2022 – 2024 strategy

The Bank plans further significant increase of the number of active customers to the level of over 3 million in 2024. This means approximately 100,000 net growth per year and an expected market share in new personal accounts at ca. 9%. Due to the growing customer base and digital focus Bank aims at:

• 90% of active customers will be using digital channels (83% in late 2021) – 500,000 growth from 2.2 million in 2021 to 2.7 million in 2024;
• 99% of all transactions continued to be digital/remote;
• 80% of several main product sales to be fully or partly digital/self-service;
• maintain the leading position in NPS, offering to customers the service level they expect – convenience of transactions and simple sales; the latter constitute the majority of daily interactions with the bank as well as high quality of services supported with advice during onboarding of customers and with complex transactions (e.g. selling mortgage loans).

The Bank plans to further digitalise sales and service model tapping on Covid-induced shift of customer preference. This is to be achieved by development of digital capabilities across the Bank to exceed clients’ expectations (in daily banking, consumer finance, mortgage, family banking, bancassurance, investments). Mobile will be primary channel for sales of ‘easy’ products and customer service. At branches, the Bank will focus on customers acquisition, more sophisticated products, education of customers & onboarding them to digital. The Bank intends to stronger personalise its products and services. In retail banking, the Bank plans to significantly improve customers’ experience: in mortgage, with new end-to-end digital/hybrid process that is to ensure robust, but also faster verifications and decision; in cash loans, leveraging PSD2 new capabilities; and savings investment, offering new compelling self-service digital tools and remote services. In micro business, the Bank plans to develop a new self-service lending solution for customers, as well as new services related to companies’ registration and daily banking. In corporate banking, the Bank highlights the objective of active support of customers in their investment programs, namely within their green transformations supported by public programs.

The Bank aims to significantly increase its recurrent profitability and efficiency. Taking advantage of the expected market growth (all business segments are expected to grow by more than 10% annually) and higher interest rate environment, the Bank aims at 2024 total revenues (the sum of revenues from main business segments before consolidation adjustments) ca. 50% higher than in 2021 with retail business to be the main driver.

Within the Strategy horizon, the Bank will continue to address the FX-mortgage related challenges. The Bank aims to cut its exposure to the FX mortgages to ca. 7% of total loan book from 14.6% at YE21. The Bank intends to solve this challenge jointly with clients. This is well illustrated by the amicable settlements which, in 2021, have outnumbered new lawsuits. In the next 12 months, the Bank is aspiring to keep the pace of successful negotiations with its clients.

For years the Bank has been actively involved in support of environment, including financing of energy saving projects. The Bank Millennium Group does not grant financing to new coal mines and capital projects in coal source based power sector, excluding new projects connected with pollution reduction. Several years ago the Bank decided to significantly reduce exposures in financing of coal sector. In effect, exposures in mining of coal and hydrocarbons in the portfolio are close to zero while industries directly connected with mining are, today, marginal (at the end of 3Q21 the Bank Millennium Group’s exposure accounted for 0.96% of the corporate portfolio and 0.27% of the entire portfolio of the Group). The Bank plans to reduce in 2022 own CO2e emissions by 50% compared to the 2020 level; to achieve climate neutrality in the area of own emissions (at the level 1 and 2) by 2027, and full neutrality (range 3) by 2050. The Bank will actively support corporate clients in undertaking decarbonisation actions mainly in developing their investment plans connected with European funds’ package, specifically green finance.