10/26/2021 | Press release | Distributed by Public on 10/26/2021 01:22
- Results of the 9M21 show that the Group has successfully weathered the direct and indirect impacts of the pandemic. Excluding provisions and costs related to FX-mortgages, the Group would post 9M21 net profit of PLN791 million and in 3Q21 of PLN269 million. Core revenues grew, the costs efficiency level was maintained at high level as well as Bank moved forward in digitalisation process and offering new functionalities to customers. Bank continues to be open to its customers in order to reach amicable solutions regarding FX-mortgages on negotiated terms. As a result the number of active FX-mortgage loans decreased by almost 6,600 in period January-September 2021. It is worth to stress that in the recent months, the monthly and quarterly reduction of the number of FX-mortgage loans has been higher than the inflow of new individual court cases against the Bank. We are now focusing on finalisation of the 2022-2024 strategy, which will define future directions of the Group development - said Joao Bras Jorge, Chairman of the Management Board of Bank Millennium.
Main financial and business achievements of the group
3Q21 results were another proof that the BM Group successfully mitigated most of the direct and indirect impacts of the pandemic. 3Q21 adjusted pre-provision profit (ex-costs of amicable conversions, legal costs, result on FV portfolio and netting-off EB's FX-mortgage provisions) amounted to PLN528 million and was 8% above the result in 3Q20 (9M21: PLN1,525 million, +12% y/y). The improvement was driven by positive operating jaws. 9M21 revenues were up 1% y/y (1H21: 0% y/y) with y/y dynamic of NII nearing 0% (1H21:-4% y/y) and y/y fee growth remaining strong at 11% y/y while opex (ex-BFG and legal costs) was down 9% y/y (1H21: -12% y/y).
The accelerating growth in core income (3Q21: +8% y/y vs. 5% in 2Q21 and -6% in 1Q21) was the main element stabilising revenues, while non-core income dropped in 9M21 (and in 3Q21) due to lower profits on bonds and revaluations among others. Opex reduction stemmed from savings in staff costs (9M21: -7% y/y, 1H21: -9% y/y) but most of all non-staff costs ex-D&A(9M21:-14% y/y, 1H21: -19%). BFG charges which in 9M21 were 28% lower than in the same period last year provided an additional support.
The key developments in the last twelve months that drove the y/y improvement of the results and which, we believe, are particularly worth highlighting are as follows:
Share in key market segments
Strategy implementation
Given the unprecedented scale of change of the business environment caused by the outbreak of COVID-19 pandemic in early 2020 the BM Group decided to extend its 2018-20 strategy by additional year and prepare a new one for the years 2022-2024 with publication date planned for late 4Q21.
The Bank aims to recover like-for-like operational results affected by the COVID-19 crisis and its direct and indirect consequences within 1.5 to 2 years. This is to be achieved by completion of the current cost streamlining program, introduction of new operational efficiency program as well as an improvement business results through improved pricing and sales increase in core products. The improvement will be further supported by the recent increase in interest rates.
The Group is on well on track to deliver on its 2021 targets:
Results of the Group are also available here: www.bankmillennium.pl/en/about-the-bank/investor-relations