Half Year 2026 Bank Millennium SA Earnings Call Transcript
Key Points
- Net profit surged 39% year-on-year to PLN708 million in H1 2026, driven by resilient net interest income and lower FX mortgage costs.
- Total net loans grew 10% year-on-year to a record PLN81 billion, with corporate financing up 32% and mortgage disbursements nearly tripling.
- Customer deposits increased 16% year-on-year, with retail active clients reaching 3.354 million, supported by a 94% digital adoption rate.
- Credit quality improved significantly, with the NPL ratio hitting an all-time low of 3.4% and the coverage ratio rising to 82%.
- Capital position remained robust, with a total capital ratio of 17.1% and Tier 1 ratio of 16.1%, providing ample buffers for future growth.
- Net interest margin compressed to 3.4% in Q2 2026 due to lower interest rates and margin pressure in corporate lending.
- Operating costs grew 9% year-on-year in H1 2026, though decelerating, still reflecting high single-digit growth from strategic investments.
- Consumer loan legal risks emerged after an ECJ ruling, leading to a PLN61 million provision and a PLN35 million NII adjustment, with uncertain future impacts.
- Corporate loan spreads faced significant compression amid competitive market conditions, pressuring profitability in that segment.
- The regulatory and political environment in Poland remained challenging, with concerns over rule of law and potential tax changes adding uncertainty.
Good afternoon, everyone. Welcome to Bank Millennium second quarter/first half '26 results. As usual, with us, we have Mr. João Bras Jorge, our CEO; Fernando Bicho, Deputy Chairman of the Board and CFO. My name is Dariusz Górski. I'm Head of Investor Relations. The structure will probably be similar to what we did in the past. First, João will guide you through our business achievements, and there's a lot to talk about. It's been a very strong quarter for us. Fernando will follow with details of financial results, and after that, we will be ready to take your questions.
Gentlemen?
Good afternoon and thank you very much for your participation. We will have just one slide before Fernando go into more financial and operational details. In the fall of 2024, we present our strategy value and growth. And in that strategy, we explained that we would like to increase the volumes of the credits of the bank,
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