Profil:
Bank Millennium SAUPDATE: Millennium lender posts PLN 173 mln net profit in Q4 2024, above expectations
Listed lender Bank Millennium's net profit in the fourth quarter of 2024 rose to PLN 173 million (EUR 41.2 mln) from PLN 115 million (EUR 27.4 mln) in the prior year period, the bank said in its preliminary results. Net take was 114 percent above market expectations for a profit of PLN 80.9 million (EUR 19.25 mln).
Eight brokerages' expectations contained in the PAP Biznes consensus for the bank's net profit in the fourth quarter of 2024 ranged from PLN 36 million (EUR 8.56 mln) to PLN 165 million (EUR 39.25 mln).
The bank's net profit in the last quarter of 2024 rose by 50 percent year on year and fell by 9 percent quarter on quarter.
For the full year 2024, the group's net profit amounted to PLN 719 million (EUR 171 mln), up 25 percent year on year.
The bank stated that the net take for the fourth quarter of 2024 without the costs associated with the mortgage portfolio in foreign currencies would amount to a record PLN 941 million (EUR 223.86 mln).
Millennium reported that its results were influenced by the sale of non-working loans (NPL), and that the fourth quarter brought a relatively high result from such a transaction (PLN 74 million or EUR 17.6 mln).
The bank's interest rate in the fourth quarter amounted to PLN 1.505 billion (EUR 358.04 mln) and was in line with the market expectations. The PAP Biznes consensus was for nearly PLN 1.514 billion (EUR 360.18 mln). The interest rate increased by 17 percent year on year and by 1 percent quarter on quarter.
The interest margin in the last quarter of 2024 stabilised in quarterly terms at 4.4 percent.
The bank said that it reversed part of the estimated cost of the mortgage moratorium (so-called credit holidays) under the state-subsidised mortgage programme of PLN 36 million (EUR 8.56 mln) after tax.
The result from the provisions amounted to PLN 188 million (EUR 44.73 mln) against the consensus for PLN 188.8 million (EUR 44.92 mln), down by 1 percent year on year and by 5 percent quarter on quarter.
The balance of reserves amounted to PLN 66 million (EUR 15.7 mln) and was 7 percent lower than the forecasts of analysts surveyed by PAP Biznes, who expected PLN 71 million (EUR 16.9 mln).
The lender's total costs amounted to PLN 596 million (EUR 141.8 mln), in line with the market expectations for PLN 598.2 million (EUR 142.3 mln), up by 13 percent year on year and by 8 percent quarter on quarter.
Millennium said that the main driver in the increase in costs was the seasonally higher costs of legal risk.
The bank's results in the fourth quarter of 2024 were influenced by the costs associated with foreign currency mortgages.
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