Portugal's Millennium bcp's profit rises 8%, beats forecast (updated)
15/05/2024 19:54
(Adds CEO comments, financial details, paragraphs 4-7 and 9)
By Sergio Goncalves
LISBON, May 15 (Reuters) - Portugal's largest listed
bank, Millennium bcp BCP.LS , said on Wednesday its
first-quarter net profit rose 8.4%, driven by robust income at
home, despite high costs related to the forex mortgage portfolio
at its Polish subsidiary.
It posted a net consolidated profit of 234.3 million euros
($254 million) in the quarter, above an average forecast of 214
million euros in an LSEG poll, as net income at its domestic
business rose by 18.4% from a year ago to 203.5 million euros.
Poland's Bank Millennium, half-owned by Millennium bcp, on
Friday reported a 49% drop in quarterly net profit to 128
million zlotys ($32.49 million) as costs related to the
FX-mortgage portfolio were 640 million zlotys ($162.43 million)
after tax.
Chief Executive Miguel Maya told a news conference "it was
another good quarter" and the bank achieved a return on equity
of 15%, compared with an average of 1.1% over the last 10 years.
He said the bank, which has 60% of its shares trading freely
in the market as the rest are parked with qualified
shareholders, "now has all the conditions to have a greater free
float like most European banks have."
"This is the natural path for a bank as solid as Millennium
bcp today," he said, adding that several European banks have a
free float of more than 90%. Free float refers to the shares of
a company that can be publicly traded and are not restricted.
One route to it would be a potential sale of a major stake
by an investor. Sources told Reuters last month that China's
Fosun International 0656.HK is open to selling its remaining
stake of around 20% in Millennium bcp after disposing of some
shares earlier this year.
Consolidated net interest income, a measure of earnings on
loans minus deposit costs, rose 4.8% to 696.2 million euros, in
line with the forecast.
Its cost-to-income ratio increased to 35% in March from 31%
a year ago, mainly due to increases in wages and other
administrative expenses in Poland, it said.
The bank reduced total nonperforming exposures by 15% to
1.09 billion euros in Portugal.
($1 = 3.9402 zlotys)
($1 = 0.9211 euros)
(Reporting by Sergio Goncalves in Lisbon
Editing by Andrei Khalip and Matthew Lewis)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))