Millennium BCP posts €138.1M

 In Banks, News

The banking group Millennium bcp has posted a net result of €138.1 million for 2021.

It was a result “influenced by €532.6 million in costs associated to a portfolio of credits in Swiss francs lent by its subsidiary in Poland, for specific items of €90.7 million (essentially costs from staff adjustments) in Portugal, and from mandatory obligations to the banking sector in Portugal of €56.2 million”.
Regarding the Poland operations, in question is a vast number of loans that were made to Polish clients who, because the loans were index-linked to Swiss francs, went to court in a bid to get them converted into the Polish national currency, the zloty.
The problem, reports the Observador, goes back to 2008 but has continued to be reflected negatively in BCP’s results.
“There are no easy solutions to complex problems. We have to manage things in a measured and extremely precise way”, said Miguel Maya at the presentation of results this week.
Miguel Maya said that up until 2018 the bank had won cases in court, but “from then on there were politico-legal changes” which meant that the courts’ decisions were different.
“We want this (problem) to be sorted out with a fair and balanced solution, one that is as fair as possible. Our concern is to strictly follow the case and make provisions. We are not going to rush or pressure anything just to say the problem is over”, said Maya.

Results in a nutshell

The net result from the bank group’s activity in Portugal was €172.8 million (+28.5% on 2020). Last year, net banking charges brought in an extra 7.6% on the €676.6 million posted in 2020 to €727 million.
The banks international activities made the most contribution to the bank’s results (9.4%) which compared to the increase in activity in Portugal (6.8%).
The bank’s Core Operating Profit, excluding specific items, was €1.291.4Bn, corresponding to a growth of 10.9%.
Estimated Fully-implemented Total Capital Ratio and Core Equity Tier 1 ratio was at 15.8% and 11.7%, respectively, above regulatory requirements.
High liquidity levels were comfortably above regulatory requirements. Eligible assets for ECB funding of €25.5Bn.
Performing Loans of the Group were up by €3.1Bn, +5.9% from December 2020 (+€1.9Bn in Portugal, +5.2%). NPE reduction of €0.5Bn, despite adverse context. Total customer funds of the Group were up by €7.8Bn. Off-balance sheet customer funds of the Group up by 4.1%, to €18.9 million.
Cost of risk of 60 bp for the Group and of 69 bp in Portugal.
Growing Customer base+571,000 mobile Customers (+20%).
Net of tax and before minority interests; includes provisions for legal risks, costs with out-of-court settlements and legal advice.
Note: change in loans to customers and customer funds on a proforma basis (excludes, in 2020, the amounts from disposed operations).