Share price performance and ratings
The year 2016 was marked with partial rebound on the Warsaw capital market after significant falls of majority of indices recorded in 2015. In the view of more neutral impact of local factors, the Warsaw Stock Exchange in the last year followed global trends being marked by such significant political developments as a result of referendum in the UK favouring Brexit supporters (negative impact) or the U.S. presidential elections won by D. Trump (positive impact, against expectations). During 2016 the main WIG index at the Warsaw Stock Exchange increased by 11.4%, while „blue chip” index WIG20 recorded a slower increase, by 4.8%.
Some negative regulatory and political factors having impact upon quotation of share prices of banks on the Warsaw Stock Exchange in 2015 continued their presence also in 2016. Thus, WIG banks index recovered only 2.9% of 23.5% drop recorded in 2015. Specifically unfavourable outlook accompanied quotations of banks involved in FX mortgage loans and only the beginning of 2017 brought significant reduction of risk of application of extremely unfavourable solutions relative to these banks.
Bank Millennium share price in 2016 remained under impact of the above factors, especially the specific ones, unfavourable for banks having FX mortgage portfolios, and thus the share price decreased by 6.7% during the year.
Average daily turnover of Bank Millennium shares was lower in 2016 by 35.5% compared to corresponding period of 2015 year (in which Accelerated book-building transaction of selling 15.4% of Bank’s shares by its’ Parent – Millennium bcp – inflated turnover significantly).
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| Market ratios | 30.12.2016* | 30.12.2015* | Change (%) Yearly |
|---|---|---|---|
| Number of shares of the Bank (in ths.) | 1 213 117 | 1 213 117 | 0.0% |
| Daily trading – average (PLN ths, ) | 5 716 | 8 865 | -35.5% |
| Price of the Bank shares (PLN) | 5.19 | 5.56 | -6.7% |
| Market capitalization (PLN million) | 6 296 | 6 745 | -6.7% |
| WIG Banks | 6 263 | 6 087 | 2.9% |
| WIG20 | 1 948 | 1 859 | 4.8% |
| WIG30 | 2 243 | 2 076 | 8.1% |
| WIG – main index | 51 754 | 46 467 | 11.4% |
(*) last day of quotation in 2016 and 2015
During 2016 there were no changes of the two basic ratings assigned to Bank Millennium. On 29 February 2016 Fitch rating agency affirmed Bank’s ratings at BBB-/F3/A- (pol) stable outlook. On 22 June 2016 Moody’s rating agency affirmed Bank’s rating at Ba1 (stable outlook).
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| Rating | FITCH | MOODY’S |
|---|---|---|
| Long-term deposit rating/IDR | BBB- (stable outlook) | Ba1 (stable outlook) |
| National Long-term IDR | A-(pol) (stable outlook) | – |
| Short-term deposit rating | F-3 | NP |
| Individual (Viability rating / standalone BCA*) | bbb- | ba3 |
| Counterparty Risk Assessment (CR) | Baa3/Prime-3 | |
| Support | 4 |
(*) In March 2015 Moody’s replaced former BFSR (bank financial strength rating) with Baseline Credit Assessment (BCA), which is the only indicator of issuers’ standalone intrinsic strength and has no outlook assigned.