BCP on track for record €879 million profits for 2024 say analysts

Portugal’s bank BCP is expected to post record profits of around €879 million today. (Wednesday, February 26).

The bank’s shares saw share values soar 76.5% (including dividends) last year, not only exceeding the values of Portugal’s other banks but also reaching a profitability that is three times the average value of shares of other European banks.

Analysts monitoring the bank anticipate profits of €879 million for 2024, 2.7% more than the €856 million recorded in the previous year. This growth, although more modest than in previous years, consolidates the bank’s upward trajectory in a challenging economic context, also marking the third year of growth in net results.

Despite the expectation of record profits, analysts predict some corrections in key indicators. The financial margin, the main driver of results, is expected to remain practically stable, with a slight decrease of 0.1% to €2.822Bn.

EBITDA is also expected to contract, with analysts pointing to a decrease of 9.8% to €2.398Bn. This reduction could reflect challenges facing the banking sector, including pressure on margins in a transitional interest rate environment.

BCP is expected to show solid growth in both deposits and loans. Analysts estimate a 6.1% increase in deposits, exceeding €81Bn, and a 3.4% growth in the loan portfolio, which is expected to be above €55Bn. This dynamic translates into an improvement in the transformation ratio, which is expected to fall from 69.7% in 2023 to 67.9% in 2024, indicating a more prudent management of the balance sheet.