Bank Millennium SA (MILP.WA): 2Q26 Solid Earnings Driven by Rising Lending

Research evidence excerpt

Bank Millennium SA (MILP.WA): 2Q26 Solid Earnings Driven by Rising Lending

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28 Jul 2026 02:27:11 ET │ 13 pages

Bank Millennium SA (MILP.WA)

2Q26 Solid Earnings Driven by Rising Lending

CITI'S TAKE

Neutral Millennium reported 2Q26 net profit of Zl 408m (+36% qoq and +23%

yoy, +3% vs. company-compiled consensus and +18% vs. Citi estimates). Price (27 Jul 26 17:00) Zl19.56

The earnings were negatively impacted by FX mortgage costs of Zl -156m Target price Zl20.30

(excluding EuroBank, in line with the bank’s profit warning and vs. Zl 190m Expected share price return 3.8%

in 1Q26) and by other consumer protection related costs (including Zl - Expected dividend yield 1.1%

35m NII negative adjustment post CJEU ruling in case C-744/24, Zl -24m Expected total return 4.9%

cost of provisions related to consumer protection and Zl -61m of other

Market Cap Zl23,729M consumer protection costs). Earnings beat vs. Citi was driven by higher

US$6,245M than expected NII (+1% vs. Citi, in line with consensus) and lower net

provisioning (-36% vs. Citi, -18% vs. consensus), partially offset by higher

than anticipated CIT (+12% vs. Citi and +5% vs. consensus) while net fees

and OPEX came in broadly in line with Citi and consensus. Andrzej PowierzaAC

+48-22-690-3566

Solid NII, Accelerating Lending — Affected by lower interest rates, rising lending andrzej.powierza@citi.com

and longer by one calendar day quarter, underlying NII (i.e. excluding Zl -35m an

adjustment post C-744/24 ruling) rose +2.3% qoq but declined -1.8% yoy. Average

interest earnings assets rose +15% yoy and +4.9% qoq while NIM on interest-

earning assets adjusted for number of calendar days declined to 3.51% from 3.64%

in 1Q26 and from 4.13% in 2Q25, affected by a lower yield on interest-earning assets