Millenium BCP "well positioned" to continue growing but "geopolitical shock" is a threat

Millennium BCP reported a 12.6% profit increase in the first nine months of the year, benefiting from rising interest rates. Despite positive forecasts for 2026, geopolitical tensions and inflation pose risks. Morningstar DBRS anticipates significant profit growth for 2026, driven by loan portfolio expansion and higher Euribor rates. However, the bank faces challenges from global economic conditions, including energy price hikes and ongoing litigation in Poland, where it holds a 50.1% stake in Bank Millennium S.A.