The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Focus lies abroad

Euromoney's Jules Stewart talks to Jorge Jardim Gonçalves, chairman and chief executive of Banco Comercial Português, Portugal's largest bank, about how he intends to move it forward following recapitalization.

BCP's share price has underperformed the European bank sector by 60% since January 1999. What are you doing to address this problem? The share price is under pressure. This is partly due to the economic downturn in Portugal. BCP also has some exposure to the insurance sector and this is another factor. During this past year when the share price was depressed, the key issue was the bank's capital ratios. To some extent this was a self-fulfilling prophesy because capital was depressing the share price which in turn put added capital pressure on the bank.

It is now clear is that through our capital increase and rights issue, we have addressed and resolved this issue. We wanted to bring our tier 1 ratio up to the level it stood at in March 2001 and we have achieved this objective.

We gave a clear indication that there are other measures in the pipeline that will reinforce our capital position, such as the sale of [insurance business] Seguros e Pensões, the securitization process, the disintermediation of loans and so on. So the market can now be relaxed about our capital position.

Now the debate is refocused on where the share price should be, which is based on the bank's underlying profitability.

What

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree