Millennium Bank posts 1.109 billion zlotys in nine-month profit, up 30%
Key Facts
Millennium Bank said group net profit reached 1.109 billion zlotys in the first nine months of 2026, up 30% year on year. Third-quarter net profit alone was 400 million zlotys, remaining broadly stable from the previous quarter. The difference between the two periods shows that annual profit growth applies to the cumulative total, not the third quarter alone. Return on equity was 14.2% in the third quarter, compared with 13.8% for the first nine months. The bank published its results in its consolidated third-quarter financial report dated October 27, 2026.
Interest income moved higher during the quarter, with net interest income at 1.4834 billion zlotys, up 2.6% from the same period a year earlier and 6.9% from the second quarter. The net interest margin rose to 3.52%, from 3.43% in the second quarter, according to figures reported by Bankier.pl based on the bank's results. The bank said lower deposit costs contributed to the quarterly rebound in the margin. It was also supported by a higher share of current and savings accounts in the deposit mix, alongside an improvement in the asset structure. These factors show how the margin rose during the quarter despite the decline in market interest rates cited by the bank.
The bank said its strong year-on-year performance came despite lower market interest rates and a higher corporate tax rate. It added that fee income, disciplined cost growth and a sharp reduction in the burden from foreign currency-linked mortgages supported the results. Pre-tax costs related to these mortgages fell 64% year on year in the first nine months. In the third quarter, net fee and commission income rose 4.5% year on year to 213.4 million zlotys. Total costs were 643.4 million zlotys, while credit risk provisions amounted to 92.1 million zlotys, according to Parkiet.
Business growth extended to the loan portfolio, which rose 11% year on year at the end of September, compared with 10% growth at the end of June. Net corporate financing grew fastest, up 25% year on year, while consumer loans rose 7% and zloty-denominated mortgages 5%. For new lending in the third quarter, zloty mortgages jumped 151% year on year, and consumer loan originations increased 42%. Customer deposits rose 11% year on year, while the loan-to-deposit ratio remained at 58%. The bank said asset quality remained good, with a non-performing loan ratio of 3.55% and an annualized cost of risk of 37 basis points.
On the bank's strategy, its chief executive said mortgages were an area where the bank could accelerate execution to meet its ambitions. The bank announced it was returning to offering variable-rate home loans, after its current strategy focused on fixed-rate loans. The chief executive said, "Mortgages are a good example; we can do more to achieve our ambitions in this area." The bank also maintained its plan to resume dividend distributions in 2027 from 2026 earnings. It did not specify a payout ratio or indicative amounts, as the decision will depend on regulatory requirements and guidance from the Polish Financial Supervision Authority.