Banco Comercial Português (BCP) Q3 2025 (Media) earnings summary

Executive summary

• Net income for the first nine months of 2025 reached €775.9 million, up 8.7% year-over-year, with ROE at 14.6% and ROTE at 15.2%.

• Portugal operations contributed €654.5 million in net income (+8.0%), while international operations grew 19.8% to €230.7 million, with Bank Millennium delivering €202.0 million despite CHF mortgage provisions.

• Customer funds rose 8.6% to €109.5 billion; loans to customers increased 4.9% to €61.5 billion.

• Non-performing exposures (NPE) reduced by €332 million year-over-year, with cost of risk improving to 31 bps.

• Digital transformation accelerated, with mobile customers up 9% and representing 74% of active customers; digital transactions accounted for 99.6% of total operations.

Financial highlights

• Net interest income grew 2.6% to €2,166.6 million; net commissions up 4.0% to €628.8 million.

• Net operating revenues increased 5.0% to €2,824.9 million; operating costs rose 9.2% to €1,032.5 million.

• Net trading income surged to €80.7 million from €29.3 million, mainly due to lower costs in Polish mortgage conversions.

• Loan impairment charges fell 15.7% to €141.0 million; legal risk provisions on CHF mortgages in Poland decreased 10.7% to €310.4 million.

• Customer base surpassed 7.2 million, with mobile customers representing 74% of active users.

Outlook and guidance

• Strategic targets for 2028 include business volumes over €190 billion, more than 8 million customers, cost-to-income below 40%, and CET1 ratio above 13.5%.

• Shareholder distribution up to 75% of cumulative net income for 2025-2028, subject to capital and business targets.

• Capital ratios remain strong: CET1 fully loaded at 15.9%, total capital ratio at 19.9%, well above regulatory requirements.

• Liquidity indicators robust: LCR at 321%, NSFR at 180%, LtD at 68%.

• Management continues to focus on prudent risk, capital, and liquidity management amid global uncertainties.