Services provided by subsidiaries

Leasing services of Millennium Leasing

Millennium Leasing was formed in 1991 and is one of the leasing companies with the longest operating history on the market in Poland. It is a subsidiary of the Bank offering leasing services. The company’s business covers the financing of both movables: cars and vans, heavy-duty vehicles, machines and equipment for all sectors of the economy and services, as well as real estate.

The total value of originated lease agreements in 2016 was PLN 2.6 billion, representing growth by 7.3% compared to 2015. Millennium Leasing took 7th place in a ranking of leasing companies in Poland measured by the value of all leased items with a 6% market share according to the data reported by the Polish Lease Association.

Most of the leasing clients are also Bank clients: micro businesses and corporate clients. Signing nearly 173 thousand lease agreements with over 52 thousand clients for the total amount of PLN 25.3 billion shows the Company’s scale of business. The value of financing engaged in active lease agreements as at 31 December 2016 was PLN 5.16 billion, which means an 11.8% growth as of 31 December 2015.

There are currently 16.3 thousand clients in the Company’s portfolio. The sales of lease services are conducted by leasing advisors in the company’s 66 branches located across Poland. The Company’s sale activities are also conducted in active cooperation with relationship managers in Bank Millennium’s retail branches and corporate units.

Brokerage activity – Millennium Dom Maklerski

The Group’s brokerage activity is run by Millennium Dom Maklerski S.A. It renders a broad range of brokerage services, especially the execution of buy or sell orders for financial instruments for the principal’s account, buying and selling financial instruments for its own account, running securities accounts and cash accounts to operate them, investment advisory services, advisory services for enterprises concerning capital structure and strategy as well as merging, splitting and acquiring businesses, offering financial instruments, providing services in the implementation of investment underwriting and underwriting services agreements, preparing investment and financial analyses and other recommendations related to financial instruments.

In 2016 Millennium DM’s stock trading volume on the equity market was PLN 3,527 million, giving the company an almost 1.0% market share according to the Warsaw Stock Exchange’s data. As at 31 December 2016 Millennium DM operated 59,915 investment accounts and acted as a market maker and as an issuer’s market maker for companies listed on the WSE and for corporate bonds listed on BondSpot.

In 2016 Millennium DM cooperated – in the capacity of the offering agent – with Mediacap S.A. in introducing shares to trading on the WSE. As the leader of a retail consortium it participated in one of the biggest public offerings last year – of Celon Pharma S.A. In 2016 as an intermediary Millennium DM conducted a tender offer for ATM S.A. shares announced by MCI PrivateVentures FIZ. Moreover, it conducted the buyback of Emperia S.A. and Benefit Systems S.A. shares, and also took part in several initial public offerings as a participant of the retail consortium.

W 2016 Millennium DM also provided analytical and advisory services for external clients, as well as companies from the capital group. The most important of them include: investment advice service regarding equity funds of one of the leading domestic insurers, due diligence of investment funds and insurance companies cooperating with the capital group and analyses and recommendations regarding sectors and public/non-public companies.

Investment funds – Millennium TFI

Millennium TFI manages two open umbrella funds and private Closed Investment Fund dedicated to private banking clients of Bank Millennium. As part of the umbrella funds Society in 2016 it offered 11 sub-investment giving the opportunity to reinvest the proceeds in investment strategies with different levels of risk.

The situation of investment funds managed by Millennium TFI was relatively stable in 2016, both in terms of total assets managed by the Company and in terms of rates of return achieved by particular funds over the year.

As regards the total value of assets managed by the Company the year 2016 brought relatively minor changes. Assets under management grew from PLN 3,969 million at the end of December 2015 to the level of PLN 3,982 million.

The rates of return in Millennium funds investing mainly on the Polish market were positive and relatively stable. Their level was clearly related to the level of the funds’ risk. The biggest returns came from equity funds: one of the highest in this category in the previous years, Dynamic Subfund, had a very good rate of return (+13.15%). The Equity Subfund had a clearly lower return, at the level of 5.19%, which should nevertheless be considered satisfactory. Particularly satisfactory rates of return were achieved by bond funds: 3.82% Corporate Bond Subfund, 3.13% Debt Instrument Subfund. At a level above 2% were rates of return from balanced subfunds: Stable Growth Subfund (2.38%), Economic Trend Subfund (2.16%) and the least risky of the subfunds – Deposit Subfund (2.03%).

Last year the Company broadened its product offer. For all subfunds under its management it introduced Type B participation units in which fees are collected on redemption. As part of Millennium SFIO (open-end mutual sub-funds) a new Conservative Subfund was launched, whose shares will be offered to clients in 2017. Moreover, the offer for Bank Millennium Private Banking includes investment certificates of the Closed-End Millennium Dividend Investment Fund.

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