Bank Millennium Poland posted a negative net result of €26.4 million in the first quarter of 2022.
BCP’s Polish bank lost €26.4 million (zł122.3 million) in the first quarter, a result “substantially influenced by provisions related to legal risks associated with the mortgage loan portfolio granted in foreign currency”.
“Despite the strong improvement in operating income and earnings before taxes, profitability in Q1 2022 was impacted by provisions for legal risks and other costs related to the CHF denominated mortgage loans portfolio,” reads a statement released to CMVM.
In the first quarter, Bank Millennium posted a net loss of zł122.3 million, about €26.4 million, still up 115.3% year-on-year (YoY). The company also justifies the losses with “linear distribution of BFG [Banking Guarantee Fund] resolution fund fee.”
According to the bank, provisions amounted to zł499.2 million (€107.8 million), “of which zł451.2 million (€97.4 million) attributable to FX-mortgages originated by the bank and zł48 million (€10.4 million) related to the portfolio of the former Euro Bank.”
Operating income was up 33.8% year-on-year, while net interest income increased 54.4%, reflecting the impact of higher interest rates. Commission income increased 7.8%.
The bank had 2.74 million active clients at the end of the quarter, 45 thousand more than in the previous quarter. Deposits grew 10.3% and retail loans rose 6%.
Companies’ deposits, meanwhile, rose 38% YoY, while loans to companies increased 4% YoY.
At last, Bank Millennium’s operating costs rose 13.8% YoY. The bank justifies the rise by its 61.6% increase in the contribution to the Banking Guarantee Fund (BFG).