This report analyses the performance of Bank Millennium for the 2Q2019. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the Bank.
The key highlights are:
Revenues increased 23% yoy to PLN 823 mil in the second quarter of 2019. Interest income formed 71.0% of total revenues with the net interest margin increasing 0.15 pp to 2.66% of total assets. Fees added a further 21.3% to total revenue generated in 2Q2019, down from an average of 23.9% as seen in the previous two years.
Operating costs grew by 23% yoy to PLN 372 mil, so cost to income ratio reached 45.2%, down by 2.19% compared to the previous two years. Staff accounted for 53.7% of total operating expenditures. At the end of second quarter of 2019, Bank Millennium operated a network of 839 branches and 8,550 employees.
Loans and deposits grew by 25.8% and 15.2% qoq respectively, so loan to deposit ratio reached 88.3% at the end of 2Q2019. That’s up from 84.0% the previous year. Equity reached 9.29% of assets and capital adequacy ratio amounted to 20.1% at the end of the second quarter of 2019.
NPLs were 4.30% of total loans at the end of the quarter. Provisions covered 61.2% of non-performing loans
Bank Millennium stock traded at PLN 9.14 per share at the end of second quarter of 2019 implying a market capitalization of USD 2,932 mil. This put stock at a 12-month trailing price to earnings of 14.9x and price to book value of 1.27x as of the end of 2Q2019.