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.