BCP quadruples profits to €856 million in 2023

 In Banks, News

On the back of higher interest rates, the BCP bank managed to multiply its profits four-fold in 2023 to a historic result of €856 million.

“They are good results. These days it seems that here is embarrassment in presenting results. We are very proud of our results” said the bank’s CEO Miguel Maya on Monday.
Later, when asked if the banks could be the target of political comments in the run-up to the general election in Portugal on March 10, Miguel Maya said that everything BCP was doing was to the benefit of Portugal: “It is good for the bank, for the shareholders, the employees, and families. But there are people who will use the bank’s profits and so let them,” he said.
Miguel Maya emphasised the increase in profitability (ROE) to 16%, but recalled the situation over the past decade when the average (was only) 1.1%.
The 2023 result was slightly higher than expected by analysts who were sounded out by Reuters that a pointed to a profit of around €835 million.
The bank’s financial margin shot up by 31.4% to €2.8Bn benefitting from ECB interest rate increases and bank charges bringing in €772 million.
All told, Core revenues increased 23.1% to €3.6Bn. Subtracting operational costs, which grew 8.3% to €1.2Bn, the operational core result increased 31.7% to €2.43Bn.
The bank also benefited from an extraordinary receipt of €139 million by divesting 80% of its insurance business in Poland.
The Polish market continues to be challenging for BCP because of mortgages that were issued in Swiss francs, which led to posting provisions of €623 million because of legal risks. (Accumulated provisions stand at €1.6Bn)
The bank had a net income of €724.9 million from its activity in Portugal in 2023, corresponding to an increase of €381.4 million on 2022.