Millennium bcp's net profit contracted 45,9% in the first nine months of the year, year on year, to 146,3 million euros.
The result was essentially penalized by the increase in credit impairments, net of recoveries, which rose 25%, compared to the same period last year, to 374,2 million euros. Other impairments and provisions increased 126% in the same period, to 176,4 million euros.
Miguel Maya, executive chairman of BCP, explained that the reinforcement of impairments “reflects two different realities”. On the one hand, they reflected “an anticipation of the impact [of Covid-19] on the economy” and, on the other hand, “the judicial issue in Poland because of the Swiss francs”, which led the bank to record impairments and provisions of 67,2, EUR XNUMX million.
In a statement released to the Securities Market Commission (CMVM), BCP explains that “the performance of the consolidated net result was conditioned by the reinforcement of the extraordinary provisions set up to face the legal risk associated with the mortgage loans granted in foreign currency by the Polish subsidiary , which amounted to 67,2 million euros in the first nine months of 2020 ”.
A 13,5 million euros gain, which had been recognized in February 2019, after the sale of the Planfipsa Group, contributed to the consolidated net result, reflected as results of discontinued or discontinued operations.
Domestic activity contributed about 92 million euros to BCP's profit in the first nine months of the year, down from the 125,5 million euros recorded a year ago. The activity in Portugal "was largely conditioned by a particularly adverse context dictated by an unfavorable economic situation resulting from the impacts underlying the pandemic caused by Covid-19", says the BCP.
International activity contributed to the consolidated net result of 54,4 million euros, down from the 131,4 million euros recorded in the same period last year, due to the performance of the “Polish subsidiary” due to the “impact of the acquisition of the Euro Bank ”and also by reinforcing the impairments recorded because of the legal risk associated with mortgage loans in Swiss francs.
Still in the international operation, BCP explains that impairments of 16,6 million euros were made for the investment in the participation in Banco Millennium Atlântico to cover the costs of the operation.
Income core in the consolidated, they fell 4,4% compared to the first nine months of 2019 to 1.667,7 million euros, pressured by the year-on-year drop of 3,4% in net interest income, which reached 1.149,6 million euros.
Commissions remained stable, having slightly decreased 1% in the consolidated, to 518,1 million euros. In Portugal, bank commissions contracted 4,1%, to 300,7 million euros, while commissions related to markets rose 20%, to 51,9 million euros. In total, commission income from domestic activity remained stable compared to 2019, reaching 352,5 million euros.
Consolidated operating costs remained practically unchanged, standing at 832,4 million euros, with personnel costs amounting to 484,4 million euros, down from last year, and including a non-recurring effect of 27,4 , 459,7 million euros. In the operation in Portugal, recurring operating costs fell by 1,8 million euros, XNUMX% less than last year.
Consolidated customer resources grew 3,9% to 83,3 billion euros and, in domestic activity, expanded 6,2% to 58,8 billion euros.
The consolidated loan portfolio rose 2,7% to 56,1 billion euros and, in domestic activity, reached 38,56 billion euros.
In terms of credit quality, BCP has 3,7 billion euros in NPE, which means a 20,4% reduction compared to last year. Since June of this year, the bank led by Miguel Maya has reduced NPE by 270 million euros.
BCP had a total NPE coverage ratio of 112%, above the 107% recorded last year, an NPE impairment ratio of 62%. In Portugal, the NPE ratio dropped from 9,9% to 7%.
The total capital ratio stood at 15,7%, in line with last year. The CET1 ratio reached 12,4%.
(updated at 17h49)