EARNINGS PRESENTATION

Transcription

1 EARNINGS PRESENTATION 1 st Quarter April 2001

2 Disclaimer This document is not an offer of securities for sale in the United States, Canada, Australia, Japan or any other jurisdiction. Securities may not be offered or sold in the United States unless they are registered pursuant to the US Securities Act of 1933 or are exempt from such registration. Any public offering of securities in the United States, Canada, Australia or Japan would be made by means of a prospectus that will contain detailed information about the company and management, including financial statements. The latter parts of this presentation contain forward looking statements which are estimates and which could differ materially from actual future results. Factors which could cause actual results to vary from estimates contained in this document include, among other things, general economic conditions in Portugal and other countries, monetary and interest rate policies in Portugal and Europe and changes in regulatory or legal regimes. The forward-looking statements in this document speak only as of the date of this document, and Banco Comercial Português, S.A. ( BCP ) accept no obligation to update such statements to reflect changes after the date of this document. 2

3 Agenda Activity of the BCP Group Prospects for Achievements Financial Highlights Business Areas

4 Banco Comercial Português Highlights 31 Mar Mar 2000* Annual Change Net Income % Total Assets 62, , % Loans to customers (net) 41, , % Total Customers' Funds 45, , % Assets under management 10, , % Insurance Premia % (Euro Million, annual pro forma growth) 4

5 Market Leader in the Card Business Billings (Eur million) 760 Cards Issued (Thousands) 2, % 2,417 7% Q * Q Mar 00* 31 Mar 01 *Proforma 5

6 Mortgage Banking Sustained growth Eur million Non-Subsidised Loans Subsidised Loans 2,986 3,955 32% 4,618 5,007 8% 31 Mar 00* 31 Mar Mar 00* 31 Mar 01 *Proforma 6

7 Asset Management Markets hinder volume growth Eur million (336) (300) 10,830* 10, Dec 00 Flow of Funds Depreciation 31 Mar 01 *Includes 9,032 Eur million transferred to F&C since January 1,

8 Insurance In line with Industry Non-Life Life 24.2% 23.8% 30.3% 33.4% Q Q Q12000 Q W&PComp.,Health Seguros & Pensões Bancassurance Market Share 8

9 cidadebcp.pt Transactions Accounts 45, ,703 2,103 15,766 82,117 Q Q Q Inquiries 1,047,300 52, , ,686 Q Q Q Q Q Q

10 Agenda Activity of the BCP Group Prospects for Achievements Financial Highlights Business Areas

11 Activity of BCP Group 1st Quarter 2001 Share Capital increase from EUR 2,101,562,549 to EUR 2,269,687,552 through a rights issue of 168,125,003 shares at the price of 4.25 Euro per share Annual General Meeting of BCP, held on March 26, approves proposal for the appropriation of profits, a share capital increase to EUR 2,326,714,877 through a 57,027,325 shares bonus issue and the issuance of convertible bonds up to EUR 500 million Launch of Banque BCP Conclusion of integration of SottoMayor 11

12 Prospects for 2001 Network and operating platforms rationalisation Integration of ofbanco Mello Mellocompleted Integration Integrationof ofsottomayor SottoMayortotobe becompleted completedearlier earlier Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Merger by incorporation into BCP Merger by incorporation into BCP Integration of systems, Integration of systems, operations, treasury, admin. and operations, support areas treasury, admin. and support areas Integration of specialised Integration of specialised financial companies financial companies Market research and decision Market research and decision on the model of commercial integration the model of commercial integration Restructuring of commercial Restructuring of commercial platforms platforms Integration of BPSM Integration of BPSM Integration of the Mello Group Integration of the Mello Group 6 6 Conclusion on April 16 (date planned 9 months ago) of the SottoMayor s systems migration to BCP s platform Conclusion of the restructuring of SottoMayor s commercial platform in 9 months (6 months ahead of the initial planned date) Rationalisation programme already involving the closing of 101 branches of the various networks 12

13 Launch of Banque BCP Conclusion of BPC and former Banco Mello s IT systems migration to the SottoMayor platform Eur million Total Assets 1,218 Loans to Customers 555 asa%of GroupBCP 1.3% Customer Funds 999 asa%of GroupBCP 3.7% Branches 61 of which in Ile de France 42 13

14 BIG Bank GDAÿSKI defines new strategy Very high brand awareness of Millenium network Merger with BIG Bank Agreement with the Polish government in relation to PZU s privatisation Total Assets 4,826 Branches 477 Loans to Customers (net) 1,690 Customers Funds 3, Eur million 14

15 Expansion of network concentrated in regions with higher business potential New branches More attractive regions (GDP per capita in comparison to national average) branches opened Source: BBG 15

16 Millennium Strong Growth of Customers Funds and Clients Accounts (thousands) Customers Funds (Zloty million) 1, Branches %

17 BIG Bank GDAÿSKI SA BBG Announces New Strategy Top Affluent Clients Affluent/ Middle Market Large Companies Mid-Sized Companies Small Businesses Structuring of the Bank into five business units with segment-focused value propositions and separate sales-networks Capturing synergies by reducing operational costs through automation and centralisation of support functions Integration of technological and operational platforms Conclusion of the projects until December 2001 Source: BBG 17

18 NovaBank growing at an excellent pace 52 Branches 60,000 Clients Launch of NovaHome (mortgage loans) 2.1 products per client Eur million Total Assets 836 Loans to Customers (net) 67 Customers' Funds

19 Agenda Activity of the BCP Group Prospects for Achievements Financial Highlights Business Areas

20 Profitability Main Indicators 31 Mar Mar 2000* Annual Change Net Income (EUR m illion) % ROA 1.1% 0.5%.. ROE 34.6% 21.4%.. EPS (.) (EUR) % *Proforma (.) Average number of shares totaling 2, as at March 31,

21 Profitability Main Indicators 31 Mar Mar 2000* NetInterestMargin as % of Total interest earning assets 2.5% 2.6% Other Income as % of Total income 44.5% 48.2% Operating Costs as % of Total income 56.8% 57.6% *Proforma 21

22 Group Interest Income Eur million 2.6% 2.6% 2.5% Q1 2000* Q Q NIM ** Interest Revenue Interest Expenses Net Interest Margin *Proforma ** As % of average interest earning assets 22

23 Group Non-Interest Income Diversified income stream Eur million 31 Mar Mar 2000* Annual Change Q Income from securities % 38.2 of which: eq. accounted subsidiaries exclud. BTA and CPP % 59.4% 35.3 Commissions (net) % Profits from trading activities (net) % 68.8 Other operating income (net) % 29.9 SubTotal % Impact of BTA and CPP Total % * Pro forma 23

24 31 Ma r Ma r Ma r 0 0 Operating Costs Cost to Income Ratio 57.6% 56.8% 12% 11% 34% 35% 54% 54% Depreciation Admin. Costs Staff Costs (Eur million) 31 Mar 00* 31 Mar Mar Mar 2000* Annual Change Q Staff Costs % Admin. Costs % Depreciation % 36.2 Total % *Proforma 24

25 Loans by Segment Eur million 41,497 41,687 34,488 3,257 3,632 9,148 36,573 3,615 3,619 9,509 7,467 8,071 23,762 28,717 24,887 28, Dec 1999* 31 Dec Mar 2000* 31 Mar 2001 PDL / Total Loans 1.69% 1.35% 1.60% 1.50% *Proforma Consumer Mortgage Companies 25

26 Solvency Ratio (BIS) 9.0% 10.4% Tier II Tier I 6.3% 8.3% 31 Mar Mar 01 (e) RWA 38, ,419.1 Eur million (e) Estimate 26

27 Agenda Activity of the BCP Group Prospects for Achievements Financial Highlights Business Areas

28 Cross-Selling SottoMayor e Atlântico Offer Great Potential Eur million Financial Assets of Individual Clients 100% = 3,870 25% Securities 8% 18% 100% = 1,460 74% 11% 100% = 2,433 36% 53% 40% 36% Off-B/S Customers Funds Deposits SottoMayor Atlântico BCP Source: EAS, March

29 Cross-Selling Sustained Increase - SottoMayor s rapid progression Products per Client Q4 Q1 Q2 Q3 Q4 Q1 Private P & N Banco NovaRede Atlântico SottoMayor Source: EAS 29

30 Banco Comercial Português, S.A. Strong Growth of Retail Banking Gross Margin by network Q Q Annual Change 2001 / % 26% 8% 23% 7% 9% 66% 70% 3% Retail Corporate Private PB Retail Corporate Source: EAS 30

31 Investment Banking Eur million Net Commissions % 6.9 Other Income evolution affected by capital market s performance Group s Treasury integration impacting on operating costs 5.6 Q BCP Investimento 2.8 Q Brokerage BCP Investimento 31 March Annual Change Net Interest Income % Other operating income (net) % Operating costs % Net income % Cash-Flow % 31

32 Specialised Credit Eur million Loans (net) Positive growth in terms of loans and contracts Provisions offset higher contribution of net interest margin and other income 14% 31 March Annual Change 2,761 3,145 Net interest income % Other operating income (net) % Operating costs % 31 Mar Mar 01 Net income % Cash-Flow % 32

33 Asset Management Eur million Assets under management and Market Share (1) 2% 33% 37% 10,028 10,193 F&C, an Asset Management company owned by Eureko, B.V., to manage institutional portfolios from January 2001 Commission Income reflects integration of portfolios in F&C AF Investimentos 31 March Annual Change Commissions - Income % *Proforma 31 Mar 00* 31 Mar 01 Commissions - Costs % Operating costs % Net Income % (1) Investment Funds 33

34 Prospects for 2001 New momentum for the rationalisation of the networks and operating platforms acting in the domestic market Single technological platform achieved and rapid progress of the rationalisation of the branch network Speeding up the development of projects that will increase BCP Group dimension and international diversification Conclusion of the corporate reorganisation in France and presentation of new strategy and business plan in Poland Consolidation of initiatives based on technologically innovative solutions ONI emerges as clear alternative to incumbent telecom operator and... 34

35 Prospects for 2001 Consolidation of initiatives based on technologically innovative solutions... in the second quarter 35

36 Exhibits

37 Consolidated Statement of Income Eur million 31 Mar Mar 2000* Annual Change Q Net interest income % Provision for loan losses % 58.0 Net interest income after provisions % Other operating income (net.) % Operating costs % Income before taxes % Provision for income taxes % 32.5 Minority interests % (19.2) Pre-acquisition profit % 4.1 Net income % * Pro forma 37

38 Group Net Commission Income per activity Eur million 31 Mar Mar 2000* Annual Change Q Banking % of which: Cards % 30.3 Securities % 29.4 Other % 53.0 Asset Management % 35.7 Total % Total as % of Total Income 19.9% 23.3% *Proforma 38

39 Asset Growth Eur million 31 Mar Mar 2000* Annual Change 31 Dec Dec 1999* Loans (net) 41, , % 41, ,113.2 Securities portfolio 5, , % 5, ,910.0 Investments 2, , % 2, Total Assets 62, , % 61, ,719.3 *Proforma 39

40 Asset Quality Eur million 31 Mar Mar 2000* Annual Change Loans to customers (gross) 41,687 36, % Services and Commerce 12,838 10, % as % of Loans 31% 28% Mortgage 9,509 8, % as % of Loans 23% 22% Consumer Credit 3,619 3, % as % of Loans 9% 10% Past due Loans % as % of Loans 1.50% 1.60% Provision coverage as % of Past due Loans 155.6% 144.7% * Pro forma 40

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