2019 Financial
and Social Report

Execution of the
2018-2020 strategy

In 2019, the Bank successfully implemented the adopted organic growth strategy.

One of the key goals of this strategy was to speed up the new client acquisition process to achieve 600 thousand new active clients within 3 years of the strategy period, i.e. until 2020. At the end of September, i.e. one day before its merger with Euro Bank, the Bank reached the landmark of 2 million active retail clients. This meant an increase by 421,000 during the first two years of the strategy, i.e. significantly ahead of the strategic objectives. At the end of 2019, the Bank had 2.6 million active retail customers.

The past year also brought about an equally successful completion of the Euro Bank acquisition project. It was one of the fastest executions of mergers on the market. On 11 November 2019, one year after its announced, the Euro Bank acquisition process was effectively finalized. The Euro Bank acquisition transaction was carried out without increasing the Bank’s share capital. This means that the Bank Millennium Group’s capital and liquidity were efficiently used, which should result in an increased efficiency and return on equity through economies of scale and synergies.

The Bank’s position in the consumer loan segment, which is another very important element of the Group’s strategy, has increased significantly. Faster sales of cash loans by Bank Millennium and the effect of the merger effectively doubled the portfolio up to PLN 15.1 billion. This improved the Group’s position on the domestic market for consumer loans. It passed three of its competitors and is currently ranked fifth on the market.

Improvement of quality and implementation of cutting-edge digital and mobile solutions remains an important element of the Bank Millennium Group’s strategy. In 2019, the Bank again received the highest marks among financial institutions in the customer satisfaction category, including NPS of 61, which is the highest score among banks (according to ARC Rynek i Opinia). The successful implementation of mobile applications is exemplified by an almost 50% increase in downloads of the Goodie app (which is a 100% subsidiary of the Group) up to 1.5 million downloads at the end of 2019.

Specific information regarding the execution of the strategy can be found in “Management Board Activity Report of Bank Millennium and Bank Millennium Group for 2019”.

The Bank Millennium Group’s growth outlook

The goal of the Bank Millennium Group for 2020 will be a successful restructuring following the Euro Bank merger and quick return to one of the fastest business growth rates on the market.

The goal of the Bank Millennium Group for 2020 will be a successful restructuring following the Euro Bank merger and quick return to one of the fastest business growth rates on the market.

The successful migration of all the Euro Bank’s branches, clients and products to the Bank Millennium logo and platform paved the way to the realization of benefits from the merger. The enlarged branch network (830 at the end of 2019) and a 2.6-million active client database facilitates the process of accelerating sales of Bank Millennium’s products in new locations and to new clients. In 2020 the Bank will also continue the work to capture the opportunities arising after the implementation of the new payment services directive PSD2. Retaining a leading position in the quality of services and their digitization continues to be an unwavering goal of the Bank Millennium Group and will still have the necessary backing in 2020 and subsequent years in the form of the indispensable investments focused on innovation. In 2020, we should be able to notice the first effects of the strengthening of the micro-business support segment implemented in 2019. The Bank Millennium Group is also planning to launch a mortgage bank, which will be able to issue covered bonds.

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