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The net profit of the BCP Group amounted to 183 million euros, which translates into a decrease of 39.4% compared to the results of 2019, which were 302 million euros. This evolution is influenced by the context of the Covid-19 pandemic and by the provisions for legal risks associated with credits in Swiss francs granted in Poland.
Return on equity stood at 3.1%, up from 5.1% in 2019.
The benefit was penalized with the reinforcement of the extraordinary provision set up by the Polish subsidiary to cover the legal risk associated with mortgage loans granted in foreign currency, which amounted to 151.9 million euros in 2020 (51.9 million euros in 2019).
The capital gain of 13.5 million euros contributed to the evolution of the consolidated net profit, which had been recognized in February 2019, after the sale of the Planfipsa Group, reflected as a result of interrupted or interrupted operations.
In the activity in Portugal, net profit amounted to 134.5 million euros in 2020, standing 7.2% below the 144.8 million euros registered in 2019, having been particularly penalized by the reinforcement of impairments and provisions, “specifically by reviewing the credit risk parameters of the impairment models, which now reflect the new macroeconomic scenario dictated by the risks associated with the pandemic.”
But also due to the revaluation of corporate restructuring funds, “to the extent that the value of the underlying assets has also been determined taking into account the extraordinary circumstances caused by the pandemic,” says the bank. Miguel Maya announced that the revaluation of the restructuring funds brought losses of 72 million euros.
The result before impairments and provisions increased by 1.5%, to 1,186.2 million euros, thanks to the significant increase in impairments and provisions, to 841.2 million euros in 2020. The bank highlights the core result of the Group, which evolved favorably, standing at 2.8% above the 1,085.9 million euros recorded in 2019, for a total of 1,116.5 million euros in 2020, “the particularly adverse context in which this growth”.
The consolidated core result was driven by the behavior of the activity in Portugal, which showed a growth of 5.9%, from 601.4 million euros in 2019, to 636.6 million euros in 2020, “reflecting the expansion of the core results, based mainly on the evolution of the financial margin, since commissions remained at levels similar to those of the previous year ”.
The bank led by Miguel Maya highlights the controlled operating costs. “One of the most efficient banks in the euro area, with a cost comparable to basic income of 48%.
Once again, the bank highlights the reduction of the NPE (doubtful exposure), commonly known as malparado, in Portugal, in an adverse context. A reduction of 883 million since the end of 2019 (-27.2%) and a decrease of 338 million in the quarter.
The ratio of NPE to total credit in 2020 is 5.9%, compared to 7.7% the previous year.
The cost of risk that measures further deterioration of the credit stock amounts to 0.91% in the group and 0.92% in Portugal. BCP highlights NPE’s adequate coverage levels, with 63% coverage for impairments (+ 5pp compared to December 2019) and 113% total coverage, at Group level.
The CET1 coefficient and the fully implemented total capital coefficient are estimated at 12.2% and 15.6%.
BCP reports once again the increase in outstanding loans in Portugal by 2,600 million, an increase of 7.9% compared to the end of 2019, with an increase of 16.4% in current loans to companies. The bank highlights its leadership in Covid-19 credit lines, with more than 18,000 operations disbursed (market share greater than 30%).
On the other hand, there was also an increase in the total resources of the BCP Group clients by 2.8 billion, + 3.4% compared to the end of 2019 (+ 7.4% in Portugal) and by 1.2 billion compared to September 2020 .
(in update)
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