Bank Millennium (MIL) investor relations material

Executive summary

• Net profit for Q1/1Q26 reached PLN 301 million, up 68% year-over-year; adjusted net profit (excluding extraordinary/FX-mortgage items) was PLN 514 million, down 28% year-over-year.

• Strong growth in corporate lending, consumer loans, and customer funds; corporate loan origination more than doubled year-over-year.

• Retail active customers reached 3.31 million, with 95% digital actives; digital transformation advanced, with 3.1 million digital users.

• Recognized for multi-channel service quality, digital innovation, and top employer status.

• FX-mortgage related costs declined over 60% year-over-year, but remain a material drag.

Financial highlights

• Net interest income was PLN 1.39–1.4 billion, down 2% year-over-year; net interest margin at 3.65–3.7%, 58–60 bps lower year-over-year.

• Fee and commission income grew 12% year-over-year; cost-to-income ratio (adjusted) at 39–39.1%.

• Operating costs rose 12% year-over-year; admin costs up 8%.

• NPL ratio improved to 3.7%, an all-time low; coverage ratio improved to 81.6%.

• Total capital ratio at 17.6%, Tier 1 at 16.4%, CET1 at 13.8% after AT1 bond issue and profit retention.

Outlook and guidance

• NII expected to stabilize if interest rates remain at current levels; volume growth to offset margin contraction.

• Strategy 2025–2028 targets further growth in active clients, digital adoption, and corporate lending.

• Cost growth targeted at single digits for 2026; positive operating jaws not expected this year.

• Cost of risk guidance for 2026 is 40–50 bps over total loans.

• Dividend distribution targeted for 2027 from 2026 results, subject to regulatory approval.