Banco Comercial Português, S.A. informs about Bank Millennium (Poland) results in 1Q 2019
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 1Q 2019. Main highlights are as follows:
“Improved profitability
• Net profit of 1Q 2019 reached 160 million PLN (37.3 million EUR), +3% versus 1Q 2018
• ROE at 10.3% (9.1%, adjusted for one-offs*), +0.6 p.p. versus 1Q 2018, with an equal quarterly distribution of Banking Guarantee Fund (BGF) fees and influenced by a strong equity increase y/y (+10%)
• Cost/income at 44.6% (46.1%, excluding extraordinary items), i.e. -1.3 p.p. versus 1Q 2018
Fast pace in interest income growth; costs negatively influenced by BGF annual fees
• Net interest income grew 14.6% y/y, flat q/q
• Net Commissions Income grew 1.0% q/q, decreasing 5.4% y/y due to adverse market conditions
• Operating costs grew by 9.0% y/y, excluding BGF contributions
High asset quality and liquidity
• Impaired loans (stage 3) ratio at 4.4% with coverage by loan-loss reserves at 73%
• Cost of Risk** at 55 b.p. (annualised)
• Loans to deposits ratio at 81%
Very high capital ratios after retention of 2018 profits and T2 issue
- Group’s Total Capital Ratio (TCR) at 25.6%, and CET1 ratio at 21.5% after incorporating full 2018 year profits
- 830 million PLN subordinated bonds issued in January improved T2 capital
- Moody’s rating agency upgraded the Bank’s rating to Baa1
(*) without non usual items, i.e., with an equal accrual through the year of BGF resolution fee and without net impact of PLN 24 million from extraordinary tax asset recovery.
(**) Total net provisions to average net loans”
End of announcement
Banco Comercial Português, S.A.
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