Total net loans of Bank Millennium Group reached PLN 69,755 million as at the end of December 2019 after the strong growth of 32.3% y/y. The growth of loans without foreign currency mortgage portfolio presented much higher growth rate of 43.7% y/y reflecting dynamic increases in all key groups of lending activity (PLN mortgage, consumer loans and companies). FX mortgage portfolio continued to decrease at a fairly rapid rate – not only due to natural amortisation, but also thanks to early repayments. Without FX portfolio taken over from Euro Bank (c.a. PLN 1 billion), FX mortgage loans of Bank Millennium decreased by 4.8% y/y (or by 7.5% y/y in original currency) and its share in total gross loans has dropped during the year to the level of 19.2%.
The net value of loans granted to households as at the end of December 2019 totalled PLN 51,138 million and was 45.1% higher compared to the balance recorded the year ago. All main product categories, except FX mortgage loans, presented very strong annual growth rates supported by acquired Euro Bank’s portfolios: PLN mortgages +59.2% y/y and consumer loans of +102.5% y/y.
Net value of loans to companies amounted to PLN 18,617 million as at the end of December 2019 and grew by 6.6% yearly.
The structure and evolution of loans to Clients of the Group is presented in the table below:
Loans and advances to Clients (PLN million)
|Loans to households||51 137.7||35 247.8||45.1%|
|– PLN mortgage loans||21 469.5||13 485.8||59.2%|
|– FX mortgage loans||14 603.6||14 321.0||2.0%|
|– of which Bank Millennium loans||13 632.3||14 321.0||-4.8%|
|– of which ex-Euro Bank loans||971.4||–||–|
|– consumer loans||15 064.6||7 441.1||102.5%|
|Loans to companies and public sector||18 617.2||17 463.8||6.6%|
|– leasing||6 659.9||6 333.6||5.2%|
|– other loans to companies and factoring||11 957.3||11 130.2||7.4%|
|Net Loans & Advances to Clients||69 754.9||52 711.7||32.3%|
|Net Loans and Advances to Clients excluding FX mortgage loans||55 151.3||38 390.7||43.7%|
|Impairment write-offs||2 046.1||1 831.8||11.7%|
|Gross* loans and advances to Clients||71 801.1||54 543.5||31.6%|
Average interest rate on the Bank’s portfolio in 2019 was 4.61%. This rate reflects net interest income on hedging derivatives (mainly FX and interest rate SWAPs) regarding loans granted in foreign currencies, which offsets the nominally lower interest rate on these loans.