Banco Comercial Portugues -- "BCP" -- Net Income of Euro 320.9 Million in the First Half of 2002.Business Editors WARSAW--(BUSINESS WIRE)--July 24, 2002 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) 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 Euro 320.9 million for the first half of 2002, compared to Euro 353.8 million in the same period of 2001. Return on equity stood at 32.1%, 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). at 1.1%.
PROFITABILITY 1st Half 1st Half Change
INDICATORS 2002 2001 2002/2001
------------- -------- -------- ---------
Net income
(Millions of euros) 320.87 353.75 -9.3%
ROE 32.1% 32.6% -
ROA 1.1% 1.2% -
ROA before minority interests 1.2% 1.3% -
BCP's consolidated net income was assisted by continuing cost control efforts, specifically in the domestic business. The evolution of bad debt levels is also worth noting, particularly in the current economic climate, with the proportion of overdue OVERDUE. A bill, note, bond or other contract, for the payment of money at a particular day, when not paid upon the day, is overdue. 2. The indorsement of a note or bill overdue, is equivalent to drawing a new bill payable at sight. 2 Conn. 419; 18 Pick. loans to total loans decreasing to 1.6% at June June: see month. 30, 2002 from 1.7% at the end of the first quarter of 2002. The implementation of BCP's new commercial model, based on a 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 approach to both the creation and distribution of financial products and services, also had a positive effect. However, these favourable developments were offset by the continuing poor economic conditions. Trading and commission income were particularly affected, and credit provisions saw an increase, mainly as a result of the provisioning of personally-guaranteed loans 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 Regulation 7/2000 of the Bank of 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 . "During the first half of 2002 BCP's activity was significantly constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by the worsening wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. Noun 1. worsening - process of changing to an inferior state decline in quality, deterioration, declension domestic economic climate and by tough conditions in the global financial markets. However, the Bank responded to this by reinforcing its proactive commercial stance and by focusing on strict cost control and maintaining credit quality. As a result, the loan growth (although moderate), and higher interest margins and efficiency levels, have resulted in our cash-flow increasing by more than 10% compared to the first half of 2001", commented Mr. Jardim There are many things that have the name Jardim (Portuguese for garden): Places In Brazil, South America
"We have also focused on further developing the activity of our distribution networks, through product innovation, organisational procedures and technological solutions. This has already led to significant commercial gains in the domestic business. An ambitious efficiency programme, aimed at achieving sustained high levels of operational excellence, has also been set up. Its results are expected to be seen in terms of superior profitability levels throughout the remainder of 2002 and 2003." During the first half of 2002, under the process of rationalisation Noun 1. rationalisation - (psychiatry) a defense mechanism by which your true motivation is concealed by explaining your actions and feelings in a way that is not threatening rationalization of real-estate and in order to optimise optimise - To perform optimisation. 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 , the Bank booked capital gains arising from the sale of premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person to the Bank's pension fund. This transaction compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for the impact that decreasing returns on financial assets Financial assets Claims on real assets. had on the pension fund assets Fund assets The total value of a portfolio's securities, cash, and other holdings, minus any outstanding debts. . Capital gains were in the same amount as additional pension fund, market and credit risk provisions (Euro 85 million) with the result that there was no impact from non-recurring transactions on consolidated net income. The Bank's increased shareholding in 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 and the fact that BCP became the majority shareholder of Banco Internacional de Mocambique after having merged it with Banco Comercial de Mocambique led to both these institutions being fully consolidated from the end of 2001. As these interests were previously consolidated using the proportional proportional values expressed as a proportion of the total number of values in a series. proportional dwarf the patient is a miniature without disproportionate reductions or enlargements of body parts. method, we have produced pro forma financial statements Pro forma financial statements A firm's financial statements as adjusted to reflect a projected or planned transaction. "What-if" analysis. for the first half of 2001, allowing a comparable basis with the figures now presented for the same period of 2002. Consolidated net interest income stood at Euro 644 million in the first six months of 2002, compared to Euro 676 million in the same period of 2001 on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis. The main influences here were higher business volumes, with both loans to customers and total customers' funds increasing from their June 30, 2001 level, and by the efforts to keep adequate interest spreads, with the net interest margin increasing to 2.6% from 2.5% in the first half of 2001. However, these effects were offset by the impact of credit securitisation. The pursuance of a very prudent provisioning policy aimed at complying with applicable legislation, but also based on an economic appraisal This article is about economic appraisal. For other uses, see Appraisal. Appraisal is the act of estimating the monetary value of real property, personal property, or intangible property, usually performed as a service by someone recognized as an expert or of risks, and the application of Regulation 7/2000 of the Bank of Portugal, under which full provisioning was required for loans overdue by more than 18 months collaterised by personal guarantees, have led to a strong increase in provisions for credit risks, to Euro 175 million in the first half of 2002 from Euro 106 million in the same period of 2001, on a comparable basis. Net commissions, which amounted to Euro 245 million in the first six months of 2002, remained at roughly the same level as the first half of 2001 (Euro 243 million, on a pro forma basis). The performance of 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 card fees and the activity of the Group's investment banking operation, which lead-managed a number of high-value transactions in the first quarter of 2002, were offset by lower brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. commissions resulting from the weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. capital markets. The
poor performance of financial markets also contributed to the 2.9%
decrease in trading gains, to Euro 74 million in the first half of 2002
from Euro 76 million in the same period of 2001, on a comparable basis.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. was influenced by a capital gain of Euro 85 million on the sale of premises to the Bank's pension fund, following the Group's strategy to optimise capital allocation and rationalise Verb 1. rationalise - structure and run according to rational or scientific principles in order to achieve desired results; "We rationalized the factory's production and raised profits" rationalize real-estate 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 operations. The fund's assets were reinforced, thus counterbalancing the influence of the decrease of returns on financial assets. Net of this impact, other net operating income increased 19.8% to Euro 159 million in the first six months of 2002 from Euro 133 million in the first half of 2001, buoyed by higher recoveries of overdue loans and by the strong performance of investment banking income. The lower contribution from equity accounted associates led to a 14.8% drop in income from securities, to Euro 114 million in the first half of 2002 from Euro 134 million in the same period of the previous year. This reduction was mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a decreased contribution from Eureko, which itself was influenced by the booking of non-recurring income in the first half of 2001 and by the performance of capital markets.
OTHER INCOME 1st Half 1st Half 1st Half Change
(Millions of euros) 2002 2001 2001 2002/2001
Pro forma Pro forma
-------- --------- -------- --------
Net Commissions 245.3 243.2 240.6 0.8%
Of which:
- Domestic activity 221.6 223.3 223.3 -0.8%
Trading Gains 74.2 76.4 69.8 -2.9%
Of which:
- Domestic activity 71.0 61.9 61.9 14.6%
Other Net Operating Income (1) 158.9 132.6 132.8 19.8%
Of which:
- Domestic activity 150.8 130.6 130.6 15.5%
Other Income /Total Income (1)
- Total 47.1% 46.4% 46.2% -
- Domestic activity 48.4% 47.2% 47.2% -
(1) Excludes non-recurring transactions.
Operating costs operating costs npl → gastos mpl operacionales (staff costs, other administrative expenses and depreciation) totalled Euro 723 million in the first six months of 2002, up 3.0% from Euro 702 million pro forma in the first half of 2001. This increase was due to the Group's operations outside Portugal, where there is a significant number of recent and high-growth projects. The evolution of domestic operating costs on the other hand benefited from continuing control and rationalisation efforts. Staff costs totalled Euro 379 million in the first half of 2002, 1.9% up from Euro 372 million in the same period of 2001, on a comparable basis. Domestic staff costs, which amounted to Euro 324 million, roughly at the level of the first six months of 2001 (Euro 326 million, pro forma), were affected by higher pension fund contributions. The impact of non-domestic operations was particularly clear in the evolution of other administrative expenses and depreciation, which grew by 1.8% and by 13.1%, respectively. For the Group's domestic business alone, other administrative expenses decreased by 2.9%, while depreciation was 2.7% up.
1st Half Change
OPERATING COSTS 1st Half 2001 1st Half 2002/2001
(Millions of euros) 2002 Pro forma 2001 Pro forma
-------- --------- -------- ---------
Staff Costs 379.1 372.2 365.7 1.9%
Of which:
- Domestic activity 324.4 325.5 325.5 -0.4%
Other Administrative Expenses 262.9 258.1 251.1 1.8%
Of which:
- Domestic activity 218.4 225.0 225.0 -2.9%
Depreciation 81.4 72.0 69.4 13.1%
Of which:
- Domestic activity 61.8 60.2 60.2 2.7%
Operating Costs/ Total Income (1)
- Total 57.6% 55.7% 55.1% -
- Domestic activity 52.5% 52.5% 52.6% -
(1) Excludes non-recurring transactions.
Loans to customers rose by 6.8% on a comparable basis, totalling Euro 44,216 million at June 30, 2002 (Euro 41,394 million at the end of June, 2001). In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the continuing harsh economic climate, loans to individuals grew at a steep pace, with the Group's efforts to optimise risks resulting from the acquisitions in 2000 explaining the more moderate growth in corporate loans. Total customers' funds stood at Euro 48,774 million at the end of the first half of 2002, a 5.4% increase from pro forma total customers' funds of Euro 46,265 million at June 30, 2001. This aggregate profited from the implementation of the Group's new commercial model, and resulted from strong growth in 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 and securities, reflecting the Group's effectiveness in bancassurance Bancassurance A French term referring to the selling of insurance through a bank's established distribution channels. Notes: The result is a bank that can offer banking, insurance, lending, and investment products to a customer. and in creating structured products for the retail market. Investors' greater preference for low risk products and the competitiveness of the Group's offer has resulted in an increase in balance sheet customers' funds. The performance of 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. , which maintained a level similar to June 30, 2001, is also worth noting in the current economic conditions.
ACTIVITY 30 Jun. 30 Change
INDICATORS 30 Jun. 2001 Jun. 2002/2001
(Millions of euros) 2002 Pro forma 2001 Pro forma
------- --------- ------ ---------
Total Assets (1) 60,796 61,954 61,274 -1.9%
Total Customers' Funds
- Balance Sheet 28,254 27,655 27,142 2.2%
- Assets under Management 9,972 9,970 9,970 0.0%
- Capitalisation Insurance 6,024 5,157 5,157 16.8%
- Securities 4,524 3,483 3,483 29.9%
- Total 48,774 46,265 45,752 5.4%
Loans to Customers (1) 44,216 41,394 41,259 6.8%
Own Funds (2) 5,952 6,212 6,212 -4.2%
(1) Does not include securitised assets.
(2) Shareholders' Equity, Preference Shares and Subordinated Debt.
Loan quality benefited from continued prudence in analysing, granting, monitoring and recovering credit, having improved from the first quarter of 2002 in spite of the maintenance of an unfavourable framework. At the end of the first half of 2002, overdue loans accounted for 1.6% of total loans, compared to 1.7% at March 31, 2002 (1.5% at June 30, 2001, on a pro forma basis). Coverage by provisions amounted to 137.1% (138.0% at the end of the first quarter of 2002 and 150.6% at June 30, 2001).
LOAN QUALITY INDICATORS (1)
30 Jun.
30 Jun. 2001 30 Jun.
2002 Pro forma 2001
------- --------- ---------
Total overdue loans/Total loans 1.6% 1.5% 1.5%
Provisions/Total overdue loans 137.1% 150.6% 150.6%
(1) Does not include securitised loans.
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. indicators maintained adequate levels. 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 9.8% at the end of June 2002, 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. BIS principles, with tier one amounting to 6.0%. In accordance with the ruling of the Bank of Portugal, the consolidated solvency ratio was 8.8% at the end of the first half of 2002. "During the first half of 2002, we have taken advantage of opportunities to increase provisioning for credit risk, pension fund liabilities and unrealised capital losses on investments. Through this, we have aimed to further reinforce BCP's asset structure, which we see as a fundamental pillar pillar, freestanding columnar supporting member. It is a general term, little used as an exact architectural definition except as applied to an upright support in the medieval styles, consisting of an assemblage of juxtaposed shafts and moldings; unlike the column, in the Group's development, and a key confidence factor for BCP's shareholders," Mr. Jardim Goncalves concluded.
BANCO COMERCIAL PORTUGUES
Consolidated Balance Sheet as at 30 June, 2002 and 2001
2002 2002 2001
(Millions of (Thousands
Escudos) of Euros)
---------- ---------- ------
Assets
Cash and deposits at
central banks 253,578 1,264,840 1,039,259
Loans and advances to
credit institutions
Repayable on demand 152,256 759,449 1,078,801
Other loans and advances 695,709 3,470,180 5,952,022
Loans and advances to customers 8,864,560 44,216,241 42,931,002
Securities 836,480 4,172,345 4,883,813
Treasury stock 4,808 23,984 7,566
Investments 529,692 2,642,094 2,598,330
Intangible assets 27,866 138,995 103,422
Tangible assets 235,622 1,175,280 1,257,561
Other debtors 162,386 809,978 932,483
Prepayments and accrued income 425,495 2,122,358 2,161,774
-------- --------- ---------
12,188,452 60,795,744 62,946,033
========== ========== ==========
Liabilities
Amounts owed to credit
institutions
Repayable on demand 86,052 429,226 459,192
With agreed maturity date 2,198,479 10,965,966 15,943,261
Amounts owed to customers
Repayable on demand 2,379,989 11,871,335 10,903,282
With agreed maturity date 3,282,570 16,373,392 16,229,322
Debt securities 2,428,546 12,113,536 10,079,201
Other liabilities 87,849 438,190 292,569
Accruals and deferred income 327,327 1,632,697 1,689,603
Provision for liabilities
and charges 172,291 859,384 1,100,858
Subordinated debt 577,924 2,882,675 2,748,622
---------- ---------- ----------
Total Liabilities 11,541,027 57,566,401 59,445,910
---------- ---------- ----------
Shareholders' Equity
Share capital 466,464 2,326,715 2,326,715
Share premium 143,368 715,117 715,203
Reserves and retained earnings (236,192) (1,178,122) (809,012)
------- --------- ---------
Total Shareholders' Equity 373,640 1,863,710 2,232,906
------- --------- ---------
Minority interests 32,146 160,341 36,310
Minority interests in
preference shares 241,639 1,205,292 1,230,907
Total Minority Interests 273,785 1,365,633 1,267,217
---------- ---------- ----------
12,188,452 60,795,744 62,946,033
========== ========== ==========
BANCO COMERCIAL PORTUGUES
Consolidated Statement of Income
for the six months ended 30 June, 2002 and 2001
2002 2002 2001
------ ------ ------
(Millions of (Thousands
Escudos) of Euros)
Interest income 299,232 1,492,564 1,721,360
Interest expense 166,105 828,530 1,051,591
------- --------- ---------
Net interest income 133,127 664,034 669,769
Provision for loan losses 35,032 174,739 104,889
------- --------- ---------
Net interest income after
provision for loan losses 98,095 489,295 564,880
------- --------- ---------
Other operating income
Income from securities 22,811 113,779 131,526
Commissions 57,897 288,791 278,896
Profit arising from trading
activity 35,283 175,989 255,400
Other income 56,141 280,030 166,351
------- ------- -------
172,132 858,589 832,173
Other operating expenses
Commissions 8,728 43,536 38,272
Losses arising from trading activity 20,409 101,799 185,604
Staff costs 76,010 379,136 365,704
Other administrative costs 52,703 262,879 251,074
Depreciation 16,320 81,403 69,385
Other provisions 8,614 42,966 2,961
Other expenses 7,148 35,656 33,591
------- ------- -------
189,932 947,375 946,591
------- ------- -------
Income before income taxes 80,295 400,509 450,462
Income taxes 8,406 41,928 48,034
------- ------- -------
Net income 71,889 358,581 402,428
Minority interests 7,560 37,708 48,675
------- ------- -------
Net income for the period
attributable to the Bank 64,329 320,873 353,753
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