The Bank Millenium Capital Group S.A. reported a net profit of 190 million PLN in the third quarter of 2024 and 547 million PLN in the first nine months of 2024. This substantial result was achieved despite persistently high costs related to the portfolio of foreign currency mortgage loans and the full impact of the banking tax.
The third quarter of 2024 marked another solid period in terms of operational activity. Loan growth started to accelerate (+1% QoQ and +3% YoY, but +2% and +5% respectively, omitting the quickly shrinking portfolio of foreign currency mortgage loans) with cash loan approvals nearing a record level of 2 billion PLN. Liquidity surplus remained strong despite reduced deposit interest rates, supporting net interest income (NII). The third quarter 2024 figure for net interest income, excluding credit holidays, grew by 5% QoQ and by 5% YoY (adjusted net interest income for 9M 2024 would have grown by 5% YoY). The number of active retail customers continued to grow (3.12 million, a 5% YoY increase), and the value of investment products grew by 9% QoQ to 10.5 billion PLN.
“The third quarter of 2024 was another solid period for the bank’s operational activity. We ended it with a net profit of 190 million PLN, despite the persistently high costs of the portfolio of foreign currency mortgage loans and the full impact of the banking tax. The pace of credit granting increased; we placed our first green bonds with a nominal value of 500 million Euro; we expanded our cooperation with the Polish Development Bank, enabling small and medium-sized enterprise clients to benefit from new Investmax guarantees. We also refreshed the design of our mobile app for retail customers and introduced the option to use the mSzafir mobile signature to confirm identity. We reached agreements with an additional 1,081 Swiss franc mortgage borrowers, bringing the total since the start of the program to 24,600 agreements.” commented the results João Brás Jorge, CEO of Bank Millenium.
In the portfolio of foreign currency mortgage loans, systematic risk reduction continued. The quarterly number of new amicable agreements with holders of foreign currency mortgage loans remained above 1,000. So far, 24,600 agreements have been concluded, which constitutes the equivalent of 40% of the number of credit agreements active at the time of full launch of the settlement offer. The influx of new claims related to foreign currency mortgage loans against the Bank decreased below 1,500 cases, with an increasing share of claims concerning repaid loans (19% of the number of all active claims), while the reserves ratio for legal risk to the active gross portfolio exceeded the level of 110%.
Last but not least, capital ratios and MREL significantly improved, with excess T1/TCR ratios rising to over 5 percentage points and excess MREL ratio trea to almost 8 percentage points.
In summarizing the Q3 2024 results, João Brás Jorge said: “We are in the final phase of implementing the current 2022-2024 strategy ‘People inspire us’. We are pleased that in many cases we managed to achieve the set objectives ahead of schedule. The positive growth trend in business means that we will enter the new strategic cycle from a strong position, paving the way to address new challenges in the final quarter. We set ambitious goals together with the new ‘Strategy 2028 – Value and Growth’ strategy.”
Source: https://ceo.com.pl/wyniki-finansowe-i-biznesowe-grupy-kapitalowej-banku-millennium-w-3-kw-2024-r-49735
