Year 2018 was very successful for the Bank in the area of deposit base management. Despite unfavourableenvironment – low interest rates and increasing competition from banks, real estate market or retail state treasury bonds – the Bank took advantage of growing funds of natural persons on the market and the value of personal deposits grew by 7,6 bn PLN (+18% y/y) to reach the level of 47,7 bn PLN. Rapid increase of customer deposits supported growth of the Bank’s market share by nearly 0,5 pp. to reach the level of 6,2%. Despite dynamic growth of the deposit portfolio, the bank maintained its profitability at the level similar to that recorded in the previous year.
After comprehensive reconstruction of offer of basic savings products in 2017, in 2018 the Bank focused on active promotion and offering of Konto Oszczędnościowe Profit with attractive interest rate applied to new funds. The account enjoyed major interest on the part of customers. Responding to growing market needs in investing surplus funds in foreign currencies, the Bank continued to offer promotional interest on savings accounts in EUR and USD, thus triggering growth in deposited funds by nearly 50%.
The Bank introduced and developed attractive offer of savings and investment products supporting diversification of deposits. Among other solutions, the Bank introduced into its offer the Deposit in Investment Duo – an attractive combination of interest bearing term deposit with investment fund. Deposited funds are split in half: 50% of funds are applied to 3 or 6-month Deposit in Duo, while the remaining 50% are allocated as investment in a selected sub-fund within the Millennium FIO Investment Plan.
The Bank also encouraged regular and long-term saving for retirement. To this end, the most attractive interest rate on the market at 3% was maintained on the Individual Retirement Account.
The Bank continued its strategy of offering a diversified investment products portfolio which was built both from own solutions as well as third party products. Depending on client segment the Bank offered structured products, mutual funds and investment linked insurance products.
In June, in order to make the offer more attractive, the Bank improved its bundle offer of terms deposit and Millennium TFI funds. Second half of the year was a period of upgrading the third party mutual funds offer by adding three new proposals. The Bank launched also a promotion for Millennium TFI funds by waving up-front fee during the promotional period. Also the new digital service allowing to track results and characteristics of mutual funds was offered to clients.
During 2018 major regulatory changes were imposed on investment products line. The Bank implemented and stabilized MiFID2, new RODO regulations and Insurance Distribution Directive, which covered investment linked insurance products.