Banco Comercial Português, S.A. informs about Bank Millennium (Poland) results in 2019
February 03 2020 - 4:17AM
Banco Comercial Português, S.A. informs about Bank Millennium
(Poland) results in 2019
Banco Comercial Português, S.A. hereby informs
that Bank Millennium in Poland, in which it has a 50.1% holding and
whose accounts are fully consolidated at BCP group level, released
today its results for 2019. Main highlights are as follows:
Solid operational profitability affected by Euro Bank
acquisition and legal risk provisions
- Net profit reached 561 million PLN (130.6 million EUR) in 2019,
a 26% decrease y/y and a 17% increase y/y, when adjusted to
one-offs
- 205 million PLN (47.7 million EUR) of integration and
provisions costs related to Euro Bank
- 223 million PLN (51.9 million EUR) of provisions related to
foreign exchange (FX) mortgages legal risks
- Net profit reached 27 million PLN (6.3 million EUR) in the
4Q19, or 274 million PLN (63.8 million EUR) when adjusted to
extraordinary itens
- Adjusted* ROE of 10.2% and Cost/income ratio of 47.4%
Operating income and costs influenced by the acquisition
and merger of Euro Bank
- Operating income grew 27% y/y
- Net interest income grew 33% y/y
- Operating costs grew 36% y/y, (28%, excluding integration
costs)
- Reserve for cash loans fees returns after European Court of
Justice (ECJ) ruling: 66 million PLN (15.4 million EUR)
High asset quality and liquidity kept
- Impaired loans (stage 3) ratio at 4.56%
- Adjusted cost of Risk* at 57 b.p.
- Loans to deposits ratio at 86%
Solid capital position and lower regulatory
buffers
- Group’s Total Capital Ratio (TCR) at 20.1%, and CET1 ratio at
16.9% after incorporating full 1H 2019 year profits
- Reduction by the KNF of the FX mortgage related Pillar 2 buffer
to 4.9% and dividend related Stress Test buffer to 3%
- The Management Board will recommend to the AGM the full
retention of 2019 net profits
Retail business
- 2.6 million active clients, a 40% y/y growth, +494 thousand
clients due to the Euro Bank acquisition and +240 thousand due to
organic growth
- Deposits grew 28% y/y (10%, excluding Euro Bank)
- Loans grew 44% y/y (9%, excluding Euro Bank)
- Over 4 billion PLN (941 million EUR) in cash loans and
mortgages sales, with high y/y growth rates: 28% and 26%,
respectively
- Cash loans sales in the the 4Q19 affected by the Euro Bank
migration and adjustment of the risk appetite and price
- Doubling of the new microbusiness accounts acquisition pace
(26% opened online), in 2019
- 89 thousand microbusiness clients, at the end of 2019
Companies business
- Current accounts volumes grew 19% y/y
- Growth of loans to companies: 7% y/y, which means a 1.2 billion
PLN (282 million EUR) y/y increase
- Growth in factoring sales of 6.5% y/y
- Growing number and volume of transactions in corporate
business
Quality and Innovations
- Highest NPS ratio** (52) among Polish banks
- Best Web Site Design in Central and Eastern Europe, according
to Global Finance
- 1.5 million downloads of the Millennium Goodie app –
smartshopping platform
(*) total net provisions (including the Fair Value
adjustment and modification effect) to average net loans, without
extra IFRS9 provisions on Euro Bank acquired portfolio and on CHF
mortgages legal risks.
(**) based on ARC Opinia i Rynek survey
End of announcement
Banco Comercial Português, S.A.
- Resultados Polónia 2019 EN
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