Annual General Meeting of Shareholders of Bank Millennium

Joao Bras Jorge, Chairman of Bank Millennium, summarised the results of the Bank Millennium Group and the impact of the macroeconomic environment on the Group’s activity in 2025. “Despite significant geopolitical challenges, the Polish economy remained very strong and continued to grow. In 2024, GDP increased by 3% and in 2025 by 3.6%, while economists forecast GDP growth of 3.8% in 2026, which suggests that investment activity may strengthen this year. According to forecasts, unemployment will remain at the same low level and, although wage growth will be lower, it will still exceed inflation. As a result, real incomes continue to rise, which is an important factor in the performance of the Bank’s loan portfolio. In 2025, the interest rate was reduced by 175 basis points, which affected banks’ profitability — it currently stands at 3.75%, and we forecast that it will remain at this level until the end of 2026. In 2025, deposits in the banking sector as a whole increased by 9.5% year on year, while loans rose by 5.7% year on year, including a strong 9% year on year increase in corporate lending.

Over the past five years, the Bank has recorded a significant increase in adjusted results, driven by business development, higher volumes and the high interest rate environment, which supported profitability. After two years of losses in 2021 and 2022, the Bank has been generating positive net profit since 2023, despite the high costs related to the legacy Swiss franc mortgage portfolio. In 2025, the Bank Millennium Group generated a net profit of PLN 1,202 million, representing a 67% year on year increase, with a return on equity (ROE) of 14.3%. The year was characterised by a limited number of extraordinary items, mainly related to the costs of the foreign currency mortgage portfolio. This solid performance was supported by a generally stable core operating result, higher non interest income, lower credit risk provisions and a slightly lower CIT charge.”

Chairman Bras also referred to the Bank’s strategy: “2025 was the first year of implementing the Value and Growth ’28 strategy, which aims to maintain the development of retail banking, particularly in terms of the number of active customers, customer relationship retention and the growth of the loan, deposit and investment fund portfolios. A very ambitious objective is the expansion of corporate banking, including the doubling of the corporate loan portfolio. In line with the Bank’s strategy, we also plan to resume dividend payments from 2027, achieve an ROE of 18% in 2028, reach a cost to income ratio of 37% and at the same time maintain a strong capital position with a Tier 1 ratio of 15%, as well as preserve a high quality loan portfolio with an NPL ratio of 4%.

The first results of the Value and Growth strategy were already visible last year. The number of active customers reached 3.27 million (an increase of 140,000 new active customers), and this pace of growth will allow us to achieve the 2028 target of 3.7 million active customers. We are also well on track to deliver on our goal of increasing the share of digitally active customers with a primary relationship with the Bank. The NPS results show that customers choose our Bank for its best service quality. We achieved significant success in the most ambitious area of our strategy - the development of corporate banking. The corporate loan portfolio increased by 20% year on year, representing a rise of PLN 3 billion. We are confident that we will exceed the target set for 2028. As regards our financial objective and risk, we also achieved the targets set for the year.

The Management Board is convinced that a sustainable dividend policy is important. In the long term, this policy assumes a dividend payout of 35–50% of the Bank’s net profit. In 2027, we plan to distribute a dividend from the profit generated in 2026. However, taking into account the position of the KNF regarding dividend policy for 2026, the Management Board is submitting to the General Meeting a proposal to retain the entire net profit generated in 2025 within the Bank’s equity capital,” concluded Joao Bras Jorge, Chairman of Bank Millennium.

Olga Grygier Siddons, Member and Chairwoman of the Supervisory Board of Bank Millennium S.A., presented, inter alia, the Supervisory Board’s report for the 2025 financial year, the Supervisory Board’s report on the functioning of the remuneration policy at the Bank, and the remuneration report.

The Annual General Meeting of Shareholders reviewed and approved, among other items:

- the financial statements of Bank Millennium S.A. and the consolidated Management Board’s report on the activities of Bank Millennium S.A. and the Bank Millennium S.A. Group, including in particular the sustainability reporting of Bank Millennium S.A. and the Bank Millennium S.A. Group;
- the financial statements of the Bank Millennium S.A. Group for the 2025 financial year;
- the Supervisory Board’s report for the 2025 financial year;
- a resolution on allocating part of the reserve capital to cover the impact of the change in the algorithm for calculating the effective interest rate for loans with periodically fixed interest rates.

The General Meeting granted discharge to all members of the Management Board of Bank Millennium S.A. and all members of the Supervisory Board of Bank Millennium S.A. for the performance of their duties in the 2025 financial year, issued a positive opinion on the Supervisory Board’s report on the remuneration of the members of the Management Board and the Supervisory Board, and approved the gender balance policy of the Bank Millennium S.A. Group.

In line with the recommendation of the Supervisory Board, the General Meeting decided to allocate the entire net profit for 2025 to the reserve capital.

The full text of the resolutions adopted by the Annual General Meeting of Shareholders of Bank Millennium is available on the Bank’s website: www.bankmillennium.pl/o-banku/relacje-inwestorskie/raporty-biezace/-/news/tresc-uchwal-powzietych-przez-zwyczajne-walne-zgromadzenie-banku-millennium-sa-w-dniu-30-marca-2026-r?id=3353553 Link opens in a new window.