Bank Millennium (MIL) Q4 2025 earnings summary

Executive summary

• Net profit for 2025 reached a record PLN 1,202 million, up 67% year-over-year, with ROE at 14.3% and strong asset quality, liquidity, and capital positions maintained.

• Adjusted net profit excluding extraordinary items was PLN 3,222 million, up 1% year-over-year, with limited extraordinary items mainly related to FX-mortgage costs.

• Active retail customer base grew to 3.27 million, with 94% digitally active, reflecting strong digitalization and customer acquisition.

• The bank executed its 2025-28 strategy, surpassing key KPIs, including an NPL ratio below 4%.

• Corporate loan volume increased by nearly PLN 3 billion year-over-year, with robust growth in business clients.

Financial highlights

• Net interest income grew 4% year-over-year to PLN 5,756 million; NIM for the year was 4.01%.

• Total operating income increased 6% year-over-year; operating costs rose 13%.

• Cost-to-income ratio at 36.9% reported (35.8% adjusted); cost of credit risk at 30 basis points over total loans.

• NPL ratio dropped to 3.8%, meeting the 2028 strategy target; coverage of NPLs by provisions increased to 78.9%.

• Customer funds grew 14% year-over-year to PLN 146,274 million; deposits up 12%, loans up 2%.

Outlook and guidance

• Expectation of continued strong customer and loan growth, with PLN mortgage portfolio targeted to grow by 3% in 2026.

• NII expected to be resilient in 2026, though a drop is anticipated in Q1 due to interest rate cuts; NIM may decline to 3.5%.

• Cost of risk likely to normalize to around 50 basis points over total loans.

• FX mortgage-related costs expected to drop by more than 50% in 2026.

• Dividend payments expected to resume in 2027 based on 2026 profits, with a payout ratio of 35%-50%.