Revises Estimated Charges
Banco Comercial Portugues S.A.
8 January 2002
8 JANUARY 2002 FOR IMMEDIATE RELEASE
Banco Comercial Portugues, S.A.
BCP revises estimated charges for
branch closure and staff reduction programmes
Lisbon, January 8, 2002 - Banco Comercial Portugues 'BCP' (NYSE: BPC, BCPPRA)
announced today that, in compliance with instructions received from the Bank
of Portugal, with whom BCP has been in consultation, it will reclassify as at
31 December 2001 the accounting of the estimated restructuring charges for its
branch closure programme, amounting to Euro 115 million, charged against
reserves at 30 June 2001. Additionally BCP has since conducted a reassessment
of the amount of such charges and has revised them down to Euro 66 million,
due to the fact that a number of the closed branches had low closing costs and
the estimated costs for the remaining ones, revised upon more recent data, are
well below the initial estimation. This amount will be classified as
restructuring costs in the Year 2001 Income Statement. Consequently a positive
adjustment of Euro 49 million will be made to reserves due to the difference
in estimates.
At the time of its 2001 Half Year earnings presentation, BCP announced that
the charge of such restructuring costs against reserves was subject to
approval from the Bank of Portugal.
Charges for BCP's staff reduction programme have also been revised downwards
by Euro 29 million, based on actual costs being below the originally estimated
charge (Euro 280 million), resulting in a positive correction to reserves.
Also dated 31 December 2001, BCP has revised by Euro 27.9 million the
accumulated amount of 'Income from Securities' booked at 30 September 2001,
due to the fact that actual contributions from participated companies, namely
Eureko B.V., were below the estimates considered for third quarter.
BCP notes the non-recurrent nature of these corrections and revisions, related
to branch closure, staff reduction and differences in Eureko B.V.'s estimated
contribution, which will reduce 2001 year-end earnings per share compared to
the previous year without, however, affecting the recurrent performance
indicators of the Bank.
For further information:
Miguel Duarte Banco Comercial Portugues Tel: +35 121 321 1081
Toby Moore / Emma Pickford Citigate Dewe Rogerson Tel: +44 20 7638 9571
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