01.02.2011
Preliminary results of Bank Millennium Capital Group in 2010
Bank Millennium Group finished 2010 financial year with PLN 326 million net profit, which means a remarkable improvement of profitability when comparing with PLN 1.5 million net profit of 2009. This achievement was possible thanks to a significant increase of core income, strict control of operating costs and lower needs of new provisions on credit risk.
Main financial achievements in 2010
- Strong improvement of profitability: net profit reached PLN 326 million in 2010;
- Fast recovery of core income especially interest marigin: core income grew by 33% y/y of which net interest income by 46%; positive spread on deposiots achiewed;
- Strict control of operating costs: costs grew 5,9% in 2010 after 14.2% reduction in 2009;
- Reduction in cost of risk and stabilization of quality of loan portfolio: stabilization of impaired loans ratio below 6%; cost of risk dropped from 127 bps to 65 bps y/y;
- High solvency ratio and balanced liquidity: very strong CAR at 14,4% and Loans to Deposits ratio in a range close to 100%;
- Growth of market capitalization: Market capitalization 46% up y/ythanks to the rights issue and 16% price increase
Main business highlights in 2010
- Solid growth of deposits and even stronger growth of investment products: deposits grew 12% y/y and investment products 19% in 2010;
- Loans growth affected strongly by FX volatily: total loans grew 10% in 2010 and 2% without FX impact;
- 2012 targets for leasing and factoring are achieved: c.a. market share in new production;
- Succesful shift to SME segment: 30% growth in lending to SME;
- Increasing cross-selling: almost 3.8 million products held by Customers; cross-selling ratio grew to 3.41