TIDMBCP 
 
 
   Banco Comercial Português, S.A. hereby informs that Bank Millennium 
in Poland, in which it has a 50.1% holding and whose accounts are fully 
consolidated at BCP group level, released today its results for 2019. 
Main highlights are as follows: 
 
   Solid operational profitability affected by Euro Bank acquisition and 
legal risk provisions 
 
 
   -- Net profit reached 561 million PLN (130.6 million EUR) in 2019, a 26% 
      decrease y/y and a 17% increase y/y, when adjusted to one-offs 
 
   -- 205 million PLN (47.7 million EUR) of integration and provisions costs 
      related to Euro Bank 
 
   -- 223 million PLN (51.9 million EUR) of provisions related to foreign 
      exchange (FX) mortgages legal risks 
 
   -- Net profit reached 27 million PLN (6.3 million EUR) in the 4Q19, or 274 
      million PLN (63.8 million EUR) when adjusted to extraordinary itens 
 
   -- Adjusted* ROE of 10.2% and Cost/income ratio of 47.4% 
 
 
   Operating income and costs influenced by the acquisition and merger of 
Euro Bank 
 
 
   -- Operating income grew 27% y/y 
 
   -- Net interest income grew 33% y/y 
 
   -- Operating costs grew 36% y/y, (28%, excluding integration costs) 
 
   -- Reserve for cash loans fees returns after European Court of Justice (ECJ) 
      ruling: 66 million PLN (15.4 million EUR) 
 
 
   High asset quality and liquidity kept 
 
 
   -- Impaired loans (stage 3) ratio at 4.56% 
 
   -- Adjusted cost of Risk* at 57 b.p. 
 
   -- Loans to deposits ratio at 86% 
 
 
   Solid capital position and lower regulatory buffers 
 
 
   -- Group's Total Capital Ratio (TCR) at 20.1%, and CET1 ratio at 16.9% after 
      incorporating full 1H 2019 year profits 
 
   -- Reduction by the KNF of the FX mortgage related Pillar 2 buffer to 4.9% 
      and dividend related Stress Test buffer to 3% 
 
   -- The Management Board will recommend to the AGM the full retention of 2019 
      net profits 
 
 
   Retail business 
 
 
   -- 2.6 million active clients, a 40% y/y growth, +494 thousand clients due 
      to the Euro Bank acquisition and +240 thousand due to organic growth 
 
   -- Deposits grew 28% y/y (10%, excluding Euro Bank) 
 
   -- Loans grew 44% y/y (9%, excluding Euro Bank) 
 
   -- Over 4 billion PLN (941 million EUR) in cash loans and mortgages sales, 
      with high y/y growth rates: 28% and 26%, respectively 
 
   -- Cash loans sales in the the 4Q19 affected by the Euro Bank migration and 
      adjustment of the risk appetite and price 
 
   -- Doubling of the new microbusiness accounts acquisition pace (26% opened 
      online), in 2019 
 
   -- 89 thousand microbusiness clients, at the end of 2019 
 
 
   Companies business 
 
 
   -- Current accounts volumes grew 19% y/y 
 
   -- Growth of loans to companies: 7% y/y, which means a 1.2 billion PLN (282 
      million EUR) y/y increase 
 
   -- Growth in factoring sales of 6.5% y/y 
 
   -- Growing number and volume of transactions in corporate business 
 
 
   Quality and Innovations 
 
 
   -- Highest NPS ratio** (52) among Polish banks 
 
   -- Best Web Site Design in Central and Eastern Europe, according to Global 
      Finance 
 
   -- 1.5 million downloads of the Millennium Goodie app -- smartshopping 
      platform 
 
 
   (*) total net provisions (including the Fair Value adjustment and 
modification effect) to average net loans, without extra IFRS9 
provisions on Euro Bank acquired portfolio and on CHF mortgages legal 
risks. 
 
   (**) based on ARC Opinia i Rynek survey 
 
   End of announcement 
 
   Banco Comercial Português, S.A. 
 
   Attachment 
 
 
   -- Resultados Polónia 2019 EN 
      https://ml-eu.globenewswire.com/Resource/Download/0cd03f49-0d00-4a1e-b977-932685880e79 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

February 03, 2020 04:17 ET (09:17 GMT)

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