Portugal’s largest listed bank, Millennium bcp, posted a 63.4% jump in nine-month net profit thanks to a robust rise in core income stemming from policy rate hikes and despite losses at its Polish subsidiary.

The lender netted €97.2 million between January and September, up from €59.5 million a year earlier. Profit in its domestic business more than doubled to €295.7 million.

Its half-owned Polish subsidiary, Bank Millennium, reported a nine-month loss of €270.5 million as it counted the cost of loan repayment holidays imposed on Polish banks in July. r

Millennium bcp benefited from interest rate hikes by the European Central Bank to control inflation, after years of record low rates pressured lenders’ financial margins, and by central banks in other countries where it operates: Poland, Angola and Mozambique.

Millennium bcp’s consolidated net interest income, or earnings on loans minus deposit costs, rose 32.7% to €1.54 billion in the nine months. Its fees and commissions grew 3.7% to €573.8 million.

Chief Executive Miguel Maya said that “performance was supported by a 24.7% increase in the group’s core income and a strict management of operating costs”, but were hampered by results in Poland.

Original Story: Reuters | Sérgio Gonçalves  
Photo: Millennium bcp website
Edition: Prime Yield