Hrvatska Postanska Banka D.d. · ZSE:HPB
Hrvatska Postanska Banka D.d — Hrvatska poštanska banka — 9M 2024 Earnings Presentation
30 slides from Hrvatska Postanska Banka D.d's earnings presentation, October 2024
Slide 1: HPB p.l.c. 9M 2024 Investor information
HPB p.l.c. 9M 2024 Investor information October 2024
Slide 2: Limitation of liability
Limitation of liability ▪ The information and data contained in this presentation are intended as general background information on Hrvatska poštanska banka p.l.c. (hereinafter referred to as the Bank or HPB) and its activities. They are provided in summary form and therefore do not necessarily repr
Slide 3: Statement of the President of the Management Board
Statement of the President of the Management Board On the occasion of releasing the nine-month financial results for 2024, Marko Badurina, President of the Management Board of Hrvatska poštanska banka, stated: "It is HPB's vision to have a relevant market impact, and our results prove that in the pa
Slide 4: Executive Summary
Executive Summary Macroeconomic Environment Financials Risk Management Additional information
Slide 5: We continue trajectory growth confirming our vision and mission
We continue trajectory growth confirming our vision and mission Excellent Strong growth of Increase in the profitability Banks’s assets Bank’s value +33.9 EUR mn +3.6 EUR bn +289.7 EUR mn 65.4 7.3 485.9 61.3 7.0 378.6 4.6 3.7 221.7 27.4 196.2 16.8 2021 2022 2023 2024 31.12.2021 31.12.2022 31.12.2023
Slide 6: Continuous strengthening of the market position
Continuous strengthening of the market position Total assets Total assets development 30.6.2024 (EUR bn) Base index = 2021 Share 200 HPB 19.9 25.5% 16.1 20.5% 150 market 13.2 16.9% 100 8.3 10.6% 50 6.9 #5 8.8% 6.7 8.5% 0 12/21 3/22 6/22 9/22 12/22 3/23 6/23 9/23 12/23 3/24 6/24 9/24 HPB in the TOP 5
Slide 7: Macroeconomic Environment
Executive Summary Macroeconomic Environment Financials Risk Management Additional information
Slide 8: Macroeconomic indicators
Macroeconomic indicators Croatia Euro area € Croatia Euro area € Aug 24: 1.8% Aug 24: 3.0% Households Overall Interest rate Aug 23: 1.4% Aug 23: 3.1% on deposits inflation Sep 24: 3.0% Sep 24: 1.8% with agreed (HICP) Sep 23: 7.4% Sep 23: 4.3% maturity Aug 24: 3.3% Aug 24: 3.4% Corporations Aug 23: 3
Slide 9: Financials
Executive Summary Macroeconomic Environment Financials Risk Management Additional information
Slide 10: Record 9M operating profit of EUR 87.1 mn achieved
Record 9M operating profit of EUR 87.1 mn achieved Profit and loss account (EUR mn) 9M 2023* 9M 2024* Y-o-Y Y-o-Y % Net interest income 100.1 135.1 35.0 34.9 Net fee and commission income 21.8 26.9 5.1 23.6 Net other income 7.9 5.2 (2.7) (34.1) Operating income 129.8 167.2 37.4 28.8 Employee expense
Slide 11: The most profitable quarter in history by operating profit
The most profitable quarter in history by operating profit Operating profit Profit after tax (EUR mn) (EUR mn) +27.4% 47.9% 9M 2024 14.5% 30.9.2024 (+18.8) Cost to Income Ratio (CIR) Return on Average Equity (ROAE) 87.1 -6.3% (-4.1) 68.3 65.4 61.3 31.9 28.6 26.6 23.3 23.9 21.2 15.1 16.2 9M 2023 9M 2
Slide 12: Strong non-interest income contribution in Q3 2024
Strong non-interest income contribution in Q3 2024 Operating income (EUR mn) 167.2 46.2 46.6 44.6 43.9 +28.8% (+37.4) 129.8 Net interest income 80.8% 10.2 9.1 77.1% 7.6 7.6 Net fee and commission income 3.0 16.8% 16.1% Net other (expenses) 1.3 6.1% 3.1% 0.9 / income 9M 2023 9M 2024 Net interest inco
Slide 13: Expenses kept under control, while supporting operating growth in Q3 2024
Expenses kept under control, while supporting operating growth in Q3 2024 Operating expenses (EUR mn) 80.1 13.6 13.3 14.2 13.2 +30.4% (+18.7) 61.5 Employee 50.8% expenses 49.8% 13.6 11.5 10.3 9.8 Administrative expenses 39.6% 40.7% 2.8 2.9 2.7 2.1 9.6% 9.6% Depreciation 9M 2023 9M 2024 Employee expe
Slide 14: Quality and safe loan portfolio
Quality and safe loan portfolio NPL coverage at 76.1% Cost provisioning structure Cost of risk dynamics – stage 3 (EUR mn) (EUR mn) -5.3% -10.7 Stage 1 & 2 -10.1 -4.7 -8.8 -8.1 -8.2 9M 2024 -8.2 Stage 3 0.2 Other provisions +3.9 2019 2020 2021 2022 2023 30.9.2024 14 Source: Management report
Slide 15: Asset exceeded record level in 2023
Asset exceeded record level in 2023 Balance sheet (EUR mn) 31.12.2023 30.9.2024 YTD YTD % Cash and cash equivalents 3,103 3,218 115 3.7 Securities and other financial instruments 915 1,093 178 19.5 Net loans and advances 2,908 2,915 7 0.2 Other assets 120 112 (8) (6.5) Total assets 7,046 7,339 293 4
Slide 16: Client deposits as a backbone of the balance sheet with a robust liquidity position
Client deposits as a backbone of the balance sheet with a robust liquidity position Other assets 112 85 Other liabilities 451 Loan liabilities Securities 1,093 Liquidity profile 595 Equity and reserves 268.0 260.9 254.5 256.0 LCR % NSFR % 233.8 220.3 218.0 225.2 Cash and cash 3,218 equivalents 6,208
Slide 17: Balance sheet growth with stable structure
Balance sheet growth with stable structure Assets Liabilities and equity (EUR mn) (EUR mn) 7,339 7,339 7,046 6,884 112 +6.6% 7,046 6,884 85 +6.6% 120 6,762 (+455) 115 6,762 451 (+455) 114 115 468 113 92 1,093 451 915 439 595 917 965 534 558 579 3,103 3,218 2,873 2,934 5,929 6,208 5,653 5,761 2,908 2
Slide 18: Stable level of gross loan portfolio with a focus on quality
Stable level of gross loan portfolio with a focus on quality +0.4% 3,129 3,142 13 -26 26 53.8% 53.2% 2,875 2,898 (EUR mn) Stage 1 and 2 Stage 1 and 2 (91.9%) (92.2%) 33.1% 32.9% 13.9% 13.0% 254 245 Stage 3 Stage 3 (8.1%) (7.8%) 31.12.2023 Corporate, public sector SME Retail 30.9.2024 Gross loans and
Slide 19: The long-term trend of decreasing NPL ratio continued
The long-term trend of decreasing NPL ratio continued NPL ratio, % NPL coverage, % 9.8 80.7 77.4 75.0 76.1 8.4 72.1 78.2 72.8 5.9 69.0 68.8* 63.2 67.0 5.6 5.7 4.4 4.2 61.1 4.3 4.3 4.1 3.3 3.0 2.6* 2.0 2.6 1.7 2021 2022 2023 30.9.2024 2021 2022 2023 30.9.2024 NPL ratio NPL coverage NPL ratio - exclud
Slide 20: Strengthened deposit base with strong growth in term deposits
Strengthened deposit base with strong growth in term deposits +4.7% 6,208 5,929 52 206 21 3,643 A vista 51.8% A vista 50.8% 3,775 40.6% 39.1% (EUR mn) 2,565 Term Term 2,154 9.0% 31.12.2023 Corporate, public 8.6% SME Retail 30.9.2024 Deposits sector Deposits and financial market Deposit share 31.12.2
Slide 21: Secure portfolio of securities
Secure portfolio of securities Securities* by issuer Type of securities* …o/w issued by Croatia – Ministry of Total… Finance 4.5% 10.8% 9.3% 18.6% 1,074 1,074 925 EUR mn EUR mn EUR mn 81.4% 86.2% 89.2% Republic of Croatia - Ministry of Finance Bond French Republic - Ministry of Economy and Finance T
Slide 22: Risk Management
Executive Summary Macroeconomic Environment Financials Risk Management Additional information
Slide 23: Prudent RWA management
Prudent RWA management RWA development (EUR mn) 2,332 2,241 4 45 20 -10 77 41 300 300 1,462 37 1,361 43 188 199 1,900 1,987 1,118 1,237 31.12.2021 31.12.2022 31.12.2023 Provisions Collateral Increase in Market risk 30.9.2024 optimization credit exposure Market risk Operational risk Credit risk 23 So
Slide 24: Strong capital position significantly above regulatory requirements
Strong capital position significantly above regulatory requirements 30.9.2024 Regulatory capital and MREL eligible instruments development 1,200 50 34.51 35.18 25.70 29.96 1,100 1,000 25.70 23.57 22.51 21.37 900 0 820 800 773 700 269 322 600 -50 500 438 400 349 93 300 -100 505 498 200 349 345 100 0
Slide 25: A highly diversified and stable credit portfolio
A highly diversified and stable credit portfolio Corporate gross loans per industry, % 30.9.2024 Y-o-Y trend Manufacturing 18.9 Construction* ≈ 17.0 Public administration and defence; compulsory social security 12.3 Wholesale and retail trade; repair of motor vehicles and motorcycles 10.1 Accommodat
Slide 26: Additional information
Executive Summary Macroeconomic Environment Financials Risk Management Additional information
Slide 27: HPB share outperformed the relevant market indices
HPB share outperformed the relevant market indices HPB share price movement index and CROBEX, EURO STOXX and EURO STOXX Ownership structure Banks indices 30.9.2024 350 300 23.1% 250 44.9% 2.3% 200 8.8% 150 9.0% 11.9% 100 Republic of Croatia 50 Croatian Post Croatian deposit insurance agency 0 Croati
Slide 28: Sustainable operations in 2024
Sustainable operations in 2024 ESG segment Activities in focus in 2024 E Improvement of the methodology of Integration of environmental risks in the Development of products with elements Development of methodologies and metrics for environmental goals general assessment and credit process of sustain
Slide 29: Abbreviations
Abbreviations Abbreviation Definition CAR Capital Adequacy Ratio CBRD Croatian Bank for Reconstruction and Development CET 1 Common Equity Tier 1 CIR Cost-to-income ratio CNB Croatian National Bank CROBEX Croatian Benchmark Stock Exchange Index ECB European Central Bank ESG Environmental, Social and
Slide 30: Indicies calculation
Indicies calculation Indicator Calculation Liquidity coverage ratio (LCR) The ratio of liquid assets to net liquidity outflow NPL coverage Ratio of accumulated impairments for non-performing loans to total non-performing loans NPL ratio Ratio of non-performing loans to total loans Net stable funding
Hrvatska poštanska banka — 9M 2024 Earnings Presentation on 6ix