Bank Millennium Group Strategy 2025 - 2028
Dear Shareholders and Investors,
I am truly excited to share with you our strategic plan for 2025-2028 titled “Strategy 2028 – Value & Growth”
Over the last few years, we successfully tackled multiple challenges including geopolitical tensions, inflation, credit holidays and negative impacts from FX mortgages. We were able to outperform most of the strategic ambitions set in our previous plan, confirming our long-standing track record of successful execution.
As we enter the new cycle, Bank Millennium has a very strong retail franchise with over 3 million active customers, a highly profitable and efficient business model based on modern and digital-first banking platform, and a solid capital position. In addition, we possess a set of distinctive capabilities that we will leverage to further accelerate our performance: a proven customer acquisition model, best in class quality of service, leading digital CX and advanced technological capabilities.
Over the next four years, we expect Poland to extend its trajectory of economic growth providing an attractive environment for banking. Lending volumes will grow at a sustained pace while the expected decrease in interest rates will generate a progressive shift from liabilities to assets as the key revenue driver for banking sector.
In this context, we will deploy an ambitious strategy. In retail banking we will continue to grow our business with the target to reach 3.7 million active customers. We will focus on delivering more value to our customers and as a result will increase substantially primary relationships.
In corporate banking we aim at doubling the scale of our business by targeting mid-corporates with a new service model and a streamlined credit process, by unlocking the full-potential of leasing and by offering a digital-first service model and dedicated value proposition to small businesses.
While pushing for growth, we will continue to apply a strong cost discipline (C/I of approximately 37 percent in 2028) and to focus on risk management (NPL ratio below 4 percent in 2028) and capital solidity. This will allow us to deliver a significant increase in profitability (ROE of approximately 18 percent in 2028) and to return to dividend distribution from 20271.
Sustainability will play a central role in our strategy as, beyond executing on our targets and commitments, we will support our customers in their transition to a low-carbon economy (PLN5 billion in sustainable finance new origination). Our strategy will also be enabled by relevant investments in our most important assets: people and technology. We will position Bank Millennium as the most attractive employer for top talents across areas strategically important for us. On the technology side, we will continue implementing innovative technological solutions, i.e. our cloud journey to become a data-driven organisation or general adoption of AI.
To summarise, our ambition is to embrace innovation, digitally delivering top-quality services, to be the primary bank for individuals and companies in Poland. I look forward to our new chapter of growth and sustainable value creation for all our stakeholders.
Joao Bras Jorge
CEO Bank Millennium