Poland's Bank Millennium beats Q1 profit expectations as legal provisions fall

Banco Comercial Portugues SA

28/04/2026 06:41

April 28 (Reuters) - Polish lender Bank Millennium MILP.WA reported a 68% rise in its first-quarter net profit which narrowly beat market expectations on Tuesday, helped by lower provisions for its legacy Swiss-franc mortgage loan portfolio.

The Polish arm of Portugal's Millennium bcp BCP.LS posted a net profit of 301 million zlotys ($83 million), while analysts polled by Reuters had expected 295 million zlotys on average.

Net interest income fell to 1.39 billion zlotys, compared with 1.42 billion zlotys a year ago

Lower interest rates continue to pressure lending margins across Poland's banking sector and are set to keep weighing on net interest income through 2026

The central bank has cut its benchmark rate to 3.75% from 5.75% in a series of reductions starting in May 2025

The bank's loan portfolio grew 5% from a year ago, led by 27% growth in the corporate segment

Net fee and commission income rose 12% to 205 million zlotys, driven by bancassurance and asset management fees

Provisions for legal risk tied to Swiss-franc mortgages fell 61% to 212 million zlotys, continuing a steady decline as the long-running litigation cycle winds down

Stripping out FX-mortgage legal costs and associated tax impacts, net profit fell 28% y/y to 514 million zlotys

Polish banks are adjusting to a corporate income tax rate of 30%, up from 19%, introduced from 2026 to help finance defence spending

($1 = 3.6285 zlotys)

(Reporting by Rafal Nowak, editing by Milla Nissi-Prussak)

((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))