Q3 2025 Bank Millennium SA Earnings Call Transcript
Key Points
- Bank Millennium SA (FRA:1HN) reported a net profit of PLN855 million for the first 9 months of the year, up 56% compared to the previous year.
- The bank's net interest income increased by 7% year-on-year, demonstrating resilience despite lower interest rates.
- The capital ratios improved, with a consolidated total capital ratio of 16% and a core Tier 1 ratio of 14.4%, maintaining significant buffers over regulatory requirements.
- The bank achieved a double-digit growth in corporate loans, with a 12% year-on-year increase, indicating strong performance in the corporate lending sector.
- Digital engagement is high, with over 93% of retail customers being digitally active, and the number of active digital users growing by 6%.
- Operating costs grew by 15% year-on-year, with regulatory costs contributing significantly to this increase.
- The net loan portfolio decreased by 1% year-on-year due to fast amortization of the FX mortgage portfolio and higher early prepayment rates.
- The net interest margin is trending down, standing at 3.95% in the third quarter, reflecting the impact of decreasing interest rates.
- Provisions for legal risks related to FX mortgages remain significant, with an outstanding balance of close to PLN7 billion.
- The bank faces pressure on margins in the corporate lending sector, with a noted decrease in margins year-on-year.
Good afternoon, everyone. Welcome to Bank Millennium results call. We're very happy to be starting Polish Bank's 3Q earnings season as such a strong note. With us, we have, as usual, Mr. Joao Bras Jorge, our Chairman of the Board and our CEO; and Mr. Fernando Bicho, Deputy Chairman of the Board and CFO. Fernando, over to you.
Thank you. Good afternoon. Thank you for attending this meeting. As usual, we will guide you through the presentation that we released today in the morning, highlighting the most important aspects from the financial and business performance of the bank and the Bank Millennium Group in this third quarter and first 9 months of the year. So starting with page number 5.
We reported a net profit of PLN855 million after the first 9 months of the year, up 56% versus 1 year ago. In the third quarter, we had a net profit of PLN345 million, which is higher by 82% than 1 year ago. The
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