Banco Comercial Port Banco Comercial Português, S.A. Informs About Bank Millennium (Poland) Results In 2019
03 Febrero 2020 - 03:17AM
UK Regulatory
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)
Copyright (c) 2020 Dow Jones & Company, Inc.