FINANCIALS: BCP Results Positive But Spreads Have Already Outperformed

BCP (BCPPL: Baa2/BBB- pos) results headlines from last night appear positive with better loan losses and solid broader credit stats alongside a revenue and pre-tax beat. Spreads have performed well with the M&A speculation over the Fosun stake, including having tightened another 15bp into these results so perhaps tough to see these results moving spreads further in the near-term.

• Loan loss provisions were a quarter of the consensus figure (so much better), NPLs are broadly in line and the CET1 ratio has come in 10bp better than expected, so positive credit stats across the board.
• Revenues are 5% ahead of expectations (NII 1% better), costs were 2% better meaning pre-tax beat by around a quarter but part of this is driven by lower Polish CHF mortgage problem provisions. A significant outperformance at the headline level but still good underlying, we feel.
• There’s no meaningful guidance or outlook commentary available yet.

Conf call is 1500 at: https://edge.media-server.com/mmc/p/c4h9eji8/