Lisbon, Nov. 3, 2025 (Lusa) - Banco Montepio reported profits of €86.4 million up to September, a 10.1% year-on-year drop, penalised by a decline in net interest income, the institution said on Monday.

In a statement sent to the Portuguese Securities Market Commission (CMVM), Banco Montepio said that up to September its net interest income, which represents the difference between the interest charged on loans and the return on deposits, fell 15.8% year-on-year to €249.3 million.

The bank attributes this decrease in net interest income to the "normalisation of interest rates" on loans to customers and the increase in financing costs, "which were partially offset by the higher yield on the securities portfolio" and active liquidity management.

Commissions rose 2.9% to €98.3 million, a rise the bank attributed to increased activity, "since there were no material increases in commissions".

In turn, operating costs rose 6.4% to €215.4 million, with staff costs increasing 3.0% to €120.2 million.

General administrative costs rose 8.2% to €56.9 million due to inflationary pressures on contracting and service renewal costs, "particularly in the context of the digital transformation process".

In terms of the balance sheet, the customer loan portfolio stood at €12.517 billion in September this year, up 6.6% year-on-year, while deposits rose 8.0% to €15.724 billion.

The cost of credit risk stabilised at 0.1% and the NPE (non-performing exposures) ratio "improved from 2.6% to 2.1%".

At the end of September, the Common Equity Tier 1 (CET) ratio stood at 16.3%, up from 15.8% a year earlier and 16.0% at the end of 2024.

At the end of September, Banco Montepio had 2,882 employees and 223 branches, compared to 2,875 employees and 225 branches a year earlier, maintaining five representative offices after 12 months.

JO/ADB // ADB.

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