Banco Comercial Portugues

Earnings Release • Jul 29, 2019

National Storage Mechanism | Additional information

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Banco Comercial Português, S.A. informs about Bank Millennium (Poland) results in 1H 2019

Banco Comercial Português, S.A. hereby informs that Bank Millennium in Poland, in which it has a 50.1% holding and whose accounts are fully consolidated at BCP group level, released today its results for 1H 2019. Main highlights are as follows:

“Profitability with Euro Bank impact

• Net profit of 1H 2019 reached 334 million PLN with 65 million PLN net impact of Day 1 provisions on Euro Bank portfolio
• Normalised net profit reached 411 million PLN and grew by 12% yearly
• Normalised ROE at 9.7% and Cost/income at 46%

Core income accelerated. Costs influenced by Euro Bank and BFG fees

• Net interest income grew by 21.5% y/y; without Euro Bank grew 14.7% y/y and 4.7% q/q
• Net Commission Income flat yearly but visibly grew by 5.1% quarterly (without Euro Bank)
• Operating costs up 19.6% y/y; when excluding Euro Bank and BFG fees, costs grew by 10.9% yearly

High asset quality and liquidity kept

• Impaired loans (stage 3) ratio at 4.3% level with coverage by total provisions at 62% (Euro Bank stage 3 portfolio consolidated at net value)
• Cost of Risk at 52 b.p. (annualised) excluding Euro Bank ECL 12 months initial impact
• Loans to deposits ratio at low level 88%

Capital ratios influenced by the impacts of the acquisition

• Group’s Total Capital Ratio (TCR) at 20.1% and CET1 ratio at 16.9% already incorporating Euro Bank
• Bank’s Total Capital Ratio (TCR) at 20.5% and CET1 ratio at 16.9%  

Retail business (organic)

• 1.9 million active customers (+233 ths yearly) and 1.5 million using digital channels
• 1.1 billion PLN new cash loans sold in 2Q (+34% y/y) and 1 billion PLN of mortgages (+20% y/y)  
• 14.4% yearly growth of deposits (or 33.1% with Euro Bank)

Companies business

• Continued solid growth of loans to companies: +11.5% y/y
• Deposits volume grew by +16.1% y/y  
• Growth in factoring and leasing sales at around +7% y/y

Digital achievements

• 1.2 million of goodie apps downloads

(*) without non usual items, i.e., with an equal accrual through the year of BGF resolution fee

(**) Total net provisions to average net loans”

End of announcement

Banco Comercial Português, S.A.

Attachment

• Resultados Polónia 1H 2019 EN