Vision
Millennium bcp aspires to be the reference bank in Customer service, based on innovative distribution platforms, in which more than two thirds of the capital will be allocated to Retail and Companies, in markets with high potential, which are projected to have an annual growth turnover of more than 10%, and to reach a superior level of efficiency, reflected in a commitment to cost to income at reference levels for the sector and improved discipline in capital and cost management.
Mission
To create Customer value through top quality banking financial products and services, observing strict, high standards of conduct and corporate responsibility, growing with profitability and sustainability, in order to provide Shareholders with an attractive profit, which supports and strengthens the strategic autonomy and -----corporate identity.
Values
- Respect for People and Institutions - Respect for others, for people and institutions
is a principle that inspires us. We are a responsible actor in society and we
believe that our existence only makes sense if we contribute to the common good.
- Focus of the Client - We see the world through our Clients' eyes because we
aspire to satisfy all of their needs and to help them fully realize their dreams.
- Working for Excellence - We believe in the value of excellence. We strive
to develop the best products and services and we persistently seek new solutions,
as long as these are better solutions.
- Trust - We want to develop relationships that last. The trust of our Clients
is the most valuable asset we have, the one true tribute to our performance
and that trust serves as permanent motivation for us.
- Ethics and Responsibility - We act consciously. Millennium bcp is aware that
business ethics is only complete if it ensures the sustainability of the enterprise,
betters living conditions for all and improves the future of our planet.
Stategy
The challenges presented by the current adverse economic scenario for Portuguese
companies and families, confronted domestic banks with the need to strengthen
their capital ratios (Core Tier I) to 9% by the end of 2011 and 10% by the end
of the forthcoming year. At the same time, Portuguese authorities required that
the Banks initiate a deleveraging process i.e. reduce the proportion of loans
granted vs. deposits captured to 120% by 2014. All these will have a negative
impact on the net interest income and profitability of financial institutions.
Given the structural transformation of the market environment in Portugal, Millennium
bcp adjusted its strategic agenda based on four key drivers: (i) Ensure solvency
levels above regulatory requirements (9% of Core Tier I in 2011 and 10% in 2012);
(ii) Manage the deleveraging process to stabilize balance sheet funding needs
and structure, having defined a target Loan to Deposit ratio of 120% in 2014;
(iii) Recover profitability levels in Portugal, aiming to achieve a ROE above
10%; and (iv) Focus the international portfolio according to the attractiveness
and availability of resources.
Millennium bcp redefined its corporate view and adopted a new strategic agenda,
based on four pillars:
1. Strengthening the leading position in Portugal;
2. Reinforcing activities in Mozambique and Angola, as they are a platform for
growth in Africa;
3. Growth in new affinity markets;
4. Redefinition of the positioning of European operations.
I. Strengthening the leading position in Portugal
Taking advantage of having the largest banking network in Portugal, Millennium
bcp is reviewing, through Project M, its approach to the market and customers
by promoting a new service model for the Affluent and Business segments and
also for young and self-directed people. Additionally, the Bank will increase
the service efficiency in the Mass Market segment and will continue developing
a more involving, integrated and cross-wide multichannel platform that will
enable to reconfigure the branch network and to concentrate abilities and optimize
resources.
The Bank will continue to restructure its operative model, by designing lean
front and back office processes, adjusting capacity to the new model and reinforcing
credit recovery capacities, in order to continue to provide a service of excellence
and, at the same time, reduce costs.
The Bank will also analyze new Specialized Partnerships, seeking to enhance
the banking business (in real estate, leasing, factoring and investment banking,
among others) and increase the current range of non banking products and services.
Therefore, Initiatives implemented in this context seek to maintain and strengthen
leadership in key areas of activity, constantly evolving and reinventing the
way to do banking.
II. Reinforcing activities in Mozambique and Angola, as they are a platform
for growth in Africa
Millennium bcp will endeavour to reinforce its operational base for growth in
Africa, stressing the importance of the business in this region through the
further development of expansion plans currently underway in Angola and Mozambique.
These two countries are crucial for the future and for the value creation in
the medium- and long-term. Thus, the Bank already approved the establishment
of a new company in Angola, a Holding company, which will directly own Banco
Millennium Angola. Together with Millennium bcp, the Holding will have Sonangol
and Banco Atlântico, partners of the Bank, in its shareholding structure
and a share capital increase is due to take place in order to provide this company
with the means to continue the rapid expansion of Millennium Angola. This Holding
will also create a new bancassurance insurance company in Angola, assess the
possibility of establishing financial operations in other African countries,
namely São Tomé and Príncipe and Namibia, and appraise
the launching of new banking solutions in Africa, specifically through mobile
platforms.
In Mozambique, the Bank will continue with its expansion plan, reinforcing the
position of reference and leadership that it was able to achieve in this market.
III. Growth in new affinity markets
The new affinity markets will include geographic areas that represent a natural
extension of the Bank's operations or of the operations of its customers within
these different areas. This objective encompasses extending the Bank's activities
to Asia, by means of a direct position in the People's Republic of China that
allows complementing the current product range based in Macau and increasing
the development of this operation. In the pursuit of its strategy of investing
in affinity markets, Millennium bcp expects to obtain of a banking license in
Brazil, a market that has a very strong cultural and historical bond with Portugal.
IV. Redefinition of the positioning of European operations
Considering the new strategic agenda and the desired focus on Portugal, Africa,
Asia and Brazil, the remaining operations in Europe will be considered as non-core.
The Bank will strategically assess the creation of value by different options
in order to reach a decision regarding current shareholdings. The following
action principles were established:
- Evaluate opportunities to capture the value of the operation in Poland. Millennium
bcp selected Deutsche Bank and Nomura as Joint Financial Advisors on this review.
- Explore options to restructure and reduce exposure to the Greek market, establishing
an evaluation process for the different options and opportunities, including
the possible participation in the consolidation process of the Greek banking
market.
- Stabilize the operation in Romania and reduce its impact on the Bank's results.
Additionally, and as a result of this action, the Bank's capital ratios shall
be significantly reinforced and meet the targets set forth in the Memorandum
of Economic and Financial Policies, signed on 17 May 2011.
Medium-Term Goals
The redefinition of Millennium bcp's strategic agenda supports a new basis for
the future, setting the following medium-term goals:
