9M 2020: BPI profit down 66% to 85.5 million euros

  • ECO News
  • 3 November 2020

The Portuguese bank ended the first nine months with net profits of 85.5 million euros, resulting in a drop of 66% compared to the same period last year.

BPI recorded a consolidated net profit of 85.5 million euros in the first nine months of the year, a decline of 66% compared to the same period last year, after recording 100 million euros of net loan impairments due to the pandemic.

According to the Portuguese bank, between January and September, net profit from domestic activity reached 47.4 million euros, 69% less in homologous terms. In the third quarter, the net profit in Portugal amounted to 41 million euros (-38%).

In relation to commercial performance, the net interest income “remained resilient with a 1.4% YoY increase to €330.8 M, supported by loan portfolio growth,” says the bank BPI in a report sent to the regulator CMVM. Net commissions fell 7.8% year-on-year to 177.5 million, “reflecting the slowdown in economic activity, the impact of customer support measures implemented by the bank and the evolution of capital markets, which impacted commissions from investment funds and capitalisation insurance.”

All in all, commercial banking gross income in Portugal fell from -2.3% to 524.2 million.

The total customer loan portfolio (gross) increased by 861 million euros compared to December 2019 (+3.5% since the beginning of the year) to 25.24 billion, “growing across the retail and corporate lending segments”. As far as companies are concerned, BPI observed an increase of 4.3% to 9.9 billion euros.

Also, the customer deposits grew significantly, rising by 9.9% in 2020, corresponding to an increase of 2.27 billion euros.

BPI also highlights the improvement in asset quality, registering the “best NPE ratio in Portugal”. The Non-Performing Exposures (NPE) ratio fell 0.6 p.p. since the beginning of the year to 1.9%. The Non-Performing Loans (NPL) ratio decreased from 3.1% in 2019 to 2.3%.