Eureko B.V. 3 Months Results
Banco Comercial Portugues S.A.
22 May 2002
(Lisbon, May 22, 2002) On behalf and at request of our participated company
Eureko B.V., and given its relevance to Banco Comercial Portugues (BCP, NYSE:
BPC, BCPPRA), we herein announce the company 1st Quarter results:
Eureko B.V. announces results for the three months to 31 March 2002
'Eureko B.V. announced its unaudited results for the three-month period ending
31 March 2002.'
Highlights:
• Operating Companies' contribution up 45.8% at EUR 61.4 million
• Consolidated Net Income of EUR 80.2 million, down 5.2%(1) from the same
period in 2001
• Operating profit of EUR 104.4 million (2001: EUR 112.9 million)
• Total Gross Written Premiums reached EUR 2,260.2 million, an increase of
10.9% from 2001
• Life Gross Written Premiums up 13.5% at EUR 1,129.5 million
• Non-Life Gross Written Premiums up 9.5% at EUR 565.7 million
• Health Gross Written Premiums up 7.1% at EUR 565 million
• Total Assets under Management at EUR 109.1 billion, down 2.9% from 31
December 2001
• Banking customer funds up 6.5% at EUR 6,652.4 million from 31 December 2001
• ROE of 13.7% (2001:10.7%)
Main developments in the first quartet of 2002:
• In Poland, the agreement reached in the last quarter of 2001
(the 2nd addendum), by which Eureko would acquire an incremental stake of
21% in PZU by direct sale, was revoked by the Polish Government. Discussions
are under way to set a new timing for PZU's IPO, at which Eureko has the
right to acquire a 21% stake.
(1) Eureko posted a profit of EUR 102.6 million in the first three months of
2001, which included a EUR 18 million profit from PZU Zycie SA reported to
the year 2000
Arnold Hoevenaars, Chief Executive Officer of Eureko, commented:
'The results of the Eureko Group in the first quarter of 2002 reflect a clear
recovery of the profitability of our operations.
'Both our Operating Companies and our Associated companies registered strong
growth in their contribution to the Group results, at EUR 61.4 million and
EUR 21.4 million, respectively.
All our Operating Companies reported profits. Conversely, we have experienced a
decrease of Other Results (inclusive of the Holding company costs), at
EUR - 2.6 million, reflecting mainly the increase in interest expenses and the
impact in 2001 of a non-recurring gain of EUR 30.9 million from the sale of
shares in Parion. This led to a reduction in Consolidated Net Income compared
with 2001.
In insurance, the Group's premium production showed strong growth, with gross
written premiums up by 11%. In Life, growth was particularly strong in Portugal,
Ireland and Slovakia, with growth rates exceeding 25%. In The Netherlands, our
operations have seen a decrease in unit-linked products, which is estimated to
be in line with the market, as it compares with a particularly strong quarter in
2001. In Non-Life, we maintain a conservative stance in underwriting in the
Portuguese market while our other markets experienced good growth. Our technical
results show an improvement, in particular in Life and Non-Life, and expenses
ratios also reflect a positive (declining) trend.
Our asset management activities continue to demonstrate their earnings
resilience. At the client level, we have seen an increase in specialist
mandates, which partially offsets a decrease in balanced mandates. This
evolution has a positive impact in our earnings and we are confident, as the
synergies of the integration of the different operations are expected to unfold
throughout 2002, of the increase in profitability of this business.
In banking, our prudent stance in risk acquisition is leading us to higher
levels of profitability combined with slower asset expansion. Strong growth has
been experienced in customer liabilities, with deposits and other savings
products increasing, during the first quarter, by EUR 404 million (6.5%) to
EUR 6,652.4 million. Higher interest margin results led the banking activities
to post better overall efficiency and profitability indicators.
The Group is seeing signs of renewed and strengthened sales growth across its
financial services product range, and our market and business diversification
are positively reflected in the operating results. We expect to continue to see
solid organic growth at our Operating Companies and businesses and we endeavour
to achieve further group expansion by consolidating our presence in Central
Europe'.
Amsterdam, 16 May 2002
Attachment: Interim Report -Financial Statements.
For further information, contact:
(Media) Lorrie Morgan Tel: +31 20 660 7654
Mobile: +31 654 93 72 72
(Analysts) Rui Lopes Tel: +33 1 55 27 36 29
+31 20 660 7654
www.eureko.net
Note: Achmea buys a majority interest in Royal & Sun Alliance Benelux
Achmea, an operative company controlled by Eureko, announced that is to take
over a major part of the activities of Royal & Sun Alliance (R&SA Benelux) in
the Netherlands and Belgium, namely the life and non-life activities in Benelux,
with the exception of the multinational non-life insurance business, which
Royal & Sun Alliance will retain. The acquisition fits in with Achmea's strategy
aimed at enhancing its position in the agents' segment in the Netherlands and
expanding its Belgian activities.
Last year, Royal & Sun Alliance Benelux generated premium income of EUR 192
million in Non-Life and EUR 83 million in Life, with a total staff of around
325 jobs. The business will continue to operate in the Netherlands and Belgium
under its present name until no later than 31 December. Achmea aims to merge the
activities acquired with its existing business units as soon as possible,
especially in the Netherlands. The scope for doing so will be examined shortly.
The purchase price is around EUR 123 million, and will be finally fixed on the
date of the actual transfer. This transfer depends on a number of formal
approvals and will probably take place on 1 July 2002.
Banco Comercial Portugues
Interim report
Eureko B.V.
Consolidated Balance Sheet As at As at
EUR million 31 March 2002 31 December
2001
ASSETS
Investments in associated companies 903,7 884,8
Other investments 21.681,4 21.321,0
Investments on behalf of policyholders 10.120,7 9.887,9
Banking credit portfolio 14.647,0 14.530,3
Receivables 4.567,1 2,826,3
Other assets 1.951,5 1.993,4
Prepayments and accrued income 2.148,2 1.760,0
Total Assets 56.019,6 53.203,7
EQUITY and LIABILITIES
Capital and reserves 2.295,4 2.261,9
Minority interest 391,6 391,6
Group equity 2.687,0 2.653,5
Subordinated loans 148,0 126,4
Fund for general banking risks 44,9 44,9
Group capital base 2.879,9 2.824,8
Total technical provisions 22.024,2 21.470,3
Technical provisions for policyholders 10.111,6 9.887,9
General provisions 326,5 426,5
Banking customer accounts 6.652,4 6.247,5
Loans and borrowings 7.964,9 8.551,4
Other liabilities 5.225,7 2.881,0
Accruals and deferred income 834,4 914,3
Total 56.019,6 53.203,7
Consolidated Income Statement
EUR Million
first quarter first quarter
2002 2001
INCOME
Gross written premiums 2.260,2 2.038,7
Reinsurance premiums -100,8 -87,0
Change in provision for unearned premiums -373,0 -420.3
Net earned premiums 1.786,4 1.531,4
Contributions received for health pooling 35,4 31,2
Income from associated companies 24,4 70,2
Investment income 272,1 343,9
Investment income for account of policyholders 135,2 -317,0
Asset management income 50,1 57,2
Banking income 239,2 336,5
Other income 131,4 113,5
Total income 2.674,2 2.166,9
EXPENSES
Net claims and movements in technical provisions 1.769,2 1.474,6
Profit sharing and rebates 122,5 -135,7
Operating expenses, insurance 332,5 305,3
Asset management expenses 49,9 39,1
Banking expenses 185,0 271,5
Interest expenses 31,9 51,0
Other expenses 78,8 48,2
Total expenses 2.569,8 2.054,0
Ordinary result before tax 104,4 112,9
Tax on ordinary results -19,4 -7,4
Ordinary result after tax 85,0 105,5
Extraordinary result before tax 2,1 4,2
Tax on extraordinary result 0,0 0,0
Result before minority interest 87,1 109,7
Minority interest -6,9 -7,1
Total result after tax 80,2 102,6
Summary consolidated Cash Flow Statement first quarter 2002
EUR Million
Cash flow from operating activities 848,0
Cash flow from investing activities -550,5
Cash flow from banking activities 288,2
Cash flow from financing activities -564,9
Net cash Flow 20,8
Liquid assets at 1 January 1.373,8
Liquid assets at 31 March 1.394,6
Movements in group equity 2002
EUR Million
Balance at 1 January 2.261,9
Change in revaluation reserve -40,8
Change in currency reserve 13,2
Goodwill -19,0
Net income 80,2
Other movements -0,1
Balance at 31st March 2002 2.295,4
Accounting Principles
The accounting principles that have been used for the interim report are the
same as those used for the Annual Report 2001
The first quarter 2002 and 2001 interim figures stated in this report are
unaudited.
Breakdown of ordinary result before tax first first Change %
EUR Million quarter quarter
2002 2001
Insurance 79,5 44,4 79%
Asset Management 21,0 20,7 1%
Banking 10,9 2,2 395%
Other and Intergroup adjustments -7,0 45,6 -115%
104,4 112,9 -8%
Earnings per ordinary share first first
quarter quarter
2002 2001
Net results (EUR million) 80,2 102,6
Average number of outstanding shares
(of EUR 1.00 nominal value each) 220.805,306 188.955,164
Earnings per share (EUR) 0,36 0,54
Number of employees (in FTE's) As at As at
31 March 2002 31 Dec 2001
Number of employees 18.445 18.595
Highlights first first
EUR Million quarter quarter
2002 2001 Change %
Gross written premiums 2.260,2 2.038,7 11%
Total investment income 407,3 26,9 1414%
Net claims and movements in
technical provisions 1.769,2 1.474,6 20%
Total result before tax 106,5 117,1 -9%
Total result after tax 80,2 102,6 -22%
EBITDA 149,5 179,2 -17%
Return on equity 13,7% 10,7% 28%
Return on assets 0,6% 0,8% -27%
As at As at
31 March 2002 31 Dec 2001
Capital and reserves 2.295,4 2.261,9 1%
Total Assets 56.019,6 53.203,7 5%
Total investments 31.802,1 31.208,9 2%
Total technical provisions 32.135,8 31.358,2 2%
Total assets under management 109.102,6 112.282,6 -3%
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