Original featureMillennium bcp profits rise 12.6% to €874 million as Portuguese banking business strengthensEssential Business · 29 October 2026 →

Profit boost and its impact on lending policy

The Lisbon‑based bank disclosed a net profit of €874 million for the quarter ended September 2026, up from €777 million a year earlier, as reported by Essential Business on 29 October 2026. The rise reflects higher net interest income and a reduction in provisioning for non‑performing loans.

With a healthier capital base, Millennium bcp is positioned to meet the European Central Bank’s (ECB) minimum CET1 ratio of 13.5% while still pursuing modest expansion in its mortgage portfolio. Analysts expect the bank to keep its prime mortgage rate at the current 3.75% – a slight rise from 3.65% in early 2026 – to balance profitability with market competition.

Current Portuguese mortgage conditions

As of October 2026, the average variable mortgage rate offered by Portugal’s major banks ranges between 3.6% and 4.0%, according to data from the Portuguese Banking Association. Loan‑to‑value (LTV) limits for primary residences remain at 80% for borrowers with a credit score above 700, while secondary‑home loans are capped at 70% LTV.

The standard mortgage term is 30 years, with early‑repayment penalties of up to 2% of the outstanding balance if the loan is repaid within the first five years. Transfer tax (IMT) on residential purchases continues at a progressive rate, reaching 6% for properties above €550 000, plus a stamp duty of 0.8%.

Illustrative acquisition cost and monthly payment

Consider a buyer acquiring a €350 000 apartment in Lisbon’s historic centre. With an 80% LTV, the mortgage amount would be €280 000. At the reported variable rate of 3.75% and a 30‑year amortisation, the monthly principal‑and‑interest payment equals approximately €1 298.

Adding a 6% IMT on the €350 000 price (€21 000) and the 0.8% stamp duty (€2 800) raises the upfront acquisition cost to €373 800. Factoring in a typical notary and registration fee of 1% (€3 500), total cash outlay before the first mortgage payment reaches €379 300.

Future outlook and regulatory backdrop

The ECB has kept its key refinancing rate at 3.5% since June 2026, signalling a pause in monetary tightening. Portugal’s government has proposed, but not yet enacted, a temporary reduction in IMT for first‑time buyers on properties under €250 000, which could lower entry costs by up to €5 000 if approved by the end of 2027.

Should the proposal pass, lenders may respond with slightly higher LTV allowances for qualifying buyers, potentially increasing the share of mortgage‑financed purchases. Until then, investors should model cash flows using the current 80% LTV and 3.75% rate assumptions.

Related reads

• Millennium bcp profits rise 12.6% to €874 million as Portuguese banking business strengthens (Essential Business, 29 Oct 2026)
• Portugal's Millennium bcp profit rises 13% on resilient margins, lower charges (marketscreener.com, 28 Oct 2026)
• Earnings call transcript: Bank Millennium posts strong Q3 2026 profit growth (Investing.com UK, 27 Oct 2026)
• Five largest Mozambican banks post profits of almost €600,000 a day in H1 — Lusa (Club of Mozambique, 9 Sep 2026)
• Bank Millennium: Profit Up 30% Over First Nine Months, Operating Income Down (Idéal Investisseur, 27 Oct 2026)

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• Feature: Millennium bcp profits rise 12.6% to €874 million as Portuguese banking business strengthens — Essential Business. Linked, not reproduced.
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