![[Trending News] BCP increases profits by 5.9%to 906 million](https://i1.wp.com/imagens.publico.pt/imagens.aspx/1980780?tp=UH&db=IMAGENS&type=JPG&share=1&o=BarraFacebook_Publico.png&w=1200&resize=1200,0&ssl=1 "[Trending News] BCP increases profits by 5.9%to 906 million")
BCP reported a net result of 906.4 million euros as a set of year of 2024, which represents an increase of 5.9% over the profits of 856 million that had been registered the previous year. Growth is explained by the positive evolution of activity in Portugal and Poland, with increases on both credit and deposits, and the reduction of imparities and provisions to cover potential credit compromises.
The results were reported on Wednesday in a statement sent to the Securities Market Commission (CMVM). “The growth of the group's net income against the previous year was determined by the favorable performance of both the activity in Portugal and the subsidiary Polaca, and the results presented by Millennium Bim in Mozambique were lower than those achieved in 2023, conditioned by the impacts arising from the economic and financial situation that the country crosses, namely by the descent of notation [financeira] of sovereign debt “, can be read in the statement.
The growth recorded in 2024 is still far below the one that had been reached in 2023, when the BCP more than quadrupled profits. These results had been influenced by the extraordinary gain associated with the sale, by the BCP subsidiary Polish, a part of the Millennium Financial Services, a factor that no longer occurred in 2024.
Miguel Maya, thus, considers that BCP achieved “good” results last year. “They were neither exceptional nor special, but good, reflecting the changes made by the bank, for several years, at the quality level of credit portfolios and digital transition,” the BCP president said at a press conference.
Justifying this result is, above all, the bank's commercial activity, in a year in which both credit and deposits recorded growth and contributed to the increase in revenues obtained from commissions.
The total credit portfolio increased by 0.7% and totaled 57,203 million euros at the end of 2024, a variation that is due exclusively to the private segment, which increased by 3.9%. Considering only housing credit, the portfolio increased by 2.7% and totaled 28,734 million euros. Already the credit portfolio to companies reduced by 4.5%.
Still with regard to credit, the bank saw the quality of the portfolio improve, with the Malparado credit ratio (which, in the case of BCP, is measured through the indicator non-performing exposuresor non -productive exhibitions) to fall from 2.2% at the end of 2023 to 1.9% in 2024. Considering only the activity in Portugal, this ratio fell from 2% to 1.7%.
As for customer resources, the bank saw deposits increase by 7.8%, ascending 84,042 million euros. Also the assets under management recorded significant growth of 9.8%, totaling 6108 million euros. Considering all indicators, total customer resources rose to 102,938 million euros by 2024, an 8% increase over the previous year.
Liquid committees thus totaled 808.5 million euros, an annual growth of 4.8% that the BCP justifies with the “favorable performance” of activity in Portugal and international. “In consolidated terms, the favorable performance of net committees has stemmed from growth and bank committees, which rose to 684.1 million euros (…), either from financial market -related commissions, which totaled 124.5 million euros,” the bank explains in a statement.
Financial margin falls in Portugal
Already on the operational side, the BCP registered several falls, including on the financial margin (indicator that measures the difference between the interest charged in the credit and the interest paid in the deposits), which in 2023 had been primarily responsible for the marked growth of the profits of this bank.
In 2024, the BCP financial margin ascended at about 2830 million euros, maintaining in line with the previous year (there was an increase of only 0.2%). This performance was achieved despite the “reduction recorded in activity in Portugal”, which was “offset by the increase in international activity”.
Considering only domestic activity, the financial margin fell 9% and settled at 1335 million euros, a result that “reflects, above all, the increase in costs of [financiamento]partially offset by the higher income generated by both customers' credit portfolio and the securities portfolio, “explains the bank, stressing that there was an” increased costs associated with deposit portfolio remuneration, mainly due to the evolution of interest rates last year “.
Still on the operational side, the results in financial operations fell sharply, from 146.4 million to five million, evolution explained by the gains that had been obtained by the subsidiary Polaca in 2023 with the sale of Millenni Financial Services and that were not repeated in 2024. of the Polish subsidiary “.
The bank product thus ended up falling at 5.2% and settling at 3574 million euros by 2024.
As for liquidity and solvability, the BCP closed 2024 with a ratio of common equity tier 1 of 16.3%, above the 15.4% ratio that had been registered in the previous year and the regulatory requirement of 9.7% that had been defined for this year.