Millennium Bank posts 8% higher loss, to 15.9m euros

Millennium Bank, the Romanian branch of Portuguese group Millennium BCP, posted 15.9 million-euro net loss, 8% more than in the first half of 2008, according to data released by the group. However, the bank managed to significantly boost its operating income from 5.3 to 12.8 million euros. Operating costs rose by a much more modest 3.6%, to 21.2 million euros. "We are continuing to consolidate our position. Besides the consistent network development, Millennium Bank’s strategy focused on deposits growth, to be followed by loans to customers increase", said Jose Toscano, CEO Millennium Bank. The group’s results are calculated according to international financial reporting standards. Part of the costs reported for Romanian operations are registered directly in the books of the BCP group, and do not affect the bank’s individual results. Their value was however not specified in the group’s report. According to the report, the Romanian branch’s deposits and loans saw a significant rise, and the bank managed a good cost control. The Romanian branch started operating in the autumn of 2007. According to initial plans, the bank should turn a profit in 2011. Loans granted to clients rose to 252 million euros, from 135 million euros in June 2008. Deposits more than doubled, to 158 million euros. The report also mentions the group’s decision to alter the business model in Romania, focusing on attracting funds from clients. This amounts to giving up the distribution model – with branches specialising in selling loans and financial consulting, which will be turned into subsidiaries offering a full range of products and services. The changes are to be operated in the course of this quarter.