Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period
ending 31
st
December 2024
This document is a translation from the original Polish version. In case of any discrepancies between
the Polish and English versions, the Polish version shall prevail.
2
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
Financial Highlights
Amount ‘000 PLN
Amount ‘000 EUR
1.01.2024 -
31.12.2024
1.01.2023 -
31.12.2023
1.01.2024 -
31.12.2024
1.01.2023 -
31.12.2023
Interest income and other of similar nature
8 658 943
8 300 383
2 011 743
1 832 962
Fee and commission income
917 834
912 357
213 241
201 474
Profit (loss) before income tax
770 548
1 224 773
179 022
270 465
Profit (loss) after taxes
643 103
510 259
149 413
112 680
Total comprehensive income of the period
671 150
1 209 770
155 929
267 152
Net cash flows from operating activities
13 187 054
13 945 189
3 063 764
3 079 496
Net cash flows from investing activities
(19 183 484)
(11 946 312)
(4 456 922)
(2 638 087)
Net cash flows from financing activities
1 664 646
2 166 447
386 749
478 413
Net cash flows, total
(4 331 784)
4 165 324
(1 006 409)
919 822
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Total Assets
137 699 862
124 887 757
32 225 570
28 723 035
Liabilities to banks and other monetary institutions
323 296
565 384
75 660
130 033
Liabilities to customers
117 642 600
107 505 636
27 531 617
24 725 307
Equity
7 285 413
6 614 263
1 704 988
1 521 220
Share capital
1 213 117
1 213 117
283 903
279 006
Number of shares (pcs.)
1 213 116 777
1 213 116 777
1 213 116 777
1 213 116 777
Book value per share (in PLN/EUR)
6.01
5.45
1.41
1.25
Diluted book value per share (in PLN/EUR)
6.01
5.45
1.41
1.25
Total Capital Ratio (TCR)
17.96%
19.04%
17.96%
19.04%
Pledged or paid dividend per share (in PLN/EUR)
-
-
-
-
Exchange rates accepted to convert selected financial data into EUR
for items as at the balance sheet date
-
-
4.2730
4.3480
for items for the period covered by the report
(exchange rate calculated as the average of exchange rates
at the end of individual months of the period)
-
-
4.3042
4.5284
3
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
Quarterly financial information
STATEMENT OF PROFIT AND LOSS
Amount ‘000 PLN
1.01.2024 -
31.12.2024
1.10.2024 -
31.12.2024*
1.01.2023 -
31.12.2023
1.10.2023 -
31.12.2023*
Net interest income
5 420 645
1 467 184
5 134 504
1 255 492
Interest income and other of similar nature
8 658 943
2 278 000
8 300 383
2 080 855
Income calculated using the effective interest method
8 557 972
2 257 156
8 191 912
2 047 483
Interest income from Financial assets at amortised
cost, including:
6 425 198
1 782 881
6 385 562
1 615 466
- the impact of the adjustment to the gross
carrying amount of loans due to credit holidays
(106 788)
38 558
(11 404)
(11 404)
Interest income from Financial assets at fair value
through other comprehensive income
2 132 774
474 275
1 806 350
432 017
Result of similar nature to interest from Financial
assets at fair value through profit or loss
100 971
20 844
108 471
33 372
Interest expenses
(3 238 298)
(810 816)
(3 165 879)
(825 363)
Net fee and commission income
668 157
160 215
683 726
166 413
Fee and commission income
917 834
221 206
912 357
225 147
Fee and commission expenses
(249 677)
(60 991)
(228 631)
(58 734)
Dividend income
38 741
3 687
32 137
153
Result on derecognition of financial assets and liabilities
not measured at fair value through profit or loss
(10 753)
(11 072)
541 425
1 582
Results on financial assets and liabilities held for trading
(6 566)
(2 445)
47 982
50 355
Result on non-trading financial assets mandatorily at fair
value through profit or loss
18 125
13 152
12 359
761
Result on hedge accounting
1 544
1 343
1 160
(357)
Result on exchange differences
(179 401)
(59 745)
(76 838)
(29 243)
Other operating income
318 501
76 994
405 347
125 840
Other operating expenses
(486 039)
(135 018)
(260 264)
(63 675)
Administrative expenses
(1 954 321)
(516 707)
(1 713 662)
(456 226)
Impairment losses on financial assets
(237 422)
14 509
(222 266)
(50 782)
Impairment losses on non-financial assets
(4 274)
79
(84)
(31)
Provisions for legal risk connected with FX mortgage loans
(2 179 070)
(522 680)
(3 065 380)
(701 580)
Result on modification
(182 238)
(70 825)
(88 184)
(20 323)
Depreciation
(222 662)
(58 310)
(207 189)
(51 855)
Share of the profit of investments in subsidiaries
0
0
0
0
Banking tax
(232 419)
(98 907)
0
0
Profit before income taxes
770 548
261 454
1 224 773
226 524
Corporate income tax
(127 445)
(126 496)
(714 514)
(135 353)
Profit after taxes
643 103
134 958
510 259
91 171
* quarterly financial information has not been audited by an independent auditor
4
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
STATEMENT OF TOTAL COMPREHENSIVE INCOME
Amount ‘000 PLN
1.01.2024 -
31.12.2024
1.10.2024 -
31.12.2024*
1.01.2023 -
31.12.2023
1.10.2023 -
31.12.2023*
Profit after taxes
643 103
134 958
510 259
91 171
Other comprehensive income items that may be (or were)
reclassified to profit or loss
25 448
(73 434)
869 606
115 111
Result on debt securities at fair value through other
comprehensive income
156 112
(69 426)
671 753
92 337
Result on credit portfolio at fair value through other
comprehensive income
(160 097)
(7 717)
(154 014)
(55 419)
Hedge accounting
29 433
3 709
351 867
78 193
Other comprehensive income items that will not be
reclassified to profit or loss
9 178
9 178
(6 012)
(6 012)
Actuarial gains (losses)
1 331
1 331
(10 434)
(10 434)
Result on equity instruments at fair value through other
comprehensive income
7 847
7 847
4 422
4 422
Total comprehensive income items before taxes
34 626
(64 256)
863 594
109 099
Corporate income tax on other comprehensive income items
that may be (or were) reclassified to profit or loss
(4 835)
13 952
(165 225)
(21 871)
Corporate income tax on other comprehensive income items
that will not be reclassified to profit or loss
(1 744)
(1 744)
1 142
1 142
Total comprehensive income items after taxes
28 047
(52 047)
699 511
88 370
Total comprehensive income for the period
671 150
82 911
1 209 770
179 541
* quarterly financial information has not been audited by an independent auditor
5
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
ANNUAL FINANCIAL STATEMENTS OF THE BANK MILLENNIUM S.A.
FOR THE 12-MONTH PERIOD ENDING 31
ST
DECEMBER 2024
TABLE OF CONTENT
1. STATEMENT OF PROFIT AND LOSS .................................................................. 7
2. STATEMENT OF TOTAL COMPREHENSIVE INCOME ................................................ 8
3. STATEMENT OF FINANCIAL POSITION .............................................................. 9
4. STATEMENT OF CHANGES IN EQUITY ............................................................. 11
5. CASH FLOW STATEMENT ............................................................................ 12
6. GENERAL INFORMATION ABOUT ISSUER .......................................................... 14
7. ACCOUNTING POLICY ................................................................................ 15
7.1. STATEMENT OF COMPLIANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS .................. 15
7.2. STANDARDS AND INTERPRETATIONS APPLIED IN 2024 AND THOSE NOT BINDING AT THE BALANCE SHEET DATE.. 17
7.3. ADOPTED ACCOUNTING PRINCIPLES ......................................................................... 19
8. FINANCIAL RISK MANAGEMENT .................................................................... 47
8.1. RISK MANAGEMENT ........................................................................................ 47
8.2. CAPITAL MANAGEMENT .................................................................................... 51
8.3. CREDIT RISK ............................................................................................... 58
8.4. MARKET RISK AND INTEREST RATE RISK .................................................................... 79
8.5. LIQUIDITY RISK ............................................................................................ 86
8.6. OPERATIONAL RISK ........................................................................................ 90
8.7. RISK OF NEGATIVE IMPACT ON THE NATURAL ENVIRONMENT .................................................. 91
9. TRANSACTIONS WITH RELATED ENTITIES ........................................................ 92
9.1. TRANSACTIONS WITH THE SUBSIDIARIES AND PARENT’S GROUP .............................................. 92
9.2. TRANSACTIONS WITH THE MANAGING AND SUPERVISING PERSONS ........................................... 95
9.3. INFORMATION ON COMPENSATIONS AND BENEFITS OF THE PERSONS SUPERVISING AND MANAGING THE BANK ... 95
10. FAIR VALUE ........................................................................................... 97
11. CONTINGENT LIABILITIES AND ASSETS .......................................................... 102
11.1. LAWSUITS AND SIGNIFICANT PROCEEDINGS ................................................................ 102
11.2. OFF-BALANCE ITEMS ..................................................................................... 109
12. LEGAL RISK RELATED TO FOREIGN CURRENCY MORTGAGE LOANS ........................ 111
13. NOTES TO THE FINANCIAL STATEMENTS ........................................................ 122
1. INTEREST INCOME AND OTHER OF SIMILAR NATURE ........................................................ 122
2. INTEREST EXPENSE ....................................................................................... 122
3. FEE AND COMMISSION INCOME AND EXPENSE ............................................................... 123
4. DIVIDEND INCOME ........................................................................................ 123
5. RESULT ON DERECOGNITION OF FINANCIAL ASSETS AND LIABILITIES NOT MEASURED AT FAIR VALUE THROUGH
PROFIT OR LOSS .......................................................................................... 124
6. RESULTS ON FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING ........................................ 125
7. RESULTS ON NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS ..... 125
8. RESULT ON HEDGE ACCOUNTING .......................................................................... 125
9. OTHER OPERATING INCOME .............................................................................. 126
10. OTHER OPERATING EXPENSE .............................................................................. 126
11. ADMINISTRATIVE EXPENSES ............................................................................... 127
12. IMPAIRMENT LOSSES ON FINANCIAL ASSETS ................................................................ 127
13. IMPAIRMENT LOSSES ON NON-FINANCIAL ASSETS ........................................................... 128
14. PROVISIONS FOR LEGAL RISK CONNECTED WITH FX MORTGAGE LOANS ...................................... 128
6
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
15. DEPRECIATION AND AMORTIZATION ....................................................................... 129
16. CORPORATE INCOME TAX ................................................................................. 130
17. EARNINGS PER SHARE .................................................................................... 132
18. CASH, BALANCES AT THE CENTRAL BANK .................................................................. 132
19. FINANCIAL ASSETS HELD FOR TRADING .................................................................... 133
20. NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS, OTHER THAN LOANS
AND ADVANCES TO CUSTOMERS ........................................................................... 135
21. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME............................... 136
22. LOANS AND ADVANCES TO CUSTOMERS .................................................................... 137
23. FINANCIAL ASSETS AT AMORTISED COST OTHER THAN LOANS AND ADVANCES TO CUSTOMERS ................ 145
24. DERIVATIVES – HEDGE ACCOUNTING ...................................................................... 147
25. INVESTMENTS IN SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES .......................................... 151
26. TANGIBLE FIXED ASSETS .................................................................................. 154
27. INTANGIBLE FIXED ASSETS ................................................................................ 157
28. DEFERRED INCOME TAX ASSETS........................................................................... 160
29. OTHER ASSETS ........................................................................................... 162
30. NON-CURRENT ASSETS AND DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE ............................... 163
31. FINANCIAL LIABILITIES HELD FOR TRADING ................................................................ 163
32. LIABILITIES TO BANKS AND OTHER MONETARY INSTITUTIONS ............................................... 163
33. LIABILITIES TO CUSTOMERS ............................................................................... 164
34. SALE AND REPURCHASE AGREEMENTS ..................................................................... 165
35. DEBT SECURITIES ISSUED ................................................................................. 165
36. SUBORDINATED DEBT ..................................................................................... 166
37. PROVISIONS ............................................................................................. 167
38. OTHER LIABILITIES ....................................................................................... 168
39. EQUITY .................................................................................................. 169
40. FINANCIAL LIABILITIES BY CONTRACTUAL MATURITY ....................................................... 173
14. SUPPLEMENTARY INFORMATION ................................................................. 175
14.1. 2023 DIVIDEND .......................................................................................... 175
14.2. DATA ABOUT ASSETS, WHICH SECURE LIABILITIES .......................................................... 175
14.3. SECURITIES COVERED BY TRANSACTIONS WITH A BUY-BACK CLAUSE (SBB) ................................. 177
14.4. OFFSETTING OF ASSETS AND LIABILITIES ON THE BASIS OF ISDA AGREEMENTS .............................. 177
14.5. ADDITIONAL EXPLANATIONS TO THE CASH FLOW STATEMENT ............................................... 178
14.6. INFORMATION ON CUSTODY ACTIVITY ..................................................................... 178
14.7. SHARE BASED PAYMENTS ................................................................................. 178
14.8. ADDITIONAL INFORMATION AND OTHER ESSENTIAL EVENTS BETWEEN THE DATE, FOR WHICH THE FINANCIAL
REPORT WAS PREPARED AND ITS PUBLICATION DATE ....................................................... 180
7
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
1. Statement of Profit and Loss
Amount ‘000 PLN
Note
1.01.2024 -
31.12.2024
1.01.2023 -
31.12.2023
Net interest income
5 420 645
5 134 504
Interest income and other of similar nature
1
8 658 943
8 300 383
Income calculated using the effective interest method
8 557 972
8 191 912
Interest income from Financial assets at amortised cost, including:
6 425 198
6 385 562
- the impact of the adjustment to the gross carrying amount of loans due
to credit holidays
(106 788)
(11 404)
Interest income from Financial assets at fair value through other comprehensive
income
2 132 774
1 806 350
Result of similar nature to interest from Financial assets at fair value through
profit or loss
100 971
108 471
Interest expenses
2
(3 238 298)
(3 165 879)
Net fee and commission income
668 157
683 726
Fee and commission income
3
917 834
912 357
Fee and commission expenses
3
(249 677)
(228 631)
Dividend income
4
38 741
32 137
Result on derecognition of financial assets and liabilities not measured at fair value
through profit or loss
5
(10 753)
541 425
Results on financial assets and liabilities held for trading
6
(6 566)
47 982
Result on non-trading financial assets mandatorily at fair value through profit or loss
7
18 125
12 359
Result on hedge accounting
8
1 544
1 160
Result on exchange differences, including:
(179 401)
(76 838)
- costs of settlements on foreign currency mortgage loans
14
(403 405)
(273 791)
Other operating income
9
318 501
405 347
Other operating expenses
10
(486 039)
(260 264)
Administrative expenses
11
(1 954 321)
(1 713 662)
Impairment losses on financial assets
12
(237 422)
(222 266)
Impairment losses on non-financial assets
13
(4 274)
(84)
Provisions for legal risk connected with FX mortgage loans
14
(2 179 070)
(3 065 380)
Result on modification, including:
(182 238)
(88 184)
- costs of settlements on foreign currency mortgage loans
14
(146 599)
(52 227)
Depreciation
15
(222 662)
(207 189)
Share of the profit of investments in subsidiaries
0
0
Banking tax
(232 419)
0
Profit before income taxes
770 548
1 224 773
Corporate income tax
16
(127 445)
(714 514)
Profit after taxes
643 103
510 259
Notes on pages 14-183 are integral part of these financial statements.
8
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
2. Statement of Total Comprehensive Income
Amount ‘000 PLN
1.01.2024 -
31.12.2024
1.01.2023 -
31.12.2023
Profit after taxes
643 103
510 259
Other comprehensive income items that may be (or were) reclassified to profit or loss
25 448
869 606
Result on debt securities at fair value through other comprehensive income
156 112
671 753
Result on credit portfolio at fair value through other comprehensive income
(160 097)
(154 014)
Hedge accounting
29 433
351 867
Other comprehensive income items that will not be reclassified to profit or loss
9 178
(6 012)
Actuarial gains (losses)
1 331
(10 434)
Result on equity instruments at fair value through other comprehensive income
7 847
4 422
Other comprehensive income items before taxes
34 626
863 594
Corporate income tax on other comprehensive income items that may be (or were)
reclassified to profit or loss
(4 835)
(165 225)
Corporate income tax on other comprehensive income items that will not be reclassified to
profit or loss
(1 744)
1 142
Other comprehensive income items after taxes
28 047
699 511
Total comprehensive income for the period
671 150
1 209 770
Notes on pages 14-183 are integral part of these financial statements.
9
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
3. Statement of Financial Position
ASSETS
Amount '000 PLN
Note
31.12.2024
31.12.2023
Cash, cash balances at central banks
18
5 178 984
5 094 984
Financial assets held for trading
19
812 573
609 252
Derivatives
257 094
498 577
Equity instruments
115
121
Debt securities
555 364
110 554
Non-trading financial assets mandatorily at fair value through profit or loss, other than
Loans and advances to customers
20
118 399
147 623
Equity instruments
66 609
66 609
Debt securities
51 790
81 014
Financial assets at fair value through other comprehensive income
21
29 023 647
21 924 652
Equity instruments
36 708
28 789
Debt securities
28 986 939
21 895 863
Loans and advances to customers
22
71 936 712
72 405 446
Mandatorily at fair value through profit or loss
1 825
19 349
Fair valued through other comprehensive income
11 135 416
11 799 748
Valued at amortised cost
60 799 471
60 586 349
Financial assets at amortised cost other than Loans and advances to customers
23
26 632 671
21 469 710
Debt securities
24 059 861
18 439 780
Deposits, loans and advances to banks and other monetary institutions
2 378 592
1 866 688
Reverse sale and repurchase agreements
194 218
1 163 242
Derivatives – Hedge accounting
24
112 365
74 213
Investments in subsidiaries, joint ventures and associates
25
517 214
399 223
Tangible fixed assets
26
574 660
553 087
Intangible fixed assets
27
560 317
481 128
Income tax assets
611 379
368 279
Current income tax assets
0
0
Deferred income tax assets
28
611 379
368 279
Other assets
29
1 620 941
1 360 160
Non-current assets and disposal groups classified as held for sale
30
0
0
Total assets
137 699 862
124 887 757
10
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
LIABILITIES AND EQUITY
Amount '000 PLN
Note
31.12.2024
31.12.2023
LIABILITIES
Financial liabilities held for trading
31
417 518
579 331
Derivatives
226 749
576 611
Liabilities from short sale of securities
190 769
2 720
Financial liabilities measured at amortised cost
124 752 615
112 664 017
Liabilities to banks and other monetary institutions
32
323 296
565 384
Liabilities to customers
33
117 642 600
107 505 636
Sale and repurchase agreements
34
194 223
0
Debt securities issued
35
5 030 166
3 027 952
Subordinated debt
36
1 562 330
1 565 045
Derivatives – Hedge accounting
24
107 439
193 664
Provisions
37
2 899 615
1 444 173
Pending legal issues
2 846 010
1 401 798
Commitments and guarantees given
53 605
42 375
Income tax liabilities
215 590
460 456
Current income tax liabilities
215 590
460 456
Deferred income tax liabilities
0
0
Other liabilities
38
2 021 672
2 931 853
Total Liabilities
130 414 449
118 273 494
EQUITY
Share capital
39
1 213 117
1 213 117
Own shares
(21)
(21)
Share premium
1 147 241
1 147 241
Accumulated other comprehensive income
39
(111 295)
(139 342)
Retained earnings, including:
39
5 036 371
4 393 268
- current profit /loss
643 103
510 259
- other
4 393 268
3 883 009
Total equity
7 285 413
6 614 263
Total equity and total liabilities
137 699 862
124 887 757
31.12.2024
31.12.2023
Book value of net assets
7 285 413
6 614 263
Number of shares (pcs.)
1 213 116 777
1 213 116 777
Book value per share (in PLN)
6.01
5,45
Notes on pages 14-183 are integral part of these financial statements.
11
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
4. Statement of Changes in Equity
Amount ‘000 PLN
Total
equity
Share
capital
Own
shares
Share
premium
Accumulated
other
comprehensive
income
Retained earnings
Unappropriated
result
Other
reserves
01.01.2024 – 31.12.2024
Equity at the beginning
of the period
6 614 263
1 213 117
(21)
1 147 241
(139 342)
510 259
3 883 009
Total comprehensive
income for 2024 (net)
671 150
0
0
0
28 047
643 103
0
current profit /loss
643 103
0
0
0
0
643 103
0
other comprehensive
income items after
taxes
28 047
0
0
0
28 047
0
0
Purchase and transfer of
own shares to employees
0
0
0
0
0
0
0
Transfer between items of
reserves
0
0
0
0
0
(510 259)
510 259
Equity at the end of the
period
7 285 413
1 213 117
(21)
1 147 241
(111 295)
643 103
4 393 268
Amount ‘000 PLN
Total
equity
Share
capital
Own
shares
Share
premium
Accumulated
other
comprehensive
income
Retained earnings
Unappropriated
result
Other
reserves
01.01.2023 – 31.12.2023
Equity at the beginning
of the period
5 404 493
1 213 117
(21)
1 147 241
(838 853)
(1 029 899)
4 912 908
Total comprehensive
income for 2023 (net)
1 209 770
0
0
0
699 511
510 259
0
current profit /loss
510 259
0
0
0
0
510 259
0
other comprehensive
income items after
taxes
699 511
0
0
0
699 511
0
0
Purchase and transfer of
own shares to employees
0
0
0
0
0
0
0
Transfer between items
of reserves
0
0
0
0
0
1 029 899
(1 029 899)
Equity at the end of the
period
6 614 263
1 213 117
(21)
1 147 241
(139 342)
510 259
3 883 009
Detailed information concerning changes in different equity items are presented in the note (39).
12
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
5. Cash Flow Statement
A. Cash flows from operating activities
Amount ‘000 PLN
1.01.2024 -
31.12.2024
1.01.2023 -
31.12.2023
Profit (loss) after taxes
643 103
510 259
Total adjustments:
12 543 951
13 434 930
Interest received
8 244 034
7 783 242
Interest paid
(2 772 057)
(2 835 628)
Depreciation and amortization
222 662
207 189
Foreign exchange (gains)/ losses
0
0
Dividends
(38 741)
(32 137)
Changes in provisions
1 455 442
428 907
Result on sale and liquidation of assets
(3 843)
(643 337)
Change in financial assets held for trading
(265 642)
142 502
Change in loans and advances to banks
(950 688)
(167 390)
Change in loans and advances to customers
(5 474 017)
(3 087 504)
Change in receivables from securities bought with sell-back clause (loans and advances)
924 661
(1 226 207)
Change in financial liabilities valued at fair value through profit and loss (held for trading)
(248 038)
(166 477)
Change in deposits from banks
(226 321)
(39 152)
Change in deposits from customers
12 855 742
11 984 160
Change in liabilities from securities sold with buy-back clause
231 736
35 178
Change in debt securities
209 296
509 530
Change in income tax settlements
(275 220)
744 479
Income tax paid
(219 325)
(204 851)
Change in other assets and liabilities
(1 252 277)
(128 685)
Other
126 547
131 111
Net cash flows from operating activities
13 187 054
13 945 189
13
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
B. Cash flows from investing activities
Amount ‘000 PLN
1.01.2024 -
31.12.2024
1.01.2023 -
31.12.2023
Inflows:
556 431 334
474 152 795
Proceeds from sale of property, plant and equipment and intangible assets
7 722
9 150
Proceeds from sale of shares in related entities
1 000
600 000
Proceeds from sale of investment financial assets
556 383 871
473 511 508
Other
38 741
32 137
Outflows:
(575 614 818)
(486 099 107)
Acquisition of property, plant and equipment and intangible assets
(244 783)
(184 006)
Purchase of shares in subordinated companies
(120 000)
(99 000)
Acquisition of investment financial assets
(575 250 035)
(485 816 101)
Other
0
0
Net cash flows from investing activities
(19 183 484)
(11 946 312)
C. Cash flows from financing activities
Amount ‘000 PLN
1.01.2024 -
31.12.2024
1.01.2023 -
31.12.2023
Inflows from financing activities:
2 131 700
2 316 276
Long-term bank loans
0
0
Issue of debt securities
2 131 700
2 316 276
Increase in subordinated debt
0
0
Net proceeds from issues of shares and additional capital paid-in
0
0
Other inflows from financing activities
0
0
Outflows from financing activities:
(467 054)
(149 829)
Repayment of long-term bank loans
0
(5 000)
Redemption of debt securities
0
0
Decrease in subordinated debt
0
0
Issue of shares expenses
0
0
Redemption of shares
0
0
Dividends paid and other payments to owners
0
0
Other outflows from financing activities
(467 054)
(144 829)
Net cash flows from financing activities
1 664 646
2 166 447
D. Net cash flows. Total (A + B + C)
(4 331 784)
4 165 324
- including change resulting from FX differences
(343)
(21 705)
E. Cash and cash equivalents at the beginning of the reporting period
18 396 413
14 231 089
F. Cash and cash equivalents at the end of the reporting period (D + E)
14 064 629
18 396 413
Additional information regarding cash flows statement is presented in point 5) of chapter 14.
“Supplementary information”. Information on liabilities classified as financing activities is presented
in points 32), 35), 36) of chapter 13. “Notes to the Financial Statements”.
14
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
6. General Information about Issuer
Bank Millennium S.A. (the Bank) is a universal bank that operates in Poland, offering its services to all
market segments via a network of branches, corporate centers, individual advisors and mobile and
electronic banking.
The Bank, entered under the number KRS 0000010186 in the National Court Register kept by the Local
Court for the Capital City of Warsaw (Poland), 13th Business Department of the National Court
Register, with its registered office in Warsaw, ul. Stanisława Żaryna 2A, 02-593 Warsaw, Poland.
The Bank is listed on the Warsaw Stock Exchange since 1992, first Bank ever to float its shares on the
WSE.
The Bank is a parent company of a Bank Millennium Capital Group (the Group) with over 6,700 employees
with core business comprising banking, leasing, factoring, brokerage, capital operations, investment
fund management and web portals activity.
Supervisory Board and Management Board of Bank Millennium S.A. as at 31 December 2024
Composition of the Supervisory Board as at 31 December 2024 was as follows:
▪ Bogusław Kott - Chairman of the Supervisory Board,
▪ Nuno Manuel da Silva Amado – Deputy Chairman of the Supervisory Board,
▪ Dariusz Rosati – Deputy Chairman and Secretary of the Supervisory Board,
▪ Miguel de Campos Pereira de Bragança – Member of the Supervisory Board,
▪ Olga Grygier-Siddons – Member of the Supervisory Board,
▪ Anna Jakubowski – Member of the Supervisory Board,
▪ Grzegorz Jędrys – Member of the Supervisory Board,
▪ Alojzy Nowak – Member of the Supervisory Board,
▪ Jose Miguel Bensliman Schorcht da Silva Pessanha – Member of the Supervisory Board
▪ Miguel Maya Dias Pinheiro – Member of the Supervisory Board,
▪ Beata Stelmach – Member of the Supervisory Board
▪ Lingjiang Xu – Member of the Supervisory Board.
On January 22, 2025 Ms. Beata Stelmach, Member of the Bank's Supervisory Board, in connection with
her appointment to the position of the President of the Management Board of another entity, resigned
from the position of a Member of the Bank's Supervisory Board with effect from 31 January 2025.
Composition of the Management Board as at 31 December 2024 was as follows:
▪ Joao Nuno Lima Bras Jorge – Chairman of the Management Board,
▪ Fernando Maria Cardoso Rodrigues Bicho – Deputy Chairman of the Management Board,
▪ Wojciech Haase – Member of the Management Board,
▪ Andrzej Gliński – Member of the Management Board,
▪ Wojciech Rybak – Member of the Management Board,
▪ Antonio Ferreira Pinto Júnior – Member of the Management Board,
▪ Jarosław Hermann – Member of the Management Board.
15
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
7. Accounting Policy
7.1. STATEMENT OF COMPLIANCE WITH THE INTERNATIONAL FINANCIAL
REPORTING STANDARDS
These financial statements of the Bank have been prepared in accordance with International Financial
Reporting Standards (‘IFRS’), as adopted by the European Union and with respect to matters not
regulated by the above standards, in accordance with the accounting principles as set out in the
Accounting Act dated 29 September 1994 (unified text - Official Journal from 2023, item 120) and the
respective bylaws and regulations and the requirements for issuers of securities admitted or sought
to be admitted to trading on an official stock-exchange listing market. These financial statements
meet the reporting requirements described in the Regulation of the Minister of Finance of March 29,
2018 regarding current and periodic information published by issuers of securities and conditions for
recognizing as equivalent information required by the laws of a non-member state (Journal of Laws
of 2018, item 757).
This financial report was approved for publication by the Management Board on 24 February 2025.
Following the signing by the President of the Republic of Poland and announcement in the Journal of
Laws of the Republic of Poland on the same day of the Act of 7 July 2022 on crowdfunding for business
ventures and assistance to borrowers (‘the Act’), introducing, among others, a possibility of up to 8
months of Credit Holidays in 2022-2023 for PLN mortgage borrowers, the Group recorded in 2022 a
pre-tax cost of PLN 1,324.2 million (PLN 1,072,6 million after tax), of which PLN 1,291.6 million
related to the Bank, and PLN 32.6 million related to Millennium Bank Hipoteczny S.A.
Due to costs generated as a result of the above mentioned Act, it could be reasonably assumed that
the Bank would record a negative net result for the 3rd quarter of 2022 and as a result its capital
ratios could fall below the current minimum requirements set by Polish Financial Supervision Authority
(‘PFSA’). As the emergence of risk of a breach of respective capital ratios represents a prerequisite
stipulated in the art. 142 sec. 1 and 2 of the Banking Act of 29 August 1997 (Journal of Laws 2021,
item 2439, i.e. 28 December 2021, as amended), on July 15th 2022 the Management Board of the
Bank took a decision to launch the Recovery Plan, notifying of the fact both PFSA and Bank Guarantee
Fund.
Additionally, the Bank has also submitted to PFSA the Capital Protection Plan, pursuant to the Article
60 sec. 1 of the Act of 5 August 2015 on macroprudential supervision of the financial system and crisis
management in the financial system (Journal of Laws of 2022, item 963, i.e. of 6 May 2022, as
amended). PFSA approved this plan on 28th October 2022 and communicated this fact to the Bank on
14th November 2022.
In May 2024, the Management Board of the Bank concluded that the objectives of the Capital
Protection Plan have been achieved and decided on the completion of its realization. Subsequently,
In June 2024, the Management Board decided to exit the state of implementation of the Recovery
Plan and to complete its realization.
All key assumptions of both plans were achieved, including all defined indicators reached safe levels,
and the Group's profitability and financial results were clearly improved. In the area of capital
management, capital ratios have been restored to levels exceeding minimum regulatory requirements
and the Bank and the Group meet MREL requirements, including the combined buffer requirements.
16
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
The Bank's Management Board does not identify future circumstances that would support further
continuation of the plans.
As of 31 December 2024, the Tier 1 ratio was 546 bps (Bank) and 497 bps (Group) above the minimum
requirement, and the Total Capital Ratio (TCR) was 574 bps (Bank) and 503 bps (Group) above the
minimum requirement.
In terms of MRELtrea and MRELtem requirements, the Group presents a surplus compared to the
minimum required levels (including the Combined Buffer Requirement) as of 31 December 2024
(MRELtrea surplus was 7.28 p.p. and MRELtem surplus 2.8 p.p.). Assuming no extraordinary factors,
the Group plans to maintain both MREL ratios above the minimum required levels with a safe surplus.
Profitability of the Bank and the Group was improved despite the recording one-off costs (recognized
in these financial statements as a reduction in interest income) related to the so-called credit holidays
which in the final settlement burdened the Bank's financial result for 2024 with the amount of PLN
106.8 million (respectively for the Group, these costs amounted to PLN 112.7 million). This
adjustment resulted from the signing by the President of the Republic of Poland and the
announcement in the Journal of Laws of the Republic of Poland of the Act of April 12, 2024 amending
the Act on support for borrowers who have taken out a housing loan and are in a difficult financial
situation and the Act on crowdfunding for business ventures and assistance to borrowers which, among
other things, extended the possibility for borrowers to suspend the repayment of a mortgage loan
granted in Polish currency by an additional four months in 2024 (credit holidays).
The Bank monitors, on the current basis, the financial situation in particular, the Bank is aware of the
risks associated with further negative developments regarding the legal risk of FX mortgage loans that
could imply the need to increase the level of provisions for such risk beyond the provisions that were
recognised as at the balance sheet date and whose amount results from previous trends. In the Bank’s
view, these events, if materialized, would adversely affect the results of the Bank/Group in future,
and would reduce the organic generation of capital that is envisaged, but would not prevent the
Bank/Group from continuing to implement its strategy and the generation of results that would
mitigate the impact of such events.
The liquidity position of Bank Millennium Group remained strong in 4Q 2024. LCR ratio reached the
level of 371% at the of December 2024, well above the supervisory minimum of 100%. Loan-to-deposit
ratio remained low at 64% and the share of liquid debt securities (mainly bonds and bills issued by
Poland government, other EU countries, European Union, multilateral development banks and NBP
bills) in the Group’s total assets remains significant at 39%.
At same time the Bank achieved good operational and business results, while actively managing and
mitigating the different risks related to the banking activity. Taking into account the above
circumstances and identified uncertainties, in particular, the Bank's capacity to meet capital solvency
ratios and MREL requirements in subsequent reporting periods - the Bank's Management Board based
on the analysis of all aspects of the Bank's operations and its current and forecast financial position,
concluded that the application of the going concern assumption in the preparation of these financial
statements is appropriate.
In 2024, the Bank did not change its accounting principles or the method of financial data
presentation.
17
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
7.2. STANDARDS AND INTERPRETATIONS APPLIED IN 2024 AND THOSE
NOT BINDING AT THE BALANCE SHEET DATE
STANDARDS INITIALLY APPLIED IN FINANCIAL STATEMENTS 2024
The following amendments to existing standards issued by the International Accounting Standards
Board (IASB) and approved for use in the EU were first applied in the Bank's financial statements for
2024:
Standard
Title
Amendments to IAS 1
Classification of Liabilities as Current or Non-Current and Non-
current Liabilities with Covenants
Amendments to IAS 7 and
IFRS 7
Supplier Finance Arrangements
Amendments to IFRS 16
Lease Liability in a Sale and Leaseback
The adoption of mentioned above amendments to the existing standards have not led to any material
changes in the Bank’s financial statements 2024.
INFORMATION REGARDING ISSUED STANDARDS AND AMENDMENTS TO THE EXISTING STANDARDS ISSUED BY IASB AND
ADOPTED BY THE EU BUT NOT YET EFFECTIVE
Standards and amendments to the existing standards issued by IASB and adopted by the EU but not
yet effective:
Standard
Title
Effective date
Amendments to IAS 21
Lack of Exchangeability
1 January 2025
The Bank anticipates that the adoption of the aforementioned amendment to existing standard will
have no material impact on the financial statements of the Bank.
18
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
NEW STANDARDS AND AMENDMENTS TO THE EXISTING STANDARDS ISSUED BY IASB BUT NOT YET ADOPTED BY THE EU
At present, IFRS as adopted by the EU do not significantly differ from regulations adopted by the
International Accounting Standards Board (IASB) except for the following new standards and
amendments to the existing standards, which were not endorsed for use in EU:
Standard
Title
EU adoption status
Amendments to IFRS
9 and IFRS 7
Amendments to the Classification and
Measurement of Financial Instruments
(IASB effective date: 1 January 2026)
Not yet adopted by EU
Amendments to IFRS
9 and IFRS 7
Contracts Referencing Nature-dependent
Electricity (IASB effective date: 1 January
2026)
Not yet adopted by EU
Amendments to IFRS
1, IFRS 7, IFRS 9,
IFRS 10 and IAS 7
Annual Improvements to IFRS Accounting
Standards - Volume 11
(IASB effective date: 1 January 2026)
Not yet adopted by EU
IFRS 18
Presentation and Disclosures in Financial
Statements
(IASB effective date: 1 January 2027)
Not yet adopted by EU
IFRS 19
Subsidiaries without Public Accountability:
Disclosures
(IASB effective date: 1 January 2027)
Not yet adopted by EU
IFRS 14
Regulatory Deferral Accounts
(IASB effective date: 1 January 2016)
European Commission has
decided not to launch the
endorsement process of
this interim standard and
to wait for the final
standard
Amendments to IFRS
10 and IAS 28
Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture
and further amendments (effective date
deferred by IASB indefinitely but earlier
application permitted)
Endorsement process
postponed indefinitely until
the research project on the
equity method has been
concluded
The Bank anticipates that the adoption of the aforementioned standard and amendments to existing
standards will have no material impact on the financial statements of the Bank.
19
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
7.3. ADOPTED ACCOUNTING PRINCIPLES
Basis of Financial Statements Preparation
Financial statements of the Bank are prepared for the financial year from 1 January 2024 to 31
December 2024 on the basis of the going concern assumption of the Bank, namely scale of business is
not to be reduced substantially in a period of not less than one year from the balance sheet date.
The financial statements have been prepared in PLN, and all values, unless otherwise indicated, are
given in PLN rounded to one thousand.
The financial statements, have been prepared based on the fair value principle for financial assets
and liabilities recognised at FVTPL including derivative instruments, and financial assets classified as
FVTOCI. Other items of financial assets and liabilities (including loans and advances) are presented at
amortized cost with effective interest rate applied less impairment charges (except loans which failed
SPPI test), or at their purchase price less impairment charges.
The preparation of financial statements in accordance with IFRS, as adopted by the EU, requires from
the management the use of estimates and assumptions that affect applied accounting principles and
the amounts (assets, liabilities, incomes and costs) reported in the financial statements and notes
thereto. The respective unit of the Bank is responsible for selection, application, development, and
verification of adopted estimations; the assumptions are then subject to approval by the Bank’s
management.
Estimations and assumptions applied to the presentation of value of assets, liabilities, revenues and
costs, are made on basis of historical data available and other factors considered to be relevant in
given circumstances. Applied assumptions related to the future and available data sources are the
base for making estimations regarding carrying value of assets and liabilities, which cannot be
determined explicitly on basis of other sources. The actual results may differ from those estimates.
The conformity between actual results and adopted estimations and assumptions is verified on regular
basis. Adjustments to estimates are recognized in the period when the estimation was changed,
provided that the adjustment applies to this period alone, or in the period when the estimation was
changed and in the following periods, should the adjustment impact both the current and future
periods.
The below-presented accounting principles have been applied to all reporting periods presented in
the financial statements.
Functional currency and presentation currency
Functional currency and presentation currency
The items contained in the financial statements of the Bank are presented in the currency of their
basic economic environment, in which a given entity operates (‘the functional currency’). The
financial statements are presented in Polish zlotys, being the functional currency and the presentation
currency for the Bank.
20
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
Transactions and balances
Transactions expressed in foreign currency are translated into the functional currency by applying the
exchange rate at the date of the transaction. Exchange rate profits and losses due to settlements of
these transactions and to the balance sheet valuation of assets and monetary commitments expressed
in foreign currency are accounted for in the profit and loss account.
Exchange rate differences on monetary items, both those valued at fair value through the profit and
loss account or valued at fair value through other comprehensive income are disclosed in the profit
and loss account.
Exchange rate differences on non-monetary items valued at fair value through the profit and loss, are
accounted in the profit and loss account. Exchange rate differences due to items, such as equity
instruments valued at fair value through other comprehensive income, are included in Other
comprehensive income.
Mergers under joint control
In the case of mergers of the Capital Group companies (transaction under joint control), the Bank
adopts the accounting principle consisting in the application of the "predecessor accounting" method.
In the separate financial statements, the Bank recognizes the carrying amounts of the assets and
liabilities of the acquiree that is a subsidiary according to the values included in the consolidated
financial statements of the Capital Group in relation to this subsidiary, including also goodwill arising
on the acquisition of this subsidiary.
A possible difference between the carrying amount of the net assets acquired after the adjustments
referred to above and the value of investments in a subsidiary disclosed in the separate financial
statements of the Bank is recognized in equity as "Retained earnings".
The net financial result achieved by the company being acquired up to the day preceding the date of
merger is disclosed in the Bank's financial statements under equity as "Retained earnings".
Application of estimates in connection with Accounting Policies
The preparation of financial statements in accordance with IFRS requires from the Bank the use of
estimates and assumptions that affect the amounts reported in the financial statements.
The estimates and assumptions, revised by the Bank management on a regular basis, are made on
basis of historical experience and other factors, including expectations concerning future events,
considered being relevant in given circumstances.
Despite the fact, that such estimates are based on best knowledge about current conditions and
activities undertaken by the Bank, the actual results may differ from the estimates. The major areas
for which the Bank makes estimates are presented below:
▪ Impairment of loans and advances
Impairment estimation model within the Bank has been based on the concept of “expected credit
loss”, (hereinafter: ECL). In result impairment charges are calculated based on expected credit losses
and forecasts of expected future economic conditions have to be taken into account when conducting
evaluation of credit risk of an exposure.
The methodology and assumptions adopted for determining credit impairments are regularly reviewed
in order to reduce discrepancies between the estimated and actual losses. In order to assess the
adequacy of the impairment determined both in individual analysis and collective analysis a historical
verification (backtesting) is conducted from time to time (at least once a year), which results will be
taken into account in order to improve the quality of the process.
Further details are presented in Chapter 8. “Financial Risk Management”.
21
Annual Financial Report
of the Bank Millennium S.A.
for the 12-month period ending 31
st
December 2024
This document is a translation of a document originally issued in Polish.
The only binding version is the original Polish version.
▪ Fair value of financial instruments
Fair value of financial instruments not quoted on active markets is determined with use of
measurement techniques consistent with the Bank’s accounting policy. With respect to non-option
derivatives and debt securities use is made of models based on discounted cash flows. Option pricing
models are applied to option instruments. All models are approved prior to use and also calibrated to
ensure that attained results reflect the actual fair value of the measured instruments. If possible,
only observable data from the active market are used in the models.
In case of lack of measurement parameters coming from the active market, fair value is determined
on the basis of application of measurement techniques using estimated input parameters.
The Bank measures financial instruments using the measurement methods below in the following
hierarchical order:
▪ Prices quoted on the active market for identical instruments for following financial instruments:
Treasury fixed-coupon, zero-coupon debt securities and floating interest debt securities;
▪ Techniques of measurement based on parameters coming from the market for following financial
instruments:
Treasury floating interest debt securities,
Derivatives:
▪ FRA, IRS, CIRS,
▪ FX Swap, FX Forward,
▪ Embedded derivatives,
Bills issued by the Central Bank;
▪ Techniques of measurement with use of significant parameters not coming from the market:
Debt securities of other issuers (e.g. municipalities),
Shares of VISA Incorporation,
Loans and advances mandatorily at fair value through profit or loss,
Derivatives:
▪ FX Options acquired by the Bank,
▪ Indexes options acquired/placed by the Bank.
In order to determine the fair value of VISA preferred shares, the time value of money and the
time line for conversion of preferred stock in common stock of VISA were taken into account.
To estimate the fair value of loans, due to the lack of availability of the market value, an internal
valuation model was used, taking into account the assumption that at the time of granting the
loan the fair value is equal to transaction price.
The fair value of loans without recognized impairment is equal to the sum of future expected cash
flows discounted at the balance sheet date. The discounting rate is the sum of: the cost of risk,
the cost of financing, the value of the expected return.
The fair value of impaired loans is equal to the sum of future expected recoveries discounted using
the effective interest rate, recognizing that the average expected recoveries fully take into
account the element of credit risk.
For derivative financial instruments valuation the Bank applies the component of credit risk taking
into account both: counterparty risk (credit value adjustment – CVA) and own Bank’s risk (debit
value adjustment - DVA). The Bank assesses that unobservable inputs related to applying this
component used for fair value measurement are not significant.
▪ Impairment of other non-current assets
The Bank assesses the existence of any indications that a non-current asset may be impaired at each
balance sheet date. If such indications exist, the Bank performs an estimation of recoverable amount.
Estimation of value-in-use of a non-current asset (or cash generating units) requires assumptions to
be adopted, regarding, among others, amounts and timing of future cash flows, which the Bank may
obtain from the given non-current asset (or cash generating unit). The Bank performs an estimation
of the fair value less costs to sell on the basis of available market data regarding this subject or
estimations made by external parties.