Bank Millennium returns to solid financial results

• Bank Millennium continues to incur high costs related to foreign currency mortgage loans.
• The first quarter saw the lowest inflow of new lawsuits from customers in three years.
• The quality of the loan portfolio has not changed, which is a very good sign.

Bank Millennium’s net profit at the consolidated level in the first quarter of 2025 amounted to PLN 179.3 million, compared to PLN 128.4 million in the same period of the previous year.

This result, excluding costs related to foreign currency mortgage loans, would amount to PLN 718 million, which would mean an increase of 7 per cent year-on-year. Net interest income increased by 5.1 per cent to PLN 1,423 million and fell by 5.4 per cent quarter-on-quarter.

The year-on-year increase was the result of higher revenues, which in turn were the result of higher assets generating interest income, improved profitability of the bond portfolio and lower deposit costs - Bank Millennium said in a press release

The bank added that -The quarterly decline was largely the result of a smaller number of calendar days, a high base effect and the costs of the securitization transaction completed in December last year -.

In the first quarter, Bank Millennium concluded 515 settlements with mortgage loan holders

The fee and commission income amounted to PLN 182.5 million and was 2.9 percent lower year-on-year. The balance of provisions (excluding provisions for disputes related to foreign currency mortgage loans) amounted to PLN 96.9 million in Q1.

The bank said the quality of its loan portfolio remained virtually unchanged. The quarterly number of new settlements with mortgage borrowers in foreign currencies continued to exceed the number of newly filed claims.

In Q1, 515 such settlements were reached, compared to 603 in Q4 2024 and 1,566 in the whole of last year. The lowest quarterly inflow of new claims in three years was recorded.

Mortgage loan sales in Q1 amounted to PLN 789 million

Total quarterly costs related to the bank's foreign currency mortgage loan portfolio (provisions for legal risk, costs of amicable settlements and legal and court costs) fell by 36% QoQ and by 34% YoY to PLN 548 million before tax.

Mortgage loan sales in the first quarter amounted to PLN 789 million, compared to PLN 1.13 million in the fourth quarter of 2024, and the bank's market share in this market segment dropped to 3.3%.

The bank's main shareholder is Banco Comercial Portugues (50.10 percent). The company has been listed on the stock exchange since August 1992.