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2019 Financial
and Social Report

Business model and the value creation model

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Business model

Bank Millennium operates according to a business model predicated on five pillars:

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We are the most customer-focused bank that is constantly developing. We want to be the most personalized bank operating on a mass scale.

We are the leader in digital banking by offering high quality services blended with an extensive reach.

We are one of the fastest growing banks in acquiring clients with whom we hold the main relationship.

We have the leading cost effective business model built by harnessing the most sophisticated technology that is flexible when it comes to changes and the Bank’s growing size.

We have a flexible operating model, an organizational culture that facilitates rapid response and digital and data analysis competences.

The firm’s values form the foundation of our business model: building relations based on trust, a passion for quality and innovation, employee development and promoting collaboration and the ever constant ambition to aim higher.

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Value creation model

The Bank Millennium Group’s capital poises it to grow its business as it simultaneously creates value for its Stakeholders.

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The Bank Millenium Group's Capital...

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  • Financial capital

    Equity
    Assets, loans and liabilities

    • PLN 8,942 million own funds (including net profit)
    • PLN 89,114 million - total liabilities
    • PLN 69,755 million - net loans
    • PLN 98,056 million - total assets / liabilities
  • Human capital

    Employees, their knowledge, values and attitudes that make it possible to grow the company.

    • 8,615 - headcount in the Group
    • 100% - of the employees have been trained on our Code of Ethics
    • 45 - average number of training hours per employee
  • Organizational capital

    Culture of rapidly responding to change (agility), sophisticated infrastructure and IT systems, digitization and optimization of processes making it possible to develop innovative products and offer high quality services, organization’s cost effectiveness.

    • +44% y/y - users of the mobile banking application
    • +50% y/y - sales of urban transport tickets through the mobile application
    • 52 - NPS for retail clients
    • 49.7% - cost/income ratio
  • Intellectual capital

    Investments in modern technological solutions and innovations, the bulk of IT development is in-house, internal start-up goodie, internal UX Design team.

    • Nearly 66% of capital expenditures are for IT development
    • 502 - number of IT employees
    • 76% - employees holding a university education
  • Social capital

    Quality of relations with the environment, Bank reputation, transaction safety, enhancing the society’s financial awareness.

    • NPS 52 - for retail clients (according to the research done by ARC Rynek i Opinia)
    • 76% - of our clients maintain their main relationship with the Bank
    • 49% - of our clients recommend the Bank to others
    • 53,000 - children trained in the fundamentals of finance
    • over 13,000 beneficiaries of our volunteerism programs
  • Natural capital
      Direct and indirect environmental impact and its minimization.
    • -0.02% - reduction of CO2e r/r

... support business development through:

  • Process optimization and digitization
  • Facilitating access to non-banking services
  • Creating a work culture to facilitate rapid response to changes
  • Marketing products and banking services making everyday life easier
  • Designing the goodie smart shopping platform
  • Organic growth and acquisition (Euro Bank)

… and create value for stakeholders:

Banking for all – no physical, infrastructural and digital obstacles
  • 34% are mobile app users
  • 63% of the branches are accessible to disabled persons
  • 100% of the ATMs are accessible to disabled persons
  • Ranked first in the “Accessibility” category in the Ranking of Banks published by Miesięcznik Finansowy Bank.
Non-banking digital functionalities, e.g. e-administration
  • 34% are mobile banking users
  • 76% are internet banking users
High quality of service
  • 52 – NPS for retail clients (according to ARC Rynek i Opinia)
  • 93% – retail clients satisfied with their cooperation with the Bank
  • Highest NPS among Polish banks in the Bain & Company study
  • Ranked first in the financial sector and in the TOP 10 of Polish companies according to the Customer Experience KPMG study
Ethical sales
  • 100% of the employees have been trained on our Code of Ethics
HR awards, employee turnover ratio
  • Distinction as the Sound Employer of the Year 2019
  • 4% – employee turnover ratio
Education and development
  • 45 – average number of training hours per employee
  • 11% – employees who were promoted
Respect for diversity
  • 83% – returns to work following maternity leave
  • 57% of women in managerial positions
Profitability
  • 6.4% – Return on Equity (ROE)
Earnings for shareholders
  • -34% – share price decline in 2019 (due to influence of legal risk related to foreign currency mortgages)
Low risk
  • 20.1%-TCR (total capital ratio)
High standards of ESG management
  • Member of the WIG-ESG index on the Warsaw Stock Exchange, adherence to the Best Practices for WSE Listed Companies and Corporate Governance Principles
Ethical cooperation
  • 81% of all invoices paid within a range up to 30 days
Responsibility in the supply chain
  • 100% of newly-executed contracts have a clause obligating suppliers to apply the principles of the Bank Millennium Group’s Code of Ethics
Employee volunteerism
  • 567 volunteers engaged in social campaigns
  • 13,624 beneficiaries in volunteer campaigns
Financial education
  • 53,000 children received instruction
Promotion of Culture
  • PLN 752,667 – sponsoring of culture
Expenditures for social purposes
  • PLN 690,689 – Bank Millennium Foundation’s expenditures on social goals
  • 48% – effective tax rate on the operating profit*
*the effective tax rate is the quotient of income tax (CIT) and banking tax by the operating profit of the Bank Millennium Group
Minimizing the environmental impact
  • -0.02% – reduction in CO2e emissions y/y
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