Millennium bcp beats forecasts with record profit, ups dividend (updated)

Bank Millennium SA

26/02/2025 18:03

Adds dividend increase, CEO quotes, details

By Sergio Goncalves

LISBON, Feb 26 (Reuters) - Portugal's largest listed bank, Millennium bcp BCP.LS, said on Wednesday its 2024 net consolidated profit rose 5.9% to a new record thanks to lower provisions and higher commissions, despite growing pressure on its domestic interest margin.

It booked a net profit of 906 million euros ($952.57 million), above the average forecast of 879 million euros in an LSEG poll of analysts, and the bank said it would propose a 50% dividend payout for 2024, up from 30% the previous year.

Chief executive Miguel Maya said it was "a good year" in terms of reducing impairments and developing the business.

Consolidated loan impairments fell 24% to 182.4 million euros in 2024, while other impairments and provisions dropped 21.5% to 675 million euros.

He said the common equity Tier 1 solvency ratio rose 89 basis points to 16.3%, "incorporating the effect of a 200-million-euro share buyback, already authorised by the supervisor".

Consolidated net interest income (NII), a measure of earnings on loans minus deposit costs, rose just 0.2% to 2.8 billion euros, in line with analysts' forecasts, thanks to activities abroad, but fell 9% in Portugal alone due to the impact of interest rate cuts by the European Central Bank.

Still, net profit of the domestic business rose by 8.5% from a year ago to 786 million euros, helped by higher commissions.

Earlier, BCP's 50%-owned Polish unit, Bank Millennium MILP.WA, reported a 25% increase in net profit despite heavy provisions related to its Swiss franc-denominated mortgage loan portfolio. BCP also operates in Mozambique and Angola.

($1 = 0.9511 euros)

 (Reporting by Sérgio Gonçalves, editing by Andrei Khalip)

 ((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters Messaging: sergio.goncalves.reuters.com@reuters.net))