Banco Comercial Portugues -BCP- Net Income Up 90.6% to EUR 393 Million -PTE 78.7 Billion- for the First Nine Months of 1999.LISBON--(BUSINESS WIRE)--Oct. 26, 1999-- Banco Comercial Comercial can refer to:
BCP Business Continuity Planning BCP Business Continuity Plan BCP Book of Common Prayer BCP Banco Comercial Português BCP Bureau of Consumer Protection (US Federal Trade Commission) , NYSE NYSE See: New York Stock Exchange : BPC BPC British Potato Council BPC Brewton-Parker College (Mt Vernon, GA) BPC Bible Presbyterian Church BPC Bangladesh Petroleum Corporation (Chittagong, Bangladesh) BPC British Pharmaceutical Codex , BCPPRA), Portugal's leading private bank, today reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 392.6 million (PTE PTE The ISO 4217 currency code for the Portugese Escudo. 78.7 billion) for the first nine months of 1999, 90.6% up on the same period of 1998. Earnings per share increased to EUR 1.97 (PTE 394.6) from EUR 1.15, while return on equity improved to 31.5% and return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). to 1.5%. -0-
----------------------------------------------------------------------
30 Sept. 30 Sept. 30 Sept. Change
99 99 98 99/98
Accumulated Accumulated Accumulated
PTE EUR EUR
----------------------------------------------------------------------
Net Income (PTE billion and EUR 78.71 392.59 206.014 90.6%
million)
Earnings per share 394.6 1.97 1.15 71.5%
ROE 31.5% 23.6% -
ROA 1.5% 0.9% -
----------------------------------------------------------------------
"The first nine months of 1999 have seen the BCPAtlantico Group
consolidate its position as the market leader in the Portuguese
financial sector. We are pleased to report that we have met our
targets for revenue and earnings growth and remain confident about the
outlook for the remainder of the year", commented Mr. Jardim
Goncalves, Chairman and CEO of BCP, adding: "We continue to experience
strong growth in client activity across several franchises, in
particular loan granting and insurance and card businesses. The level
of profitability attained reflects the adoption of rigorous risk and
pricing policies without compromising overall business growth. At the
same time, we are reaping the benefits of continuous improvements in
productivity and efficiency which stem from significant and well-timed
investments in innovative distribution channels and in exploiting
synergies at ServiBanca".
BCPAtlantico has strengthened its prominent position in Portugal,
within a framework characterised by continuing intense competition and
by increasingly difficult differentiation of financial groups' offers.
At the end of September 1999, BCP Atlantico Group accounted for 15% of
total assets, 20% of total loans to customers and 14% of total balance
sheet customers' funds within the Portuguese banking sector. The Group
is also the domestic leader in insurance, asset management and
specialised finance (leasing and factoring).
Net income for the first nine months of 1999 includes the impact
of the break-up of the strategic alliance with BSCH in the second
quarter of the year, while during the first nine months of 1998 it was
influenced by the flotation of a 32.2% shareholding in Atlantico.
Excluding these factors, net income rose 33.4%, amounting to EUR 193
million (PTE 38.6 billion). Commercial activity performed well - the
growth of loans granted being worth-noting - while the growing
diversification of income, reflected in the growth of commissions,
more than offset the narrowing of the net interest margin. The
increase in operating costs was slower than the expansion of business,
so maintaining the improving trend in efficiency.
Net interest income increased by 10.4% up to EUR 648 million (PTE
130.0 billion) for the first nine months of 1999 from EUR 587 million
during the same period of 1998. This was due to the result of the
increase in the amount of loans granted which more than compensated
for the impact of the slight decrease in the net interest margin to
3.0%.
-----------------------------------------------------
OPERATING INDICATORS 30 Sept. 30 Sept.
99 98
Accumulated Accumulated
-----------------------------------------------------
Net Interest Margin 3.0% 3.1%
Other Income/Total Income (1) 60.1% 59.7%
Operating Costs/Total Income (1) 45.2% 47.1%
-----------------------------------------------------
(1) Excluding the impact of the break-up of the strategic agreement
between BCP and BSCH.
Reflecting the Group's strategy to diversify the income
structure, the weight of other income as a percentage of total income
continued to increase, rising to 60.1% for the first nine months of
1999 from 59.7% for the same period of 1998. This was mainly due to
the contribution from net commissions (particularly regarding cards
and guarantees which more than compensated for the decrease in
commissions from securities' operations as a result of the poor
performance of the Portuguese stock exchange) arising from the Group's
cross-selling activities and reflected in growing involvement with
customers.
Operating costs showed controlled growth, amounting to EUR 735
million (PTE 147.3 billion) for the first nine months of 1999, up 7.2%
from the same period of 1998. The increase in the cost structure was
proportionally less than business growth, so causing the improving
trend in efficiency to be continued. This reflects the positive effect
of centralising operating and strategic units under a common platform,
despite investment in the expansion of the distribution networks and
in new businesses. Operating costs represented 45.2% of total income,
compared to 47.1% for the first nine months of 1998. As a percentage
of average total assets, operating costs decreased to 2.8% in the
first nine months of 1999 from 3.0% in the same period of 1998.
The expansion of the Group's branch networks as planned
(including 45 new Atlantico Stores, 17 new NovaRede branches and 15
new Expresso Atlantico stores between the end of September 1998 and
September 30, 1999) and the strengthening of commercial areas have led
to an increase in costs more directly linked to the Group's business
growth. In particular, staff and communication costs - the latter
influenced by intensified telemarketing campaigns and by the
development of remote distribution channels - as well as costs related
to customers' increased usage of payment cards should be mentioned.
The increase in operating costs was also affected by the preparation
of the Group's information systems for Y2K which involved extensive
testing of both external and internal entities and the design of
business continuity plans.
----------------------------------------------------------------------
ACTIVITY INDICATORS 30 30 30 Change
Sept. 99Sept. 99Sept. 98 99/98
PTE EUR EUR
----------------------------------------------------------------------
Total Assets under Management (1) 10,078 50,269 43,079 16.7%
Total Assets 7,388 36,852 30,512 20.8%
Total Customers' Funds (2) 6,265 31,249 29,294 6.7%
Loans to Customers 4,517 22,532 16,659 35.3%
Own Funds (3) 698 3,480 2,730 27.5%
----------------------------------------------------------------------
(1) Total assets, Investment funds and Assets under personalised
management.
(2) Customers' deposits, certificates of deposit, assets under
management and capitalisation insurance.
(3) Shareholders' equity, preference shares and subordinated debt.
(PTE billion and EUR million)
Loans to customers amounted to EUR 22,532 million (PTE 4,517
billion) at the end of the third quarter of 1999, 35.3% up on
September 30, 1998. This performance was mainly due to the growth of
loans granted to individuals (mortgage loans and consumer credit) as
well as to the increase of loans granted to services and commerce
companies.
Total customers' funds - customers' deposits, certificates of
deposit, assets under management and capitalisation insurance - were
EUR 31,249 million (PTE 6,265 billion) at September 30, 1999, up 6.7%
on September 30, 1998. This growth was despite the fall of the
domestic stock market which restricted the share price growth of
assets under management and which discouraged potential investors.
Despite the maintenance of a highly favourable environment to
credit - characterised by historically low interest rates, intense
competition and by a strong consumption incentive due to the low
profitability of savings instruments - the Group kept a prudent credit
underwriting policy. Loans overdue by more than 90 days accounted for
1.1% of total loans at September 30, 1999, compared to 1.6% at
September 30, 1998. The provisioning of loans, based on an appraisal
of potential risks, was maintained at a comfortable degree, with
coverage by provisions for loans overdue by more than 90 days
increasing to 179.9% at September 30, 1999 (145.2% on the same date in
1998).
-------------------------------------------------------
LOAN QUALITY INDICATORS Sept. Sept.
30, 30,
1999 1998
-------------------------------------------------------
Loans more than 90 days overdue/Total 1.1% 1.6%
loans
Total overdue loans/Total loans 1.3% 1.8%
Provisions/Loans more than 90 days 179.9% 145.2%
overdue
Provisions/Total overdue loans 151.5% 132.0%
-------------------------------------------------------
Reflecting continued high solvency levels, own funds - comprised
of shareholders' equity, preference shares and subordinated debt -
amounted to EUR 3,480 million, up 27.5% on September 30, 1998. The
solvency ratio, estimated in accordance with the rules of the Bank of
Portugal, stood at 11.1%, compared to 11.0% at the end of the third
quarter of 1998, while this same indicator stood at 12.0% according to
BIS.
"Having announced our intention to bid for the Mundial-Confianca
Group, we are keen to achieve our objectives by taking all the steps
required for a transparent and market-driven solution. We shall
proceed with the definitive filing of our Public Offers for
Mundial-Confianca and its banking subsidiaries", said Mr. Jardim
Goncalves, who concluded: "Our proposals, the rationale of which have
been recognised by the main analysts covering the Portuguese market,
are directed at all the shareholders of the target entities. We are
confident that the success of these Offers will contribute to the
creation of a strong group, both in a financial and in a strategic
sense, as well as enhancing and re-positioning the Portuguese market
and its participants within Europe".
BANCO COMERCIAL PORTUGUES
Consolidated Balance Sheet as at 30 September, 1999 and 1998 (i)
1999 1999 1998
-------------- -------------- -------------
Assets (Thousands (Thousands of Escudos)
of Euros)
Cash and deposits at
central banks 494,832 99,204,977 72,094,159
Loans and advances to credit
institutions
Repayable on demand 557,134 111,695,266 88,154,315
Other loans and advances 2,873,963 576,177,768 762,744,142
Loans and advances to
customers 22,531,781 4,517,216,556 3,339,795,817
Securities 5,959,833 1,194,839,249 1,094,631,742
Treasury stock 482,977 96,828,195 5,349,505
Investments 656,400 131,596,415 100,131,203
Intangible assets 563,416 112,954,683 139,667,876
Tangible assets 979,527 196,377,587 184,406,049
Other debtors 779,679 156,311,627 145,982,153
Prepayments and accrued income 972,020 194,872,625 184,081,179
------------ -------------- -------------
36,851,562 7,388,074,948 6,117,038,140
============ ============== =============
Liabilities
Amounts owed to credit
institutions
Repayable on demand 174,180 34,919,937 71,266,846
With agreed maturity date 9,590,012 1,922,624,724 1,382,542,009
Amounts owed to customers
Repayable on demand 6,618,569 1,326,903,941 1,178,915,074
With agreed maturity date 8,583,759 1,720,889,089 1,777,176,581
Debt securities 2,847,364 570,845,291 222,798,013
Other liabilities 633,045 126,914,185 119,485,675
Accruals and deferred income 1,068,243 214,163,449 217,097,370
Provision for liabilities and 3,216,360 644,822,319 497,481,918
charges
Subordinated debt 743,712 149,100,948 152,881,254
------------ -------------- -------------
Total Liabilities 33,475,244 6,711,183,883 5,619,644,740
------------ -------------- -------------
Shareholders' Equity
Share capital 1,000,000 200,482,000 196,969,000
Share premium 587,687 117,820,736 115,300,795
Reserves and retained earnings 261,230 52,371,963 (13,939,561)
------------ -------------- -------------
Total Shareholders'
Equity 1,848,917 370,674,699 298,330,234
------------ -------------- -------------
Minority interests 639,891 128,286,579 102,905,825
Minority interests in
preference shares 887,510 177,929,787 96,157,341
------------ -------------- -------------
Total Minority Interests 1,527,401 306,216,366 199,063,166
------------ -------------- -------------
36,851,562 7,388,074,948 6,117,038,140
============ ============== =============
(i): Financial Statements incorporating the insurance subsidiary
companies by the full consolidation method.
BANCO COMERCIAL PORTUGUES
Consolidated Statement of Income
for the nine months ended 30 September, 1999 and 1998 (i)
1999 1999 1998
-------------- ------------- -----------
(Thousands (Thousands of Escudos)
of Euros)
Interest income 1,233,465 247,287,598 264,343,155
Interest expense 585,109 117,303,915 146,615,203
----------- ------------- --------------
Net interest income 648,356 129,983,683 117,727,952
Provision for loan losses 112,220 22,498,163 20,485,211
----------- ------------- --------------
Net interest income after 536,136 107,485,520 97,242,741
provision for loan losses
----------- ------------- --------------
Other operating income
Income from securities 51,281 10,280,871 9,121,412
Commissions 289,287 57,996,866 51,728,336
Profit arising from trading 261,823 52,490,862 65,551,619
activity
Insurance premiums 811,622 162,715,660 130,886,171
Other income 121,216 24,301,668 19,873,095
Gains on sale of shares of
subsidiaries and 373,569 74,893,803 35,850,337
associated companies
----------- ------------- --------------
1,908,798 382,679,730 313,010,970
Other operating expenses
Commissions 45,849 9,191,856 7,917,769
Losses arising from trading 173,196 34,722,616 38,045,159
activity
Staff costs 372,602 74,700,014 69,087,475
Other administrative costs 250,464 50,213,527 46,029,436
Depreciation 111,704 22,394,733 22,339,530
Other provisions 611,354 122,565,496 102,008,378
Claims incurred in the
insurance activity 307,383 61,624,710 48,790,136
Other expenses 32,966 6,609,212 8,029,863
----------- ------------- --------------
1,905,518 382,022,164 342,247,746
----------- ------------- --------------
Income before income taxes 539,416 108,143,086 68,005,965
Income taxes 50,487 10,121,701 10,125,000
----------- ------------- --------------
Net income 488,929 98,021,385 57,880,965
Minority interests 96,341 19,314,584 16,579,081
----------- ------------- --------------
Net income for the year 392,588 78,706,801 41,301,884
attributable to the Bank
============== ============= ==============
(i): Financial Statements incorporating the insurance subsidiary
companies by the full consolidation method.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion