Total net loans of Bank Millennium Group reached PLN 52,712 million as at the end of December 2018, which means a considerable growth of 11.2% year-on-year.
The growth of loans without foreign currency mortgage portfolio presented strong pace of 16.9% year-on-year reflecting dynamic increase in all key groups of lending activity (PLN mortgage, consumer loans and companies), whereas FX mortgage portfolio continues its gradual amortisation (a yearly decrease by 1.7% or 7,6% in currency) limited by strengthening CHF to PLN in 2ndhalf of the year.
The net value of loans granted to households as at the end of December 2018 totalled PLN 35,248 million and grew by 10.1% compared to the balance recorded a year ago. But when excluding amortising FX mortgage loans, all other segments presented strong annual growth rates: PLN mortgages +20.7% year-on-year and consumer loans +18.9% year-on-year. Annual sale of new cash loans and PLN mortgages presents high dynamics well exceeding the rate of 30% and achieving the levels of PLN 3.2 billion and PLN 3.3 billion respectively.
Net value of loans to companies amounted to PLN 17,464 million as at the end of December 2018 and grew strongly by 13.4% year-on-year, recording the fastest growth of companies loans in the last 5 years.
The growth was well balanced, at high pace in all main product groups (gross): factoring (+22% y/y), leasing (+13% y/y) and other loans (+12% y/y). Leasing and factoring maintained double-digit growth in yearly sales: +15% y/y and +18% y/y respectively.
The structure and evolution of loans to Clients of the Group is presented in the table below:
Loans and advances to Clients (PLN million)
||Change y/y (%)
|Loans to households
|– PLN mortgage loans
|– FX mortgage loans
|– consumer loans
|Loans to companies and public sector
|– other loans to companies and factoring
|Net Loans & Advances to Clients
|Net Loans and Advances to Clients excluding FX mortgage loans
|Gross* loans and advances to Clients
(*) Including, besides provisions for credit risk, also fair value adjustment of loan portfolio presented in fair value as well as modification. Includes also IFRS9 initial adjustment. Gross loan portfolio in this case presents value of loans and advances before mentioned provisions and adjustments.
The average interest rate of the Bank’s loan portfolio in 2018 was 4.33%. This interest rate includes interest income on hedging derivative transactions (mostly cross-currency interest rate swaps), connected with loans granted in foreign currencies, which are compensating for the lower nominal interest rate of such loans.