Half Year 2024 Bank Millennium SA Earnings Call Transcript
Key Points
- Bank Millennium SA (WAR:MIL) achieved a net profit of PLN357 million in the first half of 2024, maintaining the same level as the previous year.
- The bank reported strong net interest income (NII) growth, excluding the impact of credit holidays, with a 5% year-on-year increase.
- The cost-to-income ratio was adjusted to 31%, indicating high efficiency in operations.
- The bank successfully exited its recovery plan and returned to paying the banking tax, reflecting improved financial stability.
- There was significant growth in deposits, consumer loans, and investment funds, showcasing strong business performance.
- The bank faced costs related to credit holidays and the FX mortgage portfolio, which impacted profitability.
- Operating costs grew by 14% in the first half of the year, driven by a 16% increase in staff costs and a 12% rise in other administrative costs.
- The bank's net fee and commission income decreased by 3% year-on-year, primarily due to lower fees from the insurance business.
- There was a drop in the capital ratios in the second quarter, although they remained above regulatory requirements.
- The bank continues to face legal risks and provisions related to FX mortgages, with significant provisioning efforts expected to continue.
Good afternoon. Welcome to Bank Millennium Second Quarter '24 results call. With us we have Joao Bras Jorge, Chairman of the Board and CEO and Mr. Fernando Bicho, Deputy Chairman of the Board and CFO. Over to you, Fernando.
Good afternoon. Once more thank you very much for joining our quarterly results presentation. Today we are covering the second quarter and first half results. So let me start by the page number 5 of our presentation with the main achievements in the first half of 2024.
We can say that the first half of the year was marked by further improvement in core profitability and high efficiency, still very strong asset quality and liquidity and also material net profit despite the cost of the credit holidays and the costs related with the FX mortgage portfolio that were also partially offset by some positive tax impact.
We would like to stress that, of course, the second quarter was very
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