Key Takeaways:
Portugal's largest listed bank, Millennium bcp, reported a first-quarter consolidated net profit of €305.8 million, a nearly 26 percent surge from the prior year, as stronger interest margins and a robust performance from its Polish subsidiary beat analyst expectations.
“We are confident in our ability to continue to grow and deliver results,” Chief Executive Miguel Maya said at a news conference, adding that despite a challenging quarter the bank remained in a solid position, with return on equity rising to 15.9 percent from 13.9 percent a year earlier.
The result comfortably exceeded the €208 million average forecast in an LSEG poll of analysts. The bank's consolidated net interest income (NII), the difference between what it earns on loans and pays for deposits, rose 2.4 percent to €738.4 million. Fees and commissions contributed €218 million, up 8.2 percent from a year ago.
The performance highlights the bank's successful navigation of the European interest rate environment and the strategic importance of its international operations. The net profit at its half-owned Polish subsidiary, Bank Millennium, jumped 68 percent to €71 million, benefiting from lower charges related to its Swiss franc mortgage portfolio. This offset a more moderate 21.2 percent rise in domestic profit to €265.4 million. The bank also improved its efficiency, with its cost-to-income ratio falling to 36.0 percent from 37.4 percent.
Millennium bcp demonstrated improvements in its underlying asset quality and lending growth. Total customer loans grew by 7.2 percent from the previous year to reach €63.4 billion.
Crucially, the bank reduced its stock of problematic loans. Non-performing exposures declined by 14 percent year-over-year to €1.48 billion, strengthening the bank's risk profile.
The bank's largest shareholders remain China’s Fosun International, with a 20 percent stake, and Angola’s state oil company Sonangol, with 19.5 percent. CEO Miguel Maya declined to comment on reports about a potential exit by Fosun, stating, “Our focus is on growing the bank.”
This article is for informational purposes only and does not constitute investment advice.
