Bank Millennium in 1Q25 - good financial and business results, start of Strategy’28 Value&Growth

1Q25 was another quarter of solid performance from the operating perspective. Loan growth remained moderate (impact of fast contracting FX-mortgage portfolio) but corporate book showed early signs of recovery (+2% q/q, + 4% y/y) while origination of consumer loans reached a second best level with market share increasing to a record 13%. Liquidity surplus increased further (deposits up 2% q/q and up 6% y/y while L/D ratio reached a new low of 62%). Number of active retail clients remained in a steady uptrend (3.188 million, up 5% y/y) while volume of investment products grew 8% q/q to PLN12.0 billion.

"The first quarter of 2025 brought solid results in the Bank's retail and corporate banking. We achieved a net profit of PLN 179 million, despite the persistently high costs of the foreign currency mortgage portfolio. During this period, we offered our clients many new solutions and products, including the Millennium 360 Prestige account for affluent clients, the VISA Millennium 360 Prestige card, we added BLIK recurring payments to the mobile application, new mortgage loan management options and an educational section on cybersecurity. For corporate clients, in cooperation with BGK, we made available a new Investmax guarantee, which facilitates access to working capital and investment loans for entrepreneurs from the SME sector, with particular emphasis on micro-entrepreneurs. We achieved all this while constantly focusing on the quality of our service and positive customer experiences, for which we have been honored with industry awards. We also focused on further improving the Bank's attractiveness as an employer." – commented Joao Bras Jorge, Chairman of Bank Millennium.

On the FX-mortgage front, steady risk reduction continued. Quarterly number of new settlements with FX-mortgage borrowers continued to exceed the number of newly filed claims against the Bank. To date, settlements totalled nearly 26,000, an equivalent of 44% of the number of loan agreements active at moment of the full roll-out of amicable settlements effort. Inflow of new FX-mortgage court cases against the Bank continued to slow (<1,100 in 1Q25 against 2024 quarterly average of 1,461), the number of active claims against the Bank continued to decline while the ratio of legal risk provisions to gross active book crossed the level of 130%.

Capital ratios improved in the quarter

In 1Q25 Bank started the execution of new strategy “Millennium 2028 – Value and growth” for years 2025 – 2028. This strategy clearly defines key business directions and assumed targets. Bank monitors the execution of defined strategic targets from the very beginning.

"We have entered the new four-year strategic cycle "Value and Growth" in a strong position, aiming for dynamic growth in both the corporate and retail banking segments, supported by further digitalization and implementation of technological innovations, improvement of operational efficiency and improvement of customer experience, all while maintaining cost discipline. Bank Millennium has the ambition to be the main bank for customers, offering the highest quality of services and innovative solution." - added Chairman Joao Bras Jorge.

The results of Bank Millennium Capital Group are also available here: https://www.bankmillennium.pl/en/about-the-bank/investor-relations