Approaching the end horizon of previous 2015-17 Strategy of Bank Millennium ('the Bank'), with most important targets delivered (like number of active customers, market share in retail customer funds and cost-to-income ratio), Management Board of the Bank proposed and Supervisory Board accepted main directions of the new strategy for the period 2018-2020.

The starting point to the strategy are current macroeconomic background as well as fast changing trends in the banking environment. Macroeconomic situation in Poland is favourable with expected solid growth going forward (above 3% GDP growth). New financial market trends include raising expectations on customer experience standards and personalization, digitizing services and customers' lives, growing and concentrating banking market in Poland, increasing pressure on efficiency and upcoming regulatory changes (PSD2, MiFID2).

As an answer to these challenges, the Bank is pursuing a strategy with the following main directions:

  • Complementing current growth engine in Retail (increase in the number of Active Clients through Current Accounts acquisition) with new engines (Cash Loan, Investment Products and Micro business)
  • Accelerate the growth in Corporate through lending and enhanced sales force efficiency
  • Focus growth around client satisfaction, in retail mass personalization and in business with sectorial knowledge approach
  • Strong leverage of digital in banking and beyond as competitive edge
  • Opportunistic approach to inorganic growth options
  • Win the war for talent thanks to engaging and inspiring work environment
  • Acting responsibly towards clients, colleagues and being a good citizen

Successful realization of the strategy should bring the Bank higher scale with strong growth, superior efficiency and top-of-industry shareholders' return.

Main mid-term goals targeted by Bank Millennium Group by 2020 year include:

  1. Core business income growth by c.a. 30% (versus 2017)
  2. Double-digit volume growth in core selected areas
  3. To double the pace of active clients acquisition
  4. To maintain Top 3 in customers NPS among leading Polish banks
  5. Cost to Income ratio of 40%
  6. Cost of risk in line with historical trends
  7. Net profit of PLN 1 billion in 2020 *)
  8. ROE within top 3 leading Polish banks *)

*) excluding extraordinary legal, regulatory and tax events

More detailed description and assumptions of the new Strategy can be found in a dedicated presentation published today at www.bankmillennium.pl

Legal basis: MAR art 17 point 1- insider information

Legal disclaimer

This document includes forward-looking statements and these statements are based on the Management's current expectations and beliefs and are subject to a number of factors and uncertainties being beyond the Management's control that could cause actual results to differ materially from those described in the forward-looking statements.

This document is not a forecast or estimation of future results. Accordingly, possible changes of the Bank's strategy or intentions, caused by unforeseen circumstances, which affect the Bank's strategy or intentions, shall not be subject to disclosure under the procedure stipulated for disclosure on changes of forecast or estimation of future results.

Bank Millennium SA published this content on 30 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 October 2017 08:42:09 UTC.

Original documenthttps://www.bankmillennium.pl/en_US/about-the-bank/investor-relations/current-reports/-/r/26354364

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