Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q3 2024 Earnings Presentation
35 slides from Erste Bank Polska's earnings presentation, Oct 29, 2024
Slide 1: Financial results of Santander Bank Polska Group for Q1-Q3 2024
Investor Relations Warsaw 29/10/2024 Financial results of Santander Bank Polska Group for Q1-Q3 2024
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-Q3 2024 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Digital & Social Media activities Our communication In our activities we focus on: For many years Santander Bank Polska has been close to their customers. In our • Our social media currently include 15 profiles on 6 platforms. Gathering over 650,000 followers and reaching campaigns we
Slide 5: Our people
01 | Our activities and our people Our people Improving employee experience Occupational Health & Safety and Wellbeing ▪ We implemented support measures for employees affected by the flood – we designed ▪ Given the flood in the south of Poland, we organised psychological support for our flexible wor
Slide 6: Our business development
Q1-Q3 2024 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for Q1-Q3 2024 – Our business development General operational data Key volumes SBP* SCB** gross loans 198 bn 12.8% +8% YoY Branches 313* 38** deposits 218 bn 11.0% +4% YoY Employment 10.0k 1.4k customer funds 241 bn Customers 5.9m 1.5m +6% YoY Digital Customers 3.7m 703k assets 300 bn +
Slide 8: Key financial results and financial ratios
02 | Results for Q1-Q3 2024 – Our business development Key financial results Financial ratios Key results Capital position ROE, ROA PLN 10 249 m PLN 2 184 m PLN 12 701m PLN 4 299m Strong capital position, well above the KNF requirements +6% YoY +9% YoY +7% YoY +12% YoY +8% on comparative basis* Net
Slide 9: Our customers
Results for Q1-Q3 2024 Our customers 03
Slide 10: Our customers in numbers
03 | Results for Q1-Q3 2024 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.4m customers +2% YoY** 530k customers +1% YoY** 27.9k customers +2% YoY 3.3m digital 381k digital +7% YoY +6% YoY 21.9k Digital customers customers +2% YoY customers 2.8m mobile
Slide 11: New products and services
03 | Results for Q1-Q3 2024 – Our customers New products and services Retail customers SME customers Corporate customers ▪ We introduced a new Visa Bonus credit card. ▪ We introduced new solutions, including: - a free account forever (available as of 1 October) ▪ New BGK guarantee - InvestEU - this
Slide 12: Education and support for customers
03 | Results for Q1-Q3 2024 – Our customers Education and support for customers Retail Customers SME Customers BCB customers ▪ We implemented a new version of our mobile ▪ We changed the omnichannel Smart Loans ▪ Implementation of the Credit Desk - a new info line on application which provides acces
Slide 13: Selected business data
03 | Results for Q1-Q3 2024 – Our customers Selected business data Retail customers SME Customers BCB customers CIB Customers 4.7m +17% YoY 18.3k 57% +5% YoY +13% YoY +65% YoY +77% YoY Personal Select segment Business Digital Number of Income on eFX Income from Income from Equity accounts customers
Slide 14: Our financial performance
Results for Q1-Q3 2024 Our financial performance 04
Slide 15: Gross loans
04 | Results for Q1-Q3 2024 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans Santander Bank Polska S.A. +8% ◼ The loan portfolio increased by 10% YoY and by 2% 177 975 168 444 174 345 QoQ. 164 375 165 212 11% ◼ Mortgage loan sales: -6% YoY; -19% QoQ 89 556 30% 82
Slide 16: Customer funds
04 | Results for Q1-Q3 2024 – Our financial performance Customer funds Comment Deposits Deposits PLN m and term funding Santander Bank Polska Group +4% ◼ Customer funds +6% YoY and +2% QoQ. 4% 7% 210 038 209 277 210 308 215 235 217 770 Deposits SBP Group 33% 10% ◼ Retail deposits +9% YoY and stable
Slide 17: Net interest income and net interest margin
04 | Results for Q1-Q3 2024 – Our financial performance Net interest income and net interest margin Net interest income PLN m Comment 3 396 3 428 3 387 3 285 3 576 ◼ In Q1-Q3 2024, net interest income totalled PLN 10.2bn 346 362 419 371 391 and increased by 6% YoY. In Q3 2024 alone, net interest inc
Slide 18: Net fee and commission income
04 | Results for Q1-Q3 2024 – Our financial performance Net fee and commission income Comment Net fee and commission income PLN m 710 729 727 727 ◼ In Q1-Q3 2024, net fee and commission income 667 41 46 38 31 was PLN 2.2bn, i.e. it increased by 9% YoY and 40 118 109 111 Cards 81 131 was stable QoQ.
Slide 19: Income
04 | Results for Q1-Q3 2024 – Our financial performance Income Income PLN m Comment 4 222 4 170 4 132 4 417 4 152 113 ◼ The Group's total income in Q1-Q3 2024 amounted to 160 32 36 119 727 710 PLN 12.7bn and increased by 7% YoY. Excluding the Net Interest Income 667 729 727 negative adjustment to in
Slide 20: Operating expenses
04 | Results for Q1-Q3 2024 – Our financial performance Operating expenses Comment Operating expenses ◼ Total costs Q1-Q3 2024 amounted to PLN 3.8bn and PLN m 1 353 increased by 9% YoY. This is, among others, the result of a 1 188 1 213 1 225 1 235 32 higher BGF burden - PLN 250m in 2024 compared to
Slide 21: Provisions and credit portfolio quality
04 | Results for Q1-Q3 2024 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 4.9% 4.8% 0.77% 0.72% 4.6% 4.6% 0.70% 0.70% 0.69% 4.5% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.09.2024 Net provisio
Slide 22: Banking tax and regulatory costs; NPL sales
04 | Results for Q1-Q3 2024 – Our financial performance Banking tax NPL sales and regulatory costs Amounts payable to the BGF, PFSA, KDPW, IPS and BSF PLN m NPL sales PLN m SBP* SCB* 450 314 279 195 219 203 189 198 218 148 125 120 -4 9 9 81 54 25 13 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3
Slide 23: Results for 2024
04 | Results for Q1-Q3H 2024 – Our financial performance Results for 2024 Results for 2024 Comment PLN m ▪ Net profit in Q1-Q3 2024 totalled PLN 4.3bn. On comparable Q1-Q3 2024 Q1-Q3 2023 YoY (%) basis, it increased by 8% YoY. Net interest and fee income 12 432 11 695 6% ▪ In Q1-Q3 2024, net interes
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 and +7% (gross) +9% advances portfolio (gross) 53 935 54 672 53 270 51 205 51 568 1 745 1 497 ◼ PLN mortgage loans 2 293 3 483 2 603 portfolio: +11% YoY FX 17 821 ◼ FX mortgage loans PLN 17 428 52
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio Market share PLN bn ▪ Leasing portfolio: PLN 15.1bn , +9% YoY 8%* ▪ Great result in the road transport segment: +9% PLN 3.9bn, +21% YoY ▪ Growth in financing dynamics for clients from 15 190 the SME and Corporate segments: +15% YoY 14 880 and + 10% YoY, r
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market share 7 815 0% 7 819 10% PLNm * Data as at 30/09/2024 31.09.2023 31.09.2024 ◼ In Q3 2024, Santander Factoring held the second position on the market in terms of the balance sheet, with balances at the same level Turnover YoY. 33 667 +3% 34 617 ◼
Slide 28: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 20.61% 19.14% L/D ratio 17.43% 16.43% Capital ratios 72.10% 73.19% 73.70% 74.40% 70.81% CAR TIER 1 30.09.2024 30.09.2023 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.09.2024 Santander Bank Santan
Slide 29: Regulatory requirements regarding own funds and eligible liabilities – TLAC/MREL
Regulatory requirements regarding own funds and eligible liabilities – TLAC/MREL TLAC ▪ In accordance with Article 92a of the CRR, the minimum TLAC requirement is 18% of the total risk exposure amount (TREA) and 6.75% MREL of the total exposure measure (TEM). ▪ On 9 May 2024, the Bank was notified b
Slide 30: Key financial ratios
05 | Attachments Key financial ratios Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group Q1-Q3 2024 Q1-Q3 2023 Cost/ income -30.0% -29.6% Net interest income/ total income 80.7% 81.9% Net interest margin 1) 5.28% 5.37% Net fee and commission income/ total income 17.
Slide 31: Key financial ratios
05 | Attachments Key financial ratios 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 end of consecutive quarters after the end
Slide 32: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 19 697 20 168 18 881 18 566 18 390 30.09.2024 30.09.2023 r/r (%) kw./kw. (%) 865 855 1 574 1 338 1 212 7 298 7 350 Retail customers 12 818 12 737 1% 3% 6 143 6 133 5 950 Mortgage Mortgage loans 855 1 574 -46% -1% 11 164 11 095 11
Slide 33: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Key financial results Q1-Q3 2024 Q1-Q3 2023 Assets 25 029 22 710 Net Loans*** 18 645 17 237 Deposits 15 620 12 860 Total equity 4 390 4 414 Net profit -46 134 L/D (%) 119.4% 134.0% C/I (%)* 76.7% 72.6% ROE (%) -1.4% 4.1% ROA (%) -0.3% 0.8% CAR (%)** 44.
Slide 34: 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 35: 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