LISBON, Oct 31 (Reuters) – Portugal’s largest listed financial institution, Millennium bcp (BCP.LS), posted on Monday a 63.4% bounce in nine-month internet revenue due to a strong rise in core revenue stemming from coverage fee hikes and regardless of losses at its Polish subsidiary.
The lender netted 97.2 million euros ($96.1 million) between January and September, up from 59.5 million euros a yr earlier. Revenue in its home enterprise greater than doubled to 295.7 million euros.
Its half-owned Polish subsidiary, Financial institution Millennium (MILP.WA), final week reported a nine-month lack of 270.5 million euros because it counted the price of mortgage compensation holidays imposed on Polish banks in July. learn extra
Millennium bcp benefited from rate of interest hikes by the European Central Financial institution to regulate inflation, after years of file low charges pressured lenders’ monetary margins, and by central banks in different nations the place it operates: Poland, Angola and Mozambique.
Millennium bcp’s consolidated internet curiosity revenue, or earnings on loans minus deposit prices, rose 32.7% to 1.54 billion euros within the 9 months. Its charges and commissions grew 3.7% to 573.8 million euros.
Chief Government Miguel Maya mentioned that “efficiency was supported by a 24.7% improve within the group’s core revenue and a strict administration of working prices”, however had been hampered by ends in Poland.
“We’re targeted on remunerating shareholders higher, as our return on fairness (ROE) of two.5% stays very low and beneath the financial institution’s price of capital, however we anticipate to converge to the goal of 10% in 2024,” he informed reporters.
Its cost-to-income ratio dropped to 38% in September, in comparison with 50% a yr earlier, Maya mentioned.
The financial institution mentioned it decreased complete non-performing publicity by 14.4% to 2.42 billion euros as of September from a yr earlier.
It mentioned its price of threat in September, which measures the price of managing credit score dangers and potential losses for the financial institution, dropped to 55 foundation factors from a earlier 60 factors a yr in the past.
($1 = 1.0112 euros)
Reporting by Sergio Goncalves, enhancing by Ed Osmond and Marguerita Choy
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