Warsaw (Puls Biznesu) – Credit cards and bancassurance have made up for lower revenues from fees. However, Millennium, the first bank to publish its quarterly report, did not do as good as in earlier years.
Bank Millennium had PLN 127m (EUR 37.1m) of net income in the first quarter, or 50.8 percent more than in the same period of last year. Its investment fund business dropped by 19 percent to PLN 3.49bn while the number of credit cards grew by 54 percent to 484,000. Cash credits rose to PLN 256m from PLN 196m in the first quarter of 2007, or by 31 percent.
“Dynamics are still high but if we compare the first quarter of this year to the last quarter of 2007, we can see that it slowed down substantially”, Marek Juras, DM BZ WBK analyst commented.
Marta Jezewska, DI BRE Bank analyst, stressed that the bank is making up for losses generated by decreasing investment funds.
“The bank focuses on bancassurance, credit cards and cash loans. If this segment grows that fast, it may reduce losses generated by bad moods on the market of investment funds”, Marta Jezewska said.
Whether this happens, will be obvious after second quarter results are published. Marek Juras believes that the second quarter will be of big importance for the whole sector.
“It will be very difficult for banks to show double-digit dynamics because of high base in the second quarter of last year”, DM BZW WBK analyst believed.
(PLN 1 = EUR 0.292)