BPI profits at €390 million to September

Portugal’s bank BPI posted profits of €390 million to September – an increase of 35% like-for-like on 2022. (€289 million)

The bank’s national activities contributed with €324 million, up €162 million on September, 2022.
Banco BPI is fully owned by CaixaBank and focuses its activity on commercial banking in Portugal, being the fourth largest financial institution in terms of business volume (loans, guarantees and total customer resources).
BPI’s ROTE or “Return on Tangible Equity” (A ratio that helps measure a company’s profitability), was up 13.7%. Its financial margin grew 84% to €688 million, reflecting the increase in interest rates in the market and the increase in credit volume, while on the other hand it was penalised by an increase in the cost of deposits and debt issues because of MREL. (The minimum requirement for own funds and eligible liabilities (MREL) is set by resolution authorities to ensure that a bank maintains at all times sufficient eligible instruments to facilitate the implementation of the preferred and, where applicable, variant resolution strategies)
Net income from banking charges remained stable at €218 million, which was supported by the opening of new accounts, corporate debt issue operations and selling capitalisation funds, and insurance product, all of which helped to counterbalance the fall seen in credit charges and insurance brokerage. Overall, the bank’s product grew 50% to €924 million.
Recurring structural costs increased 12% to €375.4 million, which included regulatory costs of €41.5 million, plus €10.4 million went to the Single Resolution Fund in 2023.
As to the amount paid into the Portugal Resolution Fund (set up to finance several of Portugal’s banks after the Great Recession of 2011-2014), that cost was €4.8 million. The contribution on the banking sector was €22.3 million while the solidarity payment on the banking sector cost BPI €4.1 million.
BPI posted a like-for-like growth of 3% on credit (+€800 million) with individual credit up 2% while customer resources fell 5% with deposits falling 6% (-€2Bn).
Profits from commercial activity grew 50% while costs increased 12% and the cost of risk went up 0.23%, all of which presented an improvement in the banks tangible recurrent own capital in Portugal by 13.7%. (+6.3 p.p. over the past 12 months)
Mortgages totalled €14.6Bn over 220,000 contracts with a market share of 17.1%.