Slides
Page 1
1
Page 2
2 l The information in this presentation has been prepared under the scope of the International Financial Reporting Standards (‘IFRS’) of BCP Group for the purposes of the preparation of the consolidated financial statements under Regulation (CE) 1606/2002, as amended. l The figures for the first three months of 2024 and 2025 were not audited l The information in this presentation is for information purposes only and should be read in conjunction with all other information made public by the BCP Group. l The figures presented do not constitute any form of commitment by BCP in regard to future earnings. Disclaimer
Page 3
3 AGENDA
Page 4
4 Highlights 01
Page 5
5 1 Includes provisions for legal risk, costs with out of court settlements and legal advice (before taxes and non-controlling interests). Does not include provisions for legal risk on CHF mortgages of Euro Bank (guaranteed by Société Générale). 2 Does not include provisions for legal risk on CHF mortgages of Euro Bank (guaranteed by Société Générale). Before taxes and non-controlling interests. 3 Fully implemented ratio including 25% of the unaudited net income of Q1’25. 4 Capital Requirement Regulation 3 (CRR3), with an estimated impact of 50bp. 5 Liquidity Coverage Ratio (LCR); Net Stable Funding Ratio (NSFR); Loans to Deposits Ratio (LtD). Business Model A Solid and Efficient Bank Profitability ▪ Group’s net income of 243.5 million in Q1’25, corresponding to an increase of 3.9% compared to Q1’24, reaching a ROE of 13.9% in March 2025 ▪ In Portugal, net income amounted to 218.9 million in Q1’25, corresponding to an increase of 7.6% compared to Q1’24 ▪ Bank Millennium net income stood at 42.8 million in Q1’25, despite charges of 130.81 million related with CHF mortgage loan portfolio (out of which 98.12 million in provisions) ▪ Solid capital ratios. CET14 stood at 15.9% and total capital ratio3 at 20.0%, incorporating the effects resulting from CRR34 ▪ Liquidity indicators well above regulatory requirements. LCR5 at 354%, NSFR5 at 180% and LtD5 at 67%. Eligible assets available to discount at ECB of 31.4 billion ▪ Group’s total Customer funds grew 6.1% to 104.6 billion and loans to customers up 2.2% to 58.1 billion compared to March 2024 ▪ Relevant reduction in non-performing assets compared to March 2024: 232 million in NPE, 43 million in foreclosed assets and 39 million corporate restructuring funds ▪ Cost of risk at Group level stood at 38bp in Q1’25, which compares with 52bp in the same period of last year. In Portugal Cost of risk stood at 34bp which compares with 48bp in the same period of last year ▪ Customer base surpasses 7 million highlighting the 9% increase in mobile Customers, which represented 72% of the total active Customers at the end of March 2025
Page 6
6 Customer counting criteria used in the Strategic Plan. Digital Mobile Active Digital Mobile Active Portugal Group Customer Recognition These awards are the exclusive responsibility of the attributing entities. Customer base growth Based on the quality of the Teams and distinctive digital skills 1,617 1,784 Mar 24 Mar 25 +166 64% +10% +131 1,894 2,024+7% 73% 2,716 2,790 4,661 5,090 Mar 24 Mar 25 +428 72% +9% +347 5,215 5,562 +7% 79% 6,774 7,040 As % of active Customers ‘000 Customers ‘000 Customers As % of active Customers
Page 7
7 + 7% % Digital Transactions (#)3 % Digital Sales (#)4 # Digital Interactions (mio)2 1 Includes P2P transfers in Millennium app 2 Interactions (Millennium website and app), individuals includes AB 3 Includes mobile, online and ATMs, excludes branches and contact center that counts for 0.4% of total transactions 4 Digital sales (Millennium website and app) in number of operations 5 Digital channels satisfaction (NPS), 5 largest banks, Source: BASEF-Marktest 7 (Number of operations, Jan-Mar 2025 vs Jan–Mar 2024) +15% Transactions1 +16% P2P Transfers +75% Investment Funds(#) +13% Sales +34% Personal loans (#) +19% National Transfers +15% Savings +56% Account Opening (#) Strong mobile growth Y/Y Innovation focused on Customer needs translates into accelerated growth in Mobile usage and sales #1 NPS5 Digital Customers Mar 2025 5 largest Banks 4.9 4.8 4.8 App Millennium leads ratings 84 84 99.6 99.6 73 74 11 9 Q1'24 Q1'25 APP Site 87 89 13 11 Q1'24 Q1'25 Digital ATM 163 182 Q1'24 Q1'25
Page 8
8 1 Dividends from equity instruments, other net operating income, net trading income and equity accounted earnings.| 2 Includes the result of contract changes from the renegotiation of CHF mortgages loans | 3 Does not include provisions for legal risks on CHF mortgages of Euro Bank (guaranteed by Société Générale). Net income of 243.5 million in Q1’25 (Million euros) Q1'24 Q1'25 % D Net interest income 696.2 721.1 +3.6% +24.8 Commissions 197.3 201.4 +2.1% +4.2 Core income 893.5 922.5 +3.2% +29.0 Operating costs -307.8 -339.7 +10.4% -31.9 Core operating profit 585.7 582.8 -0.5% -2.9 Other income 1 -25.0 -13.3 +46.6% +11.6 Profit before impairment and provisions 560.7 569.4 +1.5% +8.7 Impairment, other provisions and results on modification 2 -226.0 -191.2 -15.4% +34.8 Of which: Loans impairment -73.5 -55.8 -24.1% +17.8 Of which: legal risk on CHF mortgages (Poland) 3 -117.4 -98.1 -16.4% +19.3 Profit before income tax 334.8 378.2 +13.0% +43.5 Income taxes, non-controlling interests and discontinued operations -100.5 -134.8 +34.2% -34.3 Net income 234.3 243.5 +3.9% +9.1
Page 9
9 Delivering shareholder value 1 Considering the evolution of the book value per share from March 2024 to March 2025 and the €0.03 per share dividend relating to the 2024 results to be approved at the next Annual General Shareholders’ Meeting on May 22, 2025. | 2 The €0.017 dividend per share relating to the 2023 results paid in 2024 divided by the last closing price (non -adjusted) of March 2024 ROE 13.9% ROTE BVPS + DPS DIVIDEND YIELD 14.5% 5.4% 2 +15.8% 1
Page 10
10 Group 02 Profitability
Page 11
11 Group (Consolidated, million euros) Portugal (Million euros) International operations (Million euros) Net interest margin Net interest income Net interest margin Net interest margin 696.2 721.1 Q1'24 Q1'25 357.2 395.2 Q1'24 Q1'25 339.1 325.8 Q1'24 Q1'25 -3.9% +10.7% 3.12% 3.00% +3.6% 4.57% 4.55% 2.34% 2.12%
Page 12
12 Group (Consolidated, million euros) Portugal (Million euros) International operations (Million euros) Banking fees and commissions Market-related fees and commissions ComissõesFees and commissions 167.5 170.5 29.7 30.9 197.3 201.4 Q1'24 Q1'25 118.5 125.0 23.7 22.7 142.2 147.8 Q1'24 Q1'25 49.0 45.4 6.0 8.2 55.0 53.6 Q1'24 Q1'25 +2.1% -2.5% +3.9%
Page 13
13 Group (Consolidated, million euros) Portugal (Million euros) International operations (Million euros) Equity earnings + dividends Mandatory contributions Outros proveitosOther net operating income Mandatory contributions 1.4 16.21.3 1.1 -38.3 -54.3 -2.9 29.5 10.5 13.5 -32.5 -56.3 14.7 46.3 -13.3 -37.0 -4.3 13.39.1 12.4 5.8 -2.0 Q1'24 Q1'25 10.6 23.7 14.7 46.3 Q1’24 Q1’25 Q1'24 Q1'25 -25.0 -35.5 1 Net trading income includes -22.7 million in Q1'24 and -5.3 million in Q1'25 of costs related to out -of-court settlements with Customers related with CHF loan portfolio. | 2 Other operating income includes +9.6 million in Q1'24 and +8.1 million in Q1'25 related with the compensation for provisions for legal risk o n CHF mortgages of Euro Bank (guaranteed by Société Générale) and includes charges related with negotiation costs and legal procedures of CHF loans. Net trading income Other operating income
Page 14
14 Group (Consolidated, million euros) Portugal (Million euros) International operations (Million euros) Other administrative costs Depreciation Staff costs Cost to income Operating costs 165.7 188.1 106.7 113.0 35.4 38.6307.8 339.7 Q1'24 Q1'25 86.2 96.9 49.8 51.918.3 19.9 154.3 168.6 Q1'24 Q1'25 +10.4% +9.3% 79.5 91.2 56.9 61.217.1 18.7 153.5 171.1 Q1'24 Q1'25 +11.5% 35% 37% 31% 34% 41% 42% Cost to income Cost to income
Page 15
15 Group (Consolidated, million euros) Portugal (Million euros) International operations (Million euros) Cost of risk Loan-loss reserves Cost of risk Loan-loss reserves Cost of risk Loan-loss reserves Other Loans Cost of risk and provisions 73.5 55.8 27.8 33.1 117.4 98.1 Q1'24 Q1'25 27.4 22.310.2 28.1 117.4 98.1 Q1'24 Q1'25 642 -11.1% 46.2 33.5 17.5 5.0 63.7 38.5 Q1'24 Q1'25 -4.2% 38bp 1.416 52bp 1,593 48bp 34bp 59bp 46bp 963 774 630 -19.6% +1.9% -39.7% 187.0 148.5155.0 -14.5% 218.7 -16.4% 1 Does not include provisions for legal risks on CHF mortgages of Euro Bank (guaranteed by Société Générale): 9.6 million in Q1'24 and 8.1 million in Q1'25. -24.1% CHF mortgage legal risk (Poland)3
Page 16
16 Group (Consolidated, million euros) Portugal (Million euros) International operations (Million euros) NPE loans ratio NPE loans ratio NPE ratio (EBA) NPE ratio (EBA) NPE Other NPE include loans to Customers only. Continued decrease of NPEs Mar 24 Mar 25 (Total impairment + collaterals)/ NPE 121.9% 118.4% Total impairment / NPE 81.7% 82.4% Impairments allocated to NPE / NPE 53.1% 52.9% NPL>90 days ratio 1.3% 1.4% NPE ratio 3.4% 3.0% NPE ratio inc. securities and off-BS (EBA) 2.1% 1.8% 1.087 0.841 Mar 24 Mar 25 -246 million -22.6% 0.862 0.876 Mar 24 Mar 25 +14 million +1.6% 2.8% 2.2% 4.7% 4.6% 2.0% 1.5% 2.4% 2.3% 0.75 0.84 1.19 0.88 1.95 1.72 Mar 24 Mar 25 NPL>90d -232 million -11.9%
Page 17
17 Group 02 Business activity
Page 18
18 Group (Consolidated, million euros) Portugal (Million euros) International operations (Million euros) Demand deposits Term deposits Other BS funds Off-BS funds Deposits, debt securities, assets under management, assets placed with Customers and insurance products (savings and investme nts). Customer funds 44.5 48.5 36.3 36.6 1.3 1.3 16.4 18.1 98.6 104.6 Mar 24 Mar 25 17.1 19.9 11.4 10.92.1 2.8 30.6 33.7 Mar 24 Mar 25 +10.1% 27.4 28.6 24.9 25.7 1.3 1.314.3 15.3 68.0 70.9 Mar 24 Mar 25 +4.3% +6.1% +5.2%
Page 19
19 Group (Consolidated, million euros) Portugal (Million euros) International operations (Million euros) Companies Personal Mortgage NPE include loans to Customers only, except if otherwise indicated . Loan portfolio 21.8 21.3 6.9 7.6 28.1 29.2 56.8 58.1 Mar 24 Mar 25 +0.01 +0.7618.41 19.19 Mar 24 NPE Performing Mar 25 +2.2% -0.25 +0.7538.41 38.91 Mar 24 NPE Performing Mar 25 +1.3% +0.50 billion +4.2% +0.77 billion NPE: -11.9% (-0.232 billion)
Page 20
20 Group 02 Capital and liquidity
Page 21
21 Fully implemented vs requirement Fully implemented vs requirement Solid capital ratios 16.0% 15.9% 4.5% 1.27% 3.81% 9.57% Mar 24 Mar 25 Requirements 20.5% 20.0% 8.0% 2.25% 3.81% 14.06% Mar 24 Mar 25 Requirements (Fully implemented) (Fully implemented) • CET1 stood at 15.9% and total capital ratio at 20.0% incorporating the effects resulting from CRR33 • Capital ratios comfortably above requirements which also include the conservation buffer, O-SII buffer, countercyclical capital buffer and systemic risk buffer • Buffers for which there are limitations to results distribution: 632bp to CET1, 556bp to T1 and 592bp to total capital Pillar 1 Pillar 2 (P2R) Combined buffer reserve 2 Pillar 1 Pillar 2 (P2R) Combined buffer reserve 2 Common equity tier 1 (CET1)1 Total capital ratio1 1 Fully implemented ratio including 25% of the unaudited net income of Q1’25. 2 Combined buffer reserve incudes: Conservation buffer, O-SII buffer, countercyclical capital buffer and systemic risk buffer. 3 Capital Requirement Regulation 3 (CRR3), with an estimated impact of 50bp. +6.3pp +10.1pp +5.9pp +9.7pp
Page 22
22 (Milhões de euros*) (Milhões de euros*) (Milhões de euros)* 4.0% 5.7% 5.6% 7.4% 6.3% FR DE ES IT Stronger capital position Leverage ratio RWA density 3.0% 24% 25% 36% 34% 40% FR DE ES IT Leverage ratio in comfortable levels (6.3% as of March 2025) higher when comparing to European banks RWAs density in very conservative values (40% as of March 2025) comparing favourably with the values registered by most of the European markets (Fully implemented, latest available data) (RWAs as a % of assets, latest available data)
Page 23
23 20.9% 1.5% 3.7% 7.5% Mar 25 (%TREA) CET13 AT1 T2 SP • Resolution strategy: MPE (Multi Point of Entry)2 • BCP Resolution Group : Perimeter centred in Portugal • Preferred Resolution Measure: Bail-in • No subordination requirements have been applied to the BCP Resolution Group • As of March 31, 2025, BCP complied with MREL requirement, including CBR, applicable since July 2024 (with a buffer of 4.5% of TREA, amounting to c. EUR 1,220 million) • Funding Plan execution • Tender offer: On March 13, 2025, the Bank launched an offer for its Tier 2 Notes due December 2027, with a nominal amount of EUR 166.3M, receiving valid offers totalling EUR 79.5M by March 20, 2025. • 500 million of T2 issued on March 20, 2025, with a maturity of 12 years and Call Option on the year 7 *Preliminary data MREL - Minimum Requirement for own funds and Eligible Liabilities | TREA – Total Risk Exposure Amount; LRE - Leverage Ratio Exposure; CBR - Combined Buffer Requirements 1 Requirements covered by the 2023 Resolution Planning Cycle, applicable since July 2024. MREL requirements are subject to periodic review by the SRB and changes in the regulatory framework. 2 In addition to the resolution perimeter centered in Portugal, BIM in Mozambique and Bank Millennium in Poland were established as additional groups. With regard to Mozambique, as European rules do not apply, no minimum MREL requirement has been set. With regard to Bank Millennium were set minimum requirements of MREL - TREA of 18.03% and MREL - TEM of 5.91% from 18 June 2024. 3 Including 25% of the unaudited net income of Q1’25. 4 Including RRE – Sectoral Systemic Risk Buffer and CCyB – Countercyclical Capital Buffer MREL Requirement1 + CBR4 MREL Requirement1 12.1% 29.14% 6.67% 33.6% MREL requirements and Funding Plan MREL position (BCP Resolution Group - 31 Mar 2025)* 7.5% 0.5% 1.3% 2.7% Mar 25 (%LRE) CET13 AT1 T2 SP
Page 24
24 (Milhões de euros) 180% 354% NSFR (Net stable funding ratio) LCR (Liquidity coverage ratio) Robust liquidity position Liquidity ratios (CRD/CRR) Liquidity excess in ECB Net loans to deposits ratio Eligible assets 100% (Billion euros) 1.61 0.67 Mar 24 Mar 25 27.7 31.4 -0.94 billion 68% 67% Mar 24 Mar 25
Page 25
25 Portugal 03
Page 26
26 (Million euros*) (Million euros*) (Million euros*)(Million euros*) Net income Net operating revenue Operating Costs Profitability in Portugal Impairment and other provisions 203.5 218.9 Q1'24 Q1'25 154.3 168.6 Q1'24 Q1'25 491.9 497.3 Q1'24 Q1'25 +9.3% +7.6% +1.1% 63.7 38.5 Q1'24 Q1'25 -39.7%
Page 27
27 NPE include loans to Customers only.. Net interest income -3.9% 339.1 +9.2 -66.2 -4.7 +24.1 +19.9 +11.8 -7.4 325.8 Q1'24 Performing credit volume effect Credit rate including hedges effect Impact of NPE reduction Deposit's interest effect Impact of securities portfolio Effect of wholesale cost (includes TLTRO) Excess liquidity and other Q1'25 NIM 2.34% 2.12% (Million euros) Interest rates decrease, which significantly impacted the loan’s portfolio income, resulted in a net interest income decrease in Q1’25 despite the positive effects in deposit costs, in the yield from the securities portfolio and in the wholesale funding
Page 28
28 (Million euros) (Million euros) Equity earnings + dividends Net trading income Other operating income Commissions and other income Commissions Other income -4.3 13.3 9.1 12.4 5.8 -2.0 10.6 23.7 Q1’24 Q1’25 Q1'24 Q1'25 YoY Banking fees and commissions 118.5 125.0 +5.5% Cards and transfers 39.7 34.2 -13.8% Loans and guarantees 20.2 21.6 +7.1% Bancassurance 22.0 31.4 +42.5% Management and maintenance of accounts 35.5 37.3 +5.0% Other fees and commissions 1.1 0.6 -46.3% Market related fees and commissions 23.7 22.7 -4.2% Securities operations 10.2 8.3 -18.5% Asset management and distribution 13.5 14.4 +6.6% Total fees and commissions 142.2 147.8 +3.9%
Page 29
29 (Million euros) Other administrative costs Depreciation Staff costs Operating costs Operating Costs Employees Branches 399 397 Mar 24 Mar 25 6,269 6,229 Mar 24 Mar 25 86.2 96.9 49.8 51.9 18.3 19.9154.3 168.6 Q1'24 Q1'25 +9.3%
Page 30
30 (Million euros) (Million euros) (Million euros) Cost of risk Loan-loss reserves Other NPE NPEs decrease Non-performing exposures (NPE) NPE build-up Loan impairment (net of recoveries) 46.2 33.5 Q1'24 Q1'25 NPL>90d 48bp 34bp 963 774 348 408 739 433 1,087 841 Mar 24 Mar 25 -22.6% -246 miilion NPE include loans to Customers only • NPE in Portugal total 841 million at the end of March 2025, a decrease of 246 million from March 2024 • The decrease of NPE from March 2024 is attributable mainly to a reduction of 306 million of other NPE • Cost of risk of 34bp in March 2025, 48bp in March 2024, with the ratio loan-loss reserves / NPE ascending to 92% and 89%, respectively (Million euros) Mar 25 vs. Mar 24 Mar 25 vs. Dec 24 Opening balance 1,087 973 Net outflows/inflows 27 -126 Write-offs -88 -5 Sales -184 0 Ending balance 841 841
Page 31
31 16% 83% 53%0% 5% 3%84% 23% 50% 100% 110% 106% Individuals Companies Total 53% 139% 96%1% 3% 2% 45% 21% 33%100% 163% 131% Individuals Companies Total 34% 107% 92%1% 4% 2% 65% 22% 42%100% 133% 137% Individuals Companies Total LLRs Real estate collateral Cash, other fin. collat. LLRs Real estate collateral Cash, other fin. collat. LLRs Real estate collateral Cash, other fin. collat. NPE include loans to Customers only. *By loan-loss reserves and collaterals. • Total coverage* ≥100%, for both individuals and companies, and for both NPE categories (NPL>90d and other NPE) • Coverage by loan-loss reserves are stronger in loans to companies, where real-estate collateral, usually more liquid and with a more predictable market value, accounts for a lower coverage than in loans to individuals: coverage by loan-losses was 107% for companies NPE as of March 2025, reaching 139% for companies NPL>90d NPE coverage NPE total coverage* NPL>90d total coverage* Other NPE total coverage*
Page 32
32 (Million euros*) (Million euros*) (Million euros*) Corporate restructuring funds Turismo Algarve FCR fund * Sale value # properties sold Net value Impairment Book value Foreclosed assets and corporate restructuring funds Foreclosed assets Corporate restructuring funds Sales of foreclosed assets 93 50 65 38 158 89 Mar 24 Mar 25 9 8 Q1'24 Q1'25 11 11 93 114 -43 million -46.1% 332 293 41 41 373 334 Mar 24 Mar 25 -10.5% • Net foreclosed assets were down by 46.1% between March 2024 and March 2025 • 114 properties were sold during Q1’25 (93 properties in Q1’24), with sale values exceeding book value by 3 million • Restructuring funds amount to 334 million in March 2025 a decrease of 10.5% from March 2024 * The participation in Turismo Algarve FCR was reclassified to investments in associated companies in Q2’24
Page 33
33 (Milhões de euros*) (Milhões de euros*) Term deposits Other BS funds Off-BS funds Companies Personal Mortgage Demand deposits *Deposits, debt securities, assets under management, assets placed with Customers and insurance products (savings and investm ents). Customer funds and loans to Customers Total Customers Funds* Loans to Customers (gross) 27.4 28.6 24.9 25.7 1.3 1.3 14.3 15.3 68.0 70.9 Mar 24 Mar 25 +4.3% (Billion euros) 17.2 16.3 2.4 2.6 18.8 20.0 38.4 38.9 Mar 24 Mar 25 +1.3% (Billion euros)
Page 34
34 Companies Personal Mortgage Performing loans portfolio Performing loans in Portugal Evolution of performing loans 16.5 15.9 2.3 2.4 18.6 19.8 37.3 38.1 Mar 24 Mar 25 +2.0% +1.2 +0.1 -0.6 37.3 38.1 Mar 24 Mortgages Personal Companies Mar 25 +0.7 billion (Billion euros) (Billion euros) +6.3% *Source: ALF (December 2024). **Source: SWIFT messages market share (March 2025) Performing loans to individuals increase by 6.3%, with a highlight on the mortgage loan portfolio which increase by 1.2 billion The Bank maintains a prominent position in the corporate segment: ✓ PME Leader programme reference Bank, winner of 6 of the last 7 editions with a 29% market share in 2024; ✓ Leadership in Inovadora COTEC programme for the 4th consecutive year, with a market share of 49%; ✓ Leading Bank in Satisfaction: Best Bank for companies, Closest Bank to Clients, Most innovative Bank, Most efficient Bank and Bank with the Most appropriate products according to DATAE 2024; ✓ Leading Bank in Factoring and Confirming, with factoring invoicing of more than 2 billion euros up until March 2025 and a market share of 21%*; ✓ Leading Bank in International Business: Leadership in Trade Finance in Portugal according to Euromoney , with a market share of 24.6%**; ✓ Leading Bank in Leasing, with 170 millions of new leasing business in Q1’25 and a market share of 24%*; ✓ Leading Bank in EIF/EIB: EIF InvestEU - 3 funding categories sold out (Innovation/Digitalization and Sustainability) and 3 categories with ongoing availability (Competitiveness, Social, and Microcredit) and EIB guarantees for midcaps and public sector companies; ✓ Leading Bank in BPF INVEST EU guarantees access to all types and the largest number of applications in Sustainability, Investment and Working Capital; ✓ Distinct digital offer: Digital Account Opening, availability of M2030 for European Funds, iziBizi for ERP/Accounting and digital subscription of business products. These awards are the exclusive responsibility of the attributing entities.
Page 35
35 International operations 04
Page 36
36 Contribution from international operations Contribution from international operations Q1’24 Q1’25 Contribution from international operations (Million euros) 30.8 24.5 Q1'24 Q1'25 93.3 89.0 -4.7% -20.2% (Million euros2) Excluding extraordinary effects of Bank Millennium1 1T24 1T25 % Poland 30.7 42.8 39.6% Mozambique 3 23.4 3.7 -84.3% Other 0.8 0.7 -12.0% Net income international operations 54.8 47.1 -14.0% Non-controlling int. (Poland+Mozambique) -23.1 -22.6 -2.2% Exchange rate effect -0.9 -- -- Contribution from international operations 30.8 24.5 -20.2% 1 Excludes FX mortgage legal risk provisions, as well as costs of litigations and settlements with Clients and hypothetical bank tax until May 2024 | 2 Subsidiaries’ net income presented for Q1'24 reflect the same exchange rate as of Q1'25 for comparison purposes. | 3 The earnings decrease reflects the booking of impairments related with the downgrade of the public debt rating.
Page 37
37 (Milhões de euros*) (Milhões de euros*) (Milhões de euros)* Evolução positiva do resultado líquidoBank Millennium Net income Net operating revenue Operating Costs Net income 127.8 136.9 15.1 22.5 142.8 159.4 Q1'24 Q1'25 338.2 388.1 Q1'24 Q1'25 5.86%5.86% +11.6% +14.8% 30.7 42.8 159.4 171.4 Q1'24 Q1'25 +7.5% +39.6% 3m WIBOR (average) Net income Excluding extraordinary effects2 • Net income of 42.8 million in Q1'25 which compares with 30.7 million in the same period of last year (+39.6%) • Net income influenced by charges associated with the CHF mortgage loan portfolio (130.82 million out of which 98.1 million in provisions 3) and Polish bank tax4 payment • Customer funds increased by 7.6% • Loans to Customers increased by 0.8% • Net income Excluding extraordinary effects2 up by 7.5% (11.9 million) compared with the same period of last year • CET1 ratio (=T1) of 15.2% and total capital ratio of 17.3%, above the minimum requirements of 7.3% (8.8% for T1) and 10.8% respectively 1FX effect excluded.€/Zloty constant at March 2025 levels: Income Statement 4.19; Balance Sheet 4.19. | 2 Excludes FX mortgage legal risk provisions, as well as costs of litigations and settlements with Clients and hypothetical bank tax until May 2024. | 3 Does not include provisions for legal risk on CHF mortgages of Euro Bank (guaranteed by Société Générale). | 4 Polish bank tax of 23,6 million. (Million euros1) (Million euros1) (Million euros1) Resol. Fund + DGF
Page 38
38 (Million euros*) (Million euros*) (Million euros*)(Million euros*) Staff costs Other Resol. Fund NIM Fees and commissions Other Aumento expressivo da margem financeiraNet interest income increase Operating costsNet interest income ContributionsCommissions and other income Banking tax on assets 323.3 339.8 Q1'24 Q1'25 69.1 76.8 73.8 82.6 142.8 159.4 Q1'24 Q1'25 47.6 43.6 -32.7 4.8 Q1'24 Q1'25 4.415.1 18.2 23.6 15.1 46.1 Q1'24 Q1'25 +11.6%4.23%4.36% +205.9% +5.1% 48.414.9 +224.6% *FX effect excluded. €/Zloty constant at March 2025 levels: Income Statement 4.19; Balance Sheet 4.19. (Million euros*; does not include tax on assets and contribution to the resolution fund and to the DGF) DGF
Page 39
39 (Million euros*) (Million euros*) (Million euros*) Cost of risk Credit quality Loan-loss reserves Loan impairment (net of recoveries) 45bp63bp 619.0 612.0 Mar 24 Mar 25 156% 150% 396.7 408.8 Mar 24 Mar 25 2.2%2.2% 26.5 19.2 Q1'24 Q1'25 NPL>90d Coverage ratio NPL>90d Credit ratio NPL>90d • NPL>90d accounted for 2.2% of total loans as of March 2025 (same as of March 2024) • Coverage of NPL>90d by loan-loss reserves at 150% as of March 2025 (156% as of March 2024) • Cost of risk at 45bp *FX effect excluded. €/Zloty constant at March 2025 levels: Income Statement 4.19; Balance Sheet 4.19.
Page 40
40 (Million euros*) (Million euros*) Demand deposits Term deposits Off-BS funds Companies Personal Mortgage Customers funds and loans to Customers Customers funds Loans to Customers (gross) 16,538 18,591 10,483 9,922 2,131 2,844 29,152 31,357 Mar 24 Mar 25 +7.6% 4,312 4,502 4,440 4,716 9,512 9,190 18,264 18,407 Mar 24 Mar 25 +0.8% *FX effect excluded. €/Zloty constant at March 2025 levels: Income Statement 4.19; Balance Sheet 4.19.
Page 41
41 CHF mortgages decrease by 29% year-on-year CHF mortgage portfolio New individual lawsuits and extrajudicial agreements Cumulative provisions for legal risks** % of gross loan portfolio after legal risk provisions As a % of CHF mortgage portfolio Individual lawsuits Gross loan portfolio before legal risk provisions 21,725 22,141 22,260 21,854 21,092 3M24 6M24 9M24 2024 3M25 7.0 1.9 1.7 1.6 1.5 1.3 2008 3M24 6M24 9M24 2024 3M25 1,725 1,799 1,839 1,844 1,753 3M24 6M24 9M24 2024 3M25 101%92% -9% 111% 122% 132% 54.6% -29% 2.4%2.9% 2.2% 1.5% 1.4% 1,582 1,615 1,475 1,170 1,0831,104 1,009 1,084 1,261 1,103 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 # New individual lawsuits # Extrajudicial agreements (Billion euros*) (Number of cases) (Number of cases) (Million euros*) Excludes Euro Bank. | *FX effect excluded. €/Zloty constant at March 2025 levels: Income Statement 4.19; Balance Sheet 4.19. | **Actual outstanding B/S provisions differ from the sum of P&L charges due to FX movements and utilizations among others.
Page 42
42 (Million euros*) (Million euros*) (Million euros*) MIMO rate (average) Net income Net operating revenue Operating costs Millennium bim's results influenced by the context 32.7 36.2 Q1'24 Q1'25 +10.9% 65.4 71.0 Q1'24 Q1'25 +8.6% 12.36%16.72% 23.4 3.7 Q1'24 Q1'25 -84.3% • Net income of 3.7 million, a reduction of 19.7 million compared to the same period of last year • Impairments and provisions increase of 21.8 million, including the impact of public debt rating downgrade • Customer funds increased by 6.9% • Loans to Customers increased by 2.1% • Capital ratio of 39.2% *FX effect excluded. €/Metical constant at March 2025 levels: Income Statement 66.80; Balance Sheet 68.94.
Page 43
43 (Million euros*) (Million euros*) (Million euros*) NIM Commissions Other Staff costs Other Cost to income Net interest income reflects the interest rate environment Net interest income Operating costs Commissions and other income Branches 13.3 14.7 19.3 21.5 32.7 36.2 Q1'24 Q1'25 +10.9% 9.1 10.1 4.6 4.3 13.8 14.3 Q1'24 Q1'25 +4.1% 51.6 56.7 Q1'24 Q1'25 +9.8% 195 195 Mar 24 Mar 25 8.4%8.1% 51.0%49.9% 2,571 2,640 Mar 24 Mar 25 *FX effect excluded. €/Metical constant at March 2025 levels: Income Statement 66.80; Balance Sheet 68.94. Employees
Page 44
44 (Million euros*) (Million euros*) (Million euros*) Cost of risk Loan-loss reserves Loan impairment (net of recoveries) Credit quality 1.7 3.1 Q1'24 Q1'25 Rácio de crédito NPL>90d 180bp99bp 28.2 30.0 Mar 24 Mar 25 21.0 25.0 Mar 24 Mar 25 134% 120%3.7%3.2% NPL>90d Rácio de cobertura NPL>90d • NPL>90d ratio of 3.7% as of March 2025, with coverage by loan-loss reserves of 120% on the same date • Cost of risk of 180bp in Q1'25 compared to 99bp in Q1’24 *FX effect excluded. €/Metical constant at March 2025 levels: Income Statement 66.80; Balance Sheet 68.94.
Page 45
45 (Million euros*) (Million euros*) Demand deposits Term deposits Companies Personal Mortgage Customers funds Loans to Customers (gross) Business volumes 1,003 1,279 1,149 1,020 2,152 2,299 Mar 24 Mar 25 435 408 215 255 10 10 660 674 Mar 24 Mar 25 +2.1%+6.9% *FX effect excluded. €/Metical constant at March 2025 levels: Income Statement 66.80; Balance Sheet 68.94.
Page 46
46 Key figures 05
Page 47
47 Deliver more value Main targets for strategic cycle 2025-2028 Q1’25 2028Metrics S&P Global CSA (percentile) Top quartileTop quartile ESG commitment Cost-to-income Portugal Cost of risk Portugal < 40% < 37% < 50 bps < 45 bps 37% 34% 38 bp 34 bp Execution discipline ROE Shareholder distribution Superior returns > 13.5%13.9% 2024 activity 72%3 Robust capital CET1 ratio > 13.5%15.9%1 > 190€bn > 120€bn > 8mn > 3mn 163€bn 110€bn 7 mn 2.8mn Healthy organic growth Business volumes Portugal Number of customers Portugal Mobile customers Portugal >80% > 75% 72% 64% Up to 75% of cumulative net income of 4.0- 4.5€bn in 2025-20282 subject to supervisory approval and achievement of Plan’s relevant capital & business targets in Portugal and in the international area and fulfillment of CET1 target ( 1 Fully implemented ratio including 25% of the unaudited net income of Q1’25. 2 Including payout and share buyback, from 2025 through 2028. 3 Including a 50% dividend payout of 2024 earnings and the effect of the share buyback programme amounting to 200 million approved by the supervisor.
Page 48
48 Millennium bcp, in partnership with the Mbcp Foundation, support EPIS –Entrepreneurs for Social Inclusion through voluntaries educational support to young people in vocational education Millennium bcp Foundation Society Sustainability COMMITMENT TO PEOPLE AND SOCIETY AESE - Associação de Estudos Superiores de Empresa: GOS Program – Management of Social Organizations, in partnership with AESE and ENTREAJUDA, for training in management of directors of entities in the social economy sector. São Cristovão Curch: restoration of the painting “Self-Portrait of Jesus”, by Bento Coelho da Silveira, part of the project “Art for Saint Christopher”, which recovered a total of 12 works Museu Nacional de Arte Antiga: restoration of the 16th century reliefs of the Monastery of Esperança “Miracle of Santa Clara”. Presented to the public in April 2025 Millennium bcp gallery (Museu Nacional de Arte Contemporânea): Catalogue for the exhibition “Meanwhile” release, based on the praise of contemplation and the slowdown needed for the creative process Millennium bcp publishes its 20th Sustainability Report, complying with the new European sustainability reporting standards adopted by the European Union Millennium bcp’s Corporate Social Responsibility Program distinguished in 2024 by the Fosun Foundation within the scope of 7th edition of the annual initiative "One Fosun CSR Week" Millennium bcp makes new Sustainability survey available for Suppliers in the promotion of a corporate culture of responsible production and consumption throughout the value chain Millennium bcp and Mbcp Foundation support the “Academia VilacomVida” project by “sponsoring” and supporting a young Joyeux in his training process at the “Joyeux School” Casa Acreditar in Lisbon receives donation from the Millennium bcp Foundation and from the Bank's employees collected during “Millennium Solidário: Natal 2024” campaign Millennium bcp and Mbcp Foundation support the “Sailing Without Limits” project, an initiative led by the Cascais Naval Club, the Cascais City Council and by CERCICA Millennium bcp is a partner of new integrated SIBS ESG platform, which simplifies companies’ sustainability information disclosure for financial institutions at no additional cost
Page 49
49 EXTERNAL RECOGNITION Millennium bcp: 2025 Consumer’s Choice, in the “Large Banks” category for the 5th consecutive year Millennium bcp: 2025 Five stars Bank, “Large Banks” category Millennium bcp: 2025 Five stars Bank, “Mobile apps” category ActivoBank: 2025 Five stars Bank, for the 2nd time, “Digital banking” category Millennium bcp distinguished at the 14th edition of the 2025 Euronext Lisbon Awards Millennium bcp distinguished by "ComparaJá" in the 2025 mortgage loans awards Millennium bcp Best Trade Finance em Portugal Millennium bcp: Best Investment Bank in Portugal Bank Millennium: Top Employer Polska 2025 Bank Millennium: Best Bank 2025 Bank Millennium: Golden Bank 2025, best multi-channel service quality Bank Millennium: Award for the Best Mobile Banking Application for SMEs in the Global Retail Banking Innovation Awards 2024
Page 50
50 Appendix 06
Page 51
51 (Milhões de euros*) (Milhões de euros*) ✓ The sovereign debt portfolio totalled 31.1 billion, 23.4 billion of which maturing in more than 2 years ✓ The Portuguese sovereign debt portfolio totalled 3.2 billion, Polish amounted to 8.8 billion and Mozambican amounted to 0.6 billion; “Other” includes, among other, sovereign debt from European Union (5.4 billion), Spain (4.6 billion), France (3.5 billion), Italy (1.7 billion), Belgium (1.5 billion), Austria (0.5 billion) and Ireland (0.5 billion) (Consolidated, million euros) Sovereign debt portfolio Sovereign debt portfolio Sovereign debt maturity Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 YoY QoQ Portugal 6,357 7,109 6,656 4,903 3,228 -49% -34% T-bills and other 721 1,466 947 985 663 -8% -33% Bonds 5,635 5,642 5,710 3,918 2,565 -54% -35% Poland 6,507 6,824 7,306 7,958 8,783 +35% +10% Mozambique 552 536 494 643 607 +10% -6% Other 11,908 12,819 13,533 14,973 18,460 +55% +23% Total 25,323 27,288 27,989 28,477 31,078 +23% +9% ≤1y: 16% >1y, ≤2y: 9% >2y, ≤5y: 51% >5y, ≤8y: 21% >8y, ≤10y: 2% >10y: 1%
Page 52
52 *Includes financial assets at fair value through other comprehensive income (9,352 million) and financial assets at amortized cost (20,733 million). Sovereign debt portfolio breakdown Million euros Portugal Poland Mozambique Other Total Trading book 711 133 0 150 994 ≤ 1 year 702 1 0 149 852 > 1 year and ≤ 2 years 1 83 0 0 84 > 2 years and ≤ 5 years 6 38 0 0 44 > 5 years and ≤ 8 years 1 1 0 0 2 > 8 years and ≤ 10 years 0 10 0 0 11 > 10 years 1 0 0 1 1 Banking book* 2,517 8,649 607 18,311 30,084 ≤ 1 year 12 1,800 250 1,912 3,973 > 1 year and ≤ 2 years 183 1,523 120 951 2,778 > 2 years and ≤ 5 years 1,405 4,854 188 9,451 15,897 > 5 years and ≤ 8 years 519 224 50 5,651 6,443 > 8 years and ≤ 10 years 170 249 0 265 684 > 10 years 228 0 0 81 309 Total 3,228 8,783 607 18,460 31,078 ≤ 1 year 714 1,801 250 2,061 4,825 > 1 year and ≤ 2 years 184 1,606 120 951 2,861 > 2 years and ≤ 5 years 1,411 4,891 188 9,451 15,941 > 5 years and ≤ 8 years 520 225 50 5,651 6,446 > 8 years and ≤ 10 years 170 259 0 265 695 > 10 years 229 0 0 82 311
Page 53
53 Carteira de crédito Loans per collateral LTV of the mortgage portfolio (Consolidated) Breakdown ✓ Loans to companies accounted for 37% of the loan portfolio, including 6% to construction and real-estate sectors, as of March 2025 ✓ Mortgage accounted for 50% of the loan portfolio, with low delinquency levels and an average LTV of 61% ✓ 83% of the loan portfolio is collateralised Diversified and collateralised portfolio (Portugal)(Consolidated) Mortgage 50% Personal/ other 13% Companies 37% Real guarantees 58% Other guarantees 25% Unsecured 17% 0-40 21% 40-50 13% 50-60 16% 60-75 27% 75-80 9% 80-90 12% >90 2%
Page 54
54 *Includes dividends from equity instruments, other net operating income, net trading income and equity accounted earnings Consolidated net income (Million euros) Q1'24 Q1'25 YoY Impact on earnings Net interest income 696.2 721.1 +3.6% +24.8 Net fees and commissions 197.3 201.4 +2.1% +4.2 Other income* -25.0 -13.3 - +11.6 Net operating revenue 868.5 909.1 +4.7% +40.6 Staff costs -165.7 -188.1 +13.5% -22.4 Other administrative costs and depreciation -142.1 -151.6 +6.7% -9.5 Operating costs -307.8 -339.7 +10.4% -31.9 Profit before impairment and provisions 560.7 569.4 +1.5% +8.7 Results on modification -7.2 -4.2 - +3.1 Loans impairment (net of recoveries) -73.5 -55.8 -24.1% +17.8 Other impairment and provisions -145.2 -131.2 -9.6% +14.0 Results of modification, Impairment and provisions -226.0 -191.2 -15.4% +34.8 Profit before income tax 334.8 378.2 +13.0% +43.5 Income taxes -78.1 -112.2 +43.7% -34.1 Non-controlling interests -22.3 -22.5 +1.0% -0.2 Net income 234.3 243.5 +3.9% +9.1
Page 55
55 Consolidated balance sheet (Million euros) *In the fourth quarter of 2024, a reclassification between the item "'Financial assets at fair value through profit or loss" and "Investments in associates" was made. The historical amounts of such items considered for the purposes of this analysis are presented considering this reclassification with the purpose of ensuring their comparability, differing, therefore, from the disclosed accounting values (EUR 6 million in March 2024). Following the change in off-balance sheet customer funds assessment criteria by the Polish subsidiary in the fourth quarter of 2024, the respective balances were restated, resulting in an increase of EUR 13 million with reference to the end of March 2024. In the first quarter of 2025, the Bank recognized as other net operating income the costs associated with property valuation related to mortgage loans, recognised as credit and guarantees commissions and as other administrative costs in previous periods. The historical amounts of such items considered for the purposes of this analysis have been reclassified with the purpose of ensuring their comparability, differing, therefore, from the disclosed accounting amounts. The impact of these reclassifications in the first quarter of 2024 was EUR -1.1 million in other net operating income, offset by net commissions (EUR +0.9 million) and other administrative costs (EUR -0.3 million). * * 31 March 2025 31 March 2024 (restated) ASSETS Cash and deposits at Central Banks 3,159.4 4,108.7 Loans and advances to credit institutions repayable on demand 326.8 195.3 Financial assets at amortised cost Loans and advances to credit institutions 1,282.2 846.5 Loans and advances to customers 54,638.2 53,483.5 Debt securities 24,053.6 18,205.4 Financial assets at fair value through profit or loss Financial assets held for trading 1,473.2 1,610.1 Financial assets not held for trading mandatorily at fair value through profit or loss 343.8 445.9 Financial assets designated at fair value through profit or loss 37.0 33.0 Financial assets at fair value through other comprehensive income 13,583.5 13,002.7 Hedging derivatives 70.7 45.2 Investments in associates 447.2 394.8 Non-current assets held for sale 43.7 74.8 Investment property 21.4 39.6 Other tangible assets 603.4 604.9 Goodwill and intangible assets 276.5 224.0 Current tax assets 24.8 21.3 Deferred tax assets 2,113.5 2,485.9 Other assets 1,795.4 1,975.6 TOTAL ASSETS 104,294.3 97,797.3 31 March 2025 31 March 2024 (restated) LIABILITIES Financial liabilities at amortised cost Deposits from credit institutions and other funds 876.1 1,015.3 Deposits from customers and other funds 83,353.8 78,687.2 Non-subordinated debt securities issued 3,743.9 2,724.7 Subordinated debt 1,395.4 1,381.4 Financial liabilities at fair value through profit or loss Financial liabilities held for trading 219.4 226.8 Financial liabilities designated at fair value through profit or loss 3,060.7 3,459.9 Hedging derivatives 24.7 40.2 Provisions 1,166.5 845.1 Current tax liabilities 83.3 87.9 Deferred tax liabilities 4.3 4.6 Other liabilities 1,817.1 1,751.9 TOTAL LIABILITIES 95,745.2 90,225.1 EQUITY Share capital 3,000.0 3,000.0 Share premium 16.5 16.5 Other equity instruments 400.0 400.0 Legal and statutory reserves 384.4 316.4 Reserves and retained earnings 3,367.0 2,607.1 Net income for the period attributable to Bank's Shareholders 243.5 234.3 Non-controlling interests 1,137.8 997.9 TOTAL EQUITY 8,549.1 7,572.1 TOTAL LIABILITIES AND EQUITY 104,294.3 97,797.3
Page 56
56 (Million euros) Consolidated income statement per quarter Net interest income 696.2 701.3 713.2 720.1 721.1 Dividends from equity instruments 0.0 0.8 0.0 0.2 0.0 Net fees and commission income 197.3 200.6 206.8 208.1 201.4 Other net operating income -32.5 -40.3 -25.1 -37.0 -56.3 Net trading income -2.9 -2.5 34.6 -24.3 29.5 Equity accounted earnings 10.4 21.1 12.2 15.1 13.4 Net operating revenues 868.5 881.0 941.8 882.2 909.1 Staff costs 165.7 174.0 182.9 199.3 188.1 Other administrative costs 106.7 101.2 107.8 123.6 113.0 Depreciation 35.4 35.8 36.2 37.5 38.6 Operating costs 307.8 311.0 326.9 360.4 339.7 Profit bef. impairment and provisions 560.7 570.0 614.9 521.8 569.4 Results on modification -7.2 -53.7 -1.5 -6.1 -4.2 Loans impairment (net of recoveries) 73.5 23.5 69.4 15.9 55.8 Other impairm. and provisions 145.2 147.7 168.0 214.2 131.2 Net income before income tax 334.8 345.1 375.9 285.6 378.2 Income tax 78.1 59.6 125.0 78.4 112.2 Net income after income tax from continuing operations 256.6 285.5 250.9 207.2 266.0 Net income from discontinued operations 0.0 0.0 0.3 0.0 0.0 Non-controlling interests 22.3 34.5 22.4 14.9 22.5 Net income 234.3 251.0 228.8 192.3 243.5 Quarterly 1Q 24 1Q 254Q 243Q 242Q 24
Page 57
57 (Million euros) For the 3-month periods ended March 31st , 2024 and 2025 Consolidated income statement M ar 2 4 M ar 2 5 Δ % M ar 2 4 M ar 2 5 Δ % M ar 2 4 M ar 2 5 Δ % M ar 2 4 M ar 2 5 Δ % M ar 2 4 M ar 2 5 Δ % M ar 2 4 M ar 2 5 Δ % Interest income 1 ,1 66 1 ,1 35 -2.6% 596 522 -1 2.4% 570 61 3 7.6% 496 540 8.9% 74 73 -1 .6% 0 0 -- Interest expense 470 41 4 -1 1 .8% 257 1 96 -23.6% 21 3 21 8 2.4% 1 89 202 6.9% 25 17 -32.5% 0 0 1 0.0% N et interest inco me 696 721 3.6% 339 326 -3.9% 357 395 10.7% 307 339 10.2% 50 57 13.6% 0 0 -10.0% Dividends from equity instruments 0 0 -42.2% 0 0 -- 0 0 -42.2% 0 0 -42.2% 0 0 -- 0 0 -- Intermediatio n margin 696 721 3.6% 339 326 -3.9% 357 395 10.6% 307 339 10.2% 50 57 13.6% 0 0 -10.0% Net fees and commission income 1 97 201 2.1 % 1 42 1 48 3.9% 55 54 -2.5% 46 44 -5.7% 9 10 1 4.0% 0 0 -- Other net operating income -33 -56 -73.2% 6 -2 <-1 00% -38 -54 -41 .9% -39 -54 -40.8% 0 0 -77.7% 0 0 56.5% B asic inco me 861 866 0.6% 487 472 -3.2% 374 395 5.5% 315 328 4.1% 59 67 13.1% 0 0 -2.6% Net trading income -3 30 >1 00% -4 13 >1 00% 1 16 >1 00% -2 12 >1 00% 4 4 4.3% 0 0 >1 00% Equity accounted earnings 10 13 29.1 % 9 12 35.8% 1 1 -1 9.0% 0 0 -- 0 0 -22.4% 1 1 -1 7.0% N et o perating revenues 869 909 4.7% 492 497 1.1% 377 412 9.3% 313 340 8.8% 63 71 12.4% 1 1 -17.0% Staff costs 1 66 1 88 1 3.5% 86 97 1 2.4% 80 91 1 4.7% 67 76 1 4.8% 13 15 1 4.1 % 0 0 -- Other administrative costs 1 07 113 6.0% 50 52 4.2% 57 61 7.5% 43 45 4.9% 14 16 1 5.3% 0 0 1 00.0% Depreciation 35 39 9.0% 18 20 8.4% 17 19 9.7% 13 14 7.7% 5 5 1 5.1 % 0 0 -- Operating co sts 308 340 1 0.4% 1 54 1 69 9.3% 1 54 1 71 1 1 .5% 1 22 1 35 1 0.6% 32 36 1 4.8% 0 0 1 00.0% P ro fit bef. impairment and pro visio ns 561 569 1.5% 338 329 -2.6% 223 241 7.9% 191 205 7.6% 32 35 10.0% 1 1 -17.0% Results on modification -7 -4 42.3% 0 0 -- -7 -4 42.3% -7 -4 42.3% 0 0 -- 0 0 -- Loans impairment (net of recoveries) 74 56 -24.1 % 46 34 -27.5% 27 22 -1 8.5% 26 19 -25.5% 2 3 91 .9% 0 0 >1 00% Other impairm. and provisions 1 45 1 31 -9.6% 18 5 -71 .7% 1 28 1 26 -1 .1 % 1 28 1 06 -1 7.0% 0 20 >1 00% 0 0 -1 00.0% N et inco me befo re inco me tax 335 378 13.0% 274 290 6.0% 61 88 44.6% 30 76 >100% 30 12 -61.8% 1 1 -17.0% Income tax 78 112 43.7% 70 71 1 .4% 8 41 >1 00% 0 33 >1 00% 8 8 4.1 % 0 0 -- N et inco me after inco me tax fro m co ntinuing o peratio ns 257 266 3.7% 203 219 7.6% 53 47 -11.3% 30 43 44.0% 23 4 -83.8% 1 1 -17.0% Net income from discontinued operations 0 0 -- 0 0 -- 0 0 -- 0 0 -- Non-controlling interests 22 23 1 .0% 0 0 44.8% 22 23 0.9% 0 0 -- 0 0 -- 22 23 0.9% N et inco me 234 243 3.9% 204 219 7.6% 31 25 -20.2% 30 43 44.0% 23 4 -83.8% -22 -22 -1.6% M illennium bim (M o z.) Internatio nal o peratio ns Gro up P o rtugal T o tal B ank M illennium (P o land) Other int. o peratio ns
Page 58
58 Glossary (1/2) Assets placed with Customers – amounts held by Customers in the context of the placement of third-party products that contribute to the recognition of commissions. Balance sheet Customer funds – deposits and other resources from Customers and debt securities placed with Customers. Business Volumes - corresponds to the sum of total Customer funds and loans to Customers (gross). Commercial gap – loans to Customers (gross) minus on-balance sheet Customer funds. Core income - net interest income plus net fees and commissions income. Core net income - net interest income plus net fees and commissions income deducted from operating costs. Cost of risk, net (expressed in basis points) - ratio of loans impairment (P&L) accounted in the period to loans to Customers at amortized cost and debt instruments at amort ized cost related to credit operations before impairment at the end of the period. Cost to core income - operating costs divided by core income. Cost to income – operating costs divided by net operating revenues. Coverage of non-performing exposures by impairments – loans impairments (balance sheet) divided by the stock of NPE. Coverage of non-performing loans by impairments – loans impairments (balance sheet) divided by the stock of NPL. Coverage of overdue loans by impairments - loans impairments (balance sheet) divided by overdue loans. Coverage of overdue loans by more than 90 days by impairments - loans impairments (balance sheet) divided by overdue loans by more than 90 days. Debt instruments – non-subordinated debt instruments at amortized cost and financial liabilities measured at fair value through profit or loss ( debt securities and certificates). Debt securities placed with Customers - debt securities issued by the Bank and placed with Customers. Deposits and other resources from Customers – Deposits from Customers at amortized cost and Customer deposits at fair value through profit or loss. Dividends from equity instruments - dividends received from investments classified as financial assets at fair value through other comprehensive income and from financial assets held for trading. Equity accounted earnings - results appropriated by the Group related to the consolidation of entities where, despite having some influence, the Group do es not control the financial and operational policies. Insurance products – includes unit linked saving products and retirement saving plans (“PPR”, “PPE” and “PPR/E”). Loans impairment (balance sheet) – balance sheet impairment related to loans to Customers at amortized cost, balance sheet impairment associated with debt instr uments at amortized cost related to credit operations and fair value adjustments related to loans to Customers at fair value through profit or loss. Loans impairment (P&L) – impairment (net of reversals and net of recoveries - principal and accrual) of financial assets at amortized cost for loans t o Customers and for debt instruments related to credit operations. Loans to Customers (gross) – loans to Customers at amortized cost before impairment, debt instruments at amortized cost associated to credit operations be fore impairment and loans to Customers at fair value through profit or loss before fair value adjustments. Loans to Customers (net) - loans to Customers at amortized cost net of impairment, debt instruments at amortized cost associated to credit operations ne t of impairment and balance sheet amount of loans to Customers at fair value through profit or loss. Loan to Deposits ratio (LTD) – loans to Customers (net) divided by deposits and other resources from Customers. Loan to value ratio (LTV) – mortgage amount divided by the appraised value of property.
Page 59
59 Glossary (2/2) Net commissions - net fees and commissions income. Net interest margin (NIM) - net interest income for the period as a percentage of average interest earning assets. Net operating revenues - net interest income, dividends from equity instruments, net commissions, net trading income, other net operating income and equity accounted earnings. Net trading income – gains/(losses) on financial operations at fair value through profit or loss, foreign exchange gains/(losses), gains/(losses) on hedge accounting and gains/(losses) arising from derecognition of financial assets and liabilities not measured at fair value through profit or loss. Non-performing exposures (NPE) non-performing loans and advances to Customers (includes loans to Customers at amortised cost, loans to Customers at fair value through profit or loss and, from 2023, debt instruments at amortised cost associated to credit operations before impairment ) more than 90 days past -due or unlikely to be paid without collateral realisation, if they recognised as defaulted or impaired. Non-performing loans (NPL) – overdue loans (loans to Customers at amortised cost, loans to Customers at fair value through profit or loss and, from 2023, debt instruments at amortised cost associated to credit operations before impairment) more than 90 days past due including the non -overdue remaining principal of loans, i.e. portion in arrears, plus non-overdue remaining principal. Off-balance sheet Customer funds – assets under management, assets placed with Customers and insurance products (savings and investment) subscribed by Customers. Operating costs - staff costs, other administrative costs and depreciation. Other impairment and provisions – impairment (net of reversals) for loans and advances of credit institutions classified at amortized cost, impairment for fina ncial assets (classified at fair value through other comprehensive income and at amortized cost not associated with credit operations), impairment for other assets, namely assets received as payment in kind, investments in associated companies and goodwill of subsidiaries and other provisions. Other net income – dividends from equity instruments, net commissions, net trading income, other net operating income and equity accounted earni ngs. Other net operating income – net gains from insurance activity, other operating income/(loss) and gains/(losses) arising from sales of subsidiaries and ot her assets. Profit before impairment and provisions – net operating revenues deducted from operating costs. Return on average assets (Instruction from the Bank of Portugal no. 16/2004) – net income (before tax and non-controlling interests) divided by the average total assets (weighted average of the average of monthly net assets in the period). Return on average assets (ROA) – net income (before minority interests) divided by the average total assets (weighted average of the average of monthly net as sets in the period). Return on equity (Instruction from the Bank of Portugal no. 16/2004) – net income (before tax) divided by the average attributable equity + non-controlling interests (weighted average of the average of monthly equity in the period). Return on equity (ROE) – net income (after minority interests) divided by the average attributable equity, deducted from preference shares and other capital instruments (weighted average of the average of monthly equity in the period). Securities portfolio - debt instruments at amortized cost not associated with credit operations (net of impairment), financial assets at fair value through profit or loss (excluding the ones related to loans to Customers and trading derivatives), financial assets at fair value through other comprehensive income and assets wit h repurchase agreement. Spread - increase (in percentage points) to the index used by the Bank in loans granting or fund raising. Total Customer funds - balance sheet Customer funds and off-balance sheet Customer fund. Total Customer funds - balance sheet Customer funds and off-balance sheet Customer funds.
Page 60
60 INVESTOR RELATIONS DIVISION Bernardo Collaço, Head investors@millenniumbcp.pt BANCO COMERCIAL PORTUGUÊS, S.A. Registered Office: Praça D. João I, 28, Oporto, Share Capital: EUR 3,000,000,000.00. Registered at the Commercial Registry of Oporto, with the single commercial and tax identification number 501 525 882 and the. LEI: JU1U6SODG9YLT7N8ZV32 EQUITY Alexandre Moita +351 211 131 321 DEBT AND RATINGS Luís Morais +351 211 131 337