Bank Millennium – demand for guaranteed coupons has increased

Bank Millennium is one of the success stories at this year's SRP Europe awards. The bank had a stellar 2022 and is now seeking to enter a new phase of development as a top distributor following the launch of its multi-issuer platform.

exchanges allowed for the start of investments at attractive levels”.

“Customers saw this opportunity, sales were at a very high level, I think they will be satisfied with the results achieved by the products purchased over the last year,” said Jagodziński.

How would you rate the performance of Bank Millennium’s structured products business?

Structured products dealer, treasury department, at Bank Millennium Poland Piotr Jagodziński (pictured) told SRP that demand for structured products in Poland remained stable with investors benefitting from the change in the interest rate environment.

“On the one hand, [it was] demanding due to rapid changes in the financial markets, and on the other hand, market events allowed for the construction of attractive products, giving a chance for a high rate of return for the client,” he said.

According to Jagodziński, rising interest rates made it possible to “significantly improve the conditions of products, and the declines on the world stock

The last one was record-breaking in terms of sales volume of structured products in Bank Millennium, the nominal value of products sold was three times higher than in 2021.

Thanks to the strong increase in interest rates, we were able to offer customers products with a guaranteed coupon, which in the worst-case scenario will give a rate of return slightly lower than traditional deposits, and in the best case, a rate of return that will exceed the level of inflation.

Most of our products are based on stock markets. We believe that in the long term the past year was a good time to start investing.

What are Bank Millennium’s differentiator with other competitors?

We have always tried to build products with a simple payout profile and based on assets that clients know and can easily follow their quotes. Our offer includes products only with a 100% capital guarantee because the financial security of our clients is very important to us.

Did investors shift towards a particular type of wrapper, underlying, payoff in 2022?

The highest demand was for products that can pay out a guaranteed coupon. This type of structured product in the worst-case scenario will give a rate of return slightly lower than traditional deposits, and in the best case, a rate of return that will exceed the level of inflation.

Do you think there is scope to grow the domestic structured products market further?

It will be difficult to repeat the record results from 2022, but despite this, this year should be successful. I think that what was the hit of 2022, i.e. products with a guaranteed coupon, will disappear from the Polish market at the end of 2023 due to the decrease in market interest rates.

We will try to take advantage of emerging opportunities on the financial markets. There are so many unknowns that we don't have any concrete plans.