Millennium bim hardly put a foot wrong in 2005, racking up a 70% increase in profits to 343.6bn meticais ($12.7m). As a result, RoE was also sharply improved, up to 23.6% from 16.7%.
Key features of the bank’s impressive year include growth in the lending portfolio but at the same time improvement in credit quality and maintenance of the net interest margin. Millennium’s NPL ratio shrunk from 9.4% to a healthier looking 3.5%. The bank also showed the fruits of its focus on other operating income, especially trading income, as well as stringent cost control. In 2005, the cost-to-income ratio fell to 70% from 78.5% the year before.
Far from being complacent as the country’s leading bank, Millennium bim has continued to innovate and lead with new products. It is the only bank in the country to offer telephone banking, for instance. Millennium bim has also pioneered mortgage lending in the market and has developed a range of tailored personal loans to meet specific customer needs.
