Millennium bcp Sees Robust Profit Growth Amid Reduced Provisions

Portugal's Millennium bcp reported a 15% rise in first-half net profit, surpassing expectations, driven by stronger domestic income and reduced impairments and provisions. Net consolidated profit reached 485.3 million euros, exceeding forecasts. Despite higher costs in its Polish unit, the bank saw significant improvement in overall financial stability.

Portugal's largest listed bank, Millennium bcp, has reported a 15% increase in its first-half consolidated net profit, surpassing market expectations. This growth was bolstered by stronger income domestically and a global reduction in impairments and provisions.

The bank's net consolidated profit hit 485.3 million euros ($525 million), significantly higher than the 417 million euros forecasted in an LSEG poll. This was driven by a 16.2% increase in net income at its domestic operations, which soared to 411 million euros from the previous year.

Despite its Polish unit Bank Millennium incurring costs due to Swiss franc-denominated mortgage loans, consolidated impairments fell by 33% to 97 million euros, and total impairments and provisions dropped by 29% to 390 million euros. Millennium bcp, active in Mozambique and Angola, also reduced non-performing exposures by 8% to 1.97 billion euros while seeing a 1.7% rise in consolidated net interest income to about 1.4 billion euros.

(With inputs from agencies.)