A statement issued today to the Portuguese Securities Market Commission (CMVM) by Millennium BCP notes that the results continued to be “affected by the charges related to the portfolio of mortgage loans denominated in Swiss francs, particularly with provisions for the legal risk of loans denominated in Swiss francs.”
These credits totaled 1.019 million zlotys before taxes in the first half of the year (241.5 million euros, including 23.3 million euros related to the portfolio of mortgage loans denominated in Swiss francs from Euro Bank).
The bank also cites “the costs with the banking sector levy (‘banking tax’), which amounted to 200 million zlotys (47.4 million euros),” as impacting the results up to June.
When adjusted for specific items, notably those associated with charges related to the portfolio of mortgage loans denominated in Swiss francs, the net income of Bank Millennium for the first six months of the year increased by 7%, from 1.501 million zlotys (348.8 million euros) in the same period the previous year to 1.605 million zlotys (380.3 million euros).
In the period under review, compared to the same period in 2024, the Polish bank’s financial margin rose by 13%, while net commissions fell by 5%.
Operating costs increased by 15% (11% if regulatory contributions related to the Banking Guarantee Fund (BFG) are excluded), while core revenues rose by 11% and operating income grew by 14%.
The impaired loan ratio (‘Stage 3’) was set at 4.2% in the first semester, compared to 4.5% in the first semester of the previous year, with the cost of risk at 21 basis points, compared to 50 basis points in the same period the previous year, and the loans-to-deposits ratio at 61.0%.
The results released today further indicate that, in June, the Common Equity Tier 1 (CET1) capital ratio of Bank Millennium was 13.8% and the total capital ratio was 15.6% (15.0% and 16.8% on a pro forma basis, respectively), above the regulatory requirements of 7.25% and 10.75%.
At the end of the first half, Bank Millennium had approximately 3.1 million active customers (an increase of 132,000 year-on-year), with household resources increasing by 12% and household loans decreasing by 3% (-1% excluding loans denominated in foreign currency).
Meanwhile, corporate credit rose by 7%, the factoring business volume grew by 3%, and the leasing business increased by 4%.
