The Banco Montepio has reported a consolidated net profit of 34.2 million euros for the first quarter of 2025, marking an increase of 6.7% compared to the same period in 2024, and achieving a return on equity of 10.6% (+0.5 percentage points Year to Date in comparison to the end of 2024), according to a recent statement.
By the end of March, the bank’s income reached 104.5 million euros, while its net interest margin stood at 85.6 million euros, a decrease from 99.2 million euros in the same period last year. This decrease is primarily attributed to increased financing costs due to higher interest rates paid on customer deposits and issued debt, totaling an additional 5.3 million euros.
“In both cases, there was a higher level of resource capture, with a reduction of 25.4 million euros in interest received from customer credit, induced by the effect of interest rate adjustment on contracts. This was partially offset by an increase in investments in securities (+4.1 million euros) and a favorable variation of 11.2 million euros in the net impact of funds taken and ceded to other credit institutions,” the bank explained.
Net commissions totaled 32.9 million euros in the first quarter, compared to 30.3 million euros in the same period of 2024, representing an increase of 2.6 million euros (+8.6%), driven primarily by increased commercial activity and business expansion.
Operating costs amounted to 70.8 million euros, up from 64.3 million euros in the first quarter of 2024, reflecting rises in personnel costs (+5.1% to 39.8 million euros), general administrative expenses, and depreciation and amortization.
The efficiency ratio, measured by the recurring cost-to-income ratio, rose to 59.4% in the first quarter of 2025, compared to 53.1% at the end of 2024.
By the end of the first quarter, gross customer credit increased by 3.7% year-on-year, reaching 12,300 million euros, with performing credit (productive) growing by 568 million euros (+4.9%).
Customer deposits reached 15,252 million euros, showing an annual increase of 1,598 million euros (+11.7%), hitting a new historic high, with the private segment accounting for 69% of the total.
At the end of March, the cost of credit risk was -0.4%, comparing favorably with 0.1% recorded in the same period last year.
Montepio reported a reduction in non-performing exposures (NPE) by 132 million euros (-34%), with the NPE ratio at 2.1%, down from 3.2% on March 31, 2024. Net of total impairments for credit risk, the NPE ratio was 0.4%, compared to 0.9% at the end of March 2024.
The bank also reported a year-on-year reduction in real estate risk exposure by 74 million euros (-29%), totaling 177 million euros, representing 0.9% of net assets (1.4% at the end of March 2024) and 11.4% of equity capital (17.0% on March 31, 2024).
By the end of the first quarter of this year, Banco Montepio’s Common Equity Tier 1 (CET1) ratio stood at 16.2% (+0.7 points), the Total Capital ratio at 19.4% (+0.6 points), and the Liquidity Coverage Ratio (LCR) at 188.1%, with a liquidity buffer of 5,700 million euros (+9%).
The group concluded the quarter with 2,991 employees, an increase of eight compared to the end of 2024, and 229 branches, up from 225 at the end of last year.
[Updated at 11:15]
