In a statement to the Portuguese Securities Market Commission (CMVM), Banco Montepio reported that by the end of September, its financial margin, which represents the difference between interest received from loans and remuneration on deposits, decreased by 15.8% year-on-year to 249.3 million euros.
The bank attributed this decline in the financial margin to the “normalization of interest rates” on customer loans and increased financing costs, “partially offset by higher returns from the securities portfolio” and active liquidity management.
Commissions rose by 2.9% to 98.3 million euros, which the bank credited to increased activity, “as there were no significant increases in the commissions charged.”
Meanwhile, operating costs increased by 6.4% to 215.4 million euros, with personnel costs rising by 3.0% to 120.2 million euros.
General administrative costs increased by 8.2% to 56.9 million euros due to the impact of inflation on costs associated with hiring and renewing services, “particularly in the context of the digital transformation process.”
In terms of the balance sheet, the customer credit portfolio stood at 12,517.7 million euros in September this year, up 6.6% from last year, while deposits increased by 8.0% to 15,724.7 million euros.
The cost of credit risk stabilized at 0.1%, and the NPE (non-performing exposures) ratio “improved from 2.6% to 2.1%.”
As of the end of September, the Common Equity Tier 1 (CET1) ratio reached 16.3%, compared to 15.8% a year earlier and 16.0% at the end of 2024.
By the end of September, Banco Montepio employed 2,882 workers and operated 223 branches, compared to 2,875 employees and 225 agencies a year ago, maintaining five representative offices over the 12 months.
[News updated at 11:03 AM]
