BCP Bank in Poland surprises with profits of 46.6 million
The results of BCP's Polish unit continue to be pressured by the merger of Euro Bank, and by the process of reconversion of loans.
Bank Millennium profited 46.6 million euros in the third quarter of the year. The amount was unchanged compared to the same period last year, thanks to the increase in net interest income as the results of BCP’s Polish unit are being pressured, since the start of the year, by the costs of the merger with Euro Bank.
Net profit stood at 200 million zlotys (46.6 million euros) in the third quarter, a marginal fall from 200.2 million zlotys in the same period last year. The decrease was lower than expected, with the estimates of analysts consulted by Reuters pointing to a decrease of over 10% to 179 million Zlotys.
Operating income increased 25% year-on-year, of which 12.3% refers to organic growth by Bank Millennium. Net interest income increased by 30% year-on-year (13%, excluding the Euro Bank). Operating costs also rose 30% (excluding integration costs would be 24%).
In the first nine months of the year, Bank Millennium achieved profits of 534 million Zlotis (124.3 million euros), despite the net impact of costs and provisions related to Euro Bank’s acquisition of 124 million Zlotis (28.9 million euros), according to data communicated to the Portuguese Securities Market Commission (CMVM).
Bank Millennium’s accounts were awaited because of the recent decision of the European Court on loans in francs in Poland, known as ‘frankowicze’. At issue is the European Court of Justice’s understanding that loan contracts made in Poland and indexed to a foreign currency are unfair terms, related to exchange rate variations, and may, therefore, lead to the contracts’ cancellation.
