Bank Millennium has announced a new strategy for 2025-2028. The “2028 Strategy – Value and Growth” aims for rapid expansion in both corporate and retail banking segments.
The key objectives for 2028 include: doubling the credit portfolio in the corporate banking segment to a level above 25 billion PLN, increasing the number of retail customers to 3.7 million, and achieving a return on equity (i.e., ROE) of approximately 18%. The bank plan to reach these goals through various business initiatives supported by further digitization and technological innovation, improving operational efficiency and enhancing the customer experience, all while maintaining cost discipline. Bank Millennium aspires to be the bank of first choice, offering clients top quality services and innovative solutions.
- The bank is entering a new strategic cycle with a strong position in retail banking, it has over 3 million active customers, a profitable business model and a robust capital position.
- The bank predicts improvement in the macroeconomic situation – forecasting stable GDP growth, low unemployment, growth in disposable income and decrease in interest rates.
- In the corporate banking segment, the goal is to double the loan portfolio (to over 25 billion PLN) and increase the number of customers to over 50,000, due to an improved customer service and support model, the development of credit product offerings (e.g., investment loans, leasing, factoring), and the simplification of loan application and disbursement processes.
- In the retail banking segment, the bank plans to increase the number of customers to 3.7 million and be the bank of first choice for 70% of them. This will be achieved through improved customer service (NPS), expansion of product offerings (particularly investment and savings products) and further digitization.
- The bank intends to achieve a return on equity of approximately 18% in 2028 while maintaining cost discipline (cost-to-income ratio of approximately 37%) and a low level of risky loans below 4%. The reinstatement of the dividend payout is planned from 2027, subject to a favorable regulatory environment.
“We are entering a new strategic cycle from a strong position and are ready to open another chapter of dynamic growth and innovation. Our goal is to be the bank of first choice for individual and business customers in Poland. We create innovations by offering more and more digital services, without forgetting the need to develop omnichannel processes at the highest level. The ‘Value and Growth’ strategy underscores our commitment to creating value through business growth. The motto also reflects a customer-centric approach in actions for consumers. Every day we deliver valuable services, supporting the development and aspirations of customers, not only business but also personal. As an organization promoting employee professional development and focusing on key business objectives, we are well prepared to achieve significant successes and generate growth and value for shareholders. “ says Joao Bras Jorge, President of the Board of Bank Millennium.
Entry into a new strategic cycle
The strategy is based on past achievements and focuses on further dynamic development of the bank and increasing its value. Over the past few years, Bank Millennium effectively addressed numerous challenges, such as geopolitical tensions, inflation, credit holidays, and negative effects of foreign currency loans. Despite this, it achieved the objectives set out in the previous strategy, many of them well ahead of the planned time, confirming its ability to implement ambitious plans.
Bank Millennium is entering a new strategic cycle with a strong position in retail banking. It serves over 3 million active customers, has a profitable business model, and a stable capital position. It intends to further utilize the competitive advantages developed, such as a proven customer acquisition model, high quality of service, and advanced digital technologies, to accelerate growth.
Expected macroeconomic changes and their impact on the banking sector
Bank Millennium’s macroeconomic office forecasts for the Polish economy for the years 2024-2028 are optimistic – stable GDP growth, low unemployment, growth in disposable income, and interest rates stabilizing at around 3.5% are expected. The banking sector is characterized by strong capital indicators and high liquidity. In the strategic period, the bank expects high volume market growth in the retail and corporate banking segments, particularly in the area of corporate loans. Bank Millennium is perfectly prepared to leverage new development opportunities.
Ambitions for 2028
Through expansion in two main segments, the bank plans to increase profitability with a return on equity of approximately 18% and a cost-to-income ratio of approximately 37%. It intends to achieve this by actively managing risk, keeping the level of risky loans low, below 4%. It also aims to strengthen its capital position and resume dividend payout from 2027(year conditioned by the regulatory environment).
Goals in the corporate banking segment
As part of the new strategy, the bank plans to strengthen its position in the medium and large enterprise segment. The goal is to increase the customer base from about 9,000 to 17,000 by offering them tailored credit products (leasing, factoring, and investment loans). In addition, the bank aims to increase the number of corporate customers for whom it is the main bank. It will achieve this by further enhancing the customer experience (maintaining a position in the top three best banks in NPS rankings), digitization, and using advanced data analytics in decision-making processes. It will also introduce an improved sales and service model and simplify the loan application and disbursement process. The bank also plans to more effectively support the development of small businesses and increase their number in its customer portfolio from 21,000 to over 33,000, by providing more flexible solutions adapted to their needs and changing their service model.
Goals in the retail banking segment
The retail banking strategy assumes dynamic growth and an increase in the number of retail customers from 3 million to 3.7 million. The bank wants to have over 95% of customers active digitally and to be the main bank for 70% of customers. The goals will be achieved by maintaining a leading position in terms of customer service quality (strengthening a position in the top three best banks in NPS rankings) and through further digitization and the implementation of new technological solutions (e.g., sophisticated hyper-personalization). In addition, the bank plans to develop its offer, especially in the area of investment and savings products, and focus on the needs of specific customer groups, including wealthy clients and SOHO (one-person businesses).
Key factors to support further growth
The new growth strategy is supported by five key elements. Investing in new technologies, that is strengthening existing systems in line with strategic priorities, development of artificial intelligence and cloud technologies. Improving the operational model and efficiency, that is automation of processes and faster delivery of products and services. Compliance and risk management, that is continuous minimization of legal and credit risks. Building on the foundations established in the current strategy, we plan to further achieve our sustainable development objectives, such as carbon neutrality by 2030 and net-zero emissions by 2050, social engagement, and supporting our customers’ green transformation by providing 5 billion PLN for the financing of sustainable projects.
Bank Millennium’s HR strategy focuses on talent development, supporting the key directions of the business strategy, increasing the attractiveness of the bank as a place to work (further strengthening the “Top Employer” position), and maintaining a competitive salary policy. It will also be important to adapt the organizational culture to the changes introduced by the new strategy and further digitize HR processes to improve employee experiences.
Bank ready for a new era of growth and innovation
Bank Millennium has proven that it can function under difficult conditions. Now it is ready for another chapter of dynamic growth and innovation. The economic prospects of Poland create an attractive backdrop for further expansion. Bank Millennium wants to take advantage of the opportunities offered by the changing environment and strengthen its position in both the retail and corporate banking segments. A focus on innovation, digital transformation, and the customer experience will drive growth. While striving for expansion, the bank will maintain strong cost discipline and focus on risk management and maintaining capital stability, which will provide a solid financial foundation and allow for significant profitability growth.
Source: https://ceo.com.pl/bank-millennium-prezentuje-strategie-rozwoju-do-roku-2028
