Banco Comercial Português (BCP) investor relations material

Macro and business overview

• Portugal's public finances are improving, with a budget surplus of 0.7% in 2025 and 0.1% forecast for 2026, and public debt projected to fall to 87.8% of GDP in 2026.

• The economy grew 1.9% in 2025, outperforming the Euro Area, with robust domestic demand, investment, and exports; unemployment is at a historic low of 6.0%.

• The banking sector is highly concentrated, with the top five banks holding 80% market share, and maintains strong liquidity and capital positions.

• The real estate market remains resilient, though recent data show a normalization with declining transactions and increased building permits.

• Portugal leads in renewable energy, with 82.9% of electricity from renewables in 2025, well above the EU average.

Financial performance and profitability

• Group net income rose 25.6% YoY to €305.8 million in Q1'26, with ROE at 15.9%; Portugal contributed €265.4 million, up 21.2%.

• Net interest income increased 2.4% YoY to €738.4 million, with a group NIM of 2.86% and Portugal at 2.20%.

• Fees and commissions grew 8.2% YoY, supporting revenue diversification.

• Operating costs rose 4.5% YoY, but the cost-to-income ratio remains low at 36% for the group and 31% in Portugal.

• Cost of risk decreased to 35bp for the group and 33bp in Portugal, with continued reduction in non-performing exposures.

Asset quality and risk management

• Non-performing exposures (NPE) fell by €238 million YoY, with the NPE ratio at 1.7% in Portugal and 2.3% group-wide.

• NPE coverage is robust, with total coverage at 154% for NPLs >90 days and 128% for all NPEs.

• Foreclosed assets and restructuring funds declined, reflecting improved asset quality.