Bank Millennium: Profit Up 30% Over First Nine Months, Operating Income Down
The Polish subsidiary of Banco Comercial Português generated net income of 1,109 million zlotys (259.7 million euros) over the first nine months of 2026. This 30% increase was accompanied by a 3% decline in operating income.
The gap between these two lines is partly attributable to a 63% decrease in pre-tax costs related to mortgage loans denominated in foreign currencies.
The matter weighs less heavily on the bank's accounts than a year earlier, though it remains exposed to this factor. At the same time, lower market rates reduced net interest margin, while credit volumes increased by 11%.
Bank Millennium is 50.1% owned by Banco Comercial Português, which fully consolidates its accounts. The Portuguese group reported these figures on October 27, 2026, the day they were published by the Polish bank.
Net Income Up 30%, Operating Income Down 3%
Bank Millennium's net profit stood at 1,109 million zlotys, compared to 855 million over the same period in 2025.
According to the statement, this growth reflects the resilience of net interest income, increased commissions, strict cost discipline, and the sharp reduction in charges related to mortgage loans in foreign currencies. It was achieved despite a significant increase in the effective tax rate.
Net interest income declined by 1% year-over-year. Net commissions increased by 9%, while operating costs rose by 7%. Core revenues remained stable and operating income fell by 3%.
Net interest margin stood at 3.54% over the first nine months of 2026, compared to 4.10% a year earlier over the same period. The three-month WIBOR declined by an average of 105 basis points year-over-year.
Foreign Currency Loans Less Burdensome and Quarterly Rebound in Interest Income
Analysis of the accounts shows that profit growth stems primarily from lines below operating income. Pre-tax costs related to foreign currency mortgage loans decreased by 63% year-over-year. The bank notes that its results nevertheless remain negatively affected by this factor.
On current business operations, the nine-month cumulative figure and the last quarter do not tell the same story. Net interest income is down 1% over nine months, but increased by 7% in the third quarter compared to the second quarter of 2026.
Portfolio quality improved. The impaired credit rate (stage 3) fell from 4.2% to 3.6% year-over-year, and the cost of risk stood at 37 basis points. The loan-to-deposit ratio reached 58% in September 2026.
On the capital front, the CET1 ratio was 13.7% at end-September, the Tier 1 ratio 16.1%, and the total solvency ratio 20.6%. These levels are supported by an AT1 issuance of 1.5 billion zlotys completed in January 2026 and a Tier 2 subordinated debt issuance of 500 million euros finalized in May 2026.
This is complemented by organic capital generation and the integration of 65% of first-half 2026 net income into regulatory capital.
Credit Outstanding Up 11%, Mortgage Production Up 224%
The loan portfolio increased by 11% year-over-year, at the same pace as customer deposits. Off-balance sheet resources grew by 21%.
New production increased by 224% in mortgage credit, by 26% in personal loans, by 25% in business credit, and by 22% in leasing as well as factoring.
In retail banking, the number of active customers exceeded 3.3 million, up 160,000 year-over-year.
More than 3.2 million active customers use digital channels, representing 95% of active customers, with mobile banking accounting for the bulk of this activity. Individual deposits increased by 14% and individual credit outstanding by 5%.
In business banking, credits increased by 25% and deposits by 3%. Other loans and factoring grew by 33%, and leasing activity by 11%.
