20.01.2005
Bank Millennium information about activity in 2004
The Management Board of Bank Millennium (the "Bank") informs that 2004 consolidated net profit of the Bank Millennium Group was PLN 240.5 million and proposes a PLN 237,8 million dividend, corresponding to a pay-out ratio of 99% and a dividend yield of 8,3%.
The main highlights of Bank Millennium Group activity in 2004 are the following:
A. Profitability improvement and lower risk profile
- Net profit reached PLN 241,5 million (+ 488%) and ROE of 13%
- Total recurrent earnings increased from PLN 9 million in 2003 to PLN 75 million in 2004
- Net interest income up by 5.4% y/y
- Solid increase of net commissions by 11.4% y/y
- Significant reduction of operating costs by 6.3% y/y (before extraordinary depreciation)
- Reduction of non-performing loans by PLN 1.3 billion, which contributed to sharp improvement of both NPL and coverage ratios.
B. Positive trends in business growth
- Strong improvement in retail banking, with growth in mortgage loans, customer funds and credit cards
- New mortgage loans more than doubled vs. previous year, representing more than 4% market share
- Strong market share in leasing, with increased weight in loan portfolio
C. Disposal of non-core assets and high solvency ratio, allowing high dividend distribution
- Sale of 10% of PZU shares, with significant capital gain
- Solvency ratio jumped to 22.4%, after sale of non-core banking assets and better asset mix
- Dividend proposal: PLN 237,8 million (PLN 0.28 per share) corresponding to a 99% pay-out and 8.3% dividend yield