Earnings Presentation 1 st Quarter 2007

Transcription

1 Earnings Presentation 1 st Quarter 2007 Brief presentation May 12, 2008

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 information in this presentation has been prepared under the scope of the International Financial Reporting Standards ( IFRS ) project of BCP Group for the purposes of the preparation of the consolidated financial statements under Regulation (CE) 1606/2002. The figures presented do not constitute any form of commitment by BCP in regard to earnings. 1

3 performance highlights EXCLUDING SPECIFIC ITEMS Indicator Variation vs. 1Q07 Variation vs. 4Q07 Consolidated net income 134.2m -29.9% +23.7% Pretax income 194.2m -21.3% +39.8% Banking Income * 656.1m -0.6% +0.4% Banking Income ex markets* 617.9m +3.2% -1.3% Return on Equity (ROE) 13.9% -5.8pp +0.2pp Group s cost to income ratio 60.2% +4.4pp -5.3pp * Comparable base. 2

4 performance highlights Indicator Net assets Customer s funds Customer loans (gross) * Overdue credit ratio >90 days Impairment coverage >90days Core tier 1 Basileia I Basileia II ** 87.9mM 63.1mM 72.1mM 0.8% 238.1% 4.2% 6.2% Variation vs. 1Q % +10.1% +14.3% -0.02pp -28.9pp * Including securitized laons. ** Including capital increase. 3

5 Highlights Pretax income from Portuguese operation up 45% from 4Q07 Pretax income for International operations up 29% from 4Q07 Group pretax income up 40% from 4Q07 Rights issue more than 2x oversubscribed Successful covered bond issue Devaluation of BPI stake fully recognised against earnings Sustained franchise growth in core markets; expansion plans on track. Reached 2 million customers in Int. operations, ow 1 million in Poland. Excluding specific items. 4

6 Highlights Expand retail operations in higher potential markets Streamline the Bank in order to reach superior efficiency levels Reinforce pricing, risk and capital discipline Successful rights issue ( 1.3mM) more than 2x oversubscribed. Successful covered bonds issue ( 1.0mM). Ratings : Stable outlook by all rating agencies. Devaluation of BPI stake fully recognised against earnings. Refocus on clients, stimulate commercial activity and improve service levels Strengthen institutional reputation 5

7 Highlights Expand retail operations in higher potential markets Reinforce pricing, risk and capital discipline Refocus on clients, stimulate commercial activity and improve service levels Turnaround in Portugal starting with visible positive impact on margins. Capital position (Core Tier 1>6%), adequate Streamline the Bank in order to reach superior efficiency levels to provide solid base for sustained organic growth Strengthen institutional reputation 6

8 Highlights Expand retail operations in higher potential markets Reinforce pricing, risk and capital discipline Streamline the Bank in order to reach superior efficiency levels Refocus on clients, stimulate commercial activity and improve service levels Cost under control. Strengthen institutional reputation 7

9 Highlights Expand retail operations in higher potential markets Refocus on clients, stimulate commercial activity and improve service levels Streamline the Bank in order to reach superior efficiency levels Reinforce pricing, risk and capital discipline Volumes continue to grow Customer funds +10% and credit +14%. Expansion projects according to plan: 43 new branches opened during first quarter, ow 14 in Portugal, 15 in Poland and 9 in Greece. International operations improving profitability, growing 13.7% between 1Q07and. Strengthen institutional reputation 8

10 Highlights Expand retail operations in higher potential markets Streamline the Bank in order to reach superior efficiency levels Reinforce pricing, risk and capital discipline Number of clients stabilized with capture efforts. 2 million clients level crossed outside Portugal. More than 1 million active retail clients in Poland, reached at. Refocus on clients, stimulate commercial activity and improve service levels Strengthen institutional reputation 9

11 YoY lower consolidated net income but improving versus last quarter (Eur million) EXCLUDING SPECIFIC ITEMS Group Portugal -29.9% -36.8% % % Q07 4Q07 Specific Items (*): - BPI stake (-132.7). - Personnel Costs - bonus provision reduction (+13.2). 1Q07 4Q07 International +13.7% % Q07 4Q07 (*) Net of taxes. 10

12 Net income from international activity based on strong performance (Eur million) International Poland * Greece +13.7% +50.8% -7.2% Q07 1Q07 1Q07 Mozambique * Angola Romania +14.0% Q07 1Q07 1Q07 * Including minorities. 11

13 Double digit growth in volumes in both credit and customer funds confirms business potential (Consolidated, Eur million) Loans to customers* (gross) Customers Funds +14.3% 72, % 63,098 Mortgage 63,094 25, % 29,256 Off BS Customers Funds 57,302 19, % 17,442 Consumer Loans Loans to Companies 4,181 33, % +13.9% 4,810 38,044 On BS Customers Funds ** 38, % 45,656 Mar 07 Mar 08 Mar 07 Mar 08 * Includes securitized credit ** On Balance Sheet Customers Funds = Deposits, Certificates of Deposit and Debt Securities placed with Customers. 12

14 Net interest income growth largelly compensating for lower trading profits (Eur million) EXCLUDING SPECIFIC ITEMS Group Portugal -0.6% -9.0% Trading + Other income % Q % International % NII * + Commissions Q07 1Q07 (*) Intermediation margin =Financial margin + dividends 13

15 Increase in Operating Costs due to network expansion plan (Eur million) EXCLUDING SPECIFIC ITEMS Group Portugal Depreciation Administrative Costs % -0.9% +10.0% International Q % Staff Costs % % Q07 1Q07 14

16 Stable cost of risk in the context of sustained loan volume growth (Eur million) EXCLUDING SPECIFIC ITEMS Credit quality Impairment charges as% of Total Loans* Impairment coverage >90 days Overdue ratio >90 days Total overdue <90 days >90 days 267.0% 238.1% 0.8% 0.8% Mar Mar Impairment net of recoveries Gross impairment charges as % of Loans ** ** No exposure to US subprime, no consumer credit issues and no exposure to insurance monoliners * Impairment charges on a comparable basis. ** Of the yearly increase, 9 bps were justified by two particular cases. Excluding these cases, the impaiment net of recoveries would have been 30 bps. 15

17 Millennium 2010 Program New Branches (# branches) Change from 2000 to 2005 Change from 2005 to 2007 Change from 2007 to n.a

18 The 4th biggest retail branch network in Poland Branch expansion status Total number of branches Transformed New Mar 07 Dec 07 Mar Plan With 425 branches, Bank Millennium has the fourth biggest network in Poland. 85% of new branches to be opened until 2008 year-end have already been reserved. Nearly 200 new employees recruited in 1Q 2008 for the expansion project. New branches with a positive contribution to P&L. 17

19 Branch Network: Catering for More Segments and Expanding Reach Branches Opening in Q1 08 Presence as of 31 Mar 08 Segments Mass Market Micro business Affluent SMEs Other areas Attica Retail Prestige Financial Center branches all over Greece Geographical expansion proceeds with the opening of 9 branches in Q1 08. Large proportion of Prestige branches (6 opened), in line with focus on gathering Customer funds. Ongoing focus outside large metropolitan areas, where Millennium bank is underrepresented. 18

20 Solvency evolution and proforma including the share capital increase (Eur million) Basel I Basel II Core Tier 1: Tier 1: Total: 4.3% 4.2% 4.0% 6.2% 5.5% 5.3% 5.1% 7.7% 9.6% 9.2% 8.9% 11.4% 4,057 Core Tier 1 2,674 2,637 2,637 Dec. 07 Mar. 08 Mar. 08 Mar. 08 (*) Including share capital increase RWA 61,687 63,124 65,299 65,299 (*) Proforma 19

21 Share Capital Increase Successfully Completed Share Capital Increase fully subscribed, resulting in the issuance of 1,083,270,433 shares Strong support from shareholders, with 1,071,230,855 shares subscribed to pursuant to the exercise of subscription rights, representing a 98.9% take-up. 12,039,578 shares made available to satisfy oversubscription orders, which totaled 1,292,988,792 shares. Total demand amounted to 2,364,219,647 shares, or c.218% of the total number of shares on offer. Strong share price performance during process Positive reaction and support of the transaction by market as shown by solid share price performance from announcement to pricing (+10.8%) (*). (*) Closing price on 18 February 2008 of to closing price of 1.88 per share on 28 April 2008 adjusted for issuance linked to rights issue. 20

22 Credit ratings: stable outlook from all rating agencies Short Term Long Term Outlook Moody's P-1 Aa3 Stable Standard and Poor's A-1 A Stable Fitch Ratings F1 A+ Stable 21

23 Conclusion Improved performance versus 4Q Devaluation of BPI fully recognized against earnings. Portuguese Business Remains Strong with Substantial Upside Potential via Cost Optimization and Repricing. International Business Strong and Profitable Growth. Expansion plans on track. Capital Position Rebuilt capable of supporting organic growth projects. 22

24 Investor Relations Division: Pedro Esperança Martins, Head of Investor Relations, Francisco Pulido Valente Tl: Banco Comercial Português, S.A., a public company (sociedade aberta) having its registered office at Praça D. João I, 28, Oporto, registered at the Commercial Registry of Oporto, with the single commercial and tax identification number and the share capital of EUR 4,694,600,