Banco Comercial Portugues -"BCP"- Net Income Up 40.1% to EUR 181.7 Million -PTE 36.4 Billion- in the First Half of 2000.Business Editors LISBON--(BUSINESS WIRE)--July 25, 2000 Banco Comercial Comercial can refer to:
BCP Business Continuity Planning BCP Business Continuity Plan BCP Book of Common Prayer BCP Banco Comercial Português BCP Bureau of Consumer Protection (US Federal Trade Commission) , NYSE NYSE See: New York Stock Exchange : BPC BPC British Potato Council BPC Brewton-Parker College (Mt Vernon, GA) BPC Bible Presbyterian Church BPC Bangladesh Petroleum Corporation (Chittagong, Bangladesh) BPC British Pharmaceutical Codex , BCPPRA), Portugal's leading bank, today reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 181.7 million (PTE PTE The ISO 4217 currency code for the Portugese Escudo. 36.4 billion) for the first half of 2000, up 40.1% from proforma Proforma A financial projection based on assumptions. net income of EUR 129.7 million for the same period of 1999. Earnings per share were up to EUR 0.17 (PTE 34.7) from EUR 0.13 in the first half of 1999 on a comparable basis, while return on equity and return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). stood at 26.1% and 0.7%, respectively. The acquisitions of Banco Mello, Interbanco and Banco Pinto pinto Spotted horse, also called paint, piebald, skewbald, and other terms to describe variations in colour and markings. The American Indian ponies of the western U.S. were often pintos. Most pure-breed associations refuse to register horses with pinto colouring. & Sotto Mayor and their consolidation into the BCP Group by the global method during the first half of 2000, as well as non-recurring items included in reported net income for the first half of 1999, hinder hin·der 1 v. hin·dered, hin·der·ing, hin·ders v.tr. 1. To be or get in the way of. 2. To obstruct or delay the progress of. v.intr. a direct comparison between the financial statements for these periods. The three Banks referred to are globally consolidated in the Group's financials in the first six months of 2000, with net income not attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Group being deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. under minority interests and pre-acquisition income. Additionally, in order to allow a comparable basis with the financial statements now being presented, we have prepared proforma financial statements for the first half of 1999, consolidating Banco Mello, Interbanco and Banco Pinto & Sotto Mayor according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the criteria criteria (krītēr´ē  ),n. referred to above, but excluding the impact related to the sale of shareholdings.
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1st Half
1999 1st Half Change
1st Half 2000 Proforma 199 00/99
PTE EUR EUR EUR Proforma
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Net Income
(PTE billion
and EUR million) 36.432 181.72 129.68 329.73 40.1%
Earnings per share 34.7 0.17 0.13 0.33 32.9%
ROE 26.1% 16.9% 41.6% -
ROA 0.7% 0.5% 2.2% -
ROA before
minority interests
and pre-acquisition income 1.2% 1.1% 2.6% -
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"During the first half of 2000 we started consolidating the recently acquired banking and insurance subsidiaries. The progress we have made to date in integrating these institutions has been promising, having completed the commercial integration of Banco Mello and Companhia de Seguros Imperio as planned, while measures concerning Banco Pinto & Sotto Mayor have been focused on the rapid development of its business and customer base, in line with our objective of creating synergies, a goal which we believe will be fully accomplished," commented Mr. Jardim There are many things that have the name Jardim (Portuguese for garden): Places In Brazil, South America
Net interest income amounted to EUR 620 million (PTE 124 billion), in line with the level seen during the first half of 1999. The impact of funding the acquisitions during the first six months of 2000 and of continued narrowing net interest margin - which decreased to 2.6% in the first half of 2000 from 2.9% proforma in the same period of 1999 - was compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for by increased business volumes, of which loans granted stand out in particular.
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OPERATING INDICATORS 1st Half 1st Half 1999 1st Half
2000 Proforma 1999
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Net Interest Margin 2.6% 2.9% 2.9%
Other Income/Total Income 49.3% 42.9% 44.3%
Operating Costs/Total Income 56.3% 61.0% 60.2%
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Disintermediation The elimination of the distributor and/or retailer (the middleman) when making a purchase. The term is used to refer to purchasing directly from a manufacturer's Web site, the benefits of which are convenience, fast turnaround time and sometimes lower prices. continued at a high level, chiefly as a result of the strong performance of commissions related to operations regarding securities, cards and asset management. Other income accounted for 49.3% of total income in the first half of 2000 (42.9% in the same period of 1999, on a comparable basis). The extension of the cross-selling approach that characterises BCP to an enlarged customer base with important potential to be exploited will result, in the short term, in further diversifying earnings and in growing profitability. The increase in operating costs operating costs npl → gastos mpl operacionales from the first half of 1999 was limited to 4.3% (proforma), in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite business growth and the investment in revamping the commercial activity of recently acquired institutions, as well as of the impact of advertising new distribution channels. Cost to income was 56.3% in the first half of 2000, compared to a proforma 61.0% in the same period of the previous year. The full exploitation Exploitation See also Opportunism. Barnum, P. T. (1810–1891) circus impressario famous for his saying, “Never give a sucker an even break.” [Am. Hist. of synergies that will be generated by the integration of common units under a single platform is bound to result in improved operating efficiency. The main activity indicators kept remarkable growth, so demonstrating the benefits of a commercial approach using a variety of distribution channels. Loans to customers - influenced by the strong performance of mortgage and consumer loans, as well as by loans to service and commercial companies - stood at EUR 38,315 million (PTE 7,681 billion) at June June: see month. 30, 2000, up 26.7% from proforma loans at the end of the first half of 1999. Total customers' funds - amounts due to customers including securities, assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper insurance - stood at EUR 54,497 million (PTE 10,926 billion), an increase of 17.1% on proforma total customers' funds at the end of the first half of 1999.
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June 30, 2000 June 30, 1999 June 30, Change
Proforma 1999 00/99
PTE EUR EUR EUR Proforma
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Total Assets 11,794 58,828 49,996 31,472 17.7%
Total Customers'
Funds (1) 10,926 54,497 46,544 31,906 17.1%
Loans to Customers 7,681 38,315 30,235 21,006 26.7%
Own Funds (2) 1,037 5,173 5,208 3,434 -0.7%
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(1) Amounts due to customers (including securities), Assets under management and Capitalisation insurance. (2) Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. , Preference shares and Subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". . (PTE billion and EUR million) The loan portfolio showed low and decreasing levels of default, despite being affected by the consolidation of the loan portfolios of the recently acquired subsidiaries. Past due loans represented 1.4% of total loans at the end of June 2000 (1.9% at the end of the first half of 1999, on a comparable basis), while provision coverage stood at 155.5% (125.7% proforma at the end of the first half of 1999).
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LOAN QUALITY INDICATORS June 30, June 30, June 30,
2000 1999 Proforma 1999
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Loans more than 90
days overdue/Total loans 1.2% 1.7% 1.3%
Total overdue
loans/Total loans 1.4% 1.9% 1.4%
Provisions/Loans
more than 90 days overdue 187.3% 143.2% 167.3%
Provisions/Total overdue loans 155.5% 125.7% 147.5%
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Capital ratios maintained comfortable levels, with the impact of recent acquisitions being compensated for by the strengthening of own funds arising from the high acceptance of BCP stock as payment for BPSM's, Banco Mello's and Imperio's, so contributing to BCP's share capital increase from EUR 1,000 million to EUR 2,043 million. The consolidated solvency ratio Solvency Ratio One of many ratios used to gauge a company's ability to meet long-term obligations. Notes: Derived by taking a company's net worth and dividing by total assets. See also: Asset, Asset Valuation, Balance Sheet, Fundamental Analysis, Income Statement , estimated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the principles of BIS, stood at 9.6%, with Tier 1 amounting to 7.7%. "We have affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. our intention to invest in new areas, both in terms of new markets offering high growth prospects and in terms of innovation and in technology which will lead to a new kind of relationship with our customers. Our investment capacity, together with the strategic partnerships we have established and reinforced re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. during the first six months of the current year, is a factor of differentiation differentiation, in biology, series of changes that occur in cells and tissues during development, resulting in their specialization. This, in turn, permits a greater variety of organisms. and a clear sign of our intentions and coherent A version of Unix developed by Mark Williams Co., Northbrook, IL, that was noted for its conservative use of resources on Intel-based PCs. strategy on which the expansion of the BCP Group, on both a domestic and international level, will be based," concluded Mr. Jardim Goncalves.
BANCO COMERCIAL PORTUGUES
Consolidated Balance Sheet as at 30 June, 2000 and 1999
2000 2000 1999
(Thousands of Euros) (Thousands of Escudos)
Assets
Cash and deposits
at central banks 1,344,123 269,472,535 97,462,122
Loans and advances to
credit institutions
Repayable on demand 1,106,944 221,922,405 106,915,930
Other loans and
advances 5,214,238 1,045,360,903 555,336,965
Loans and advances
to customers 38,315,158 7,681,499,445 4,211,424,674
Securities 6,125,149 1,227,982,046 572,353,071
Treasury stock 626,647 125,631,361 96,177,571
Investments 1,224,087 245,407,470 71,479,913
Intangible assets 83,340 16,708,138 85,078,993
Tangible assets 1,193,108 239,196,737 163,725,287
Other debtors 1,018,493 204,189,603 117,713,164
Prepayments and
accrued income 2,577,136 516,669,345 231,839,712
------------------------------------------
58,828,423 11,794,039,988 6,309,507,402
==========================================
Liabilities
Amounts owed to
credit institutions
Repayable on demand 418,176 83,836,847 67,942,663
With agreed maturity
date 14,167,069 2,840,242,390 1,620,064,615
Amounts owed to customers
Repayable on demand 12,237,565 2,453,411,587 1,292,646,361
With agreed maturity
date 16,999,643 3,408,122,383 1,780,168,970
Debt securities 7,116,062 1,426,642,337 444,925,425
Other liabillities 431,003 86,408,432 54,002,503
Accruals and deferred
income 1,375,102 275,683,095 186,123,814
Provision for liabilities
and charges 668,146 133,951,226 87,982,268
Subordinated debt 1,345,209 269,690,231 147,597,333
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Total Liabilities 54,757,975 10,977,988,528 5,681,453,952
------------------------------------------
Shareholder's Equity
Share Capital 2,042,972 409,579,110 200,482,000
Share premium 2,634,950 528,260,034 117,842,462
Reserves and retained
earnings (1,985,038) (397,964,414) 41,374,219
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Total Shareholder's
Equity 2,692,884 539,874,730 359,698,681
------------------------------------------
Minority interests 242,574 48,631,676 87,235,849
Minority interests
in preference shares 1,134,990 227,545,054 181,118,920
------------------------------------------
Total Minority
Interests 1,377,564 276,176,730 268,354,769
58,828,423 11,794,039,988 6,309,507,402
==========================================
BANCO COMERCIAL PORTUGUES
Consolidated Statement of Income
for the six months ended 30 June, 2000 and 1999
2000 2000 1999
------------- ------------ ------------
(Thousands of Euros) (Thousands of Escudos)
Interest income 1,418,681 284,420,029 155,764,038
Interest expense 798,222 160,029,181 80,049,809
------------- ------------ ------------
Net interest income 620,459 124,390,848 75,714,229
Provision for
loan losses 122,376 24,534,182 15,930,612
Net interest income
after provision for
loan losses 498,083 99,856,666 59,783,617
Other operating income
Income from securities 106,935 21,438,480 7,724,261
Commissions 316,204 63,393,272 34,894,321
Profit arising from
trading activity 323,827 64,921,431 27,255,031
Other income 165,834 33,246,803 17,458,392
Gains on sale of
shares of subsidiaries
and associated companies - - 74,893,803
------------ ----------- ------------
912,800 182,999,986 162,225,808
Other operating expenses
Commissions 33,432 6,702,588 2,788,590
Losses arising from
trading activity 231,807 46,473,151 21,313,260
Staff costs 381,446 76,473,126 42,495,091
Other administrative
costs 236,127 47,339,207 29,646,793
Depreciation 71,884 14,411,440 13,122,420
Other provisions 20,629 4,135,676 27,098,275
Other expenses 44,211 8,863,609 2,952,736
------------ ----------- -----------
1,019,536 204,398,797 139,417,165
Income before
income taxes 391,347 78,457,855 82,592,260
Income Taxes 51,601 10,345,037 5,775,233
Net income 339,746 68,112,818 76,817,027
Minority interests 55,984 11,223,737 10,711,838
Pre-acquisition
net income 102,041 20,457,289 -
------------ ----------- ----------
Net income for the
year attributable
to the Bank 181,721 36,431,792 66,105,189
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