Banco Comercial Português

Good day and thank you for standing by. Welcome to the Millennium BCP First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised, today's conference is being recorded. We'd now like to hand the conference over to your speaker today, Mr. Miguel Maia. Please go ahead.

Good morning. Miguel Maia speaking. Welcome to BCP earnings conference call. As usual, I will mention the highlights of our performance, and then Miguel Braganza and Bernard Colasso will follow, providing additional details. The first quarter proved particularly challenging with a global context marked by increasing instability and intensifying geopolitical tensions as conflicts erupted in the Middle East. These events have had a severe impact on international trade and energy costs worldwide, which in turn is affecting global economic growth. Despite operating in a complex environment, the bank's performance remains strong. Net profit grew by more than 25% year on year, reaching 306 million euros and translating into a return on equity of nearly 16%. This profitability underscores the resilience and ability of our business model to generate sustainable value as outlined in our strategic plan for the cycle up to 2028. Our commitment to creating value is matched by our ambition to increase shareholder remuneration. We exceeded our initial target in this matter, having announced last quarter the intention to implement a shareholder's distribution of 90% over results 2025. The competent authorities have meanwhile granted the required permission for our share buyback proposal of up to 40%. Yesterday, the Board of Directors approved the share buyback related to 2025s. that will lead to the acquisition of shares in the amount of 407 million. In Portugal, we achieved a net income of 265 million in the first quarter, an increase of 21% that reinforced the growth and profitability trajectory of previous quarters. This result is grounded in a solid balance sheet, rigorous and effective NII management, and the diligent cost control while executing ongoing investments essential for the bank's future position. Our international operations posted a significant 65% increase, notably driven by Bank Milan in Poland, whose net profit rose by 68% to reach 71 million euros. This performance was supported by a strong commercial momentum and 61% reduction in charges related to FX market funds. The increasing containment of risks and impacts associated with FX loans demonstrates the quality of the franchise and realized the potential for value creation of the operation in Poland. There was growth across several business lines, especially corporate planning, which increased by 26.5%, materializing an important priority of our strategic plan for this market. In Mozambique, although millennial BIM profitability continues to be heavily affected by sovereign rating impacts, the bank delivered a positive performance. There was relevant commercial activity with notable increase in both customer resources and lending, maintaining a robust capital position with a capital ratio above 42% and rigorous risk management, ensuring the bank's balance sheet remains a benchmark in the market. Millennial Beams is therefore well capitalized and positioned to take advantage of the economic growth phase that will be driven by the resumption of major natural gas projects. On a consolidated basis, the quality of our relationship banking model is evident with a rise of over 7% in customer loans and a nearly 8% growth in customer funds. We continue to operate with a very strong capital ratios, with a common equity of 1 at 15.1% and total capital at 19.3%. These figures already account for the maximum value of the share buyback equivalent to 40% of the 2025 net profit and include just 10% of this quarter's profit in line with the new shareholders' distribution policy. At the same time, we are continuing to improve balance sheet quality with a reduction of 238 million in NPEs year on year and a stable cost of risk around 35 basis points for the group and 33 in Portugal. At group level, our customer base expanded almost 5% in the last 12 months, reaching the 7.4 million customers mark, out of which nearly 2.9 million in Portugal. Most notably, mobile customers continue to grow at 8% per year, accounting for 75% of the group's customer base and 67% in Portugal. Individual and corporate clients continue to choose Millennium as their preferred bank, and our services were again awarded this year with several relevant distinctions. Our ongoing investment and continuous customer-centric innovation in the mobile platform, with a constant focus on outstanding user experience, have resulted in a consistent upward trend in both interaction and sales. This quarter, customers carried out 6% more transactions on the app, with a notable rise in transfers. Sales figures increased by 5%, highlighted by an 18% growth in cloud sales. Customers are increasingly choosing the app as their preferred method for conducting their most significant financial operations, as shown by the high penetration rates of each channel, for example, for services such as mortgage-related activities and the acquisition of personal loans or to perform financial investments. With this week's general meeting, if, as expected, the proposals submitted for the shareholders' decision are approved, a new term of office will begin. This will be a term of office in which we will maintain our purpose and commitment to innovation, operational efficiency, prudent risk management, and a strong value creation for shareholders. It is an evolution through continuity, maintaining the performance trajectory that has been consistently recognized by the market, both in the execution of the strategic plans and the increase of SAP value. I would also like to take this opportunity to express my gratitude to the two members of the Executive Committee who are leaving, namely José Miguel Pessang and Rui Teixeira, for their exceptional contributions throughout their executive functions, and in the preparation of the two outstanding professionals who will now join the executive team. Our commitment to creating more value remains unchanged. Miguel, the floor is yours.

Thank you. Thank you very much, Miguel.