Millennium sees 24m-euro losses in 2010, return to profit delayed

Portuguese Millennium Bank delayed to 2013 the return to profit of its Romanian subsidiary, opened in the autumn of 2007, given that it posted a 24m-euro loss last year.
In RON, the loss amounted to 99m RON, down 38% from the one registered in 2009. The figure is calculated in line with international financial reporting standards.
At the moment they launched the Romanian operations, the Portuguese estimated they would step into the black in 2011. However, the bank coped with net losses of tens of millions of euros, which were covered through capital injections, each year.
Also, in 2007 Millennium announced plans to open 100 branches by late 2009, but territorial expansion was frozen at 74 branches at the onset of the crisis. The bank also dropped the initial model of specialising branches by types of clients, turning all of them into universal activity centres in 2009.
"In 2010 we focused on strengthening our new business model, implemented a year before, and we managed to gain a stronger position. The bank's market share expanded further along the two strategic business lines: mortgages and deposits," commented Jose Toscano, general manager of Millennium Bank Romania.