Bank Millennium S.A., held by BCP in Poland, had losses of 181.2 million euros in the first nine months of the year, according to data communicated to the Portuguese Securities Market Commission (CMVM).
In a statement sent to the CMVM, Banco Comercial Português SA, which holds 50.1% of the capital of Bank Millennium SA, explains that the result was “influenced by provisions related to legal risks associated with the portfolio of mortgage loans granted in foreign currency in the amount a total of 1,573 million zlotys (346.3 million euros).
Of this total of mortgage loans granted in foreign currency, 1,424 million zlotys (313.5 million euros) are attributable to the mortgage loan portfolio granted by the Bank and 149 million zlotys (32.8 million euros) are related to the portfolio of the Euro Bank. According to the note, excluding provisions and other costs related to the portfolio of mortgage loans granted in foreign currency, net income reached PLN 803 million (176.7 million euros) in the first nine months of the year, an increase of 51.5 %.
BCP explains that provisions related to legal risks associated with loans granted in foreign currency amounted in the first months of the year to 1,424 million zlotys (313.5 million euros), excluding loans originated by the Euro Bank, “increasing the level of accrued provisions for 20.3% of the value of the mortgage loan portfolio granted in foreign currency by Bank Millennium”.
The bank also says that the new production of mortgage credit reached 7.0 billion zlotys (1.5 billion euros), an increase of 50% in year-on-year terms, while ‘cash loans’ increased 20% in homologous terms.
The statement also mentions that, in the first nine months of the year, operating income decreased by 1.2%, year-on-year, while net interest income fell by 0.6%, year-on-year, “reflecting the impact of the reduction in interest rates in 2020”, and that commissions increased by 11.3% compared to the same period of the previous year. Operating costs decreased by 9.5% year-on-year due to “lower costs related to regulatory contributions and cost-cutting initiatives”.
In the retail area, Bank Millennium SA saw an increase in the number of active customers, which now stand at 2.66 million, while deposits rose by 4.9% year-on-year and retail credit rose by 7.2% (18.6 %, excluding mortgage credit granted in foreign currency). The bank set a new record in the production of cash loans in the 3rd quarter of 2021 of 1.6 billion zlotys (0.3 billion euros), an increase of 30% year-on-year and 20% in the new production of cash loans in the first nine months of the year.
The information sent to the CMVM also indicates that the market share in the new production of mortgage loans in the first nine months of the year is 12.2% and that the number of active microenterprise customers rose by 9,000, year-on-year, exceeding 111 .5 thousand.