(Adds quotes, details)
By Sergio Goncalves
LISBON, May 15 (Reuters) - Portugal's largest listed
bank, Millennium bcp said on Monday its first-quarter
consolidated net profit rose by 90.5%thanks to interest rate
hikes and strict cost controls.
Millennium bcp Chief Executive Miguel Maya said the results
were boosted by a "significant increase in the bank's core
income due to rising interest rates and expansion in the bank's
customer base and strict management of operating costs."
He said there are still uncertainties about economic growth,
inflation and when Russia's war against Ukraine will end.
"But I guarantee that we have enormous confidence in the
future of the bank because we know the great transformation we
have already made, which has started to bear fruit as we
expected," he told reporters.
The bank has been cutting non-performing exposure and
controlling costs, as well as increasing its customer base and
improving profitability.
The bank's consolidated net profit of 215 million euros was
up from 112.9 million euros a year earlier, with profit in its
domestic business increasing 59% to 170.8 million euros.
Its half-owned Polish subsidiary, Bank Millennium ,
reported a net profit of 252.1 million zlotys ($61 million) last
month versus a 122.3 million zloty loss in the first quarter of
2022, despite 200 million euros in provisions related to legal
risks over its portfolio of Swiss francs mortgage loans.
Like other banks, Millennium bcp benefited from interest
rate hikes by the European Central Bank and the Polish central
bank to control inflation.
Consolidated net interest income (NII), or earnings on loans
minus deposit costs, rose 42.9% to 664.6 million euros in 2022.
Its core income, including NII and fees, grew 30.7% to 860
million euros in the quarter.
Millennium bcp said its cost-to-income ratio dropped to 31%
in the first quarter compared to 36% a year ago as operating
costs edged up 5.3% to 268.5 million euros, a much lower
increase than inflation.
The bank gained 4.7% more customers, whose number reached
more than 6.5 million.
It reduced non-performing exposures by 28.5% to 1.28 billion
euros in March from a year ago.
($1 = 4.1422 zlotys)
(Reporting by Sergio Goncalves; Editing by Alexander Smith)
Messaging: sergio.goncalves.reuters.com@reuters.net))
