 5.5% to €106.2B; loans to customers up 3.4% to €60.3B compared to June 2024.

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

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

Financial highlights

• Net interest income grew 3.3% to €1,444.1M; commissions up 4.0% to €413.8M; core income increased 3.5% to €1,857.9M.

• Operating costs rose 10.5% to €683.5M, mainly due to wage agreements and staff costs (+12.8%).

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

• Net interest margin at 2.97% group, 2.12% Portugal, 4.18% Poland; international NIM at 4.47%.

• Group-wide customer funds grew 5.5% YoY to over €106B; loan-to-deposit ratio at 68.6%.

Outlook and guidance

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

• Strategic plan targets >€190B in business volumes and >8M customers by 2028, with CET1 and ROE above 13.5%.

• Up to 75% of cumulative net income (2025-2028) to be distributed, subject to capital and business targets.

• Corporate lending growth in Portugal expected to remain at mid-single digits, supported by European funds and fading COVID loan repayments.

• Guidance maintained for mid-single digit growth in fees, commissions, and loan book; cost of risk to hover around 35 bps.