Portugal’s largest listed lender, Millennium bcp, has reported a stronger-than-expected 26% rise in first-quarter net consolidated profit. Millennium bcp serves as a major financial institution across Portugal and internationally, offering a comprehensive range of banking services. The substantial growth was primarily attributed to a stronger net interest margin and reduced provisions at its Polish unit. Chief Executive Miguel Maya expressed confidence, stating the bank remains in a solid position despite a challenging quarter, with return on equity climbing to 15.9% from 13.9% a year earlier.
For the first three months of the year, Millennium bcp posted a net profit of 305.8 million euros, significantly surpassing the 208 million euro average forecast in an LSEG poll of analysts. This robust performance was bolstered by its domestic business, which saw net income increase by 21.2% to 265.4 million euros. Concurrently, net profit at its half-owned Polish subsidiary, Bank Millennium, surged by 68% to 71 million euros, largely due to lower charges associated with its Swiss franc mortgage portfolio. Consolidated net interest income (NII) also saw a 2.4% uplift, reaching 738.4 million euros.
The bank’s positive trajectory extended to other revenue streams, with fees and commissions climbing 8.2% from a year ago to 218 million euros, and trading income notably rising to 49.8 million euros from 29.5 million euros. Customer loans expanded by 7.2% to 63.4 billion euros, while non-performing exposures saw a 14% decline to 1.48 billion euros, indicating improved asset quality. The cost-to-income ratio also improved, falling to 36.0% from 37.4%. Regarding its ownership, China’s Fosun International holds the largest stake at 20%, followed by Angola’s state oil company Sonangol with 19.5%. CEO Miguel Maya declined to comment on speculation regarding a potential Fosun exit, emphasising the bank’s focus on growth and its “excellent health.”
