Bank Millennium beats Q2 forecasts as Swiss mortgage impact wanes

Banco Comercial Portugues SA

29/07/2025 07:00

GDANSK, July 29 (Reuters) - Bank Millennium MILP.WA on Tuesday reported second-quarter net profit of 331.5 million zlotys ($90.1 million), surpassing the 270 million zlotys forecast in a Reuters poll, boosted by a strong performance at its core business.

That helped the bank offset higher FX-mortgage costs.

WHY IT'S IMPORTANT

Bank Millennium is Poland's seventh-largest lender by total assets and the Polish arm of Portugal's Millennium bcp BCP.LS.

BY THE NUMBERS

The lender's second-quarter net interest income reached 1.45 billion zlotys, against the average forecast 1.44 billion zlotys from analysts polled by Reuters. Net fee and commission income came in at 188 million zlotys, compared with expectations of 187 million zlotys.

The group booked 573 million zlotys in provisions for legal risks related to Swiss franc mortgages.

KEY CONTEXT

Initially appealing to borrowers in the 2000s due to low interest rates, Swiss franc loans have become a significant burden for the sector as repayment costs surged following the zloty's depreciation and Swiss interest rate hikes.

This has led to widespread legal disputes, pressuring Polish banks to offer settlements and book substantial provisions, weighing on their results for years.

($1 = 3.6776 zlotys)

 (Reporting by Marta Maciag;
Additional reporting by Rafal Nowak;
Editing by Matt Scuffham)

 ((Marta.Maciag@thomsonreuters.com))