Millennium bcp profit rises 26% on stronger margin, lower provisions in Poland

• Net profit of 305.8 million euros beat the average analyst forecast by 47%, with domestic business contributing 265.4 million euros (up 21.2%) and Polish unit Bank Millennium rising 68% to 71 million euros due to lower Swiss franc mortgage charges
• Key operational metrics improved across the board: customer loans grew 7.2% to 63.4 billion euros, non-performing exposures declined 14% to 1.48 billion euros, and cost-to-income ratio fell to 36.0% from 37.4%
• Return on equity improved to 15.9% from 13.9% year-over-year, while net interest income rose 2.4% to 738.4 million euros and fees/commissions increased 8.2% to 218 million euros

Millennium bcp Q1 Profit Surges 26% on Polish Unit Performance

Portugal's largest listed bank, Millennium bcp, reported first-quarter net consolidated profit of €305.8 million ($359 million), significantly exceeding analyst expectations of €208 million and marking a 25.8% year-over-year increase. The strong results were driven by an improved net interest margin and reduced provisions at the bank's Polish subsidiary.

Key Financial Metrics:

• Return on equity rose to 15.9% from 13.9% year-over-year
• Domestic net income increased 21.2% to €265.4 million
• Polish subsidiary Bank Millennium (50% owned) posted 68% profit growth to €71 million, benefiting from lower Swiss franc mortgage-related charges
• Consolidated net interest income grew 2.4% to €738.4 million
• Fees and commissions rose 8.2% to €218 million
• Trading income increased to €49.8 million from €29.5 million
• Customer loans expanded 7.2% to €63.4 billion
• Non-performing exposures declined 14% to €1.48 billion
• Cost-to-income ratio improved to 36.0% from 37.4%

Ownership Structure:

China's Fosun holds the largest stake at 20%, followed by Angola's state oil company Sonangol with 19.5%. CEO Miguel Maya declined to comment on reports of a potential Fosun exit, emphasizing the bank's focus on growth.

Market Implications:

The results demonstrate strong operational performance despite challenging market conditions, with improved asset quality and profitability metrics. The bank's solid financial position and expanding loan book suggest resilience in both Portuguese and Polish markets, though investor attention may focus on potential ownership changes.