Banco Comercial Português, S.A. (BCP) underwent the 2025 European Union (EU) stress test conducted by the European Banking Authority (EBA), in collaboration with Banco de Portugal, the European Central Bank (ECB), and the European Systemic Risk Board (ESRB), as stated by the bank.
The bank noted that the adverse scenario of the stress test was defined by ECB/ESRB, covering a three-year horizon (2025-2027). It was conducted on the premise that the balance sheet from December 2024 remains unchanged, and thus does not account for future business strategies or management actions, not representing a projection of BCP’s financial evolution.
According to BCP’s results, the application of the adverse scenario resulted in a reduction of 230 basis points at the end of 2025, 154 basis points at the end of 2026, and 102 basis points at the end of 2027 compared to the fully loaded CET1 ratio (CRR3) of 2024.
This contrasts with an average reduction in the 64 banks that underwent this exercise: 313 basis points at the end of 2025, 339 basis points at the end of 2026, and 370 basis points at the end of 2027, as stated in the report.
On the other hand, applying the base scenario led to an increase of 130 basis points at the end of 2025, 255 basis points at the end of 2026, and 280 basis points at the end of 2027 in the fully loaded CET1 ratio (CRR3) of 2024.
These results contrast with an average increase among the 64 banks subjected to this exercise, 62 basis points at the end of 2025, 108 basis points at the end of 2026, and 118 basis points at the end of 2027, it indicated.
The 2025 EU stress test does not set a pass/fail threshold; it is designed to be an important informational tool for the supervisory review and evaluation process (SREP), BCP emphasized.
The bank stated that the results would assist competent authorities in evaluating Banco Comercial Português, S.A.’s capacity to meet prudential requirements in adverse scenarios.
According to the EBA, European banking is now more resilient to potential crises due to increased profits, as concluded in their stress test.
