Millennium bcp Reports 26% Profit Surge on Strong Margins and Polish Recovery
First-Quarter Financial Results and Key Drivers
Profit Growth and Executive Commentary
LISBON, May 6 (Reuters) - Portugal's largest listed lender Millennium bcp on Wednesday reported a larger-than-expected rise in first-quarter net consolidated profit of nearly 26%, driven by a stronger net interest margin and lower provisions at its Polish unit.
“We are confident in our ability to continue to grow and deliver results,” Chief Executive Miguel Maya told a news conference, adding that despite a challenging quarter the bank remained in a solid position, with return on equity rising to 15.9% from 13.9% a year earlier.
Net Profit and Domestic Performance
It posted a net profit of 305.8 million euros ($359 million), above the average forecast of 208 million in an LSEG poll of analysts, as net income at its domestic business rose by 21.2% to 265.4 million euros.
Polish Subsidiary and Net Interest Income
Net profit at its half-owned Polish subsidiary Bank Millennium rose 68% to 71 million euros, on the back of lower charges related to its Swiss franc mortgage portfolio, while consolidated net interest income (NII) rose 2.4% to 738.4 million euros in the first three months of the year.
Fees, Commissions, and Trading Income
Additionally, BCP's fees and commissions rose 8.2% from a year ago to 218 million euros, while trading income increased to 49.8 million euros from 29.5 million euros a year earlier.
Loan Growth and Asset Quality
Customer loans rose 7.2% to 63.4 billion euros, and non-performing exposures declined 14% to 1.48 billion euros.
Its cost‑to‑income ratio fell to 36.0% from 37.4%.
Shareholder Structure and Strategic Outlook
Major Shareholders
The bank’s largest shareholder is China’s Fosun International, with a 20% stake, followed by Angola’s state oil company Sonangol with 19.5%.
Comments on Shareholder Changes
Maya declined to comment on reports about a potential exit by Fosun, saying: “Our focus is on growing the bank.”
“The bank is in excellent health and has the capacity to generate value and attract shareholders,” he added.
Exchange Rate and Reporting Credits
($1 = 0.8511 euros)
(Reporting by Sergio Goncalves; editing by Andrei Khalip, Kirsten Donovan)
