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Banco Comercial Português

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Banco Comercial Português S.A.
Company typePublic(Sociedade Anónima)
Euronext Lisbon:BCP
PSI-20component
ISINPTBCP0AM0015
IndustryBanking,Financial services
Founded1985
HeadquartersPorto,Portugal
Key people
Miguel Maya(CEO),Nuno Amado(Chairmanof thesupervisory board)
ProductsRetail,corporate banking,investment banking,insurance,fund management
€856.0 million(2023)[1]
Total equity€7,299.5 million(end 2023)[1]
Number of employees
15,688(end, 2023)[1]
SubsidiariesActivoBank[pt],Millennium bcp,Millennium BIM,Bank Millennium
Websitewww.millenniumbcp.pt

Banco Comercial Português(BCP,lit. 'Portuguese Commercial Bank') is aPortuguesebankthat was founded in 1985 and is the largest privatebankin the country. BCP is a member of theEuronext 100stock indexand its currentchief executive officeris Miguel Maya Dias Pinheiro. BCP is based inPorto,but its operations are headquartered inOeiras,Greater Lisbon.It operates a branch brand-dubbed and restyled in 2004 asMillennium BCPas well asBanque BCPandActivoBank.

It has nearly 4.3 million customers throughout the world and over 695 branches in Portugal. It was ranked at number 1,633 of the world's largest companies in 2023.[2]

BCP has been designated as a Significant Institution since the entry into force ofEuropean Banking Supervisionin late 2014, and as a consequence is directly supervised by theEuropean Central Bank.[3][4]

History

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BCP was founded in 1985 byJardim Gonçalvesand a group of investors from thePorto region.

Since 2004, it operates a branch brand-dubbed and restyled as Millennium BCP, following a process of amalgamating all the brand names and complete incorporation of all commercial structures of the group's retail banking:

  • Nova Rede (the bank's brand for its own network of retail banking branches since 1989)
  • Crédibanco (network of branches created by the BCP itself in 1993)
  • Banco Português do Atlântico(acquired in 1995 and incorporated in 2000)
  • Banco Mello (acquired in 2000 and incorporated in 2000)
  • Banco Sotto Mayor (acquired in 2000)

Aborted merger with BPI (2007)

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On 25 October 2007, a smaller Portuguese bank, BPI —Banco Português de Investimento( "Portuguese Investment Bank" ) offered amergerwith BCP. The board of BCP initially refused as long as terms were not be revised. The merger talks failed and the two banks didn't reach an agreement.

Former operations in Canada

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Bank of Montreal(BMO) purchased the Canadian division of BCP Bank in the summer of 2007. All branches inCanadaremained BCP Bank branches until October 2007, when they became BMO branches. These branches continue to operate as specialty branches toLusophonecommunities, includingAzoreancommunities inToronto,Ontario,except theDundas Street WestandUniversity Avenuebranches, which have turned towards theChinese community.

Capital Consolidation

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In 2012, Millennium in the middle of theEuropean sovereign debt crisis,BCP received €3 billion in state support through the issuance ofcontingent convertible bondswith an interest rate of around 10%. [5] [6]

In 2014, Millennium BCP raised €2.25 billion in fresh capital through a rights issue reserved for shareholders. With the results of that the bank repaid €2.25 billion of the CoCo bonds. [7]

As of 2015, Millennium BCP reported a profit of €235.3 million euros, returning to profits after four years of losses.[8]

In 2017 the bank raised another €1.5 billion through a rights issue for shareholders as well as the direct sale of shares to Chinese conglomerateFosun International.Immediately after that capital raising, Millennium BCP paid off the remaining €700 million in CoCo bonds, thereby regaining its autonomy from the state and ending any possibility of nationalization through a forced conversion of the bonds. The remaining funds from the rights issue will be used to strengthen the bank's capital ratios. The bank estimates it has contributed more than €1 billion to state coffers since 2012, mainly interest paid on the CoCo bonds. [9]

Millennium BCP also operates in Africa through Millennium bim (Banco Internacional de Moçambique) inMozambiqueand Banco Millennium Atlântico inAngola.[10][11]One BCP branch is open inMacau,representative offices operate inBrazil,Switzerland,China,and theUK.[11]As of 2023, BCP also owns 19% of Banque BCP in France (80% owned byCaisse d'EpargneÎle-de-France).[12]

Previously BCP operated in Greece (Τράπεζα Millennium Bank), Romania (sold toOTP Bank), and Turkey (Fibabanka).[13][14]Banque Privée BCP (Suisse) was sold toUnion Bancaire Privéein 2021.[10]

Shareholder structure

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As of 30 June 2018, BCP's main shareholders wereFosun Internationalwith 27.06%,Sonangol Groupwith 19.49%,Norges Bankwith 2.544%,BlackRockwith 3.39%,EDP Energias de Portugalwith 2.11%,Credit Suissewith 1.30% andMillennium Managementwith 0.121%.[15]

As of 31 December 2021, BCP's main shareholders areFosun Internationalwith 29.95%,Sonangol Groupwith 19.49%,BlackRockwith 2.68%,EDP Pension Fundwith 2.06%.[10]Portuguese shareholders hold 31.2% of the total shares of the bank.

Millennium BCP Brand

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ActivoBank
Banque BCP
Logos of ActivoBank and Banque BCP

The introduction of the new Millennium BCP brand, in 2004, represented the final stage of a process that formally began with the implementation of a new business model by the end of 2001, but had been triggered by the merger by incorporation of the Banks Atlântico, Mello and SottoMayor into BCP, in 2000, unifying 4 brands in one only brand known to the public—the Millennium brand. The brand, at the time of its launch, came to break with the standards implemented at the level of the Portuguese banking sector: a differentiating color, demonstrating innovation, modernity/youth, dynamism, and quality.

In one single night, BCP rebranded its entire commercial network, reopening in the next day surprising the market with its new color and designation.

The strategic option to implement a single brand was fundamentally due to efficiency reasons, as it would allow rationalizing the investment in several brands and the back offices to support each brand and ensure a designation that could be implemented in all geographies (one common identity). [16]

Operations in Poland

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A branch of Bank Millennium inPoland
Main article:Bank Millennium

Bank Millenniumis BCP's network of branches inPoland.Bank Millennium was founded in 1989 when the Polishfree marketand democratic political transformations started. The bank was the first financial institution quoted on theWarsaw Stock Exchange(1992) and gained its present scale through mergers with other banks (in 1992 and 1997), as well asorganic growthsupported by the new business model, which has been developed in co-operation with its owner—the Portuguese bank Millennium BCP, which holds 51% of its shares. Bank Millennium, together with its subsidiaries in Poland, provides specialized financial services such as leasing, brokerage, and mutual funds, which makes it one of the largest banking groups in Poland.

See also

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References

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  1. ^abc"Earnings Presentation 2023"(PDF).Banco Comercial Português.Retrieved27 February2023.
  2. ^Forbes site."The World's Biggest Public Companies".Forbes.Retrieved31 January2018.
  3. ^"The list of significant supervised entities and the list of less significant institutions"(PDF).European Central Bank.4 September 2014.
  4. ^"List of supervised entities"(PDF).European Central Bank.1 January 2023.
  5. ^jornal de Notícias site."The BCP pede 3,5 mil milhões de euros de empréstimo ao Estado".Retrieved31 January2018.
  6. ^Portugal's BCP says to start repaying state funds early,Reuters(June 7, 2012)
  7. ^dinheirovivo site."BCP já pagou quase 700 milhões em juros de CoCos".Retrieved31 January2018.
  8. ^"Annual Report 2015"(PDF).Banco Comercial Português.Retrieved31 January2018.
  9. ^Observador site."BCP já devolveu ao Estado os 700 milhões de euros que devia".Retrieved31 January2018.
  10. ^abc"2022 REPORT & ACCOUNTS"(PDF).
  11. ^ab"Internationalisation - Millennium bcp".ind.millenniumbcp.pt.Retrieved2023-07-28.
  12. ^"Nous connaître".Banque BCP(in French).Retrieved2023-07-28.
  13. ^"It's official: Portuguese group BCP sells Millennium Bank Romania to Hungary's OTP for EUR 39 mln".Romania Insider.2014-07-30.Retrieved2023-07-28.
  14. ^"Credit Europe Bank NV acquires Turkey-based Millennium Bank AS".Times of Malta.2010-02-18.Retrieved2023-07-28.
  15. ^"Annual Report 2016"(PDF).Banco Comercial Português.Retrieved31 January2018.
  16. ^Fortunato Nini, Bruna Marisa (2012).Estratégias de crescimento na banca: Os casos do BCP e do BES(PDF)(PhD) (in Portuguese). ISCTE Business School, Instituto Universitário Lisboa, Departamento de Finanças.Retrieved3 March2018.
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