Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q1 2021 Earnings Presentation
40 slides from Erste Bank Polska's earnings presentation, Apr 28, 2021
Slide 1: Financial results of Santander Bank Polska Group for 1Q 2021
Investor Relations Warsaw 28/04/2021 Financial results of Santander Bank Polska Group for 1Q 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 Q1 2021 Our activities and our people 01
Slide 4: Our response to COVID-19
01 | Results for Q1 2021 – Our activities and our people Our response to COVID-19 We took measures to help customers and employees stay safe We changed our products and processes We introduced remote work solutions to increase safety A range of communication and information campaigns are run to su
Slide 5: Our response to COVID-19
01 | Results for Q1 2021 – Our activities and our people Our response to COVID-19 We took care of our employees We looked after our customers We took measures to help customers and employees stay safe We took care of our We keep our employees up We took measures to help Change of our behaviours empl
Slide 6: Our communication
01 | Results for Q1 2021 – Our activities and our people Our communication Bank As You Want It Social Media In 2017, we introduced our new brand claim: BANK AS YOU In Q1 2021, we returned to the two regular educational WANT IT. We offer products and services which are tailored cycles implemented las
Slide 7: Further embedding ESG to build a more responsible bank
Further embedding ESG to build a more responsible bank Environmental: Social: building a Governance: doing supporting the more inclusive business the right green transition society way Helping customers go green Talented & diverse team A strong culture 74% PLN 15 587m 1st ESG-linked Top Employer 35.
Slide 8: Our business development
Results Our business development 02
Slide 9: General operational data and key volumes
02 | Results for Q1 2021 – Our business development General operational data Key volumes SBP* SCB** gross loans 149.5 bn 11.8% -2% YoY Branches 446* 61** 179.5 bn deposits 11.6% +14% YoY Employment 10.1k 1.7k customer funds 197.4 bn Customers 5.3m 1.8m +16% YoY Digital Customers 2.8m 184k assets 238
Slide 10: Key financial results and financial ratios
02 | Results Q1 2021 – Our business development Key financial results Financial ratios for 2020 For 2020 Key results Capital position ROE, ROA Strong capital position well above ROE, ROA – leading position in PLN 8 647m PLN 1 037m PLN 1 377m PLN 611m the KNF requirements the peer group -5.5% YoY -11
Slide 11: Our customers
Results for Q1 2021 Our customers 03
Slide 12: Our customers in numbers
03 | Results for Q1 2021 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 4.8m customers +2% YoY 442k customers 25.1k customers +10% YoY +2% YoY 2.5m digital 20.0k digital +8% YoY 317k digital +9% YoY customers +1% YoY customers customers 1.8m mobile 134k
Slide 13: New products and services
03 | Results for Q1 2021 – Our customers New products and services Retail SME Corporate customers customers customers We have implemented We implemented credit process We launched a new iBiznes24 Telemedi.co – medical in mobile app for sole traders. electronic banking platform, now consultatio
Slide 14: Education and support for customers
03 | Results for Q1 2021 – Our customers Education and support BCB Customers for customers Retail Customers SME Customers Biznesmax guarantee – the 1st place in the sale of loans with the BGK coverage We continue to support university students We organised a webinar about In Q1 we organised
Slide 15: Selected business data
03 | Results for Q1 2021 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers +18% YoY PLN 1.6 bn +40 YoY +11.5% YoY +20% YoY +31% YoY +200% YoY +40% YoY Number of Cash loan Balance of Balance of Income on eFX Income form Equity Trade finance Accounts sal
Slide 16: Our financial performance
Results for Q1 2021 Our financial performance 04
Slide 17: Gross loans
04 | Results for Q1 2021 – Our financial performance Gross loans Comment PLN m Structure of loans* Santander Bank Polska S.A. -2% +1% The loan portfolio in Q1 2021 was influenced 153 236 148 516 148 184 148 326 149 506 by lower demand for loans and government assistance programs offered to custome
Slide 18: Customer funds
04 | Results for Q1 2021 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding* +10% Increase in customer funds was influenced by government assistance programs offered to 179 485 customers. 157 757 165 890 166 726 171 522 10% 3% 3%
Slide 19: Net interest income and net interest margin
04 | Results for Q1 2021 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In Q1 2021, net interest income fell by 15.8% YoY (-2.4% 1 636 1 458 1 383 1 411 1 377 QoQ in Q1). 358 350 288 309 287 Net interest margin for Q1 2021 (annualised on
Slide 20: Net fee and commission income
04 | Results for Q1 2021 – Our financial performance Net fee and commission income Comment Net fee and commission PLN m Net commission income +13.6% YoY and income 611 538 553 569 +7.4% QoQ 39 46 492 31 39 41 108 Good results in brokerage commissions thanks 80 99 Other 98 to high volatility in t
Slide 21: Income
04 | Results for Q1 2021 – Our financial performance Income Income 2 249 PLN m 1 2 182 10 2 082 2 134 2 125 74 2 1 111 197 202 136 538 Dividends 492 553 569 611 Comment Gain/Loss on financing activities and other The Group's total income in the first quarter 1 636 1 458 Net fee and commission 1 38
Slide 22: Operating expenses
04 | Results for Q1 2021 – Our financial performance Operating expenses Operating expenses 1 329 PLN m 1 307 1 265 Comment Other operating 91 336 247 expenses 152 964 930 Total costs in Q1 2021 under the influence of 148 Amortisation/ 150 54 148 regulatory costs which amounted to PLN 192 Depreciat
Slide 23: Provisions and credit portfolio quality
04 | Results for Q1 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% 5.8% 6.0% 0.96% 1,12% 1,14% 5.6% 5.7% Excluding 5.2% 0,95% 0,97% additional ECL 0,88% allowance 31.03.2020 30.06.2020 30.09.2020 31.12.2020
Slide 24: Banking tax and regulatory costs, NPL sales
04 | Results for Q1 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 272 283 209 208 173 177 295 85 192 14 44 50 47 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4. 2020 Q1 2021 SBP SCB Reso
Slide 25: Results for Q1 2021
04 | Results for Q1 2021 – Our financial performance Results for Q1 2021 Comment Results for Q1 2021 impacted by Decline in net interest income due to PLN m Q1 2021 Q1 2020 % YoY On a comparative basis* interest rate cuts and the COVID-19 pandemic. Net interest and fee income 1 988 2 175 -9% -8% G
Slide 26: Attachments
Attachments 05
Slide 27: SBP and Aviva transaction
05 | Attachments SBP and Aviva transaction On 26 March 2021: 1. the Bank executed a share sale agreement relating to: 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
Slide 28: 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 29: 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 30: Assistance tools during the COVID-19 pandemic - moratoria
05 | Attachments Assistance tools for individual customers and companies during the COVID-19 pandemic - moratoria (in PLN thousand) Gross carrying amount Performing Non performing Of which: Of which: Instruments Of which: Of which: exposures with exposures Unlikely to pay with significant with that
Slide 31: Retail Banking - growth in lending activity
05 | Attachments Retail Banking - growth in lending activity PLN m Cash loans portfolio Mortgage loans +1% (gross) -2% portfolio (gross) YoY YoY 50 596 50 543 50 782 51 049 51 023 PLN mortgage loans portfolio: +3% YoY 10 156 9 706 9 530 9 469 9 170 FX FX mortgage loans 14 654 14 582 14 680 14 46
Slide 32: Santander Leasing
05 | Attachments Santander Leasing Portfolio PLN m Market share 7,7%* + 5% 10 803 10 640 10 314 10 280 Leasing portfolio at PLN 10.8bn, +5% YoY. 10 241 Net sales value - 1.57 billion, + 36% YoY. 12% YoY growth in income. Excellent C/I at 28.5%. 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.
Slide 33: Santander Factoring
05 | Attachments Santander Factoring Portfolio 6 497 Market share 10,1% PLN m +9% YoY 5 955 31.03.2020 31.03.2021 In Q1 2021, Santander Factoring maintained its first position on the 8 071 market in terms of the balance sheet, reporting 9% YoY growth in Turnover balances and increase in a respecti
Slide 34: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 16.79% 20.89% 18.87% L/D ratio 83.13% 14.91% Capital ratios 77.00% 76.60% 73.90% 70.10% 31.03.2020 31.03.2021 CAR TIER 1 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.03.2020 Santander Bank Santan
Slide 35: Key financial ratios
05 | Attachments Key financial ratios 1Q 2021 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group 1Q 2021 2019 11) Cost/ income 59,.6% 56.3% Net interest income/ total income 64.8% 72.8% Net interest margin 1) 2.56% 3.32% Net fee and commission income/ total income
Slide 36: Key financial ratios - comment
05 | Attachments Key financial ratios - comment 1Q 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 a
Slide 37: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 19 164 18 351 18 126 17 886 31/03/2021 31/03/2020 YoY (%) QoQ (%) 17 259 3 424 3 281 3 201 3 160 3 049 Retail customers 13 652 15 169 -10% -4% 3 995 3 706 3 532 3 738 3 607 Mortgage Mortgage loans 3 049 3 424 -11% -4% 11 745 11 3
Slide 38: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Key financial results for 1Q 2021 PLN m 1Q 2021 1Q 2020 Assets 19 530 21 713 Net loans 15 267 17 172 Deposits 8 923 9 956 Total equity 3 833 3 525 PAT 61 99 L/D (%) 171.1% 172.5% C/I (%)* 56.5% 53.9% ROE (%) 6.4% 11.3% ROA (%) 1.2% 1.8% TCR (%)** 28.7%
Slide 39: 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 40: 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