Tech

Portugal’s Millennium bcp plans digital drives to increase profitability

By Sergio Goncalves

Lisbon (Reuters)-Portugal’s largest listed bank, Millennium bcp, aims to raise return on equity (ROE) to 10% by 2024, reducing operating costs and digital banking over the next four years The bank said it plans to promote it on Monday.

The bank updated its strategic target, reporting a 84% decline in net income in the first half of 2021, but was hit by a huge allowance and impairment of foreign currency loans at its Polish subsidiary, related to the COVID-19 pandemic. did.

It expects to reduce its cost-to-revenue ratio from 47% in 2020 to about 40% by 2024, increasingly meeting the needs of about 6 million customers through a digital platform that is accelerating with pandemics. I am. ..

Banks “promote the use of technology to improve efficiency, which will be essential in its planning,” said Miguel Maya, CEO.

“We want to successfully overcome the effects of the pandemic and achieve a solid level of profitability, 10% ROE in 2024,” he said at a news conference.

Banks’ ROE in 2020 was 3.1%, compared to only 0.4% in the first half of 2021.

Currently, 48% of Millennium bcp’s customers are already using the bank’s mobile platform, with a goal of more than 65% by 2024.

Banks reported in a statement that profits in the first half were € 12.3 million ($ 14.52 million), down from € 76 million in the year-ago quarter.

According to the bank, loan impairments from April to June were down 34% to around € 157 million, while other impairments and provisions were up 167% to € 304.9 million.

The bank, which also operates in Angola and Mozambique, will increase its fully implemented Tier 1 capital adequacy ratio from 11.8% in June to more than 12.5% ​​in 2024, an important indicator of financial strength. He said he was aiming to do so.

($ 1 = 0.8469 euros)

(Report by Sergio Goncalves, edited by Jane Merriman and Mark Potter)

Portugal’s Millennium bcp plans digital drives to increase profitability

Source link Portugal’s Millennium bcp plans digital drives to increase profitability

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