In the first quarter, Millennium BCP posted a profit of 113 million euros, up 95% on the same period last year. The vast majority of this result came from Portugal at €107.6 million, up 29% year-over-year, the bank said in a statement to CMVM.
A result that was “impacted by €123.3 million in fees associated with a Swiss franc loan portfolio provided by a subsidiary in Poland.” Excluding these expenses, the net profit would have been 174.6 million euros, the bank guarantees – in this case, an increase of 52.6% compared to the comparable value in 2021.
The bank also reports that operating expenses reached 255 million euros, up slightly by 1.1%.
In terms of equity, which indicates the bank’s ability to withstand external shocks, the CET 1 (Common Equity Tier 1) ratio was 11.5%, while the total capital ratio was 15.5%.
The total assets of the bank increased from 88.4 billion euros to 95.6 billion euros, an increase of 8.1%, the bank also indicates.
Deposits and other customer resources increased by 10.1% (from 65.3 to 71.9 billion euros), while loans to customers increased by 4.5% (from 54.2 to 56.6 billion euros).
In the difference between these two elements – interest charged on loans issued and interest paid by the bank to depositors – net interest income increased by 24.1%, to 465 million euros.
As for overdue loans, they grew from 5.5% to 4.6% over the year.
Inflation and interest rates do not significantly affect impairment
At a press conference this Monday, Miguel Maia said that inflation and the new context of higher interest rates should not have a major impact on the bank’s depreciation. “In the main scenario, I don’t see an increase in impairment,” the bank’s CEO said.
This greater calmness is facilitated by the employment situation. If there had been an escalation in this case, “we could have had an additional problem,” he added. “Fortunately, no.
Miguel Maya, who even sees some positive effects in moderate inflation, stresses that it will now depend on how long it takes to reach the 2% level. According to the CEO, the war will continue to play an important role in determining the evolution of prices.
Regarding the possible purchase of Novo Banco, Miguel Maia reiterated that Millennium BCP’s growth is occurring organically and not through acquisitions. “It’s not part of our strategy to make it clear once and for all,” shot Miguel Maia, who however admits he’ll appreciate the opportunity when it becomes available. “We look at any operation that enters the market,” he stressed.
