Millennium BCP's FY'20 net income falls 39.4% YOY

Portugal-based Millennium BCP reported a 39.4% year-over-year fall in net income for the full year 2020 due to pandemic-driven impairments and provisions related to foreign exchange mortgage legal risk at its Polish subsidiary Bank Millennium SA.

The bank's full-year 2020 net income stood at €183.0 million, compared to €302.0 million in the year-ago period.

The bank's full-year 2020 loan impairment charges increased to €509.9 million from €390.2 million a year earlier due to the economic crisis caused by the pandemic.

It booked other impairment and provisions of €331.4 million in 2020, compared to €151.4 million in the same period a year ago. The increase was driven by a €160.1 million provision booked for foreign exchange mortgage legal risk at its unit.

The lender reported a net interest income of €1.53 billion for the period, compared to €1.55 billion in 2019.

It booked operating costs of €1.12 billion, down from €1.17 billion a year ago.

The lender's nonperforming exposure ratio at the end of 2020 was 5.9%, down from 7.7% at the end of 2019.

The bank's phased-in common equity Tier 1 ratio at the end of December 2020 was 12.2%, the same number as at the end of 2019.