BCP Bank in Poland reduces profits by 75% – Banking & Finance


Bank Millennium, a Polish bank 50.1% owned by Banco Comercial Português, made a profit of 132 million zlotys (29.8 million euros) in the first nine months of this year, which is equivalent to a decrease of 75 % compared to the previous year. homologous period.

Considering the third quarter alone, profits fell 70% to 60 million zlotys (13.6 million euros), below analysts’ estimates, which according to Bloomberg indicated profits of 64.8 million zlotys.

In a statement to the CMVM, BCP says that excluding a number of unusual rumors, the net result reached 583 million zlotys (131.8 million euros) in the first nine months, which corresponds to a decrease of 10%.

The bank’s results were penalized mainly by extraordinary provisions of 297.7 million zlotys (67.3 million euros) “relating to legal risks associated with loans granted in foreign currency” plus 69.3 million zlotys (15.7 million euros) euros) of provisions relating to Covid-19 risks and 60.5 million zloty (13.7 million euros) of provisions relating to the “early repayment of personal credit”.

As regards the integration of Eurobank, acquired last year, the balance is positive, as the costs relating to the transaction amounted to 52.6 million zlotys (11.9 million euros) and the synergies were amounting to 110.4 million zlotys (25.0 million euros).

In several operational indicators, BCP has recorded a positive evolution, with income up 6%, interest margin up 9% and fees up 7% in the first nine months compared to the same period last year. Excluding overtime, operating costs increased by 9%.

In the third quarter, net interest income increased to PLN 628.6 million, above the estimated PLN 618.1 million.

The number of active customers of Bank Millennium increased by 30% to 2.64 million, with deposits up by 2% and credit extended by 7%. The bank notes that it has reached the “highest level ever recorded in the production of new mortgage loans”, with 1.8 billion zlotys (391 million euros) in the third quarter and 4.7 billion zlotys (1 billion euros) in the first nine months of 2020.

Bank Millennium shares react on the upside to the numbers announced today, with a 1.48% increase to 2,466 zlotys. In the opposite direction, BCP fell 1.33% to 7.42 cents, very close to the all-time low reached yesterday.

BCP presents its quarterly results this Thursday 29 October.


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