Banco Comercial Português, S.A. informs about Bank Millennium (Poland) results in 1H 2020
23 Juillet 2020 - 10:09AM
Banco Comercial Português, S.A. informs about Bank Millennium
(Poland) results in 1H 2020
Banco Comercial Português, S.A. informs
about Bank Millennium (Poland) results in 1H 2020
Banco Comercial Português, S.A. hereby
informs that Bank Millennium in Poland, in which it has a 50.1%
holding and whose accounts are fully consolidated at BCP group
level, released today its results for 1H 2020. Main highlights are
as follows:
Solid operational profitability in 1H20, affected by
integration costs and legal risk provisions
- Reported 1H20 net profit of 72 million PLN (16.2 million EUR)
and 54 million PLN (12.0 million EUR) in 2Q 2020, a y/y contraction
of 79% in 1H 2020 and 70% in 2Q20. When adjusted to extraordinary
items*, net profit of 394 million PLN (89.1 million EUR) in 1H20
and 204 million PLN (46.1 million EUR) in 2Q 2020, a y/y growth of
8% in 1H 2020 and a 14% contraction in 2Q20
- 35.3 million PLN (8.0 million EUR) of integration costs and
provisions related to Euro Bank
- 62 million PLN (14.0 million EUR) of merger synergies, well
above integration costs
- Extraordinary provisions: 168 million PLN (38.1 million EUR)
for foreign exchange (FX) mortgages legal risks, 69.3 million PLN
(15.7 million EUR) for Covid-19 related risks and 60.5 million PLN
(13.7 million EUR) for fee refunds on early repaid consumer
loans
- Reported ROE of 2.2% and Adjusted ROE of 8.7%
- Reported Cost/income ratio of 51.8% and adjusted Cost/income
ratio of 47.1%
Higher operating income and costs influenced by the
merger of Euro Bank
- Operating income grew 14% y/y
- Net interest income grew 23% y/y
- Net commission income grew 10% y/y
- Operating costs grew 21% y/y, excluding integration costs (22%,
including integration costs), and decreased 8% q/q (excluding
integration and Bank Guarantee Fund costs)
High asset quality and liquidity kept
- Impaired loans (stage 3) ratio at 4.9%
- Cost of Risk** at 98 b.p. (79 b.p., excluding Covid-19 related
provisions)
- Loans to deposits ratio at a record low of 83%
Solid capital position and lower regulatory
buffers
- Group’s Total Capital Ratio (TCR) at 20.0%, and CET1 ratio at
17.0%, comfortably above requirements (15.4% and 12.2%,
respectively)
- Systemic risk buffer down to 0%, from 3%, in March 2020
Retail business
- 2.62 million active Clients, a 34% y/y growth. +45,600 new
Clients YTD, with #2 score in new Clients acquisition in 1Q20
(PRnews)
- Deposits grew 10% y/y
- Loans grew 8% y/y (12%, excluding FX mortgages)
- New record high of 1.5 billion PLN (338 million EUR) in
mortgages loans origination in 2Q20, 2.9 billion PLN (653 million
EUR) in 1H20, a 50% y/y growth. This translates in a 10% y/y growth
of the mortgage loan book (17%, excluding FX mortgages)
- 2.4 billion PLN (540 million EUR) in cash loans origination in
1H20, a 4% y/y growth. 1.1 billion PLN (248 million EUR) in 2Q20, a
17% y/y and q/q decrease. This translates in a 2% y/y growth of the
non-mortgage retail loan book
- Market share of mortgages new production of 11.1% in 1H20, with
a 15.8% market share in June (#2)
- Accelerating the new microbusiness accounts acquisition pace,
almost 23 thousand net growth of active accounts, y/y
- Number of active microbusiness clients exceeded 100,000 (a 29%
y/y growth)
Companies business
- Companies’ deposits grew 13% q/q (19% y/y) with current account
deposits growing 25% q/q (77% y/y)
- Loans to companies decreased 4% q/q, stable y/y
- Factoring turnover stable y/y, with #6 ranking (PZF)
Quality and Innovations
- DGP/PwC’s “Stars of Banking in 2020”: 1st in the “Growth Star”
category, 2nd in the “Customer Relationship” category, 3rd for
overall achievement in the competition’s main category and in the
“Star of Innovation” category
- Golden Banker 2020: main award in the category “Fin-Tech
Innovation” for the implementation of the Autopay service (in
cooperation with Blue Media), 2nd place in the “Mortgage Loan”
category
- KPMG’s Customer Experience survey: Best in Customer Experience
among Polish banks
- Highest NPS ratio*** (52) among Polish banks
- Best Web Site Design in Central and Eastern Europe according to
Global Finance
- 1.8 million downloads of the Millennium Goodie app –
smartshopping platform
(*) without extraordinary items (pre-tax): in 1H20: 1)
integration costs: PLN 35.3 million (8.0 million EUR), 2) PLN 168
million (38.1 million EUR) provisions for FX mortgage legal risk,
3) PLN 69.3 million (15.7 million EUR) for Covid-19 related risk,
4) PLN 60.5 million (13.7 million EUR) provisions for the return of
commissions from loans repaid earlier by clients, 5) linear
distribution of BFG resolution fund fee of PLN 58.2mn (13.2 million
EUR); in 1H19: 1) integration costs: PLN 19.8 million (4.5 million
EUR), 2) PLN 26.9 million (6.1 million EUR) release of tax asset
provision, 3) acquisition related extra provisions for Euro Bank of
PLN 80.6 million (18.2 million EUR), 4) linear distribution of BFG
resolution fund fee of PLN 73.3mn (16.6 million EUR)
(**) total net provisions (including FV adjustment and
modification effect) to average gross loans, without extra IFRS9
provisions on Euro Bank acquired portfolio and without provisions
on FX mortgage legal risk
(***) based on ARC Opinia i Rynek survey
End of announcementBanco Comercial
Português, S.A.
- Resultados Polónia 1S20 EN
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