Latest news with #BankMillennium
New Straits Times
2 days ago
- Automotive
- New Straits Times
Stocks fall, FX stable as investors digest latest tariff news
BUDAPEST: Most central European stocks moved lower on Monday while currencies were mostly stable after US President Donald Trump said on Saturday he would impose a 30 per cent tariff on imports from the EU and Mexico starting August 1. European shares fell, led by automobiles, following Trump's latest tariff moves as the EU said on Sunday that it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement. Prague's stocks led losses in the CEE region as they slid 0.4 per cent. Budapest's blue chip index was 0.3 per cent lower while Warsaw eased 0.2 per cent. Bucharest's equities bucked the trend as they added 0.5 per cent. The Polish zloty was mostly stable, trading at 4.2625 per euro. Tariff news and global trade tensions could weaken the zloty on Monday, Bank Millennium wrote in a client note. "Balance of payments data may also weaken the zloty," the bank said. On Monday, the National Bank of Poland will release its balance of payments data for May. Analysts polled by Reuters estimate that the current account deficit in May was 785 million zlotys (US$215.16 million), compared to a deficit of 374 million zlotys (US$102.51 million) in April. The Hungarian forint edged higher but held near the psychologically important 400 level, which it fell to on Friday. It edged up 0.02 per cent on the day to trade at 400.05 per euro. "In the case of EUR/HUF, ... we saw the 400 level as neutral for now, ... a move up from 399 looks fair," analysts at ING wrote in a note. "At the same time, the risk is some long HUF positioning in the market, which could accelerate a sell-off in case of more pressure here," they said. Elsewhere, the Czech crown added 0.08 per cent to trade at 24.656 per euro. The Romanian leu edged up 0.06 per cent to trade at 5.0786 per euro.
Yahoo
23-05-2025
- Business
- Yahoo
Banco Comercial Portugues SA (BPCGY) Q1 2025 Earnings Call Highlights: Strong Growth in Poland ...
Net Income: EUR243.5 million, up 3.9% year-on-year. Net Income in Portugal: EUR280.9 million, an increase of 7.6%. Net Income in Poland: Nearly EUR43 million, up 40% year-on-year. Net Income in Mozambique: Decreased 84% due to impairments and provisions. Cost-to-Income Ratio in Portugal: 34%. Operating Costs in Portugal: Increased above 9%. Tier 1 Capital Ratio: 15.9%. Total Capital Ratio: 20%. Customer Funds: Increased more than 6% at the consolidated level. Loans to Customers: Increased 2.2%. Cost of Risk: Decreased 14 basis points to 38 basis points at the group level. Customer Base: Expanded almost 4%, surpassing 7 million customers. Mobile Customers: Grew around 10% per year, accounting for 72% of the group's customer base. Net Interest Income in Portugal: EUR325.8 million, 3.9% below the previous year. Net Interest Margin in Portugal: 2.12% at the end of March 2025. Commissions: EUR148 million, increasing almost 4% year-on-year. NPEs: Reduced 22.6%, standing at EUR841 million. Gross Loan Book: EUR38.9 billion, a 1.3% increase from the previous year. Customer Funds in Bank Millennium: Grew 7.6% year-on-year. Net Income in Bank Millennium: Increased almost 40%. Cost of Risk in Bank Millennium: 45 basis points. Net Income in Mozambique: Almost EUR4 million, significantly lower than the previous year. Net Interest Margin in Mozambique: Increased from 8.1% to 8.4%. Warning! GuruFocus has detected 7 Warning Sign with BPCGY. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Banco Comercial Portugues SA (BPCGY) reported a 3.9% year-on-year increase in net income for the first quarter, reaching EUR243.5 million. In Portugal, net income rose by 7.6% to EUR280.9 million, showcasing the robustness of the bank's business model despite economic challenges. Bank Millennium in Poland achieved a net income increase of nearly 40% year-on-year, demonstrating strong growth despite FX legal risks. The bank maintained a strong capital position with a Tier 1 ratio of 15.9% and a total capital ratio of 20%, indicating financial stability. Customer funds at the consolidated level increased by more than 6%, with loans to customers rising by 2.2%, reflecting growth in business volumes. Operating costs in Portugal increased by over 9%, influenced by inflationary pressures, which could impact profitability. In Mozambique, net income decreased by 84% due to impairments and provisions related to sovereign debt downgrades. The bank faced a negative impact of EUR131 million in Poland due to FX legal risks and banking tax payments. The cost of risk in Mozambique remains high, with impairments affecting financial performance. The bank's net interest income in Portugal decreased by 3.9% year-on-year, reflecting challenges in maintaining margins amid interest rate changes. Q: Do you think that you have already reached the bottom in the first quarter, and shall we expect recovery in the coming quarters with the numbers you're seeing so far in Portugal? A: Miguel De Campos Pereira De Braganca, Executive Director, stated that the NAI is resilient and broadly aligned with last year. He expects the average quarterly NAI to be above the current quarter's level for the rest of the year, despite the challenging interest rate environment. Q: What's the plan to use the excess capital, and your thoughts around the timing on this and related to Novo Banco? A: Miguel De Campos Pereira De Braganca explained that the current plan is focused on organic growth and capital distribution, with no immediate plans to acquire Novo Banco. The strategy is to maintain a strong capital position while pursuing growth opportunities. Q: Could you give more color on the different moving parts behind the flat NII guidance? A: The Executive Director mentioned that despite decreasing interest rates, the bank expects stable spreads and volume growth in deposits and credit. The bank's hedging strategy is expected to contribute positively to maintaining a flat NII. Q: Could you comment on the main moving parts of the capital this quarter? A: The Executive Director noted that the capital impact was mainly due to Basel IV headwinds and the 75% payout accrual. The bank remains comfortably above regulatory requirements, with no significant unexpected factors affecting capital. Q: Given that margins are close to troughing and volume growth should be mid-single digit, should we expect net interest income growth in Portugal in 2026? A: Miguel De Campos Pereira De Braganca confirmed that the base case is for NII to grow in line with volumes in 2026, assuming a competitive market environment. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Reuters
12-05-2025
- Business
- Reuters
Bank Millennium posts 40% jump in quarterly net profit as FX mortgage provisions decline
GDANSK, May 12 (Reuters) - Bank Millennium ( opens new tab, the Polish arm of Portugal's Millennium bcp ( opens new tab, reported a 40% rise in its first-quarter net profit on Monday, thanks to higher net interest income and lower costs related to its foreign currency mortgage portfolio. The bank's net profit reached 179 million zlotys ($47.5 million) in the first quarter, slightly exceeding analysts' expectations of 172 million zlotys seen in a Reuters poll. Polish banks continue to be burdened by costs of legal risk related to foreign currency (FX) mortgage loans, primarily denominated in Swiss francs. Initially appealing to borrowers in the 2000s due to low interest rates, these loans have become increasingly expensive as repayment costs have surged following the zloty's depreciation against the franc and hikes in Swiss interest rates. This has led to legal disputes and pressured banks to seek settlements. Quarterly net interest income rose 5% on the year to 1.42 billion zlotys, while net fee and commission income fell 9% to 183 million zlotys. Provisions related to FX legal risk fell 19% to 445 million zlotys in the first quarter, compared with 548.8 million zlotys a year earlier. While Polish lenders are still affected by the costs of the Swiss franc loans, analysts anticipate that these expenses will significantly decrease in 2025 as the issue winds down. This outlook is confirmed by peers like mBank, which forecast in October that Swiss franc-related costs will largely subside by the end of the year. ($1 = 3.7687 zlotys)
Reuters
31-01-2025
- Business
- Reuters
Bank Millennium posts 50% jump in Q4 profit, well above forecast
GDANSK, Jan 31 (Reuters) - Bank Millennium ( opens new tab, the Polish arm of Portugal's Millennium bcp ( opens new tab, reported a 50% rise in its fourth quarter net profit on Friday, despite having to bear the high costs related to its Swiss franc mortgage portfolio that was valued at 768 million zlotys ($190 million) after tax at the end of the year. WHY IT'S IMPORTANT Foreign currency (FX) mortgage loans, primarily in Swiss francs, remain a burden for Polish banks. Initially appealing due to low rates in the 2000s, their repayment costs have surged due the zloty's depreciation against the franc and Swiss rate hikes, inciting legal disputes and pressuring banks to seek settlements. BY THE NUMBERS Bank Millennium's net profit was 173 million zlotys in the fourth quarter, well ahead of analysts' expectations of 81 million zlotys in a Reuters poll. Quarterly net interest income rose to 1.51 billion zlotys from 1.28 billion a year earlier, while net fee and commission income fell to 188 million zlotys from 190 million zlotys in the fourth quarter of 2023. The non-performing loan (NPL) ratio was 4.5% in the fourth quarter versus 4.6% in the third. Provisions related to FX legal risk amounted to 523 million zlotys in the fourth quarter, compared with 702 million zlotys a year earlier. KEY CONTEXT While Polish lenders are still affected by the costs of the Swiss franc loans, analysts have said that most of those costs should be much lower in 2025 as the saga around them begins to wind down. Bank Millennium has said it plans to resume dividend distribution from 2027, contingent on the regulatory environment. Under the 2025-2028 strategy, it also wants to focus on risk management, targeting a NPL ratio of below 4% in 2028. ($1 = 4.0425 zlotys)
