Banco Comercial Português Reports 12.7% Profit Jump Amid Polish Unit Turnaround
Portugal's BCP posts €565.8 million in first-half net income as Polish mortgage provisions decline sharply and balance sheet strength continues.
H1 Results Beat Prior Year
Banco Comercial Português, S.A. reported consolidated net income of €565.8 million for the first half of 2026, an increase of 12.7% compared to €502.3 million in the same period of 2025, representing a return on equity of 14.6% (SR filing, 2026-08-07). The Portuguese banking group attributed the performance to "the robustness of our balance sheet and the profitability of our business model" operating in what Chairman Miguel Maya and CEO Nuno Amado described as an environment marked by "persistently high levels of uncertainty" from geopolitical tensions.
The bank's Portuguese operations contributed net income of €470.2 million, up 10.9% year-over-year, driven by an 11.3% increase in net interest income and a 5.0% rise in net commissions (SR filing, 2026-08-07). Core operating profit in Portugal grew 11.4%, with the cost-to-income ratio standing at 32.4%.
Polish Unit Delivers Turnaround
International operations generated net profit of €183.5 million before minority interests, representing 25.2% growth, with Bank Millennium in Poland delivering the standout performance (SR filing, 2026-08-07). The Polish subsidiary posted net profit of €166.9 million, a 38.7% increase compared to H1 2025, despite operating in a context of "declining financial margins, heavily influenced by cuts in benchmark interest rates."
The improvement largely reflected a 64.9% reduction in charges associated with Swiss franc mortgage loans, which totaled €96.7 million in the first six months—a figure that "confirms the sharp downward trend in this risk," according to management (SR filing, 2026-08-07). The gains came despite Poland increasing its bank income tax rate from 19% to 30% in 2026. Bank Millennium's corporate lending surged 31.8% compared to June 2025.
In Mozambique, Millennium bim reported net profit of €13.9 million, constrained by increased provisions but showing 18.4% growth in adjusted net profit excluding extraordinary effects (SR filing, 2026-08-07).
Balance Sheet Strength Maintained
BCP's Common Equity Tier 1 ratio stood at 15.1% and total capital ratio at 19.3%, "comfortably above regulatory requirements," with the figures incorporating only 10% of H1 2026 net profit into capital per shareholder distribution policy (SR filing, 2026-08-07). The bank maintained a net loan-to-deposit ratio of 68% and more than €30 billion in assets eligible for ECB funding.
Consolidated loans to customers grew 8.3% to €65.2 billion, while total customer funds increased 9.8% to €116.7 billion compared to June 2025 (SR filing, 2026-08-07). In Portugal specifically, customer loans rose 8.6% to exceed €45 billion, driven by mortgage lending growth of 10.9% and corporate lending expansion of 5.7%.
Asset quality continued improving, with the non-performing exposure ratio declining from 2.7% to 2.2% at the consolidated level and from 2.0% to 1.6% in Portugal, while impairment coverage strengthened to 97.2% group-wide (SR filing, 2026-08-07). Cost of risk remained controlled at 32 basis points both consolidated and in Portugal.
According to MarginX data, BCP maintains a market capitalization near $19 billion with shares last closing at 1.097. The bank is scheduled to report nine-month 2026 results on October 28.
This article was generated by MarginX from the SR filing on 2026-08-07. It is not investment advice.