Banco Comercial Portugues -'BCP'- Earnings Release for the Third Quarter of 2003.Business Editors LISBON Lisbon (lĭz`bən), Port. Lisboa, ancient Olisipo, city (1991 pop. 677,790), W Portugal, capital of Portugal and of Lisboa dist., on the Tagus River where it broadens to enter the Atlantic Ocean. , Portugal--(BUSINESS WIRE)--Oct. 21, 2003 Banco Comercial Comercial can refer to:
-- Net income for the third quarter of 2003 at Euro 105.1
million. Net income of Euro 315.3 million for the first nine
months of 2003;
-- Return on equity of 17.4%. Return on assets of 0.7%;
-- Charges for provisions for loan losses of Euro 164.8 million
in the third quarter of 2003;
-- Loans to customers up 2.3% during the third quarter to Euro
50.3 million, mainly as a result of the strong performance of
mortgage loans, up 6.4% from 30 June 2003;
-- Total customers' funds up 1.5% in the third quarter of 2003 to
Euro 51.2 billion;
-- Operating costs for the third quarter of 2003 down to Euro
412.6 million, a 1.6% decrease from the second quarter;
-- Domestic cost-to-income improved to 57.6% at 30 September 2003
from 58.8% at 30 June 2003;
-- Provision coverage of loans overdue by more than 90 days
increased to 151.6% at the end of the third quarter of 2003
from 145.2% at 30 June 2003;
-- Euro 1 billion issue in October 2003 of Residential Mortgage
Backed Securities, backed by a mortgage portfolio originated
by BCP and BII.
FINANCIAL HIGHLIGHTS
2003 Change
-------------------------- -------------
(Euro million) 3rd 2nd 1st 3Q / 2Q /
Quarter Quarter Quarter 2Q 1Q
-------- -------- -------- ------ ------
Total assets 67,505 65,496 66,239 3.1% -1.1%
Loans to customers 49,548 48,526 48,285 2.1% 0.5%
Total customers' funds (1) 51,151 50,399 50,670 1.5% -0.5%
Net interest income 367.0 367.3 364.0 -0.1% 0.9%
Provisions:
For loan losses 164.9 133.1 78.5 23.8% 69.6%
For other risks 9.9 1.3 (6.0) 671.8% --
Other income (2) 335.1 327.1 250.6 2.4% 30.5%
Operating costs (3) 412.6 419.2 419.3 -1.6% -0.0%
Income taxes 6.8 11.6 8.8 -41.7% 31.7%
Minority interests 2.8 14.6 18.4 -80.3% -21.0%
Net income 105.1 114.6 95.6 -8.4% 20.0%
Return on average assets
(ROA) 0.7% 0.7% 0.6%
Return on average equity
(ROE) 17.4% 18.2% 17.9%
Loans overdue by more than
90 days / Total loans 1.6% 1.6% 1.7%
Provisions for loan losses /
Loans overdue by more than
90 days 151.6% 145.2% 141.8%
Total regulatory capital
(BIS) 6,180 6,199 6,332 -0.3% -2.1%
Risk-weighted assets 53,879 53,632 53,038 0.5% 1.1%
Solvency ratio (BIS) 11.5% 11.6% 11.9%
Branches in Portugal 1,080 1,079 1,083 0.1% -0.4%
Employees 13,970 13,958 13,960 0.1% -0.0%
(1) Amounts due to customers (including securities), Assets under
management and Capitalisation insurance.
(2) Income from securities, Net commissions, Net gains from trading
activity, Other net operating income.
(3) Staff costs, Other administrative costs and Depreciation.
Mr. Jorge Jorge (IPA pronunciation: /'xoɾxe/ ) is a Spanish-language given name, equivalent to English George. It is of Greek origin, and its meaning is "farmer". Jardim There are many things that have the name Jardim (Portuguese for garden): Places In Brazil, South America
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) , commented on the Group's results and activity for the first nine months of 2003: "BCP's activity in 2003 has continued to develop positively, with the further expansion of the Group. Of particular note are the growth of customer funds and loans to customers, driven largely by mortgage loans, and the achievement of a clear and sustained improvement of the operational efficiency of our banking and insurance activities. In the third quarter, our Group has shown its ability to increase commission and other non-interest income and reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , improving our efficiency ratio. During this last quarter we announced our intention for BCP to operate in the Portuguese market under a single Group brand. We believe that this will enable us to take full advantage of the Group's large customer base and unique knowledge of the same, significantly simplifying processes and enabling us to further improve efficiency. We will give this process our full backing, aiming to achieve a progressive transformation of our corporate image. This will also help to strengthen the Group's relationship with its clients and consolidate its position in the domestic market, as well as strengthening its corporate culture. Finally, we believe that, as a result of the measures carried out throughout the Group, both in Portugal Portugal (pôr`chəgəl), officially Portuguese Republic, republic (2005 est. pop. 10,566,000), 35,553 sq mi (92,082 sq km), SW Europe, on the western side of the Iberian Peninsula and including the Madeira Islands and the Azores in the and internationally, we are prepared, in human, financial and organisational terms, to benefit from the recovery across different markets and business areas, of which we are starting to see some encouraging signs." ECONOMIC ENVIRONMENT The consolidation of the economic recovery in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the stabilisation Noun 1. stabilisation - the act of making something (as a vessel or aircraft) less likely to overturn stabilization improvement - the act of improving something; "their improvements increased the value of the property" of economic activity in the Eurozone Eurozone Noun same as Euroland Eurozone n → eurozona, zona euro Eurozone n → zona euro , GDP GDP (guanosine diphosphate): see guanine. growth above expectations in Japan and the improvement of conditions in emerging economies all reflect the globally positive development of the international economic environment in the third quarter of 2003. The stabilisation of financial markets, benefiting from the decrease in uncertainty following the end of the war in Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. and the expansionary ex·pan·sion·ar·y adj. Tending toward or causing expansion: the empire's expansionary policies in Asia. macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. policies pursued by leading industrialised Adj. 1. industrialised - made industrial; converted to industrialism; "industrialized areas" industrialized industrial - having highly developed industries; "the industrial revolution"; "an industrial nation" countries have also contributed to raise confidence and expectations of economic recovery in the short term. Nevertheless, the persistence (1) In a CRT, the time a phosphor dot remains illuminated after being energized. Long-persistence phosphors reduce flicker, but generate ghost-like images that linger on screen for a fraction of a second. of risks, such as the structural unbalances of the US and Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and economies, may hold back the strength and sustainability of the economic expansion in the medium term. While short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. in the USA and in the Eurozone remained relatively unchanged in the third quarter of 2003, long term yields saw an upward trend, only partially inverted inverted reverse in position, direction or order. inverted L block a pattern of local filtration anesthesia commonly used in laparotomy in the ox. in September September: see month. , reflecting signs of economic recovery, the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of budget deficits and the rebalance of investment portfolios towards more risky assets Risky asset An asset whose future return is uncertain. , hence favourably influencing developments in equity markets. During the third quarter of 2003, the Dow Jones Dow Jones the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance index increased 3.2%, while the Eurostoxx50 index decreased 1%; in Portugal the PSI-20 index increased 5.4%, prompted by the banking and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. sectors. After four consecutive quarters of economic deterioration, production in Portugal should have contracted again in the third quarter of 2003, albeit in a less intense way than in the first half of the year. Given the high degree of adjustment of household and corporate spending already made, which corrected the excesses seen at the end of the '90s, the expansionary nature of monetary policy, the improvement of economic agents confidence and the favourable developments in the international economic environment, the recovery of economic activity in Portugal should be imminent, and positive GDP growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. are expected as from the beginning of 2004. In the third quarter of 2003, consumer prices continued on the deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed. early deceleration first seen in March 2003, even if in September - due to base effects linked with foodstuff prices, as well as with developments in transport and restaurant prices -, the year-on-year inflation rate interrupted in·ter·rupt v. in·ter·rupt·ed, in·ter·rupt·ing, in·ter·rupts v.tr. 1. To break the continuity or uniformity of: Rain interrupted our baseball game. 2. the downward trend, standing at 3.1%. Unemployment stood at 6.2% in the second quarter (against 5.1% in 2002), but wage moderation contributed to the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the number of newly unemployed. Government budget execution in the three first quarters of 2003 was unfavourable, reflecting the impact of the decrease in current revenues, hence necessitating extraordinary measures to ensure that the public sector deficit reaches the target of 2.9% of GDP in 2003. The State Budget for 2004 foresees a reduction of the public sector deficit in 2004 to 2.8% of GDP, already including the positive influences of non-recurring factors. 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 information available, total domestic credit grew 6% year-on-year in July July: see month. 2003, showing a stable trend in the last quarter. The unfavourable economic environment continued to influence private sector demand for credit, albeit attenuated Attenuated Alive but weakened; an attenuated microorganism can no longer produce disease. Mentioned in: Tuberculin Skin Test attenuated having undergone a process of attenuation. by the persistence of interest rates at historical lows, the widening of the maximum maturity limit of mortgage loans and the intensification in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: of competition among credit institutions. SIGNIFICANT DEVELOPMENTS The conclusion of the concentration of BCP share trading on Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] , the promotion of a wide range of innovative commercial
initiatives and the optimisation Noun 1. optimisation - the act of rendering optimal; "the simultaneous optimization of growth and profitability"; "in an optimization problem we seek values of the variables that lead to an optimal value of the function that is to be optimized"; "to promote the of the Group's corporate structure
characterised the activity of the BCP Group in the third quarter of
2003. Amongst the most important developments it is worth mentioning:-- Concentration of trading in BCP's shares on Euronext and de-listing from the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. (LSE LSE - Language Sensitive Editor ) and from Euronext Amsterdam Amsterdam, city, Netherlands Amsterdam (ăm`stərdăm', Dutch ämstərdäm`), city (1994 pop. 724,096), constitutional capital and largest city of the Kingdom of the Netherlands, North Holland prov. . De-listing from Frankfurt is expected to take place in November November: see month. 2003. BCP's American Depositary Shares American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. were also de-listed from the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . These decisions are supported by, amongst other factors, the fact that most of the trading in BCP shares takes place in Euronext Lisbon and the likely significant increase in trading by international investors brought about by the full integration of the Lisbon and Oporto Oporto (  pôr`tō), Port. Pôrto, city (1991 pop. 310,600), capital of Porto dist. and Douro Litoral, NW Portugal, near the mouth of the Douro River. Stock Exchanges in the pan-Europeanexchange Euronext N.V.; -- Continuation of the cycle of "Encontros bcp" conferences promoted in Portugal's leading towns. This initiative aims to promote meetings with regional clients to analyse an·a·lyse v. Chiefly British Variant of analyze. analyse or US -lyze Verb [-lysing, -lysed] or -lyzing, the economic development of each region and its potential, and at the same time to present the Group's service offering; -- Banco Comercial Portugues awarded "Best Bank" in Portugal by Global Finance magazine for its performance over the year, reputation and management excellence; -- Approval of the merger by incorporation into Banco Comercial Portugues of the Group companies BCP Leasing and AF - Investimentos, Gestao de Patrimonios. This decision is in line with ones already taken which aim to reinforce the core activities of the BCP Group, allowing a more efficient and rational exploitation of current capabilities both on commercial and operational levels; -- Launch of a new American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses. Blue card, the first in Portugal to have a built-in built-in - (Or "primitive") A built-in function or operator is one provided by the lowest level of a language implementation. This usually means it is not possible (or efficient) to express it in the language itself. chip. Over the next few years, this technology will replace current cards that operate with the traditional magnetic band. The new Blue card provides innovative services in a credit card, such as the ID Keeper Keeper may mean:
with LockIt; a unique system that allows the storing and management of personal data, as website addresses and respective passwords, enabling fast, convenient Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the navigation, and making secure purchases that are protected against fraud in shops or on the Internet; -- Launch of the campaign "Get Smart Online", consisting of an online auction, through the portal "cidadebcp", of fifty Smart cars. With this initiative, "cidadebcp" reinforces its innovative image and offers further advantages to its clients. 10 Smart cars will be awarded on a monthly basis to the 10 highest bids, made exclusively through "cidadebcp"; -- Cooperation agreement with the Social Services social services Noun, pl welfare services provided by local authorities or a state agency for people with particular social needs social services npl → servicios mpl sociales of Guarda Guarda (gwär`də), city (1991 pop. 18,215), capital of Guarda dist., N central Portugal, in Beira Alta. On the slopes of the Serra da Estrela, it is Portugal's highest city (c.3,400 ft/1,040 m) and is a winter sports resort. Nacional Nacional is the Spanish and Portuguese word for national. It can refer to: Sports
of financial products at preferential pref·er·en·tial adj. 1. Of, relating to, or giving advantage or preference: preferential treatment. 2. rates by the beneficiaries that have a salary account in one of the networks of the BCP Group. This protocol between the BCP Group and GNR's Social Services grants the beneficiaries special access to different products such as Personal Credit or Mortgage Loans, Property Leasing or Equipment Leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
Solution (Leasing, LTR LTR - Langage Temps-Réel. (French for "real-time language") A French predecessor to Ada, LTR is Modula-like with a set of special-purpose real-time constructs based on an event model. It was mentioned in the reference below. ["An Overview of Ada", J.G.P. or Renting), Multi-risk Insurance, Medis Health Insurance, as well as debit A monetary amount that is subtracted from an account balance. A debit from one account is a credit to another. See credit. and credit cards, among others; -- Launch of a Euro 1 billion issue in October October: see month. 2003 of Residential Mortgage Backed Securities through a Special Purpose Vehicle named Magellan A disk management utility for PCs from Lotus that had its heyday in the late 1980s. Believed by many to be one of the top 10 utility programs of all time, Magellan searched for file names and indexed the text content of the PC's hard drive at lightning speed. Mortgages No.2, Plc. This issue was backed by a mortgage loans portfolio managed by Banco Comercial Portugues and Banco de Investimento Imobiliario. As a result of the strong demand by international investors, the Class A tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. , amounting to Euro 930 million and rated "AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. ", was placed at 3 month Euribor +0.22%. FINANCIAL REVIEW The consolidated net income of Banco Comercial Portugues amounted to Euro 315.3 million in the first nine months of 2003. This figure is not directly comparable to the one for the same period of the previous year due to changes to the Group's structure: BCP's increased shareholding in Poland's Bank Millennium to 50.0% of its share capital at the end of 2002 led to Millennium being fully consolidated from 1 January January: see month. 2003 (this investment was equity accounted until that date); Spain's Banco Sabadell Banco Sabadell, S.A., (IBEX-35:SAB) is a major Spanish bank headquartered in Sabadell. Together with Banco de Asturias, Banco Urquijo, Sabadell Banca Privada, Banco Herrero, Solbank and ActivoBank, it is part of the Banco Sabadell Group, which is the fourth largest commercial ceased to be consolidated from 1 January 2003 and, following the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of BCP's strategic alliance with Eureko, BCP also ceased to consolidate its holding in this company from the beginning of the second half of 2002, having acquired the whole share capital of Seguros e Pensoes, with this investment being reflected in BCP's consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge from 31 March 2003. As a result of these changes, the following analysis is based on the quarterly evolution of BCP's consolidated financial statements. BCP's net income amounted to Euro 105.1 million in the third quarter of 2003, compared to Euro 114.6 million in the previous quarter. Net income for the second quarter of 2003 was boosted by the booking of annual dividends received as a result of BCP's holdings in EDP (Electronic Data Processing) The first name used for the computer field. EDP - Electronic Data Processing , Intesa and Friends Provident Friends Provident plc (LSE: FP.) manages a life assurance business mainly based in the United Kingdom and with offices throughout the world. Friends Provident is a financial services group and a member of the FTSE100 Index. , amounting to Euro 17.0 million. Return on equity stood at 17.4%, with 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). amounting to 0.7%. Net interest income for the first nine months of 2003 amounted to Euro 1,098.3 million. It totalled Euro 367.0 million in the third quarter of 2003, roughly the same level seen in the previous quarter (Euro 367.3 million). Increased activity, reflected in growing loans and customers' funds, and a focus on maintaining adequate interest spreads, despite continuing strong competition, have contributed to limiting the impact of the continuing low market interest rates and of credit securitisation.
Average Balances
3rd Quarter 2003 2nd Quarter 2003
------------------------ ------------------------
(Euro million, Average Interest Yield Average Interest Yield
except yields) Balance % Balance %
-------- -------- ------ -------- -------- ------
Interest earning
assets
Deposits in banks
(1) 4,264 137 12.57 3,738 129 13.66
Securities 3,522 38 4.26 3,604 51 5.64
Loans and advances
to customers 48,544 567 4.57 47,823 596 4.93
-------- -------- -------- --------
Total 56,330 742 5.16 55,165 776 5.56
Fixed assets 1,396 1,446
Other non interest
earning assets 8,216 8,405
-------- --------
Total assets 65,942 65,016
======== ========
Interest bearing
liabilities
Amounts owed to
credit instit. (1) 12,815 162 4.95 13,023 171 5.18
Amounts owed to
customers 29,413 103 1.37 29,066 115 1.57
Debt securities 13,337 79 2.31 12,238 90 2.92
Subordinated debt 2,911 31 4.18 2,988 33 4.33
-------- -------- -------- --------
Total 58,476 375 2.51 57,315 409 2.82
Non interest bearing
liabilities 3,360 3,676
-------- --------
Total liabilities 61,836 60,991
Shareholders' equity
and minority int. 4,106 4,025
Liabilities, sh.
equity and minority
int. 65,942 65,016
======== ========
Net interest income 367 367
======== ========
Net interest
margin(2) 2.55 2.63
(1) Includes interest related off-balance sheet operations.
(2) Net interest income as a percentage of average interest earning
assets.
The Bank pursued a policy of prudent provisioning aimed at keeping adequate coverage of past due loans by provisions. Charges for provisions for loan losses totalled Euro 376.5 million from January to September 2003, of which Euro 133.1 million were charged in the second quarter and Euro 164.9 million in the third quarter. Provisions charged from July to September were impacted by the new regulation (Regulation 8/2003 from the Bank of Portugal) that changed the definition and the provisioning requirements of doubtful loans. Income from securities stood at Euro 99.0 million in the first nine months of 2003. The fall in income from securities from Euro 65.5 million in the second quarter to Euro 21.8 million in the third quarter of 2003 was due to the booking of annual dividends received from April to June June: see month. 2003 as a result of BCP's holdings in EDP, Intesa and Friends Provident, amounting to Euro 17.0 million in total. The contribution of the equity accounted Seguros e Pensoes to BCP's consolidated earnings was positive, amounting to Euro 26.5 million in the third quarter of 2003. This reduction was due to lower investment income, which performed strongly in the second quarter of 2003 in line with capital markets. The decrease in investment income was partly compensated for by a significant increase in insurance premiums to Euro 520.0 million in the third quarter from Euro 424.1 million in the second quarter of 2003, and by a significant improvement in efficiency, reflected in a decrease in operating costs operating costs npl → gastos mpl operacionales to Euro 55.8 million from Euro 70.2 million over the same period. The solvency The ability of an individual to pay his or her debts as they mature in the normal and ordinary course of business, or the financial condition of owning property of sufficient value to discharge all of one's debts. solvency n. of Seguros e Pensoes also improved to 135.5% at 30 September from 126.5% at the end of the second quarter of 2003. Net commissions amounted to Euro 427.5 million in the first nine months of 2003. The benefits stemming from efforts to properly price the Group's services were reflected in the performance of commissions, up to Euro 148.6 million in the third quarter of 2003 from Euro 143.1 million in the previous quarter. The increase in fees and commissions related to cards and to asset management (the latter benefiting from the recovery in capital markets that continued in the third quarter) were paramount to the performance of net commissions. Net trading income totalled Euro 108.4 million from January to September 2003. The rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective seen in capital markets contributed to the performance of this heading, up to Euro 42.6 million in the third quarter from Euro 37.1 million in the second quarter of 2003. Other net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. amounted to Euro 277.9 million in the first nine months of 2003, of which Euro 122.0 million was booked in the third quarter and Euro 81.3 million in the second quarter. As a financial management measure in line with BCP's strategy of optimising capital allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as , some properties were sold to BCP's pension fund in the third quarter of 2003, thus fulfilling the requirements to fund pension liabilities Pension liabilities Future liabilities resulting from pension commitments made by a corporation. Accounting for pension liabilities varies widely by country. . This transaction resulted in a capital gain of Euro 46.7 million. Credit recoveries increased to Euro 51.1 million in the third quarter. This performance was mainly attributable to the reengineering Using information technology to improve performance and cut costs. Its main premise, as popularized by the book "Reengineering the Corporation" by Michael Hammer and James Champy, is to examine the goals of an organization and to redesign work and business processes from the ground up of processes and to the reinforcement reinforcement /re·in·force·ment/ (-in-fors´ment) in behavioral science, the presentation of a stimulus following a response that increases the frequency of subsequent responses, whether positive to desirable events, or of specialised Adj. 1. specialised - developed or designed for a special activity or function; "a specialized tool" specialized specific - (sometimes followed by `to') applying to or characterized by or distinguishing something particular or special or unique; "rules with teams and technical means assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to the collection of past due loans.
Other Income
2003 Change
-------------------------- -----------
(Euro million) 3rd 2nd 1st 3Q / 2Q /
Quarter Quarter Quarter 2Q 1Q
-------- -------- -------- ----- -----
Net commissions 148.6 143.1 135.7 3.9% 5.5%
Net trading income 42.6 37.1 28.6 14.9% 29.8%
Other net operating income(*) 75.3 81.3 74.6 -7.4% 9.0%
Other income / Total income(*) 42.9% 41.6% 39.9%
(*) Domestic activity. Excludes non-recurring
transactions.
Operating costs (staff costs, other administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. and depreciation) amounted to Euro 1,251.1 million in the first nine months of 2003. Operating costs decreased to Euro 412.6 million in the third quarter from Euro 419.2 million in the second quarter of 2003, benefiting from the implementation of the operating efficiency programme started in 2002, from staff downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing measures and from outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. a part of the Group's IT infrastructure, as a result of a recent agreement. The good performance of domestic operating costs stood out, resulting in an improvement of the cost-to-income ratio to 57.6% in the third quarter from 58.8% in the second quarter of 2003. The expansion of the Group's activity abroad caused a similar increase in international operating costs.
Operating Costs
2003 Change
-------------------------- -----------
(Euro million) 3rd 2nd 1st 3Q / 2Q /
Quarter Quarter Quarter 2Q 1Q
-------- -------- -------- ----- -----
Staff costs 216.5 216.9 218.5 -0.2% -0.8%
Of which: domestic activity 171.3 170.1 166.2 0.7% 2.3%
Other Administrative Expenses 144.7 151.0 149.9 -4.2% 0.7%
Of which: domestic activity 101.4 104.7 103.1 -3.1% 1.5%
Depreciation 51.4 51.3 50.9 0.3% 0.7%
Of which: domestic activity 31.9 33.3 32.7 -4.1% 2.0%
Operating Costs 412.6 419.2 419.3 -1.6% 0.0%
Of which: domestic activity 304.6 308.1 302.0 -1.1% 2.0%
Operating costs / Total
income(*) 57.6% 58.8% 60.7%
(*) Domestic activity. Excludes non-recurring
transactions.
Loans to customers stood at Euro 49,548 million at September 30, 2003. Mortgage loan performance was fundamental to the growth of loans to customers from Euro 48,526 million at the end of the first half of 2003. The BCP Group maintained its leadership of the domestic mortgage market in terms of new loans granted during the quarter. Mortgage loans amounted to Euro 13,377 million at the end of the third quarter of 2003, an increase on the Euro 12,573 million at June 30, 2003. The moderate growth of loans to companies was attributable to a strict selection of operations, aimed at reducing concentration and improving profitability.
Loans to customers
2003 Change
--------------------------- -------------
Sept.03/ Jun.03/
(Euro million) 30 Sept. 30 June 31 Mar. Jun.03 Mar.03
--------- -------- -------- ------ -----
Individuals
Mortgage loans 13,377 12,573 11,981 6.4% 4.9%
Consumer loans 3,915 4,049 4,137 -3.3% -2.1%
--------- -------- --------
17,292 16,622 16,118 4.0% 3.1%
--------- -------- --------
Companies
Services 8,796 9,144 9,012 -3.8% 1.5%
Commerce 4,787 4,950 5,176 -3.3% -4.4%
Other 19,400 18,443 18,605 5.2% -0.9%
--------- -------- --------
32,983 32,537 32,793 1.4% -0.8%
--------- -------- --------
Specific provision (727) (633) (626) 15.0% 1.0%
--------- -------- --------
Total 49,548 48,526 48,285 2.1% 0.5%
========= ======== ========
Securitised loans 1,754 1,853 1,943 -5.3% -4.6%
Credit quality continued to improve. Past due loans, including Millennium, stood at 1.9% of total loans, while provision coverage reached 126.3% (2.0% and 120.3%, respectively, at the end of the second quarter of 2003). Loans to individuals saw coverage of 153.5% and a ratio of past due loans to total loans of 1.5%, while loans to companies saw coverage of 116.6% and a ratio of past due loans to total loans of 2.1%, as a result of BCP's prudent provisioning policy.
Past Due Loans and Provisions at 30 September 2003
Provisions Past due
(Euro million) Past due for loan loans / Provision
loans losses Total Coverage
loans
-------- ---------- -------- ---------
Individuals
Mortgage loans 97.2 208.6 0.7% 214.6%
Consumer loans 155.6 179.4 4.0% 115.3%
-------- ----------
252.8 388.0 1.5% 153.5%
-------- ----------
Companies
Services 88.1 155.1 1.0% 176.0%
Commerce 125.7 137.7 2.6% 109.6%
Construction 160.2 134.2 3.0% 83.8%
Other international activities 27.0 66.0 0.6% 244.1%
Other 307.5 333.4 3.2% 108.4%
-------- ----------
708.5 826.4 2.1% 116.6%
-------- ----------
Total 961.3 1,214.4 1.9% 126.3%
======== ==========
Total customers' funds amounted to Euro 51,151 million, compared to Euro 50,399 million at 30 June 2003. The increase of balance sheet customers' funds, to Euro 35,753 million at 30 September 2003 from Euro 34,636 million at the end of the second quarter of 2003, stood out, and was attributable to the performance of demand deposits, which increased to Euro 12,571 million at 30 September 2003 from Euro 11,918 million at end of June, and to time deposits, which increased to Euro 17,659 million from Euro 17,130 million in the same period. Regarding off-balance sheet customers' funds, 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 increased to Euro 6,854 million at 30 September from Euro 6,604 million at 30 June 2003.
Total Customers' Funds
2003 Change
----------------------- -----------
Sept.03/ Jun.03/
(Euro million) 30 Sept. 30 June 31 Mar. Jun.03 Mar.03
------- ------- ------- ----- -----
Balance sheet customers' funds
Repayable on demand 12,571 11,918 12,854 5.5% -7.3%
With agreed maturity date and
CDs 17,659 17,130 17,360 3.1% -1.3%
Securities 5,523 5,588 4,879 -1.1% 14.5%
------- ------- -------
35,753 34,636 35,093 3.2% -1.3%
------- ------- -------
Off balance sheet customers'
funds
Assets under management 8,544 9,159 9,038 -6.7% 1.3%
Capitalisation insurance 6,854 6,604 6,539 3.8% 1.0%
------- ------- -------
15,398 15,763 15,577 -2.3% 1.2%
------- ------- -------
Total 51,151 50,399 50,670 1.5% -0.5%
======= ======= =======
Solvency maintained roughly the same levels seen at the end of the first half of 2003. 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 stood at 10.7% at 30 September 2003, according to the rules of the Bank of Portugal, and at 11.5% according to BIS principles (Tier One of 7.2%).
Solvency (BIS)
2003 Change
----------------------------------------
Sept.03/ Jun.03/
(Euro million) 30 Sept. 30 June 31 Mar. Jun.03 Mar.03
----------------------------------------
Tier One Capital
"Core" 2,684 2,669 2,665 0.6% 0.1%
Preference Shares 1,167 1,169 1,193 -0.2% -2.0%
-------------------------
Total 3,851 3,838 3,858 0.4% -0.5%
-------------------------
Tier Two Capital
Debt 2,914 2,960 3,043 -1.6% -2.7%
Deductions (585) (599) (569) -2.2% 5.2%
-------------------------
Total 2,329 2,361 2,474 -1.4% -4.6%
-------------------------
Total Regulatory Capital 6,180 6,199 6,332 -0.3% -2.1%
-------------------------
Risk Weighted Assets 53,879 53,632 53,038 0.5% 1.1%
Solvency Ratio
Tier I 7.2% 7.2% 7.3% - -
Tier II 4.3% 4.4% 4.6% - -
Total 11.5% 11.6% 11.9% - -
SEGMENTAL segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. REPORTING BCP Group operates a large range of banking activities and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. in Portugal and abroad. This section presents and discusses the performance of the Group's main business segments: retail banking in Portugal, private banking and asset management, commercial banking, investment banking and activities in foreign markets. Retail Banking in Portugal Retail banking in Portugal is the Group's main segment, both in terms of business volumes and contribution to results, and comprises the retail distribution networks in Portugal. The networks operate as distribution and marketing channels, responding to the specific financial needs of various market segments. The networks perform a critical role in the Group's cross-selling Cross-selling is the term used to describe the sale of additional products or services to a customer. Less frequently it is used to describe the sale of services to additional business units at an account or to different geographic units of a customer. strategy as they distribute financial products and services originating from most business segments of the Group.
Retail banking in Portugal
2003 Change
------------------------------------------
(Euro million) 3rd 2nd 1st 3Q / 2Q /
Quarter Quarter Quarter 2Q 1Q
------------------------------------------
Contribution (net) 32.2 26.4 38.0 21.7%-30.6%
Allocated capital 697.2 687.1 680.8 1.5% 0.9%
Return on allocated capital 18.3% 15.4% 22.7% -- --
Risk weighted assets 14,091 13,839 13,634 1.8% 1.5%
Cost to income ratio 58.6% 57.7% 56.5% -- --
Loans to customers 17,148 16,589 16,175 3.4% 2.6%
Total customers' funds 27,812 27,419 27,417 1.4% 0.0%
The contribution to consolidated earnings of retail banking in Portugal reached Euro 96.6 million in the first nine months of 2003. On a quarterly basis, the contribution for the third quarter amounted to Euro 32.2 million, a positive development compared to the previous quarter (Euro 26.4 million). The increased contribution is evident in the increase of the return on allocated capital, from 15.4% in the second quarter to 18.3% in the third quarter of 2003. The increase in the contribution to consolidated earnings is explained by the maintenance of net interest income, benefiting from volume growth (in loans and customer funds), and by higher non-interest income, due to increased commissions, mostly driven by cards business. The loan growth in the Portuguese retail segment, up from Euro 16,589 million to Euro 17,148 million at September 30, 2003, has been primarily driven by mortgage loans. The BCP Group maintained market leadership in the domestic mortgage market in terms of quarterly new production. It is also worth noting that balance sheet customers' funds have seen strong growth, increasing from Euro 14,968 million as at June 30 to Euro 15,574 million at September 30, 2003. Private Banking and Asset Management The wealth management activities of the BCP Group are carried out by the Private Banking network, dedicated to private clients with significant financial assets Financial assets Claims on real assets. , and by AF Investimentos, a subsidiary specialising in asset management and which is the holding company for the investment fund management subsidiaries and the personal asset management business.
Private Banking and Asset Management
2003 Change
------------------------------------------
(Euro million) 3rd 2nd 1st 3Q / 2Q /
Quarter Quarter Quarter 2Q 1Q
------------------------------------------
Contribution (net) 14.3 11.6 12.1 24.3% -4.1%
Allocated capital 250.4 174.0 178.2 43.9% -2.4%
Return on allocated capital 22.8% 26.7% 27.4% -- --
Risk weighted assets 4,975 3,388 3,582 46.8% -5.4%
Cost to income ratio 36.7% 38.3% 39.7% -- --
Loans to customers 4,923 3,425 3,617 43.7% -5.3%
Assets under management 11,863 12,110 12,246 -2.0% -1.1%
The contribution to consolidated earnings of Private Banking and Asset Management reached Euro 38.0 million in the first nine months of 2003. The contribution for the third quarter reached Euro 14.3 million, compared to Euro 11.6 million in the previous quarter. The international business of some companies was allocated to the Private Banking network in the third quarter of 2003, 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 specialised competences and financial solutions of the Group's new commercial model. This transfer was the main reason behind the significant increase of loans to customers. Loans increased from Euro 3,425 million as at 30 June 2003 to Euro 4,923 million at 30 September 2003. Commercial Banking The corporate retail network, dedicated to corporate clients with annual turnover between Euro 7.5 million and Euro 100 million, carries out the commercial banking business of the BCP Group.
Commercial Banking
2003 Change
-------------------------- ------------
(Euro million) 3rd 2nd 1st 3Q / 2Q /
Quarter Quarter Quarter 2Q 1Q
-------- -------- -------- ------ -----
Contribution (net) 21.8 16.0 14.7 37.0% 8.6%
Allocated capital 438.3 433.4 425.6 1.1% 1.8%
Return on allocated capital 19.7% 14.7% 14.0% -- --
Risk weighted assets 8,861 8,647 8,529 2.5% 1.4%
Cost to income ratio 18.9% 21.1% 23.2% -- --
Loans to customers 7,300 7,102 6,978 2.8% 1.8%
Total customers' funds 1,237 1,168 1,175 5.9% -0.6%
The contribution to consolidated earnings of Commercial Banking reached Euro 52.3 million in the first nine months of 2003. The growth seen in the network contribution, as it increased to Euro 21.8 million in the third quarter from Euro 16.0 million in the second quarter, is largely explained by the increase in both net interest income, resulting from overall volume growth, and non-interest income. As a result, return on allocated capital increased to 19.7% from 14.7%. The marked improvement in efficiency, as seen in the improved cost to income ratio, down to 18.9% from 21.1% in the previous quarter, was another factor contributing to the improvement in profitability. Loans to customers of the corporate retail network increased to Euro 7,300 million as at 30 September from Euro 7,102 million as at 30 June, 2003. Total customers' funds also saw strong growth, as they increased to Euro 1,237 million from Euro 1,168 million in the same period. Investment Banking BCP Investimento is the BCP Group's subsidiary carrying out its investment banking business.
Investment Banking
2003 Change
--------------------------- -------------
(Euro million) 3rd 2nd 1st 3Q / 2Q /
Quarter Quarter Quarter 2Q 1Q
--------- -------- -------- ------ ------
Contribution (net) 44.2 41.0 33.0 7.6% 24.5%
Allocated capital 736.5 755.7 748.1 -2.5% 1.0%
Return on allocated capital 23.8% 21.8% 17.9% -- --
Risk weighted assets 14,473 15,066 15,102 -3.9% -0.2%
Cost to income ratio 37.7% 38.6% 32.9% -- --
Loans to customers 7,151 7,571 7,642 -5.5% -0.9%
Total customers' funds 1,581 1,457 2,068 8.5% -29.5%
The increased contribution to consolidated earnings of this business segment was due to the very strong growth experienced in investment banking revenue. The contribution increased to Euro 44.2 million in the third quarter from Euro 41.0 million in the second, with a cumulative net contribution of Euro 118.2 million for the first nine months of 2003. The increase in results and the contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of the allocated capital were reflected in the improvement in returns, to 23.8% in the third quarter from 21.8% in the second. Tight control on operating expenses, combined with the strong growth in revenues explain the improvement in efficiency, with the relevant ratio decreasing from 38.6% to 37.7% in the same period. Activities in International Markets The activity of BCP Group in international markets is carried out by banking subsidiaries located in markets with historical Portuguese links and in other markets with high growth potential: Banco Comercial de Macau Macau: see Macao. Macau or Macao Chinese Aomen Special administrative region (pop., 2005 est.: 470,000), southern China. (China), Banco Internacional de Mocambique (Mozambique Mozambique, city, Mozambique Mozambique, city: see Moçambique. Mozambique, country, Africa Mozambique (mō'zəmbēk`), officially Republic of Mozambique, republic (2005 est. pop. ), Banque BCP (France and Luxembourg Luxembourg, province, Belgium Luxembourg, Du. Luxemburg, province (1991 pop. 232,813), 1,706 sq mi (4,419 sq km), SE Belgium, in the Ardennes, bordering on the Grand Duchy of Luxembourg in the east and on France in the south. ), Bank Millennium (Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, ), NovaBank The NovaBank is a Greek banking service. Its has its headquarters in Athens, the national capital. On December 12, 2006 NovaBank was renamed Millennium bank, to conform with the worldwide "Millennium" brand of its parent company (100% owner) Millennium BCP (Banco Comercial (Greece), BCPBank (USA and Canada), BankEuropa (Turkey) and Banque Privee BCP (Switzerland).
Activities in International Markets
2003 Change
-------------------------- --------------
(Euro million) 3rd 2nd 1st 3Q / 2Q /
Quarter Quarter Quarter 2Q 1Q
-------- -------- -------- ------- ------
Contribution (net) (11.0) (18.3) (4.7) -- --
Allocated capital 745.9 719.5 719.7 3.7% -0.0%
Return on allocated capital -5.8% -10.2% -2.6% -- --
Risk weighted assets 5,763 5,711 5,617 0.9% 1.7%
Cost to income ratio 103.1% 108.6% 99.6% -- --
Loans to customers 4,532 4,304 4,296 5.3% 0.2%
Total customers' funds 8,825 9,316 8,503 -5.3% 9.6%
The impact of recently launched projects and costs associated with the development of operations experiencing fast growth explain the negative contribution of the Group activities in international markets. This segment of activity showed an accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. negative contribution to consolidated earnings of Euro 33.9 million in the first nine months of 2003, of which Euro 11.0 million and Euro 18.3 million came in the third and second quarters, respectively. SHARE PRICE INDICATORS
2003
--------------------------------
3rd 2nd 1st
Quarter Quarter Quarter
---------- ---------- ----------
Shares outstanding
end of period (thousands) 3,257,401 3,257,401 2,326,715
Shares outstanding
average (thousands) 3,257,401 3,226,719 2,326,715
Closing price (euros)
(end of period) 1.79 1.53 1.25
Book value per share(*)
(end of period) 0.84 0.78 0.76
Earnings per share (euros) 0.03 0.04 0.04
Return on equity (ROE) 17.4% 18.2% 17.9%
(*) Adjusted by the impact of the share capital
increase.
DISCLAIMER (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the This document may include certain sections or statements, in particular relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Banco Comercial Portugues ("BCP") Group, that are neither reported financial results nor other historical information. These statements, which may include, without limitation, targets, forecasts, projections, statements regarding the possible development or possible assumed future results of operations and any statement preceded by, followed by or that includes the words "believes", "expects", "aims", "intends", "may", "expect", "estimate", "project", "anticipate", "should", "intend", "plan", "probability", "risk", "Value-at-Risk" ("VaR Var, department (1990 pop. 828,300), SE France, in Provence. Draguignan is the capital. (Value Added Reseller) An organization that adds value to a system and resells it. "), "target", "goal", "objective", "will", "endeavour", "outlook", "optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op ", "prospects" or similar expressions or negatives or combinations thereof are or may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the United States Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, regulations and case law, or other applicable laws and regulations. By their nature, forward-looking statements are inherently predictive, speculative and are subject to risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by forward-looking statements. These factors include, but are not limited to, changes in economic condition in individual countries in which the BCP Group conducts its business and internationally, fiscal or other policies adopted by various governments and regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities of Portugal and other jurisdictions, levels of competition from other banks and financial services companies as well as movements in securities markets, currency exchange rates and interest rates, monetary policies, inability to hedge certain risks economically; the adequacy of loss reserves; acquisitions or restructurings; technological changes; changes in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. and saving habits, changes in financial position or credit worthiness of our customers, obligors and counterparties Counterparties The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position. , and the success of the Group in managing the risk involved in the foregoing. BCP does not undertake to update or to release publicly any revision to any forward-looking statements included in this document, whether to reflect events, circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or unanticipated events occurring after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , or otherwise.
BANCO COMERCIAL PORTUGUES
Consolidated Balance Sheet as at 30 September, 2003 and 2002
2003 2002
---------- -----------
(Thousands of Euros)
Assets
Cash and deposits at central banks 1,548,039 1,039,013
Loans and advances to credit institutions
Repayable on demand 710,277 691,217
Other loans and advances 3,904,412 3,858,774
Loans and advances to customers 49,547,893 44,860,200
Securities 3,768,843 3,929,871
Treasury stock - 16,434
Investments 2,532,301 2,685,672
Intangible assets 175,548 142,881
Tangible assets 1,139,552 1,144,838
Other debtors 1,137,135 854,508
Prepayments and accrued income 3,040,647 2,031,355
------------ -----------
67,504,647 61,254,763
============ ===========
Liabilities
Amounts owed to credit institutions
Repayable on demand 250,136 539,997
With agreed maturity date 12,751,602 12,243,756
Amounts owed to customers
Repayable on demand 12,570,523 11,809,412
With agreed maturity date 17,651,008 15,634,689
Debt securities 13,371,422 12,287,275
Other liabilities 501,964 482,067
Accruals and deferred income 2,333,250 1,293,080
Provision for liabilities and charges 955,762 813,727
Subordinated debt 2,885,122 2,857,055
------------ -----------
Total Liabilities 63,270,789 57,961,058
------------ -----------
Shareholders' Equity
Share capital 3,257,401 2,326,715
Mandatorily convertible notes 528,207 -
Share premium 674,180 715,117
Reserves and retained earnings (1,719,231) (1,113,281)
------------ -----------
Total Shareholders' Equity 2,740,557 1,928,551
------------ -----------
Minority interests 1,493,301 1,365,154
------------ -----------
67,504,647 61,254,763
============ ===========
BANCO COMERCIAL PORTUGUES
Consolidated Statement of Income
for the nine months ended 30 September, 2003 and 2002
2003 2002
------------ -----------
(Thousands of Euros)
Interest income 2,313,555 2,238,191
Interest expense 1,215,260 1,242,622
------------ ----------
Net interest income 1,098,295 995,569
Provision for loan losses 376,504 249,839
------------ ----------
Net interest income after
provision for loan losses 721,791 745,730
------------ ----------
Other operating income
Income from securities 99,002 138,156
Net commissions 427,485 371,116
Net income arising from trading activity 108,362 79,957
Other operating income 387,184 379,341
------------ ---------
1,022,033 968,570
------------ ----------
Other operating expenses
Staff costs 651,867 580,642
Other administrative costs 445,598 393,475
Depreciation 153,602 124,508
Other provisions 5,243 51,049
Other operating expenses 109,264 55,483
------------ ----------
1,365,574 1,205,157
------------ ----------
Income before income taxes 378,250 509,143
Income taxes 27,158 54,572
------------ ----------
Income after income taxes 351,092 454,571
Minority interests 35,823 51,771
------------ ----------
Net income for the period 315,269 402,800
============ =========
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