BCP made a profit of € 57.8 million in the first three months of the year. An increase over the same period last year, although the bank led by Miguel Maya accounted for 112.8 million euros of legal risks associated with credits in Swiss francs, in Poland.
CaixaBank / BPI analysts predicted a 35% annual increase in net profit for the first three months of this year, to 48 million euros.
According to bank accounts disclosed on Monday, in a statement sent, “Millennium BCB’s consolidated net result reached 57.8 million euros in the first quarter of 2021, showing growth compared to 35.3 million euros recorded in the same quarter of the previous year.” To CMVM.
This “positive development” was attributed to the good performance provided by the activity in Portugal, despite the fact that it was mitigated by the smaller contribution to international activity, specifically the activity of the Polish subsidiary, which was tightly conditional on strengthening the exceptional provision created to counter the risks associated with mortgage loans. Real estate granted in foreign currencies, which amounted to 112.8 million euros in the first three months of 2021 (12.7 million euros in the same period in 2020), he said.
“This significant sentencing strengthening in the Polish subsidiary reflects negative trends in court decisions, the increase in the number of new lawsuits and the application of more conservative risk assessment assumptions,” says BCP.
Decreases and allocations totaled 242.8 million euros in the first three months of 2021.
Net interest income during the first three months was 376 million euros, compared to 385.5 million euros in the same period last year. In the statement, BCP explains: “This development contains two distinct dynamics, characterized, on the one hand, by the good performance of the activity in Portugal, and on the other hand, by the marked reduction in international activity.”
On the other hand, net commissions reached 177.9 million euros in the first quarter of 2021, 1% less than the 179.8 million euros achieved in the same quarter of the previous year.
On the other hand, total operating costs, regardless of the impact of specific items, amounted to 258.6 million euros, a decrease of 6.4% compared to the first three months of 2020, “benefiting from the positive development recorded both in the activity in Portugal and in the international activity”. Personnel costs decreased by 6.7%.
As for asset quality, the Chinese central bank has recorded a decline in NPE (non-performing exposure, which includes non-performing loans) in the range of 827 million since March 2020, of which 725 million are in Portugal. Since the beginning of the year, this decline has reached 195 million (of whom 170 million are in Portugal).
With regard to capital ratios, the financial institution indicated that the Tier 1 capital ratio was 12.2%.
BBK’s consolidated loan portfolio (gross) grew by 3% compared to € 54,685 million reached on March 31, 2020, to reach € 56,351 million at the end of the first quarter of this year.
There was also an increase of € 7.1 billion in the group’s total client resources.
(The news has been updated with more information.)