However, Millennium Bank's results in 2023 remained conditional on costs related to its Swiss franc-denominated mortgage loan portfolio, which totaled 3,338 million zlotys (735.3 million euros).
Banco Comercial Português announced to the market that Millennium Bank, headquartered in Warsaw, Poland, where it holds 50.1% of the capital and which is consolidated in its accounts using the full method, recorded a profit of 576 million zlotys (126.8 million euros), which compares to -1,015 1 million zlotys in 2022 (-216.7 million euros).
Millennium Bank recorded positive results worth 115 million zlotys (26.2 million euros) in the fourth quarter of 2023, presenting positive results in the last five quarters, after two years of negative results.
However, Millennium Bank's results in 2023 remained conditional on costs related to its Swiss franc-denominated mortgage loan portfolio, which totaled 3,338 million zlotys (735.3 million euros).
BCP reports that the Polish bank's net profit for 2023, adjusted for specific items (mainly relating to charges related to the Swiss franc-denominated mortgage loan portfolio and income related to the sale of an 80% stake in Millennium Financial Services, within the scope of the strategic partnership in bancassurance) of 2,239. 1 million zlotys (493.2 million euros, excluding the effect of the exchange rate) to 2,993 million zlotys (659.3 million euros), equivalent to 34% of the variance.
In the income statement, the financial margin stands out, which increased by 57% y-o-y (excluding the impact of credit deferrals on zloty-denominated mortgage loans, +13% y-o-y and -6% in the quarter). ). Net commission revenue showed a slight decline of 3% year over year.
Operating income, excluding credit deferrals, increased by 14% year-on-year, taking into account that operating costs decreased by 5% year-on-year, excluding costs (BFG/IPS, i.e. without the contribution of IPS – Institutional Protection Fund), by 14% On an annual basis.
Regarding asset quality and liquidity, the weak credit ratio (stage three) reached 4.58%, compared to 4.45% compared to the previous year.
Cost of risk of 39 basis points in 2023 compared to 44 basis points in 2022.
In terms of liquidity and capital, Millennium Bank announced that its loan-to-deposit ratio reached 68.7%.
Capital ratios witnessed a noticeable increase, reaching 18.06% for the total capital ratio (TCR) and 14.73% for the T1 ratio, compared to 14.42% and 11.28%, respectively, in the same period.
“The capital ratios are therefore higher than the regulatory requirements (P2R, Pillar 2) of 12.21% and 9.85% respectively.”
On the balance sheet, Millennium Bank records more than 3 million active customers, an increase of 116 thousand compared to December 2022. Individual deposits also increased by 11% compared to the same period last year and individual loans decreased by 2% on an annual basis. (+5%, excluding credits denominated in foreign currency).
“New production of cash loans in 2023 of PLN 6.3 billion (EUR 1.5 billion)” represents a 16% increase year-on-year and a 9% decrease in the quarter.
The bank adds: “In December 2023, the market share of new production of housing loans reached 8.2%, and the market share of new production of cash loans reached 10.5%.”
In the corporate customer segment, there was an 8% decrease in credit granted to companies, compared to the same period last year, and a 5% increase in company deposits compared to the same period last year.
The bank highlights the 15% decline in the volume of factoring business and the 6% decline in the volume of leasing business, on an annual basis.
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