Bank Millennium reports good financial and business results 4Q24/2024 and successfully completes 2022-24 strategic goals

Bank Millennium Capital Group reported net profit of PLN173 million in 4Q24 and PLN719 million in 2024 overall (up 25% y/y). Translating into annualised 9% ROE in the quarter (full year 2024: 9.8%), this solid quarterly result was achieved despite continued elevated costs related to FX-mortgage portfolio (PLN768 million after tax).

4Q24 was another quarter of solid performance from the operating perspective. Loan growth remained moderate (impact of fast contracting FX-mortgage portfolio) but corporate book showed early signs of recovery (+1% q/q, + 5% y/y). Liquidity surplus increased further (deposits up 3% q/q and up 9% y/y while L/D ratio reached a new low of 64%) which, combined with lowered deposit pricing translated into further growth of NII (+1% q/q, +5% y/y) and NIM. Number of active retail clients remained in a steady uptrend (3.148 million, up 5% y/y) while volume of investment products grew 5% q/q to PLN11.1 billion.

The fourth quarter and entire 2024 was a solid period for the Bank's retail and corporate activities. We ended the year with PLN 719 million net profit, despite the persistently high costs of the foreign currency mortgage portfolio. During fourth quarter we reached number of important milestones – steady growth of active retail clients to the level of 3 148 thsd of which 92% are digitally active, increases in cash loans by 11% y/y, mortgage by 22% y/y and leasing by 25% y/y. We also implemented new solutions for our customers, such as currency exchange on the mobile app; organized services and refreshed product pages in the app, introduced a new BNPL (buy now, pay later) service. For customers of corporate banking we extended product offer, developed cooperation with KUKE and BGK as well as continued to digitalise service. All the above was achieved with constant attention to the quality of our service and positive customer experience for which we have been recognized with sector awards. We also focused on further improving attractiveness as an employer. – Joao Bras Jorge, Chairman of Bank Millennium commented on the results.

The Bank is highly focused on reduction of its FX-mortgage portfolio and the related risk and therefore continues to actively offer its customers amicable solutions regarding FX-mortgages on negotiated terms. The number of amicable settlements reached 1,261 in 4Q24 (2024: 4,458), significantly more than in the preceding quarter and again exceeding the number of new cases filed against the Bank. Nearly 26,000 amicable settlements were reached since early 2020 when a more intensive effort started. These represent over 42% of the number of active FX-mortgage agreements at the start of the effort. As a result of these negotiations, final court verdicts and other natural drivers, in 4Q24 the number of active FX-mortgage loans decreased by 2,134 (2024: 7,852) to 24,573, following the 2,052 drop in 3Q24 and 5,586 in 2003 overall.

Summarizing the presentation of the results for the fourth quarter of 2024, Joao Bras Jorge said: 4Q2024 was also the last quarter of the 2022-2024 Bank Millennium strategy “Inspired by people”, which Bank completed successfully. For me personally it is very important to look back and summarise what we have planned and what we have achieved. I am pleased to say that majority of ambitions we outperformed and delivered most ahead of the plan e.g. we exceeded 3 million retail active clients, share of digital clients above 90%, share of FX mortgage in all loans dropped to the level of 8%. We enter the new four-year strategic cycle “Value and Growth” from a strong position, aiming at dynamic growth in both the corporate and retail banking segments, supported by further digitization and implementation of technological innovations, improved operational efficiency and enhanced customer experience, all while maintaining cost discipline. Bank Millennium has the ambition to be the primary bank for its clients, offering customers the highest quality of services and innovative solutions.

The results of Bank Millennium Capital Group are also available here: https://www.bankmillennium.pl/en/about-the-bank/investor-relations