Banco Comercial Portugues -- 'BCP' -- Net Income Up 4.6% to Eur 167.6 Million in the First Quarter of 2002.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)--April 22, 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 167.6 million in the first quarter of 2002, up 4.6% from Eur 160.2 million in the same period of 2001. Return on equity stood at 31.2%, 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). being 1.1%.
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PROFITABILITY INDICATORS 1st Quarter 1st Quarter Change
2002 2001 2002/2001
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Net income 167.58 160.22 4.6%
(Millions of euros)
ROE 31.2% 34.6% -
ROA 1.1% 1.1% -
ROA before minority interests 1.3% 1.2% -
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"These results clearly reflect the success of BCP's domestic programme of operating 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 which we concluded in 2001, with revenue synergies now beginning to be visible amongst the Group's retail brands through the increase of the main business variables. Domestic activity, although affected by the evolution of credit risks and by significant changes to interest rates, was marked by revenue growth and decreasing costs, resulting in improved efficiency and so confirming the profitability potential of the Portuguese market, in which we are leaders," commented Mr. Jardim There are many things that have the name Jardim (Portuguese for garden): Places In Brazil, South America
"Our international activity also saw rapid expansion during the first quarter of 2002. The consolidation of BBG's profitability and the growth of NovaBank's business volumes and efficiency, in line with our plans for the Polish and the Greek In desktop publishing, to display text in a representative form in which the actual letters are not discernible, because the screen resolution isn't high enough to display them properly. The software lets you set which font sizes should be greeked. markets, are worth noting. Profits from Eureko, which has a sound business base, recovered from last quarter and the company has demonstrated consistent activity growth." Given the current economic framework, marked by 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. of production and by the poor performance of financial markets, BCP charged additional provisions for credit risks. However, this impact was compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for by 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 , under the process of rationalisation of 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 and of non-strategic assets. In this context, BCP also sold its shareholding in Mexico's Grupo Financiero Bital in March 2002, with a capital gain of Eur 312,000. 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 , on the one hand, and the fact that BCP became the majority shareholder of Banco Internacional de Mocambique after having merged it with Banco Comercial de Mocambique, on the other, led to the full consolidation of both these institutions 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 quarter of 2001, allowing a comparable basis with the figures now presented for the first three months of 2002. Consolidated net interest income amounted to Eur 333 million in the first quarter of 2002, roughly at the level of the same period of 2001, on a comparable basis. This has benefited from increased customers' funds and loans, and also from the Group's efforts to maintain interest margins in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite decreasing market interest rates from September September: see month. 2001. Other income increased, mainly as a consequence of increased 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. , particularly at the SottoMayor network, and reflecting also the benefits arising from a renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. commercial approach. Net commissions totalled Eur 125 million, up 4.9% from Eur 120 million for the first quarter of 2001, mainly influenced by the strong performance of income related to the Group's activities abroad and of investment banking fees. Trading gains, which amounted to Eur 44 million in the first quarter of 2002, compared to 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 of Eur 36 million in the same period of 2001, were 4.5% up from the quarterly average of 2001. 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 up 17.4% to Eur 80 million in the first quarter of 2002, excluding non-recurring items. This performance chiefly reflected increased revenue from investment banking services and recoveries of written-off loans. The non-recurring items amounted to Eur 42 million arising from the sale of premises assigned to operations to the pension fund, under the rationalisation of areas occupied by the Group's central services 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 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 , that also led to an increase in the fund's assets, compensating for some of the impact of recent low returns on financial assets Financial assets Claims on real assets. , that were considerably lower than historical rates.
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OTHER INCOME 1st 1st Quarter 1st Change
(Millions of euros) Quarter 2001 Quarter 2002/2001
2002 Pro forma 2001 Pro forma
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Net Commissions 125.5 119.6 118.4 4.9%
Of which:
- Domestic activity 114.8 109.2 109.2 5.2%
Trading Gains 43.7 36.3 32.5 20.2%
Of which:
- Domestic activity 35.3 29.2 29.2 20.8%
Other Net Operating Income (1) 79.7 67.9 67.9 17.4%
Of which:
- Domestic activity 76.4 64.6 64.6 18.3%
Other Income /Total Income (1)
- Total 46.6% 44.8% 44.5% -
- Domestic activity 47.3% 45.2% 45.2% -
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(1) Excludes non-recurring transactions.
Operating costs operating costs npl → gastos mpl operacionales (staff costs, other administrative expenses and depreciation) amounted to Eur 355 million, increasing 2.9% on a comparable basis from Eur 345 million in the first three months of 2001, in spite of the impact of the growth of the Group's operations abroad. The Group's domestic efficiency indicators improved, as operating costs accounted for 52.7% of total income in the first quarter of 2001, down from 54.4% in the same period of 2001. The rationalisation measures the Group has implemented in the wake of its acquisitions in the domestic market had a particular impact on staff costs, which decreased by 3.5% to Eur 156 million in the first three months of 2002 from Eur 162 million in the first quarter of 2001. This performance fully reflects the impact of the staff resizing programme implemented following the acquisitions of Banco Mello 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 in 2000. Other administrative expenses and depreciation were influenced by the costs related to launching and developing businesses abroad, with NovaBank being worth noting. The impact of the network rationalisation and branch closure programme in 2000 and 2001 was fundamental to the evolution of domestic costs: other administrative expenses increased 4.5%, slower than business, while depreciation decreased by 1.4%.
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OPERATING COSTS 1st Quarter 1st Quarter 1st Quarter Change
(Millions of euros) 2002 2001 2001 2002/2001
Pro forma Pro forma
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Staff Costs 182.8 184.6 181.6 -1.0%
Of which:
- Domestic activity 156.2 161.8 161.8 -3.5%
Other Administrative
Expenses 131.4 120.8 117.9 8.8%
Of which:
- Domestic activity 110.4 105.6 105.6 4.5%
Depreciation 41.0 39.9 37.6 2.9%
Of which:
- Domestic activity 31.5 32.0 32.0 -1.4%
Operating Costs/ Total
Income (1)
- Total 57.1% 57.4% 56.8% -
- Domestic activity 52.7% 54.4% 54.4% -
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(1) Excludes non-recurring transactions.
Loans to customers totalled Eur 43,433 million at the end of March 2002, up 9.3% from Eur 39,731 million at March 31, 2001, on a comparable basis. The 13.8% increase in loans to individuals (in which mortgage loans, rising by 14.9%, stand out) was key to this growth, as loans to companies increased by 7.7%, reflecting the Group's strategy to decrease large exposures to some customers resulting from its acquisitions in 2000 and to focus on low risk customers. The performance of total customers' funds, up 7.4% to Eur 49,744 million at March 31, 2002 from Eur 46,302 million a year earlier, was influenced by the strong growth of 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. , particularly in placing unit-linked insurance products through the banking networks, and its success in creating and distributing structured products for the retail market. The success of the Group's new commercial model, based on units 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 by products for the banking networks, also contributed to this performance.
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ACTIVITY INDICATORS 31 Mar. 31 Mar. 31 Mar. Change
(Millions of euros) 2002 2001 2001 2002/2001
Pro forma Pro forma
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Total Assets (1) 62,053 60,755 62,532 2.1%
Total Customers' Funds
- Balance Sheet 28,773 27,591 27,138 4.3%
- Assets under Management 10,570 10,193 10,193 3.7%
- Capitalisation Insurance 5,835 5,060 5,060 15.3%
- Securities 4,566 3,458 3,458 32.0%
- Total 49,744 46,302 45,849 7.4%
Loans to Customers (1) 43,433 39,731 39,629 9.3%
Own Funds (2) 6,022 5,632 5,632 6.9%
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(1) Does not include securitised assets.
(2) Shareholders' Equity, Preference Shares and Subordinated Debt.
Loan quality at the end of March 2002 was similar to that at the end of 2001, although indicators worsened slightly from March 31, 2001. This evolution was mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to adverse economic conditions, as the Bank maintained very prudent criteria regarding analysis, granting, monitoring and recovery of credit. At the end of the first quarter of 2002, past due loans accounted for 1.7% of total loans, the same level as at the end of 2001, while its coverage by provisions amounted to 138.2% (146.3% at December December: see month. 31, 2001).
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LOAN QUALITY INDICATORS (1) 31 Mar. 31 Mar. 2001 31 Mar.
2002 Pro forma 2001
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Total overdue loans/Total loans 1.7% 1.6% 1.5%
Provisions/Total overdue loans 138.2% 152.5% 155.6%
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(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, roughly in line with the end of 2001. The Bank's capacity to generate profits, together with the careful management of risks, have led to a 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 of 9.5% at the end of March 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 (9.4% at December 31, 2001), with tier one standing at 6.4%. 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 ruling 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 , the consolidated solvency ratio was 8.5% at the end of the first quarter of 2001. "The sale of assets which we have undertaken during the first quarter was aimed at optimising BCP's assets and at further improving the management of our shareholdings and real-estate, in order to ensure an adequate stability of capital and to allow us to pursue domestic growth and develop our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , so accomplishing our goal of creating shareholder value," Mr. Jardim Goncalves concluded.
BANCO COMERCIAL PORTUGUES
Consolidated Balance Sheet as at 31 March, 2002 and 2001
2002 2001
----------- -----------
(Thousands of Euros)
Assets
Cash and deposits at central banks 1,180,476 910,809
Loans and advances to credit institutions
Repayable on demand 854,864 1,198,821
Other loans and advances 4,571,228 6,769,340
Loans and advances to customers 43,432,703 41,293,882
Securities 4,378,962 5,735,588
Treasury stock 24,217 -
Investments 2,686,713 2,467,898
Intangible assets 137,650 97,960
Tangible assets 1,184,873 1,244,887
Other debtors 1,079,834 887,763
Prepayments and accrued income 2,521,135 1,924,994
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62,052,655 62,531,942
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Liabilities
Amounts owed to credit institutions
Repayable on demand 470,078 490,592
With agreed maturity date 11,892,625 17,265,428
Amounts owed to customers
Repayable on demand 11,624,789 10,601,817
With agreed maturity date 17,138,905 16,526,124
Debt securities 11,566,872 9,045,978
Other liabilities 1,068,631 383,482
Accruals and deferred income 1,237,110 1,624,541
Provision for liabilities and charges 890,649 913,774
Subordinated debt 2,827,802 1,964,526
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Total Liabilities 58,717,461 58,816,262
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Shareholders' Equity
Share capital 2,326,715 2,269,688
Share premium 715,117 716,083
Reserves and retained earnings (1,073,800) (542,669)
------------- ------------
Total Shareholders' Equity 1,968,032 2,443,102
------------- ------------
Minority interests 141,035 48,482
Minority interests in preference shares 1,226,127 1,224,096
------------- ------------
Total Minority Interests 1,367,162 1,272,578
------------- ------------
62,052,655 62,531,942
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BANCO COMERCIAL PORTUGUES
Consolidated Statement of Income
for the three months ended 31 March, 2002 and 2001
2002 2001
----------- -----------
(Thousands of Euros)
Interest income 753,787 851,985
Interest expense 421,076 522,912
------------- -------------
Net interest income 332,711 329,073
Provision for loan losses 92,150 50,455
------------- -------------
Net interest income after
provision for loan losses 240,561 278,618
------------- -------------
Other operating income
Income from securities 41,102 45,547
Commissions 146,802 138,588
Profit arising from trading activity 88,063 124,679
Other income 137,882 83,677
------------- -------------
413,840 392,491
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Other operating expenses
Commissions 21,320 20,230
Losses arising from trading activity 44,378 92,135
Staff costs 182,810 181,572
Other administrative costs 131,446 117,915
Depreciation 41,015 37,603
Other provisions 851 222
Other expenses 16,100 15,799
------------- -------------
437,920 465,476
------------- -------------
Income before income taxes 216,490 205,633
Income taxes (22,521) (21,355)
------------- -------------
Net income 193,969 184,278
Minority interests (26,392) (24,058)
------------- -------------
Net income for the period
attributable to the Bank 167,577 160,220
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