While the first months of 1Q20 brought strong business volumes (record high origination of mortgages in February, beat by even stronger volumes in March, strong cash loan origination in January and February), in March the outbreak of COVID-19 pandemic resulted in a shift of the Bank’s and customers’ priorities. As uninterrupted operating performance on the one hand and safety of employees and customers on the other became the new focal points, the second half of the month in particular, brought significant drop in newly originated volumes, especially in cash loans, while additionally extra costs were incurred in conjunction with the pandemic.
Despite this challenging backdrop, 1Q20 overall brought high disbursements of mortgages (PLN1,343 million, up 57% y/y) and cash loans (PLN1,297 million, up 31%), a further continuation of growth in the number of active retail customers (new record of 2.6 million, up 34% y/y), current accounts (3,435 thousand, up 41%), active micro-business clients (96.4 thousand, up 27%) as well as cards (debit cards: 2,911 thousand up 29%, credit cards: 466 thousand, up 25%). Mutual funds managed by Millennium TFI as well as the third-party ones saw significant redemptions in March. In the corporate segment, most sales KPIs were a tad below these in the preceding period but nonetheless, the corporate loan book grew 2% q/q (up 6% y/y), while deposits were only marginally down q/q and up 7% y/y.
Subsequent quarters brought significant volatility in customers’ activity and business results of the BM Group as a result (detailed information available in quarterly and semi-annual reports).
2Q20, the most volatile of all quarters of this year, brought new all-time disbursements of mortgages (PLN1.5 billion, up 15% q/q and up 18% y/y) with market share in originations increasing to nearly 16% in June from c7% in June the year before but a drop of new cash loan sales to PLN1.1 billion (down 17% q/q). Mutual funds managed by Millennium TFI as well as the third-party ones saw Inflows returning in May and June after significant redemptions in March and smaller ones in April. Corporate business was initially focused on customer support (facilitation of banking services) and protection (credit holidays, intermediation of support credit facilities from BGK/PFR among others). Later in the period, demand for borrowing remained moderate both at BM group and in the market overall with originations remaining below pre- pre-Covid levels but in some lines of business such as factoring a pick-up was more apparent.