Poland’s seventh largest bank by asset, the Portuguese-owned Bank Millennium, posted a net profit of PLN102.7mn (€23mn) in the third quarter, marking a changeover from a net loss of PLN1bn in the same quarter of 2022, the bank said in a market filing on October 27.
The net result came in at 16% above the consensus line. The bank's net interest income in the third quarter was PLN1.37bn, in line with expectations. Fees and commissions income were at PLN188mn, slightly below expectations of PLN192mn.
Costs of legal risk reserves for foreign currency mortgage loans in the third quarter amounted to PLN743.2mn, Bank Millennium also said. Polish banks keep high legal risk reserves, hedging against losing court cases to foreign currency mortgage holders seeking to revise or annul contracts over abusive clauses.
The balance of reserves excluding reserves for legal disputes related to foreign currency mortgage loans was PLN64.2mn in Q3, 11% below the consensus line.
Bank Millennium’s stocks fell 1.55% to PLN7.32 on October 27 on the Warsaw Stock Exchange. Year to date, however, investors enjoyed a return of nearly 60% on the bank’s shares.
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