Bank Millennium (MIL) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached PLN 855 million, up 56% year-over-year; Q3 net profit was PLN 345 million, up 82% year-over-year.

• Adjusted net profit (excluding FX-mortgage costs) for 9M25 was PLN 2,347 million, up 2% year-over-year.

• ROE annualized at 15% for Q3 and 14.2% for the nine months.

• Over 3.2 million active retail customers, with 93% digital engagement and strong digital transformation.

• Strong asset quality, liquidity, and capital positions maintained.

Financial highlights

• Net interest income for 9M25 was PLN 4,318 million, up 7% year-over-year; NIM at 4.1% for nine months, down 26 bps year-over-year.

• Net fees and commission income for 9M25 was PLN 575 million, down 2% year-over-year; total operating income grew 8% year-over-year to PLN 5,165 million.

• Operating costs increased 15% year-over-year, mainly due to higher regulatory and wage costs.

• Cost of risk improved to 32 bps for 9M25, down from 53 bps a year earlier.

• NPL ratio stable at 4.2%, with coverage ratio for impaired loans at 78%.

Outlook and guidance

• NII expected to remain resilient in Q4 despite further rate cuts; interest rates forecasted to stabilize at 3.5% by mid-next year.

• NIM expected to trend down by 20–30 bps but offset by loan growth; focus remains on NII stability.

• Cost of risk likely to finish the year below 40 bps; guidance for future years is 40–50 bps.

• FX mortgage-related costs expected to decrease further in 2025, with 2025 likely the last year of significant impact.

• Economic growth in Poland forecast at 3.5% for 2025, with inflation expected to average 3.8%.