Profil:
Bank Millennium SABank Millennium posts PLN 189.8 mln net profit in Q3 2024, above expectations
Listed lender Bank Millennium posted PLN 189.8 million (EUR 43.7 mln) attributable net profit in the third quarter of 2024, up from PLN 102.7 million (EUR 23.6 mln) in the prior year period, the bank said in its consolidated financial report. The net take was 32 percent above the market expectations for PLN 143.5 million (EUR 33 mln).
Six sell-side analysts' expectations for the bank's net profit in the third quarter of 2024, included in the PAP Biznes consensus, ranged from PLN 113.4 million (EUR 26.1 mln) to PLN 212 million (EUR 48.8 mln).
The cost of legal risk provisions for foreign currency mortgages amounted to PLN 532.8 million (EUR 122.54 mln). The bank previously reported that it estimated the provision for legal risk on foreign currency mortgages at PLN 470 million (EUR 108.1 mln).
In the three quarters of 2024, Bank Millennium's group net profit rose to PLN 546.7 million (EUR 125.74 mln) from PLN 460.6 million (EUR 105.94 mln) a year earlier.
The bank's interest income amounted to nearly PLN 1.49 billion (EUR 342.7 mln), 2 percent above expectations as the PAP Biznes consensus was for nearly PLN 1.46 billion (EUR 335.8 mln). The interest result grew by 9 percent year on year and by 26 percent quarter on quarter.
In the third quarter of 2024, the estimated PLN 44 million (EUR 10.1 mln) cost of mortgage moratorium under the state-subsidised mortgage programme for borrowers with PLN mortgages was reversed.
Net interest income adjusted for the cost of mortgage moratorium increased by 5 percent quarter on quarter and reached a new record high.
The quarterly interest margin (NIM) widened to 439 basis points, from 428 basis points in the previous quarter, which was mainly due to the lower cost of deposits.
Net fee and commission income, on the other hand, came in at PLN 198.6 million (EUR 45.7 mln) against consensus of PLN 197.8 million (EUR 45.5 mln), up 6 percent year on year and by 4 percent quarter on quarter.
The balance of provisions (excluding provisions for foreign currency mortgage litigation), amounted to PLN 158.1 million (EUR 36.4 mln), 19 percent higher than the forecasts of analysts surveyed by PAP Biznes, who had expected PLN 133.2 million (EUR 30.6 mln).
The bank returned to paying bank tax in the second quarter of 2024 (a charge of PLN 35 million or EUR 8.1 mln in June), while the third quarter brought a full quarterly charge of PLN 99 million (EUR 22.8 mln).
seb/ ao/
