Raport skonsolidowany Bank Millennium S.A. za I kwartał 2025

The consolidated report for the 1st quarter of 2025 from Bank Millennium S.A. Capital Group presents a mixed financial performance with notable growth in certain areas and challenges in others. Below is a detailed analysis of the key financial metrics and strategic developments.

• Net Profit: PLN179.3m, a 40% increase y/y.
• Return on Equity (ROE): 9.1% annualized.
• Adjusted Net Profit: PLN718m, a 7% increase y/y (excluding FX mortgage costs).
• Interest Income: PLN2.27bn, a 5% increase y/y.
• Net Commission Income: PLN183m, a 9% decrease y/y.
• Operating Costs: PLN668m, a 12% increase y/y, driven by higher BFG fees.
• Cost/Income Ratio: 41.1% (reported), 34.5% (adjusted).
• Impairment Provisions: PLN87m, a 28% decrease y/y.
• Loans: Net PLN74.54bn, a 1% increase y/y; excluding FX mortgages, a 3% increase y/y.
• Deposits: PLN119.4bn, a 6% increase y/y.
• Investment Products AuM: PLN12bn, an 8% increase q/q.
• Capital Ratios: TCR 17.34%, CET1 15.15%, leverage 4.77%.
• Liquidity: LCR 418%, liquid assets 41% of total assets.

Strategic initiatives include the launch of the "Millennium 2028 – Value and Growth" strategy, focusing on digitalization and product innovation. New products such as BLIK recurrent payments and the Millennium 360 Prestige account were introduced in 1Q25.

Despite the positive financial performance, the bank faces ongoing challenges with its FX mortgage portfolio, which remains a significant business risk. Legal risks and provisions are substantial but are showing a declining trend both quarterly and yearly.

The bank's share price has increased by 59% YTD, outperforming the WIG Banks index. Moody's upgraded the bank's ratings on 10 April 2025 to Baa2/P-2 with a positive outlook, reflecting the bank's strong capital and liquidity positions.

Overall, Bank Millennium S.A. is well-positioned with strong capital buffers and a focus on strategic growth initiatives, although it must continue to manage the risks associated with its FX mortgage portfolio carefully.