Bank Millennium profit rises 30% to 1.109 billion zlotys in nine months
Key Facts
Bank Millennium Group reported net profit of 1.109 billion zlotys in the first nine months of 2026, up 30% year on year, according to the bank’s statement published on October 27. Net profit in the third quarter was 400 million zlotys, broadly stable compared with the previous quarter. The bank said its reported return on equity was 14.2% in the third quarter and 13.8% for the nine-month period. That puts profitability since the start of the year at a high level, despite lower market interest rates and a higher statutory corporate tax rate, the bank said. It also said annual profit growth was supported by several operating factors, alongside lower foreign-currency mortgage costs.
The bank said strong fees, disciplined cost growth and lower foreign-currency mortgage costs supported results. Pre-tax profit and loss costs related to these mortgages fell 64% year on year in the first nine months of 2026. The decline shows that net profit improvement benefited from the easing of an item that had weighed on results, alongside contributions from fees and expense control. The chairman said, "What is particularly encouraging is that our growth is becoming increasingly broad-based." The bank linked this growth to commercial momentum, risk management and its digital platform, according to its statement.
On lending activity, the loan book rose 11% annually at the end of September, compared with 10% growth at the end of June. Expansion spanned several segments, with net corporate financing up 25%, consumer loans up 7% and zloty-denominated mortgages up 5% year on year. On the funding side, customer deposits rose 11% annually, while the loan-to-deposit ratio held at 58%. These figures indicate simultaneous growth in loans and deposits, with the loan-to-deposit ratio remaining at the level the bank reported for the third quarter. The bank described its growth as broadening across activities, without attributing the period’s performance to any single banking segment.
The total capital ratio was 20.6% at the end of September 2026, while the Tier 1 capital ratio was 16.1% and the Common Equity Tier 1 ratio was 13.70%. The bank said its strong capital position was supported by capital instrument issuances during the year, including AT1 instruments worth 1.5 billion zlotys in January and T2 instruments worth 500 million euros in May. These indicators provide a picture of the capital levels the bank reported at the end of the third quarter, alongside deposit growth and a stable loan-to-deposit ratio. Active retail customers numbered 3.39 million at the end of September, an increase of about 160,000 from a year earlier. The bank also said 95% of active customers use digital channels.
The 2026 results follow Bank Millennium Group’s net profit of 1.202 billion zlotys in 2025, up 67% year on year, according to the board’s report for that year. Return on equity in 2025 was 14.3%, the same report said. That year, the average three-month WIBOR rate fell to 5.09% from 5.89% in 2024, while the group’s average net interest margin contracted by 34 basis points to 4.01%. This context frames the bank’s 2026 performance, which it said was achieved despite lower market interest rates and a higher statutory corporate tax rate. The bank reaffirmed its strategic ambitions for 2028 and identified areas to accelerate execution in coming periods.