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BPCGF (Banco Comercial Portugues) ROE % : 13.71% (As of Sep. 2024)


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What is Banco Comercial Portugues ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Banco Comercial Portugues's annualized net income for the quarter that ended in Sep. 2024 was $1,016 Mil. Banco Comercial Portugues's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $7,412 Mil. Therefore, Banco Comercial Portugues's annualized ROE % for the quarter that ended in Sep. 2024 was 13.71%.

The historical rank and industry rank for Banco Comercial Portugues's ROE % or its related term are showing as below:

BPCGF' s ROE % Range Over the Past 10 Years
Min: -6.67   Med: 3.53   Max: 14.93
Current: 14.2

During the past 13 years, Banco Comercial Portugues's highest ROE % was 14.93%. The lowest was -6.67%. And the median was 3.53%.

BPCGF's ROE % is ranked better than
76.37% of 1536 companies
in the Banks industry
Industry Median: 9.395 vs BPCGF: 14.20

Banco Comercial Portugues ROE % Historical Data

The historical data trend for Banco Comercial Portugues's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Banco Comercial Portugues ROE % Chart

Banco Comercial Portugues Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.02 3.10 2.15 3.38 15.13

Banco Comercial Portugues Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.56 13.55 14.52 15.18 13.71

Competitive Comparison of Banco Comercial Portugues's ROE %

For the Banks - Regional subindustry, Banco Comercial Portugues's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Banco Comercial Portugues's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Banco Comercial Portugues's ROE % distribution charts can be found below:

* The bar in red indicates where Banco Comercial Portugues's ROE % falls into.



Banco Comercial Portugues ROE % Calculation

Banco Comercial Portugues's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=933.533/( (5460.438+6883.393)/ 2 )
=933.533/6171.9155
=15.13 %

Banco Comercial Portugues's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=1015.828/( (7091.885+7731.766)/ 2 )
=1015.828/7411.8255
=13.71 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Banco Comercial Portugues  (OTCPK:BPCGF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=1015.828/7411.8255
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1015.828 / 3950.22)*(3950.22 / 109278.2495)*(109278.2495 / 7411.8255)
=Net Margin %*Asset Turnover*Equity Multiplier
=25.72 %*0.0361*14.7438
=ROA %*Equity Multiplier
=0.93 %*14.7438
=13.71 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=1015.828/7411.8255
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1015.828 / 1668.956) * (1668.956 / 3950.22) * (3950.22 / 109278.2495) * (109278.2495 / 7411.8255)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.6087 * 42.25 % * 0.0361 * 14.7438
=13.71 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Banco Comercial Portugues ROE % Related Terms

Thank you for viewing the detailed overview of Banco Comercial Portugues's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Banco Comercial Portugues Business Description

Address
Praca D. Joao I, 28, Porto, PRT, 4000-295
Banco Comercial Portugues SA or Millennium BCP, is a Portuguese bank operating in Portugal, as well as Poland, Mozambique, and Angola. The bank offers a wide range of retail and corporate banking products and services. The bank's distribution network includes traditional branches, as well as online banking, call centers, mobile banking, ATMs, and point of sale systems. In addition to its emphasis on financial technology, BCP's business model has shifted focus to high-net worth individuals, business lending with growth potential, as well as divestiture of noncore assets in its portfolio. The bank's net revenue is mostly net interest income, with notable net commission and net trading income. Most of BCP's earning assets are loans split nearly evenly between retail and corporate.