Portugal's Millennium bcp's profit rises 15%, beating forecasts (updated)

Bank Millennium SA

31/07/2024 18:40

(Adds CEO quotes in paragraphs 6 and 10, NII in para 7)
    By Sergio Goncalves
       LISBON, July 31 (Reuters) - Portugal's largest listed
bank, Millennium bcp  BCP.LS , said on Wednesday its first-half
consolidated net profit rose by a larger than expected 15% on
the back of stronger income at home and a global reduction in
impairments and provisions.
    It posted a net consolidated profit of 485.3 million euros
($525 million), above the average forecast of 417 million euros
in an LSEG poll, as net income at its domestic business rose by
16.2% from a year ago to 411 million euros.
    Its 50%-owned Polish unit, Bank Millennium, on Friday
reported a net profit of 357 million zlotys ($90.14 million),
flat from a year ago, despite 376 million euros in costs related
to its portfolio of Swiss franc-denominated mortgage loans. 
    Still, Millennium bcp said consolidated loan impairments
fell 33% to 97 million euros in the first half, while total
impairments and provisions dropped 29% to 390 million euros.
    The bank, which also has operations in Mozambique and
Angola, said total non-performing exposures were reduced by 8%
to 1.97 billion euros.
    Chief Executive Miguel Maya told a press conference that it
had been the best first-half for the lender in at least 10
years, with 2024 goals already "generally exceeded", allowing
the lender to work on new targets that should be announced in
October.
    Consolidated net interest income (NII), a measure of
earnings on loans minus deposit costs, rose 1.7% to around 1.4
billion euros, driven by its international operations, compared
to 1.27 billion euros forecast by analysts. 
    NII at home fell 4.8% to 673.3 million euros, but Maya said
margin pressure in Portugal reflects the convergence towards
what he called a new normal with which he is comfortable.
    Portuguese banks' margins have started to be squeezed after
benefiting from a period of high euro zone interest rates when
they could charge more for loans without increasing deposit
rates by as much. 
    Maya said capital ratios were now very strong as Common
Equity Tier1 (CET1) fully-loaded rose to 16.2% from 14% a year
ago, above the minimum requirement of 9.41%.


($1 = 3.9607 zlotys)
 ($1 = 0.9245 euros)

 (Reporting by Sergio Goncalves; editing by Andrei Khalip,
Kirsten Donovan)
 ((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))