Bank Millennium Poland profits up 40% to €42.8 million in 1Q

Bank Millennium in Poland, which is controlled by Portugal’s BCP, enjoyed a first quarter net result of €179 million zlótis (€42.8 million) – an increase of 40% on the same period last year said the bank led by Miguel Maya on Monday.

The good performance makes it highly unlikely that the bank will pull out of Poland with Maya stating “leaving Poland is not on the table”.

Speculation that the bank could pull out followed after Santander had announced the sale of almost all of its share in its banking unit in that country.

BCP has been in Poland since 2000 when it bought into the capital of BIG Bank GDÁNSKI which was then renamed Bank Millennium which currently holds 50.1% of its shares.

BCP points out that Bank Millennium’s results remain “conditioned by the charges related to the portfolio of mortgage loans denominated in Swiss francs.” At issue are provisions of more than €106.2 million (445 million zlotys) for the legal risk of credits denominated in Swiss francs.

Also weighing on the bank’s accounts were the “contribution costs on the banking sector” which climbed to 99 million zlótis (€23.6 million) in 1Q.

Had it not been for these provisions, Bank Millennium’s profit would have increased by another 7% in local currency (718 million zlotys or €171.4 million).