Banco Comercial Português (BCP) Q2 2026 earnings summary

Executive summary

• Net income reached €565.8 million in H1 2026, up 12.7% year-over-year, driven by strong performance in Portugal and international operations, reflecting business model resilience amid a complex global environment.

• Portugal contributed €470.2 million in net income (+10.9% YoY), while international operations grew 25.2% to €183.5 million, with Bank Millennium Poland up 38.7%.

• Customer base expanded by 4% YoY to 7.4 million, with mobile customers up 8% and digital penetration at 75%.

• Significant reduction in non-performing exposures (NPE), with Group NPE down €187 million YoY.

• Group loans to customers grew 8.3% to €65.2 billion; customer funds rose 9.8% to €116.7 billion.

Financial highlights

• Net interest income rose 3.4% YoY to €1,493.8 million; net interest margin at 2.83%; net fees and commissions increased 5.8% to €438.0 million.

• Operating costs increased 5.4% YoY to €720.2 million, mainly due to investments in AI, cyber, and requalification.

• Cost of risk at 32 basis points; NPE ratio improved to 2.2% group-wide and 1.6% in Portugal.

• ROE reached 14.6%, ROTE 15.2%, and EPS increased by 15%.

• Cost-to-income ratio at 36.9% group-wide, 33% in Portugal.

Outlook and guidance

• Guidance for net interest income in Portugal upgraded to low teens growth for 2026 and 2027, based on market forward rates and resilient margins.

• Strategic targets for 2025-2028 include business volumes above €190 billion, mobile customer penetration above 80%, cost-to-income ratio below 40%, and CET1 ratio above 13.5%.

• Fee growth expected at mid to high single digits, with actual performance closer to mid-single digit.

• Cost of risk guidance for the next 12 months remains aligned with current levels (around 32 bps), better than the 2028 target.

• Payout ratio (dividends and buybacks) targeted at 80-90%, depending on capital needs and business growth.