Investor Presentation • Feb 1, 2019
Investor Presentation
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1 February 2019
The purpose of this presentation is purely informative and should not be considered as a service or offer of any financial product, service or advice, nor should it be interpreted as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by Banco BPI ("BPI") or any of the companies mentioned herein. The information contained herein is subject to, and must be read in conjunction with, all other publicly available information. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information set out in the relevant documentation filed by the issuer, having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in this presentation.
BPI cautions that this presentation might contain forward‐looking statements concerning the development of its business and economic performance. While these statements are based on BPI's current projections, judgments and future expectations concerning the development of the Bank's business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from BPI's expectations. Such factors include, but are not limited to the market general situation, macroeconomic factors, regulatory, political or government guidelines and trends, movements in domestic and international securities markets, currency exchange rates and interest rates, changes in the financial position, creditworthiness or solvency of BPI customers, debtors or counterparts.
Statements as to historical performance or financial accretion are not intended to mean that future performance or future earnings for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. In addition, it should be noted that although this presentation has been prepared based on accounting registers kept by BPI and by the rest of the Group companies it may contain certain adjustments and reclassifications in order to harmonize the accounting principles and criteria followed by such companies with those followed by BPI.
In particular, regarding the data provided by third parties, neither BPI, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents by any means, BPI may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such a version and this one, BPI assumes no liability for any discrepancy.
In relation to Alternative Performance Measures (APMs) as defined in the guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415), this report uses certain APMs, which have not been audited, for a better understanding of the company's financial performance. These measures are considered additional disclosures and in no case replace the financial information prepared under the International Financial Reporting Standards (IFRS). Moreover, the way the Group defines and calculates these measures may differ to the way similar measures are calculated by other companies. Accordingly, they may not be comparable. Please refer to the Glossary section for a list of the APMs used along with the relevant reconciliation between certain indicators.
This document has not been submitted to the Comissão do Mercado of Valores Mobiliários (CMVM) (Autoridade Portuguesa do Mercado of Capitais) for review or for approval. Its content is regulated by the Portuguese law applicable at the date hereto, and it is not addressed to any person or any legal entity located in any other jurisdiction. For this reason it may not necessarily comply with the prevailing norms or legal requisites as required in other jurisdictions.
Notwithstanding any legal requirements, or any limitations imposed by BPI which may be applicable, permission is hereby expressly refused for any type of use or exploitation of the content of this presentation, and for any use of the signs, trademarks and logotypes contained herein. This prohibition extends to any kind of reproduction, distribution, transmission to third parties, public communication or conversion by any other mean, for commercial purposes, without the previous express consent of BPI and/or other respective proprietary title holders. Any failure to observe this restriction may constitute a legal offence which may be sanctioned by the prevailing laws in such cases.
| 1 | h l h i i H t g g s |
|---|---|
| 2 | l i i i C t t o m m e r c a a c v y |
| 3 | l d l h R B S t t e s s a n a a n c e e e u |
| 4 | l i S P 2 0 1 9 2 0 2 1 t t r a e g c a n ‐ |
| 5 | l k i C o s n g r e m a r s |
Annexes
Recurring net income increases in Portugal and in the consolidated
Strong growth in deposits and loans in Portugal
High asset quality
Upgrade in ratings BPI's long‐term debt reaches investmentgrade by Fitch, Moody's and S&P
1) Excluding non recurring gains of 178.0 M.€: gain of 59.6 M.€ with the sale of the stake in Viacer; gain of 61.8 M.€ with the sale of subsidiaries (BPI Gestão de Ativos and BPI GIF), gain of 71.7 M.€ with the sale of acquiring / POS businesses, cost of 15.3 M.€ (after taxes) with early retirements, other non recurring administrative expenses of 2.2 M.€ (after taxes) and net income from discontinued operations of 2.5 M.€. 2) According to EBA (European Banking Authority) criteria; considering the prudential supervision perimeter.
4
| l i d d i C t t o n s o a e n e n c o m e |
O R T E |
||||||
|---|---|---|---|---|---|---|---|
| I M € n |
2 0 1 7 |
2 0 1 8 |
% |
A C T I V I T Y I N P O R T U G A L |
|||
| l i i i A P t t t c v y n o r u g a |
2 0 1 7 2 0 8 1 R t e c u r r e n 8. 3 % 8. 8 % |
||||||
| f i i R t t e c u r r n g n e p r o |
6 9 9 1 |
2 8 3 1 |
2 8 % 5 + |
R O T E |
|||
| ) 1 N i i t o n‐ r e c u r r n g m p a c s |
( ) 6. 2 4 |
8 0 1 7 |
% 1 1 T 2 0 2 1 t a r g e ‐ ( l. s ha ho l d d ) Ex ing in B F A B C I c re s an |
||||
| f i i l N P t t t e p r o n o r a u g |
1 2 3. 7 |
3 9 6. 3 |
2 2 0 % + |
||||
| d b B F A B C I i i t t a n c o n r u o n |
( ) 1 1 3. 5 |
9 4 4 |
C O N S O L I D A T E D 2 0 2 0 8 1 7 1 |
||||
| f l i d d i C t t t o n s o a e n e p r o |
1 0 2 |
4 9 0 6 |
R O T E 0. 4 % 1 6. 3 % |
||||
1)Non recurring impacts in the activity in Portugal:
In 2017 – costs of 76.8 M.€ (105.8 before taxes) with early retirements and voluntary terminations, gain of 8.6 M.€ after taxes with the sale of BPI Vida e Pensões and net income from discontinued operations (BPI Vida e Pensões, BPI Gestão de Ativos and BPI GIF) of 22.0 M.€.
In 2018 – gain of 59.6 M.€ with the sale of the stake in Viacer, gain of 61.8 M.€ with the sale of subsidiaries (BPI Gestão de Ativos and BPI GIF), gain of 71.7 M.€ with the sale of acquiring / POS businesses, cost of 15.3 M.€ (after taxes) with early retirements, other non recurring administrative expenses of 2.2 M.€ (after taxes) and net income from discontinued operations of 2.5 M.€.
| I € M n |
2 0 1 7 |
2 0 1 8 |
|
|---|---|---|---|
| [ ] i b i 1. B F A t t c o n r u o n |
( ) 1 1 9 5 |
7 3 2 |
's f i b i i l d B F A 7 3. 2 M € 2 0 1 8 i t t c o n r u o n o n n c e s u |
| f h h, O i w c f f f h l d I 2 % B F A t t m p a c r o m e s a e o o a n d l d i i t e c o n s o a o n f l f i i i I B F A t t m p a c r o m r e c a s s c a o n |
( ) 2 1 1 6 |
( ) 1 3 8 6 |
h f ‐ l f i i 1 3 9 € i M t t t t e n e g a v e m p a c o r e s u n g r o m h h f h l f f i i i i t t t t e c a n g e o e a c c o u n n g c a s s c a o n o f "a h d i i B F A i t t t t e n e s m e n n r o m s s o c a e v , ", l d d b h h d, i i t t t t c o m p a n y c o n s o a e y e e q u y m e o f l d d d i i i t t t, o n a n c a n v e s m e n r e c o r e u n e r "i f l h h h i t t t t t n v e s m e n s a a r v a u e r o u g o e r |
| [ ] i b i 2 C I B t t c o n r u o n |
8 1 |
2 0 5 |
h ". i i c o m p r e e n s v e n c o m e |
| [ ] h 3 O t e r |
( ) 2 1 |
0 6 |
i l i d d i l i N t t t t o m p a c o n c o n s o a e c a p a r a o s |
| [ ] l 4 T t o a [ ] 1 2 3 + + = |
( ) 3 1 1 5 |
9 4 4 |
Annexes
Loans to companies in Portugal
+ 1 136 M.€
| b L t t t o a n s o s o m e r s s e m e n s c u y g |
|||
|---|---|---|---|
| f l G i i M € t r o s s p o r o o, n |
d 1 7 e c. |
d 1 8 e c. |
Y Y o |
| ) 1 d d l i i i I. L t o a n s o n v u a s |
1 2 4 0 8 |
1 2 5 5 8 |
1. 2 % |
| l M t o r g a g e o a n s |
1 1 0 8 4 |
1 1 1 7 1 |
0. 8 % |
| ) 1 h l d d l O i i i t t e r o a n s o n a s v u |
1 3 2 4 |
1 3 8 7 |
4 8 % |
| C i I I. L t o a n s o o m p a n e s |
8 3 8 7 |
9 2 8 6 |
1 0. 7 % |
| d d d d L i i i C t a r g e a n m e u m ‐s e c o m p a n e s a n o r p o r a e z k & i I B t t n v e s m e n a n n g |
5 0 5 1 |
6 0 0 4 |
1 8. 9 % |
| l l b S i m a u s n e s s e s |
1 9 9 0 |
2 1 3 7 |
9. 2 % |
| l l C i i T P t t o a o m p a n e s n o r u g a |
0 7 4 1 |
8 1 7 7 |
6. % 1 1 |
| f j i P t r o e c n a n c e |
3 1 4 7 |
0 9 1 1 |
( ) 6 % 1 7. |
| b l i I I I. P t c s e c o r u |
1 3 0 5 |
1 5 4 4 |
% 1 8. 3 |
| h I V O t e r |
1 2 3 |
1 0 0 |
( ) % 1 8. 9 |
| l T t o a |
2 2 2 2 3 |
2 3 4 8 7 |
5. 7 % |
| N t o e : |
|||
| f l f L i i i t t t o a n p o r o o n e o m p a r m e n s |
2 1 6 3 8 |
2 2 9 4 9 |
% 6. 1 |
1) The evolution of the segment "Other loans to individuals" was influenced by the transfer of the balance related to credit cards (144 M. €) following the sale of the cards business to CaixaBank Payments in the 4th quarter 18.
Source: BPI and BdP. 1) Loans to resident non‐financial corporations
92) Source IFAP, refers to market share in total loans contracted from Jan. to Oct. 2018. 3) Considering only the tranches of the Banks; market share in loans contracted from Jan. to Dec. 18.
Launch of Fixed Rate Mortgage Loans, a solution for Customers looking for security, with a fixed payment until the end of the loan.
Available for 10, 15, 20, 25 or 30 years.
A 100% online Personal Loan, available to BPI Net and APP Customers, for a financing amount up to 5 000 € for 60 months
10thousand loans
19%of total Personal Loans
Launch of Renting for Individuals and Companies, with a single‐product offer.
| k h M t a r e s a r e s |
3 1 De 1 7 c. |
3 O 8 1 1 t. c |
|---|---|---|
| 3 l d i T t t o a e p o s s |
% 9. 8 |
% 9. 9 |
| 4 l f d M t u u a u n s |
1 6. 4 % |
1 6. 1 % |
| 4 's P P R |
1 2. 8 % |
1 0. 7 % |
| l C i i i t t a p a s a o n 4 i n s u r a n c e |
% 1 4. 3 |
% 1 5. 2 |
| I M € n |
d 1 7 e c. 1) fo p ro rm a |
d 1 8 e c. |
Y Y o |
|---|---|---|---|
| b l h O I. t n‐ a a n c e s e e r e s o u r c e s |
2 0 9 7 1 |
2 2 0 2 5 |
6 % 4 |
| d i C 2 t t u s o m e r e p o s s |
1 9 3 6 8 |
2 1 1 6 0 |
% 9 3 |
| l d f l I i i i i t t t n s o n a a n n a n a u c d i i t t n v e s o r s e p o s s |
3 1 5 1 |
8 9 2 |
3 % 4 ‐ |
| d I I. A t t s s e s u n e r m a n a g e m e n |
9 7 5 4 |
9 9 1 1 |
8 % 5. ‐ |
| l f d M t u u a u n s |
6 8 5 5 |
0 8 3 5 |
0 2 % 1 ‐ |
| l i i i i C t t a p a s a o n n s u r a n c e |
0 9 6 4 |
0 4 1 7 |
0 3 % |
| b l f f i i I I I. P u c o e r n g s |
2 1 5 1 |
9 2 1 5 |
9 2 % ‐ |
| l T t o a |
3 2 6 2 4 |
3 3 9 1 5 |
8 % 1. |
The Bank has actively being reducing its offer of deposits to institutional investors to optimize liquidity ratios (LCR).
1) Proforma considering the sale of da BPI Gestão de Ativos and BPI GIF.
2) Includes retail bonds of 35 M. € in Dec. 17 and 18 M. € in Dec. 18.
3) Does not include the effect of securitization operations (BPI calculation).
4) In Nov. 2018. The PPR's include PPR in the form of mutual funds and capitalization insurance. For this reason, these PPRs are excluded in the calculation of the mutual funds and Capitalization Insurance market shares.
Progress in digital transformation with benefits for Customers, increase in commercial capacity and improvement of commercial efficiency
1) Active customers 1st holders, individuals and companies.
2) Individuals BASEF (Dec.18 accumulated), Empresas DATAE (2018).
BPI was elected, for the first time, "The Best Bank in Portugal" in the awards for excellence of Euromoney magazine
Joint intervention BPI and "la Caixa" Foundation
15.16 M.€
Breakdown of the Social Responsibility budget in 2018
Annexes
| E M € m |
2 0 1 7 |
2 0 1 8 |
Y Y o |
|---|---|---|---|
| k B i i i a n n g c o m m s s o n s |
1 6 0. 5 |
1 7 1. 1 |
6. 5 % |
| f l d M t a n s u u u |
3 7. 6 |
4 0. 0 |
% 6. 6 |
| I n s u r a n c e |
6 4. 9 |
6 6. 7 |
2. 7 % |
| ) 1 l T t o a |
2 6 3. 0 |
2 7 7. 8 |
% 5. 6 |
1)BPI Alternative Fund ceased to be consolidated in Banco BPI accounts from March 2017 onwards. In the consolidation of that fund, net commissions paid by the BPI Alternative Fund of 2.2 M.€ in the 1Q17 were recorded.
+9.0% yoy
driven by growth in net interest income and commissions
Gross income as reported
+18.0% yoy
| i G M € r o s s n c o m e, |
|||
|---|---|---|---|
| I M € n |
2 0 1 7 |
2 0 1 8 |
% |
| i i R G e r r n r o s s n o m e c u g c |
|||
| N i i t t t e n e r e s n c o m e |
3 8 8. 3 |
4 2 2. 6 |
8. 8 % + |
| f d N i i i t e e e a n c o m m s s o n n c o m e |
2 6 3. 0 |
2 7 7. 8 |
5. 6 % + |
| d d d d d i i i i i E t t q u y a c c o u n e n c o m e a n v e n n c o m e |
2 0. 0 |
9. 2 |
4. 0 % 5 ‐ |
| / ( l ) f l d l b l d h G i i i i i i i O t t t a n s o s s e s o n n a n c a a s s e s a n a e s a n e r d i i t o p e r a n g n c o m e a n e x p e n s e s |
‐9 1 |
1 2. 1 |
2 3 3. 7 % + |
| R i G i e c u r r n g r o s s n c o m e |
6 6 2. 1 |
7 2 1. 6 |
9. 0 % + |
| i i N t o n r e c u r r n g e m s |
0. 0 |
9. 6 5 |
|
| G i d t r o s s n c o m e a s r e p o r e |
6 6 2. 1 |
8 2 7 1. |
8. 0 % 1 + |
1) Additionally, at Dec.18, BPI had 39 premier centres, 1 mobile branch and 34 corporate centres in Portugal, thus totalling 495 business units.
8 M.€ in 2018
37 M.€
254 264 17210333 25‐8 ‐13 ‐15 ‐14 ‐16 ‐14 ‐30 ‐370.96% 1.04% 0.72%0.45%0.15% 0.11%‐0.04%2012 2013 2014 2015 2016 2017 2018 Recoveries of loans previously written off Impairments YoY evolution of cost of credit risk, M.€ Impairments as a % of the loan portfolio1) Cost of credit risk 1) 2012 2013 2014 2015 2016 2017 2018 242 249 158 87 19 (5) (45) 0.91% 0.98% 0.66% 0.38% 0.09% (0.02%) (0.20%) % loan portfolio Impairment reversals of Loan recoveries previously written off amounted to The application of IFRS 9 led to an increase of 35 M.€ in loan impairments, which was directly recognized in shareholders' equity, and an impact in shareholders' equity of ‐26 M.€.
1) Impairments after deducting recoveries of loans previously written off.
1) Coverage by impairments accumulated in the balance sheet for loans and guarantees; does not consider collaterals.
2) NPE ratio considering the prudential supervision perimeter.
1)Minimum value in calibration.
Customer resources constitute the main source of financing of the balance sheet (71% of the assets)
1)Includes short‐term public debt of 0.5 Bi.€ (Portugal), with a residual average maturity of 0.5 years, and medium and long‐term debt of 2.6 Bi.€ (Portugal 34%, Spain 40% and Italy 27%) with an average residual maturity of 2.0 years.
2)Average amount (last 12 months) of LCR components calculation: Liquidity Reserves (3 930 M.€); Total net outflows (2 348 M.€).
| nd … A a2, Aa 1 a Aaa |
A ( hig h), … A A, A AA A |
|||
|---|---|---|---|---|
| nd … A A‐, AA , AA AA A + a |
bo ds Aa 3 Mo rtg ag e n |
nd … A A‐, AA , AA AA A + a |
( low ) bo ds A A Mo rtg ag e n |
|
| e d |
A + |
A 1 |
A + |
( h h ) ig A |
| a r G |
A | A 2 |
A | A k Ba 1 n |
| t n e |
A‐ | A 3 |
A‐ | ( low ) A |
| m t s |
B B B + |
Ba 1 a |
k B B B Ba 1 + n |
( h h ) B B B ig |
| e v n I |
B B B |
2 Ba a |
l Po B B B rtu a g |
l Po rtu B B B g a |
| B B B‐ k l Ba 1 Po rtu n g a |
k Ba 1 Ba 3 l Po rtu n a g a |
B B B‐ |
( low ) k B B B Ba 3 n |
|
| B B + |
k 3 Ba Ba 1 n |
B B + |
( h h ) B B ig k Ba 2 n |
|
| e | k B B Ba 2 n |
Ba 2 |
k 2 k 3 B B Ba Ba n n |
k B B Ba 4 n |
| d a r g |
B B‐ |
Ba 3 k Ba 2 n |
B B‐ |
( low ) B B |
| t n e |
B + |
B 1 |
k Ba 4 B n + |
( ) h ig h B |
| m t s |
B | B 2 |
B | k B Ba 5 n |
| e v n |
B‐ | 3 k B Ba 4 n |
B‐ | ( ) low B |
| ‐I n o N |
C C C + |
Ca 1 a |
C C C + |
( h h ) C C C ig |
| nd … C CC, CC C‐, CC, C a D |
k Ca 2 Ba 5 n a Caa 3, Ca and C |
nd … C CC, CC C‐, CC, C a D |
C ( low ), ( hig h), ( low ), … C CC, CC CC CC, CC C ( hig h), C ( low ), C, D |
|
| de Inv B B B ‐ tm t g es en ra |
… de Inv Ba 2 tm t g es en ra a |
de Inv B B B tm t g es en ra |
Annexes
Accelerate transformation of CUSTOMER EXPERIENCE
Develop the bank's HUMAN RESOURCES3 4 5
Improve operational and organisational EFFICIENCY
improve efficiency
Extensive use of
Consolidate reputation based on QUALITY OF SERVICE
1) Percentage calculated with no age restrictions.
To grow the loan book above the market Keep advancing in digital channels and expertise in long‐term savings products
1) Percentage calculated with no age restrictions. | 2) For individuals and companies, overall, internet banking and digital channel satisfaction indexes from independent market research companies. 3) Excluding real estate, money market investment funds and products with guaranteed capital. Includes public offerings.
Net income improvement underpinned by revenue growth, stable expenses and low CoR
1) NII, dividends, fees, equity accounted income (Allianz, Unicre and Cosec) and services paid by the businesses sold to CaixaBank. 2) Recurrent operating expenses as % of core revenues.
Annexes
In accordance with IFRS 5 ‐ Non‐current assets held for sale and discontinued operations, BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF were classified as discontinued operations on December 31, 2017, following the signature of the sale contracts disclosed to the market on November 23, 2017.
Consequently, the assets and liabilities of these units are presented in the consolidated balance sheet of Banco BPI under the captions "Non‐current assets / liabilities held for sale and discontinued operations" and the respective contribution to consolidated results is presented under the caption "Net income from discontinued operations".
With the entry into force of IFRS 9, in the beginning of 2018, Banco BPI decided to adopt a structure of the individual and consolidated financial statements in line with the guidelines of Regulation (EU) 2017/1443 of June 29, 2017 and with the structure of the financial statements presented by CaixaBank (the consolidating entity of Banco BPI).
Until 31 December 2017, Banco BPI followed the Chart of Accounts of Banco of Portugal defined in Instruction 9/2005, which specified the inclusion of some costs in Other administrative expenses. Taking into account the revocation of the instruction and the integration / alignment of accounting policies with CaixaBank, costs that depend on the evolution of the business and which have as a counterpart a benefit charged to the clients, were reclassified from Other administrative expenses to Commissions paid.
The items in the profit and loss account of 2017 (and respective quarters) were restated (Proforma figures) recognizing the contribution of BPI Vida e Pensões, BPI Gestão de Ativos and BPI GIF to the consolidated results in accordance with IFRS 5, the adoption of a new structure of the financial statements, with the entry into force of IFRS 9, as well as the reclassification of costs from Other administrative expenses to Commissions paid as mentioned above.
| Ac ro ny ms |
d de ig ion do d t te an s na s a p |
its ion Un t co nv en , |
l s ig d a b br iat ion a ns an ev s |
|---|---|---|---|
| d t y |
da Ye to‐ te ar‐ |
€, Eu E U R ro s, |
eu ros |
| y oy |
Ye ar‐ on ‐y ea r |
M. €, M . e ur os |
l l i ion m eu ros |
| q oq |
rte rte q ua r‐o n‐q ua r |
h. €, h. t t eu ro s |
ho d e t us an uro s |
| C L R |
f las i ie d Re c s |
| ha c ng e |
| n.a | la b le i t a no va |
||
| E C B |
l k Eu Ce Ba ntr ro p ea n a n |
0, – |
l l o lev irr t nu r e an |
| Bo P |
k o f l Ba Po rtu n g a |
iq. L |
l d iq i u |
| C M V M |
iss ão do do f lor b i l i ár ios ( ke ) Co Me Va Mo Se it ies Ma Co iss ion t m rca o es cu r r mm |
vs | ve rsu s |
| A P M |
lte ive fo A Pe Me t rna r rm an ce as ure s |
b.p | ba is p int s o s |
| I M M |
Int ba k ke Mo Ma t er n ne y r |
p. p. |
int tag p erc en e p o |
| T 1 |
T ier 1 |
E | Est im ate |
| C E T 1 |
Co Eq ity T ier 1 mm on u |
F | Fo ast rec |
| R W A |
k w hte d a R is ig ts e sse |
||
| T L T R O |
d lon f ina ing ion Ta ete te t rg g er‐ rm re nc op era s |
||
| C L R |
iq i d ity io L at u co ve rag e r |
| d 2 0 1 7 r ta te es |
2 0 1 8 |
|
|||||
|---|---|---|---|---|---|---|---|
| € In M. |
d As te re p or |
2) No n r ec ur r. |
l. n Ex c on re cu rr. |
d As te re p or |
1) No n r ec ur r. |
l. n Ex c on re cu rr. |
l. n Ex c on re cu rr. |
| Ne in inc t te t res om e |
3 8 8. 3 |
3 8 8. 3 |
4 2 2. 6 |
4 2 2. 6 |
8. 8 % |
||
| de d D iv i inc n om e |
6. 5 |
6. 5 |
1. 7 |
1. 7 |
7 3. 6 % ‐ |
||
| d Eq i inc ty te ac co un om e u |
1 3. 4 |
1 3. 4 |
7. 5 |
7. 5 |
4 4. 5 % ‐ |
||
| fee d c iss ion inc Ne t an om m om e |
2 6 3. 0 |
2 6 3. 0 |
2 7 7. 8 |
2 7 7. 8 |
% 5. 6 |
||
| / ( los ) f l a d l b l d o he Ga ins ina ia ia i i ies ts t t se s on nc ss e an an r |
1 4. 5 |
1 4. 5 |
8 4. 6 |
5 9. 6 |
2 5. 1 |
7 3. 4 % |
|
| he d e O ing inc t t r o p er a om e a n xp en se s |
( ) 2 3. 5 |
( ) 2 3. 5 |
( ) 1 2. 9 |
( ) 1 2. 9 |
4 5. 0 % |
||
| inc Gr os s om e |
6 6 2. 1 |
6 6 2. 1 |
7 8 1. 2 |
5 9. 6 |
7 2 1. 6 |
9. 0 % |
|
| f f e S ta xp en se s |
( ) 3 6 8. 7 |
( ) 1 0 5. 8 |
( ) 2 6 2. 9 |
( ) 2 6 2. 2 |
( ) 2 1. 1 |
( ) 2 4 1. 1 |
8. 3 % ‐ |
| he dm in is ive O t tra t r a ex p en se s |
( ) 1 5 0. 6 |
( ) 1 5 0. 6 |
( ) 1 7 2. 9 |
( ) 3. 1 |
( ) 1 6 9. 8 |
% 1 2. 8 |
|
| d a De ia ion isa ion t t t p rec an mo r |
( ) 2 1. 8 |
( ) 2 1. 8 |
( ) 2 3. 8 |
( ) 2 3. 8 |
9. 1 % |
||
| Op ing t er a ex p en se s |
( ) 5 4 1. 1 |
( ) 1 0 5. 8 |
( ) 4 3 5. 3 |
( ) 4 5 8. 9 |
( ) 2 4. 2 |
( ) 4 3 4. 7 |
0. 1 % ‐ |
| ing inc Ne t o t p er a om e |
1 2 1. 1 |
( ) 1 0 5. 8 |
2 2 6. 9 |
3 2 2. 3 |
3 5. 4 |
2 8 6. 9 |
2 6. 5 % |
| irm los d o he is ion Im t t p a en se s a n r p ro v s |
0. 5 |
0. 5 |
4 7. 7 |
4 7. 7 |
|||
| ins d los in he Ga t ts an se s o r a ss e |
1 2. 2 |
1 2. 2 |
8 5. 0 |
9 8. 8 |
( ) 1 3. 8 |
% 2 1 3. 3 ‐ |
|
| be fo Ne inc inc t ta om e re om e x |
1 3 3. 8 |
( ) 1 0 5. 8 |
2 3 9. 6 |
4 5 5. 0 |
1 3 4. 2 |
3 2 0. 8 |
3 3. 9 % |
| Inc tax om e |
( ) 4 0. 7 |
2 9. 0 |
( ) 6 9. 7 |
( ) 1 2 2. 9 |
( ) 2 0. 4 |
( ) 1 0 2. 5 |
4 7. 0 % |
| inc fro inu ing ion Ne t t t om e m co n op er a s |
9 3. 1 |
( ) 7 6. 8 |
1 6 9. 9 |
3 3 2. 1 |
1 1 3. 7 |
2 1 8. 3 |
2 8. 5 % |
| inc fro d isc inu d o ion Ne t t t om e m on e p er a s |
3 0. 6 |
3 0. 6 |
6 4. 2 |
6 4. 2 |
|||
| i bu b le l l ing in Inc t tr ta to tro te ts om e a no n‐c on res |
( ) 0. 0 |
( ) 0. 0 |
|||||
| Ne inc t om e |
1 2 3. 7 |
( ) 4 6. 2 |
1 6 9. 9 |
3 9 6. 3 |
1 7 8. 0 |
2 1 8. 3 |
2 8. 5 % |
Non recurring impacts:
In 2017 – costs of 76.8 M.€ (105.8 before taxes) with early retirements and voluntary terminations, gain of 8.6 M.€ after taxes with the sale of BPI Vida e Pensões (recorded in the caption "Net income from discontinued operations") and net income from discontinued operations (BPI Vida e Pensões, BPI Gestão de Ativos and BPI GIF) of 22.0 M.€.
In 2018 – gain of 59.6 M.€ with the sale of the stake in Viacer, gain of 61.8 M.€ with the sale of subsidiaries (BPI Gestão de Ativos and BPI GIF), gain of 71.7 M.€ with the sale of acquiring / POS businesses, cost of 15.3 M.€ (after taxes) with early retirements, other non recurring administrative expenses of 2.2 M.€ (after taxes) and net income from discontinued operations of 2.5 M.€.
Note: The 2017 income statement restated reflects the restatement of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF to the consolidated results in accordance with IFRS 5, the adoption of a new income statement structure following the entry into force of IFRS 9, and the reclassification of some costs from Other administrative expenses to Commissions paid.
| In M .€ |
1) 201 7 re ted sta |
201 8 |
|---|---|---|
| Ne int inc t st ere om e |
3 8 8. 1 |
4 2 2. 6 |
| de d D iv i inc n om e |
6. 5 |
1. 7 |
| d Eq ity inc te u ac co un om e |
1 2 4. 8 |
2 7 1. 6 |
| fee d c Ne iss ion inc t an om m om e |
2 6 4. 0 |
2 7 7. 8 |
| / ( los ) f l a d l b l d o he Ga ins ina ia ia i it ies ts t ses on nc sse an an r |
1 4. 4 |
7 6. 9 |
| he d e Ot ing inc t r o p era om e a n xp en ses |
( ) 2 4. 3 |
( ) 1 2. 9 |
| inc Gr os s om e |
7 7 3. 5 |
1 0 3 7. 6 |
| f f e Sta xp en ses |
( ) 3 6 9. 7 |
( ) 2 6 2. 2 |
| O f w h ic h: ing f f e Re st cu rr a xp en ses |
( ) 2 6 3. 9 |
( ) 2 4 1. 1 |
| 2) ing No sts n‐r ec ur r co |
( ) 0 8 1 5. |
( ) 2 1. 1 |
| he Ot dm in ist ive rat r a ex p en ses |
( ) 1 5 0. 9 |
( ) 1 7 2. 9 |
| d a De iat ion isa ion rt t p rec an mo |
( ) 2 1. 9 |
( ) 2 3. 8 |
| Op ing t era ex p en se s |
( ) 5 4 2. 5 |
( ) 4 5 8. 9 |
| Ne ing inc t o t p era om e |
2 3 1. 0 |
5 7 8. 6 |
| los d o he Im irm is ion t t p a en ses an r p rov s |
( ) 0. 1 |
4 7. 9 |
| d los he Ga ins in ot ts an ses r a sse |
1 2. 2 |
( ) 6 8. 7 |
| inc be for inc Ne t e t om e e om ax |
2 4 3. 0 |
5 5 7. 9 |
| Inc e t om ax |
( ) 5 1. 8 |
( ) 1 3 1. 4 |
| inc fro inu ing ion Ne t nt at om e m co op er s |
9 3 1 1. |
2 6. 4 4 |
| fro inc d isc inu d o ion Ne t t t om e m on e p era s |
( ) 1 8 1. 0 |
6 2 4. |
| Inc i bu b le t l l ing int ttr ta ntr sts om e a o n on ‐co o ere |
( ) 0. 0 |
|
| Ne inc t om e |
1 0. 2 |
4 9 0. 6 |
| 1) ted 201 7 re sta |
201 8 |
|
|---|---|---|
| ing ha ( ) Ea € rn s p er s re |
0. 0 1 |
0. 3 4 |
| fro ( ) Ne inc inu ing ion € t nt t om e m co op era s |
0. 1 3 |
0. 2 9 |
| ( ) inc fro d isc inu d o ion € Ne t t t om e m on e p era s |
0. 2 1 ‐ |
0. 0 4 |
| hte d n f s ha ( l l ) Av ig in i ion era g e w e r. o res m s |
1 4 5 6 |
1 4 5 7 |
The 2017 income statement restated reflects the restatement of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF to the consolidated results in accordance with IFRS 5, the adoption of a new income statement structure following the entry into force of IFRS 9, and the reclassification of some costs from Other administrative expenses to Commissions paid. 1)Costs with voluntary terminations and early retirements.
| In M. € |
3 1 De 1 7 c. |
3 1 De 1 8 c. |
|
|---|---|---|---|
| A S S E T S |
|||
| h he fo f W i in I F R S 9, t t try to e n rce o |
h a d c h ba lan l ba ks d o he de d de Ca its t c tra t s n as ce s a en n an r ma n p os |
1 0 9 4. 1 |
2 4 5 2. 9 |
| l a he l fo fa lue hro h p f los fa F ina ia d d ing ir v it o d a ir ts r tr at t t nc sse a a ug ro r s a n , |
4 1 7 5. 9 |
2 3 3 0. 5 |
|
| de de d do Ba B P I i to t a tru tu nc o c a p s c re |
lue hro h o he he ive inc t t va ug r c om p re ns om e |
||
| f he d du l a d c l da d in iv i i t te o a n on so |
l a d c F ina ia ise ts at ort t nc sse am os |
2 2 5 0 6. 7 |
2 5 6 7 1. 9 |
| f w h h: O ic |
|||
| f ina ia l s in l ine i h he ta te ts t t nc me n w |
Lo Cu s t sto an o me rs |
2 1 6 3 8. 2 |
2 2 9 4 9. 1 |
| / de l f la ( ) i ine Re ion E U 2 0 1 7 1 4 4 3 t g u s o g u |
d a Inv in j int iat tm ts ntu es en o ve res an sso c es |
7 9 4. 5 |
2 0 9. 1 |
| b le Ta i ets ng ass |
4 5. 3 |
6 7. 3 |
|
| f d w i h he Ju 2 9, 2 0 1 7 a t t tru tu o ne n s c re |
Int i b le ets an g ass |
4 2. 3 |
1 5 5. |
| f he f l s d by ina ia t ta te ts te o nc me n p re se n |
Ta ts x a sse |
4 5 3. 2 |
3 5 2. 8 |
| k ( he l f Ca ixa i da i Ba t t t |
d d isp l g las i f ie d a he l d fo le No t a ts n‐c ur ren sse an os a rou p s c s s r s a |
7 3. 3 |
3 3. 9 |
| ing ty n co ns o e n o |
he Ot ts r a sse |
4 4. 9 5 |
3 9 4. 5 |
| ). Ba B P I nc o |
l a To ta ts sse |
2 9 6 4 0. 2 |
3 1 5 6 8. 0 |
| S L I A B I L I T I E |
|||
| l l b l he l d fo d F ina ia ia i it ies ing r tr nc a |
1 7 0. 0 |
1 4 1. 3 |
|
| l l b l d c F ina ia ia i it ies ise at ort t nc am os |
2 5 9 6 1. 4 |
2 7 5 1 5. 7 |
|
| its Ce l ks d Cre d it itu ion De Ba Ins ntr t t p os a n an s ‐ |
3 9 8. 0 7 |
3 2 0 6. 3 |
|
| De its Cu sto p os me rs ‐ |
2 0 7 1 3. 6 |
2 2 9 6 0. 3 |
|
| hn ica l p is ion Te c rov s |
|||
| bt De it ies iss d se cu r ue |
1 0 2 0. 0 |
1 1 1 8. 2 |
|
| du bo d d l b l Me ite ina ia i it ies te mo ran m ms : su r |
3 0 5. 1 |
3 0 4. 5 |
|
| he f ina ia l l ia b i l it ies Ot r nc |
2 4 9. 8 |
2 3 1. 0 |
|
| Pro is ion v s |
6 4. 2 |
6 5. 5 |
|
| l b l Ta ia i it ies x |
7 0. 6 |
7 3. 8 |
|
| ia b i l it ies inc lu de d in d isp l g las i f ie d a he l d fo le L os a rou p s c s s r s a |
4. 5 |
0. 0 |
|
| he l b l Ot ia i it ies r |
5 4 5. 8 |
5 6 5. 7 |
|
| l b l To L ia i it ies ta |
2 6 8 1 6. 6 |
2 8 3 6 2. 1 |
|
| f S ha ho l de ' e ity i bu b le he ha ho l de B P I at tr ta to t re rs q u s re rs o |
2 8 2 3. 6 |
3 2 0 6. 0 |
|
| l l No ing int tro ts n c on er es |
0. 0 |
0. 0 |
|
| l ha ho l de ' e ity To S ta re rs q u |
2 8 2 3. 6 |
3 2 0 6. 0 |
|
| l l b l d ha ho l de ' e To ia i it ies S ity ta an re rs q u |
2 9 6 4 0. 2 |
3 1 5 6 8. 0 |
| 2 0 1 7 d ta te 1) re s |
2 0 1 8 |
|
|---|---|---|
| / Gr inc d i d inc A T A ty te os s om e a n eq u ac co un om e |
2. 3 % |
3. % 4 |
| / be fo d bu b le l l Ne inc inc inc i ing in A T A t ta t tr ta to tro te ts om e re om e x a n om e a n on ‐c on re s |
0. 2 % |
2. 0 % |
| / inc be fo inc d inc i bu b le l l ing in ha ho l de ' Ne t ta t tr ta to tro te ts om e re om e x a n om e a n on ‐c on re s av er ag e s re rs ( lu d l l ) i inc ing ing in ty tro te ts eq n on ‐c on re s u |
2. % 4 |
2 0. 3 % |
| / f f e d e d S Gr inc i inc 2 ta ty te xp en se s os s om e a n q u ac co un om e |
3 4. 1 % |
2 3. 2 % |
| / ing inc d e i d inc Op Gr 2 t ty te er a ex p en se s os s om e a n q u ac co un om e |
% 5 6. 5 |
% 4 1. 9 |
| ( ) de Lo i io t to ts t an s ne p os ra |
1 0 % 5 |
1 0 4 % |
1) Considering the "restated" financial statements of 2017 which reflect the restatement of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF for the consolidated net income in conformity with IFRS 5 rules, and the adoption of a new format for the Income Statement, following the entry into force of IFRS9, and the reclassification of certain "Other administrative expenses" to Comissions paid.
2) Excluding early‐retirement costs.
| De 1 7 c. |
De 1 8 c. |
|
|---|---|---|
| fo ( ) No ing N P E io t n‐ p er rm ex p os ur es ra |
5. 1 % |
3. 5 % |
| by d c l la ls N P E c im irm ts te ov er p a en an o ra |
1 1 7 % |
1 2 7 % |
| 1) f fo bo lu de d io inc in N Ra P E t t o r rn e n o |
1. 9 % |
0. 8 % |
1) Forborne according to EBA criteria and considering the scope of prudential supervision. On 31 December 2018, the forborne was 813 M. € (forborne ratio of 2.5%), of which 254 M.€ was performing loans (0.8% of the gross credit exposure) and 559 M.€ was included in NPE (1.7% of the gross credit exposure).
The following table presents, for the consolidated income statement, the reconciliation of the structure used in the current document (Banco BPI Consolidated results in 2018) with the structure used in the financial statements and respective notes of the 1st Half 2018 Report.
| ed in t he sul ts' ion Str Re Pre uct tat ure us sen |
20 18 |
20 18 |
ted in the fin ial nd tiv Ne tru ctu sta tem ent ote w s re pre sen anc s a res pec e n s |
|---|---|---|---|
| Ne t in in ter est com e |
42 2.6 |
42 2.6 |
Ne t in in ter est com e |
| ide nd Div inc om e |
1.7 | 1.7 | ide nd Div inc om e |
| Equ ity d in nte acc ou com e |
27 1.6 |
27 1.6 |
/ ( s) o Sha f p rof it los f e nti tie ed for ing th ity tho d unt re o s a cco us e e qu me |
| t fe nd Ne mis sio n in e a com com e |
27 7.8 |
31 9.0 |
d c Fee mis sio n in an om com e |
| ( .2) 41 |
Fee d c mis sio an om n e xpe nse s |
||
| / ( los ) o n f al a nd liab ilit d Ga ins ina nci ies ts a ses sse an |
76 .9 |
1.5 | / ( los ) o n d of fin ial d li abi litie red fa alu hro h p rof r lo Ga ins nit ion ir v it o ets ot at e t net ses ere cog anc ass an s n me asu ug ss, |
| oth er |
39 .0 |
/ ( ) o Ga ins los n f ina nci al a nd liab ilit ies he ld f din ts a tra et ses sse or g, n |
|
| 60 .3 |
/ ( los ) o n f al a de ed for din lso rily d a t fa alu hro h p rof r lo Ga ins ina nci sig ir v it o ts not nat tra e t net ses sse g c om pu m eas ure ug ss, |
||
| 1.4 | / ( ) Ga ins los fro hed nti t ses m ge acc ou ng, ne |
||
| ( .3) 25 |
/ han diff s (g los s), Exc ain net ge ere nce |
||
| Oth tin inc nd er op era g om e a exp ens es |
( .9) 12 |
11 .5 |
Oth tin inc er op era g om e |
| ( .4) 24 |
Oth tin er op era g e xpe nse s |
||
| Gro inc ss om e |
1 0 37 .6 |
103 7.6 |
GR OS S I NC OM E |
| ff e Sta xpe nse s |
( ) 26 2.2 |
( ) 26 2.2 |
ff e Sta xpe nse s |
| Oth adm inis tiv tra er e e xpe nse s |
( .9) 172 |
( .9) 172 |
Oth adm inis tiv tra er e e xpe nse s |
| nd De cia tio isa tio ort pre n a am n |
( .8) 23 |
( .8) 23 |
nd De cia tio isa tio ort pre n a am n |
| Op tin era g e xpe nse s |
( ) 45 8.9 |
( ) 45 8.9 |
Ad mi nis tiv de cia tio nd isa tio tra ort e e xpe nse s, pre n a am n |
| Ne ing in t o rat pe com e |
57 8.6 |
57 8.6 |
NE T O PER AT ING IN CO ME |
| irm lo nd oth vis ion Im ent pa sse s a er pro s |
.9 47 |
( ) 1.1 |
vis ion sal of ovi sio Pro s o r re ver pr ns |
| 49 .0 |
/ (re sal ) o f im lo n f al a d a t fa alu hro h p rof r lo Im irm irm ina nci ir v it o ent ent ts not e t pa ver pa sse s o sse m eas ure ug ss |
||
| Ga ins d lo s in her ot set an sse as s |
( .7) 68 |
( ) 6.7 |
(‐ ) re Im irm sal of im irm titi d f usi the uit eth od ent ent nte pa or ver pa on en es acc ou or ng eq y m |
| ( ) 1.7 |
/ (re sal ) o f im n‐f al a Im irm irm ina nci ent ent ts pa ver pa on no sse |
||
| ( .2) 55 |
/ Ga ins ( los ) o n d nit ion of n‐f ina nci al a ts, net ses ere cog no sse |
||
| ( ) 5.1 |
fit / ( los s) fro nd dis al g cla ssif ied he ld f sal alif di d o s (n et) Pro ing nti ati ent set ot m no n‐c urr as s a pos rou ps as or e n qu y as sco nue per on |
||
| t in e b efo inc Ne e t com re om ax |
7.9 55 |
7.9 55 |
/ ( SS) OF IT LO FO TA X F RO CO INU ING OP ERA TIO NS PR BE RE M NT |
| Inc e t om ax |
( ) 13 1.4 |
( ) 13 1.4 |
ela ted ofit lo ss f Tax inc nti ing tio to ex pen se or om e r pr or rom co nu op era ns |
| t in e f nti ing tio Ne com rom co nu op era ns |
42 6.4 |
42 6.4 |
/ OF ( LO SS) RO CO ING OP TIO NS PR IT AF TER TA X F M NT INU ERA |
| e fr dis ued Ne t in tin tio com om con op era ns |
64 .2 |
64 .2 |
fit / ( los s) a fte x fr di ed Pro nti tio r ta om sco nu op era ns |
| ibu tab le t olli int Inc ttr ntr sts om e a o n on ‐co ng ere |
0.0 | 0.0 | / fit ( los s) for th eri od rib ble rol ling int Pro att uta to ont sts e p no n‐c ere |
| Ne t in com e |
49 0.6 |
49 0.6 |
/ ( SS) PR OF IT LO FO R T HE PE RIO D A TTR IBU TA BLE TO OW NE RS OF TH E P AR EN T |
The European Securities and Markets Authority (ESMA) published on 5 October 2015 a set of guidelines relating to the disclosure of Alternative Performance Measures by entities (ESMA / 2015 / 1415). These guidelines are to be obligatorily applied with effect from 3 July 2016. In addition to the financial information prepared in accordance with the International Financial Reporting Standards (IFRS), BPI uses a set of indicators for the analysis of performance and financial position, which are classified as Alternative Performance Measures, in accordance with the abovementioned ESMA guidelines. The information relating to those indicators has already been the object of disclosure, as required by the ESMA guidelines. In the current presentation, the information previously disclosed is inserted by way of cross‐reference. A summarized list of the Alternative Performance Measures is presented next.
41
The following earnings, efficiency and profitability indicators are defined by reference to the above structure of the profit and loss account used in this document.
Gross income = net interest income + Dividend income + Net fee and commission income + Equity accounted income + Gains/(losses on financial assets and liabilities and other + Other operating income and expenses
Commercial banking gross income = net interest income + Dividend income + Net fee and commission income + Equity accounted income excluding the contribution of stakes in African banks
Operating expenses = Staff expenses + Other administrative expenses + Depreciation and amortisation
Adjusted Operating expenses = Staff expenses excluding cost with early retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) + Other administrative expenses (recurring) + Depreciation and amortisation
Net operating income = Gross income ‐ Operating expenses
Net income before income tax = Net operating income + Impairment losses and other provisions + Gains and losses in other assets
Cost‐to‐income ratio (efficiency ratio) 1) = Operating expenses / Gross income
Adjusted Operating expenses‐to‐commercial banking gross income 1) = Operating expenses, excluding costs with early‐retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) / Commercial banking gross income
Return on Equity (ROE) 1) = Net income for the period / Average value in the period of shareholders' equity attributable to BPI shareholders after deduction of the fair value reserve (net of deferred taxes) related to financial assets available for sale
Return on Tangible Equity (ROTE) 1) = Net income for the period / Average value in the period of shareholders' equity attributable to BPI shareholders after deduction of intangible net assets and other comprehensive income (reserves).
Return on Assets (ROA) 1) = (Net income attributable to BPI shareholders + Income attributable to non‐controlling interests ‐ preference shares dividends paid) / Average value in the period of net total assets
Unitary intermediation margin = Loan portfolio average interest rate, excluding loans to Employees ‐ Deposits average interest rate
On‐balance sheet Customer resources = Deposits + Capitalisation insurance of fully consolidated subsidiaries + Participating units in consolidated mutual funds
Note: The amount of on‐balance sheet Customer resources is not deducted from the applications of off‐balance sheets products (mutual funds and pension plans) in on‐balance sheet products.
Assets under management = Mutual funds + Capitalisation insurance + Pension plans
(i) Amounts deducted from participating units in the Group banks' portfolios and from off‐balance sheet products investments (mutual funds and pension plans) in other off‐balance sheet products. (ii) Following the sale of BPI Vida e Pensões in Dec.17, the capitalisation insurance placed with BPI's Customers are recorded off balance sheet, as "third‐party capitalisation insurance placed with Customers", and pension funds management is excluded from BPI's consolidation perimeter.
Subscriptions in public offerings = Customers subscriptions in third parties' public offerings
Total Customer Resources = On‐balance sheet Customer Resources + Assets under management + Subscriptions in public offerings
Gross loans to customers = Gross loans and advances to customers (financial assets at amortized cost), excluding other assets (guarantee accounts and others) + Gross debt securities issued by Customers (financial assets at amortized cost)
Note: gross loans = performing loans + loans in arrears + receivable interests
Net loans to Customers= Gross loans to customers – Impairments for loans to customers
Loan‐to‐deposit ratio (CaixaBank criteria) = (Net loans to Customers ‐ Funding obtained from the EIB, which is used to provide credit) / Deposits and retail bonds
Impairments for loans and guarantees as % of the loan portfolio1) = Impairment losses and provisions for loans and guarantees / Average value in the period of the performing loan portfolio Being:
Impairment losses and provisions for loans and guarantees = Impairments or impairments reversal from financial assets not measures at fair value through profit or loss relating to loans and advances to customers and debt securities issued by Customers (financial assets at amortised cost), before deducting recovery of loans, interest and expenses + provisions or provisions reversals for commitments and guarantees
Cost of credit risk as % of the loan portfolio 1)= (Impairment losses and provisions for loans and guarantees, net ‐ Recovery of loans, interest and expenses) / Average value in the period of the performing loan portfolio Being:
• Impairment losses and provisions for loans and guarantees = Impairments or impairments reversal from financial assets not measures at fair value through profit or loss relating to loans and advances to customers and debt securities issued by Customers (financial assets at amortised cost), before deducting recovery of loans, interest and expenses + provisions or provisions reversals for commitments and guarantees
Performing loans portfolio = Gross customer loans ‐ (Overdue loans and interest + Receivable interests and other)
NPE ratio = Ratio of non‐performing exposures (NPE) according to EBA criteria (prudential perimeter)
Coverage of NPE = [Impairments for loans and advances to customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / Non‐performing exposures (NPE)
Coverage of NPE by impairments and associated collateral = [Impairments for loans and advances to customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] + Collateral associated to NPE ] / Non‐performing exposures (NPE)
Non performing loans ratio ("crédito duvidoso"; Bank of Spain criteria) =Non performing loans (Bank of Spain criteria) / (Gross customer loans + guarantees)
Non performing loans (Bank of Spain criteria) coverage ratio = [Impairments for loans and advances to customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / Non performing loans (Bank of Spain criteria)
Coverage of non performing loans (Bank of Spain criteria) by impairments and associated collateral = [Impairments for loans and advances to customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] + Collateral associated to credit ] / Non performing loans (Bank of Spain criteria)
Impairments cover of foreclosed properties = Impairments for real estate received in settlement of defaulting loans / Gross value of real estate received in settlement of defaulting loans
Banco BPI, S.A. Head Office: Rua Tenente Valadim, no. 284, Porto, Portugal Share capital: € 1 293 063 324.98 Registered in Oporto C.R.C. and corporate body no. 501 214 534
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