Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q3 2021 Earnings Presentation
38 slides from Erste Bank Polska's earnings presentation, Oct 27, 2021
Slide 1: Financial results of Santander Bank Polska Group for 1-3Q 2021
Investor Relations Warsaw 27/10/2021 Financial results of Santander Bank Polska Group for 1-3Q 2021
Slide 2: Agenda
Index Agenda Results 1. Our activities and our people 2. Our business development 3. Our customers 4. Our financial results More information 5. Attachments 2
Slide 3: Our activities and our people
Results for 1-3Q 2021 Our activities and our people 01
Slide 4: Our people
01 | 1-3Q 2021 – Our activities and our people Our people We care about employees COVID status and work We care about wellbeing In the 3rd quarter of 2021, the pandemic slowed down significantly. We recorded As part of our Wellbeing & Mental Health Strategy for 2021, we are constantly an average
Slide 5: Our communication
01 | Results for H1 2021 – Our activities and our people Our communication Brand Ambassador ATL campaigns / TV This year, we are continuing our cooperation with Campaigns promoting the Account As I Want it with a mobile application, thanks to which our clients can do more the brand ambassador – Marc
Slide 6: Our business development
Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for 1-3Q 2021 – Our business development General operational data Key volumes SBP* SCB** gross loans 151.7 bn 11.7% +2% YoY Branches 414* 55** 177.3 bn deposits 11.2% +6% YoY Employment 9.6k 1.6k customer funds 196.7 bn Customers 5.4m 1.7m +9% YoY Digital Customers 2.9m 202k assets 233.
Slide 8: Key financial results and financial ratios
02 | Results 1-3Q 2021 – Our business development Key financial results Financial ratios for 1-3Q 2021 For 1-3Q 2021 Key results Capital position ROE, ROA PLN 6 642m PLN 918m Strong capital position well above PLN 4 232m PLN 1 846m the KNF requirements +2.7% YoY -3.9% YoY -5.5% YoY +16.6% YoY +1.9%
Slide 9: Our customers
Results for 1-3Q 2021 Our customers 03
Slide 10: Our customers in numbers
03 | Results for 1-3Q 2021 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 4.9m customers +3% YoY 461k customers +9% YoY 25.6k customers +4% YoY 20.2k digital 2.6m digital 327k digital +4% YoY customers +8% YoY customers +7% YoY customers 1.9m mobile 149k
Slide 11: New products and services
03 | Results for 1-3Q 2021 – Our customers New products and services Retail SME Corporate customers customers customers Since the beginning of July, We have implemented AutoPay We have implemented a new service we have been issuing VISA service for business customers. for public sector custome
Slide 12: Education and support for customers
03 | Results for 1-3Q 2021 – Our customers Education and support for customers Retail Customers SME Customers For the third time employees of the North We have organised “Investment BCB Customers Macroregion and Santander Foundation funds as an alternative for organised the “North Helps” event t
Slide 13: Selected business data
03 | Results for 1-3Q 2021 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers +14% YoY PLN 2.0 bn +13% YoY PLN 1.3 bn +39% YoY +41% YoY +151% YoY +102% YoY Number of Cash loan Balance of Loans Transactional Income on eFX Income from Income from Equity A
Slide 14: Our financial performance
Results for 1-3Q 2021 Our financial performance 04
Slide 15: Gross loans
04 | Results for 1-3Q 2021 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans* +2% Santander Bank Polska S.A. The loan portfolio in 9M 2021 was influenced by 149 506 151 659 9% 148 184 148 326 148 380 lower demand for loans and government assistance programs offer
Slide 16: Customer funds
04 | Results for 1-3Q 2021 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding* +6% An increase in customer funds YoY was influenced by government assistance 9% 171 522 179 485 173 180 177 320 4% programs offered to customers. 166
Slide 17: Net interest income and net interest margin
04 | Results for 1-3Q 2021 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In 1-3Q 2021, net interest income fell by 5% YoY and 1 444 1 383 1 411 1 377 1 411 increased by 2.3% QoQ in Q3. 288 309 287 284 303 In Q3 2021 increase of 2.3% QoQ
Slide 18: Net fee and commission income
04 | Results for 1-3Q 2021 – Our financial performance Net fee and commission income Comment Net fee and commission PLN m 635 Net commission income +17% YoY and +6% income 553 569 611 600 46 50 QoQ 41 46 96 39 108 Good results in card commissions (+25% YoY), 80 99 108 Other fees for current acco
Slide 19: Income
04 | Results for 1-3Q 2021 – Our financial performance Income Income PLN m 2 134 2 182 2 265 2 250 2 127 1 2 1 102 170 197 202 138 152 Dividends 569 611 600 635 553 Comment Gain/Loss on financing activities and other The Group's total income in 1-3Q 2021 Net fee and commission 1 383 1 411 1 377 1
Slide 20: Operating expenses
04 | Results for 1-3Q 2021 – Our financial performance Operating expenses Operating expenses PLN m 1 442 1 329 Comment Other operating 1 269 expenses 336 249 568 1 077 Total costs in 1-3Q 2021 under the influence of Amortisation/ 930 148 198 regulatory costs and the creation of provisions for Depr
Slide 21: Provisions and credit portfolio quality
04 | Results for 1-3Q 2021 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio* 1.21% 1,14% 1.06% 1.07% 0.99% 5.8% 6.0% 5.8% 0.96% 5.6% 5.7% 0.89% 5.2% 5.4% 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.03.2021 30.06.2021 30.09.2021 Q1 2020
Slide 22: Banking tax and regulatory costs, NPL sales
04 | Results for 1-3Q 2021 – Our financial performance Banking tax NPL sales and regulatory costs Amounts payable to the PLN m PLN m NPL sales* BFG, KNF and KDPW 329 272 283 209 208 191 173 177 295 85 192 14 30 44 50 47 33 34 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q1 2020 Q2 2020 Q3
Slide 23: Results for 1-3Q 2021
04 | Results for 1-3Q 2021 – Our financial performance Results for 1-3Q 2021 Results for 1-3Q 2021 impacted by regulatory payments and extraordinary factors Comment PLN m On a comparative 1-3Q 2021 1-3Q 2020 % YoY basis* In Q3, further increase in net interest Net interest and fee income 6 078 6 0
Slide 24: Attachments
Attachments 05
Slide 25: Retail Banking - growth in lending activity
05 | Attachments Retail Banking - growth in lending activity PLN m Cash loans portfolio Mortgage loans +4% (gross) 0% portfolio (gross) YoY YoY 51 049 51 023 51 447 52 913 50 782 PLN mortgage loans 8 805 9 530 9 469 9 170 8 732 portfolio: +7% YoY FX FX mortgage loans 14 680 14 680 14 466 14 337
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio PLNbn Market share Leasing portfolio at PLN 11.5 bn, +9% YoY, 8.3%* +12% Net sales value 5 bn, +34% YoY, 11 499 16% YoY growth in income 11 200 Excellent C/I at 29.3% 10 803 *As at 30.06.2021 10 640 10 241 Bank Gospodarstwa Krajowego - cooperation
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio 6 408 Market Share 10% PLN m 5 196 +23% 30.09.2020 30.09.2021 In Q3 2021, Santander Factoring maintained its first position on the Turnover 25 529 market in terms of the balance sheet, reporting 23.3% YoY growth in +19.3% balances and increase in the
Slide 28: SBP and Aviva transaction
05 | Attachments SBP and Aviva transaction On 26 March 2021: 1. the Bank concluded the agreement on the sale of 4,125 shares in AVIVA Towarzystwo Ubezpieczeń na Życie S.A., representing ca. 10% of the share capital of this company; and 2,968 shares in AVIVA Towarzystwo Ubezpieczeń Ogólnych S.A., r
Slide 29: SBP and Aviva transaction: structure of capital ties
05 | Attachments SBP and Aviva transaction: structure of capital ties between SBP and Aviva 10% Aviva Santander Aviva Group Bank Polska International Holdings Ltd S.A. Holdings Ltd 90% Aviva Towarzystwo 10% 49% Santander Aviva Towarzystwo 51% Ubezpieczeń Ogólnych S.A. Ubezpieczeń na Życie S.A. 90% A
Slide 30: Our response to COVID-19
05 | Attachments Our response to COVID-19 Support for personal and business customers The assistance tools provided by the Group as part of initiatives aimed at mitigating the negative effects of the COVID-19 We provided customers with an option to apply for three-month or six-month deferral of pr
Slide 31: COVID-19 assistance tools - moratoria
05 | Attachments Assistance tools for individual customers and companies during the COVID-19 pandemic - moratoria (in PLN thousand) Gross carrying amount Non Performing performing Of which: Of which: Instruments Of which: Of which: exposures with exposures Unlikely to pay with significant with that
Slide 32: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 18.84% 16.89% 20.38% 18.38% L/D ratio Capital ratios 76.60% 73.90% 71.93% 72.38% 70.10% 30.09.2020 30.09.2021 CAR TIER 1 30.09.2020 31.12.2020 31.03.2020 30.06.2020 30.09.2020 Santander Bank Santan
Slide 33: Key financial ratios
05 | Attachments Key financial ratios 1-3Q 2021 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group 1-3Q 2021 1-3Q 2020 Cost/ income 57,0% 48.9% Net interest income/ total income 63.7% 69.3% Net interest margin 1) 2.6% 2.95% Net fee and commission income/ total inc
Slide 34: Key financial ratios - definitions
05 | Attachments Key financial ratios 1-3Q 2021 - Santander Bank Polska Group 1) Net interest income annualised on a year-to-date basis (excluding interest income from the portfolio of debt securities held for trading and other exposures related to trading) to average net earning assets as at the en
Slide 35: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 18 126 17 886 30.09.2021 30.09.2020 YoY (%) QoQ (%) 17 259 16 902 17 124 3 201 3 160 3 049 2 895 2 904 Retail customers 13 599 14 595 -7% 2% 3 532 3 738 3 607 3 612 3 525 Mortgage Mortgage loans 2 895 3 201 -10% - 11 394 10 988 1
Slide 36: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Key financial results for 1-3Q 2021 PLN m 1-3Q 2021 1-3Q 2020 Assets 19 680 20 637 Net loans 15 201 16 109 Deposits 8 993 9 917 Total equity 3 922 3 709 PAT 186 265 L/D (%) 169.0% 162.4% C/I (%)* 54.7% 47.1% ROE (%) 6.4% 9.9% ROA (%) 1.2% 1.7% TCR (%)**
Slide 37: Thank You.
Thank You. Contact details Our purpose is to help people and business prosper. Maciej Reluga CFO, Chief Economist Our culture is based on believing maciej.reluga@santander.pl that everything we do should be: Agnieszka Dowżycka Head of Investor Relations agnieszka.dowzycka@santander.pl
Slide 38: Disclaimer
Disclaimer 1. This presentation may contain forward-looking statements including, without limitation, statements concerning future business development and financial performance. These forward-looking statements: represent our judgment and future expectations concerning the development of our busi