Preliminary Q4 2025 Bank Millennium SA Earnings Call Transcript
Key Points
- Bank Millennium SA (STU:1HN) achieved a record net profit of PLN 1.202 billion in 2025, marking a 67% year-on-year growth.
- The return on equity improved to 14.3%, supported by resilient net interest income despite a lower interest rate environment.
- The non-performing loan ratio fell below 4% to 3.8%, meeting the targets set in the 2028 strategy.
- The bank's capital ratios remained solid, with a total capital ratio of 15.1% and Tier 1 at 13.7%, not yet including the second half 2025 net profit.
- Customer acquisition and digitalization efforts were strong, with 3.27 million active retail customers and 93.7% being digitally active.
- The net interest margin (NIM) decreased to 3.78% in the fourth quarter, reflecting the impact of interest rate cuts.
- The cost-to-income ratio increased to 36.9% on a reported basis, influenced by cost pressures and a lower interest rate environment.
- Staff costs grew by 13% year-on-year, partly due to an increase in the number of employees.
- The bank faced a high effective tax rate of 26% for the full year, with expectations of it rising to around 40% in 2026.
- Provisions for FX mortgage-related costs remained significant, with a 34% year-on-year drop in pre-tax costs but still a notable expense.
Good afternoon. Welcome to Bank Millennium 4Q 2025 results call. As usual, with us, we have Joao Bras Jorge, our CEO and Chairman of the Board; and Mr. Fernando Bicho, CFO and Deputy Chairman of the Board. My name is Dariusz Górski, I'm Head of IR.
Also have two more inferior functions, 1 is to manage the traffic. (Operator Instructions) And secondly, also I'm also, let's say, a caretaker of compliance, so to speak.
So I would like to remind everyone that we are presenting today preliminary non-audited results we're certain the process of audits. So things can change, obviously, not abruptly and not, let's say, revolutionary, but still some numbers may be different. So please note and take that into account. Thank you very much, Fernando, over to you.
Thank you, good afternoon. Thank you very much for joining this call. We will go through a brief summary of our fourth quarter and
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