Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q4 2021 Earnings Presentation
38 slides from Erste Bank Polska's earnings presentation, Feb 2, 2022
Slide 1: Selected Financial Information on Santander Bank Polska Group for 2021
Investor Relations Warsaw 23/2/2022 Selected Financial Information on Santander Bank Polska Group for 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 2021 Our activities and our people 01
Slide 4: Our people
01 | Results for 2021 – Our actions and our people Our people We care about employees during the pandemic and day-to-day work Tests for employees Diversity and inclusion We offer COVID-19 tests to our employees. We have active groups of employees who bring people together to support diversity an
Slide 5: Our communication
01 | Results for 2021 - Marketing Our communication Brand Ambassador ATL / TV Campaigns This year, we continue our cooperation with the brand Campaigns promoting Account As I Want It with the mobile app which makes everyday life easier for our customers. ambassador – Marcin Dorociński. As the survey
Slide 6: Our business development
2021 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for 2021 – Our business development General operational data Key volumes SBP* SCB** gross loans 154.1 bn 11.7% +4% YoY Branches 396* 54** 185.4bn deposits 11.3% +8% YoY Employment 9.5k 1.6k customer funds 202.9bn Customers 5.4m 1.7m +8% YoY Digital Customers 3.0m 237k assets 244.9bn +7%
Slide 8: Key financial results and financial ratios for 2021
02 | Results for 2021 – Our business development Key financial results Financial ratios for 2021 For 2021 Key results Capital position ROE, ROA PLN 9 210m PLN 1 112m Strong capital position well above PLN 5 962m PLN 2 487m the KNF requirements +7% YoY +7% YoY +1% YoY +16% YoY +6% YoY on +36% on a a
Slide 9: Our customers
Results for 2021 Our customers 03
Slide 10: Our customers in numbers
03 | Results for 2021 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 4.9m customers +4% YoY 471k customers +9% YoY 25.9k customers +4% YoY 20.5k digital 2.7m digital 335k digital +4% YoY customers +9% YoY customers +7% YoY customers 2.0m mobile 158k mobi
Slide 11: Q4 2021 New products and services
03 | Results for 2021 – Our customers Q4 2021 New products and services SME Corporate customers customers We have implemented credit workflow We launched a number of special for corporate clients - quick credit offers for businesses: decisions up to PLN 2 million based on Retail ‒ eSklep (online
Slide 12: Education and support for customers
03 | Results for 2021 – Our customers Education and support for customers Retail Customers SME Customers In collaboration with the University of Together with Google we organised BCB Customers Economics in Krakow we launched the 2021 a webinar for businesses on online Santander Universidades Aca
Slide 13: Selected business data
03 | Results for 2021 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers +15% YoY PLN 2.0 bn +12% YoY PLN 1.2 bn +38% YoY +38% YoY +151% YoY +29% YoY Number of Cash loan Balance of Loans Transactional Income on eFX Income from Trade finance Accounts sal
Slide 14: Our financial performance
Results for 2021 Our financial performance 04
Slide 15: Gross loans
04 | Results for 2021 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans* Santander Bank Polska S.A. +4% The loan portfolio in 2021 increased by 6% YoY. An increase in sales of mortgage loans in 4Q 2021 148 326 149 506 148 380 151 659 154 111 9% by 152% vs. 4Q 2
Slide 16: Customer funds
04 | Results for 2021 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding* +8% An increase in customer funds by 8% YoY and by 3% QoQ. 185 373 10% 171 522 179 485 173 180 177 320 4% 5% Deposits 79 106 73 309 79 032 72 408 75 248 45
Slide 17: Net interest income and net interest margin
04 | Results for 2021 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In 2021, net interest income increased by 1% YoY. 1 731 In Q4 2021 increase of 20% QoQ and by 23% 1 411 1 377 1 411 1 444 313 YoY. 309 287 284 303 Net interest margin
Slide 18: Net fee and commission income
04 | Results for 2021 – Our financial performance Net fee and commission income Comment Net fee and commission PLN m 635 641 Net commission income increased by 16% YoY income 569 611 600 43 46 50 and by 1% QoQ. 41 46 96 99 Good results in accounts and transfer fees 108 108 99 Other 140 (+27% YoY
Slide 19: Income
04 | Results for 2021 – Our financial performance Income Income 2 568 PLN m 2 250 2 182 2 127 2 265 9 187 102 1 Dividends 202 1 138 152 170 641 635 Comment 569 611 600 Gain/Loss on financing activities and other The Group's total income in 2021 amounted Net fee and commission 1 731 1 411 1 377 1 4
Slide 20: Operating expenses
04 | Results for 2021 – Our financial performance Operating expenses Operating expenses PLN m 1 698 Comment Other operating 1 442 expenses 1 329 1 269 721 Total costs in 2021 under the influence of 336 249 568 1 077 Amortisation/ regulatory costs and the creation of provisions for Depreciation 148
Slide 21: Provisions and credit portfolio quality
04 | Results for 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% 5.0% 0.76% 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.03.2021 30.06.2021 30.09.2021 31
Slide 22: Banking tax and regulatory costs, NPL sales
04 | Results for 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 329 272 283 209 208 227 214 173 177 191 295 85 192 14 30 44 50 47 33 34 34 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2
Slide 23: Results for 2021
04 | Results for 2021 – Our financial performance Results for 2021 Results for 2021 impacted by regulatory payments and extraordinary factors Comment PLN m On a comparative 2021 2020 % YoY basis* In Q4, further increase in net interest Net interest and fee income 8 450 8 040 5% 5% income (20% QoQ
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 +6% (gross) +1% portfolio (gross) YoY YoY 51 049 51 023 51 447 52 913 54 327 PLN mortgage loans 8 805 8 819 FX 9 469 9 170 8 732 portfolio: +9% YoY PLN FX mortgage loans 14 680 14 671 14 466 14
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio PLNbn Market share Leasing portfolio at PLN 11.8 bn, +11% YoY, 7.9%* Net sales value at PLN 6.9 bn, +28% YoY, +11% 17% YoY growth in income Excellent cost effectiveness C/I at 31.3% 11 759 11 499 * Data as of 30/11/2021 11 200 For the second year
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio 7 598 Market Share 10% PLN m 6 163 +23% 31.12.2020 31.12.2021 In Q4 2021, Santander Factoring maintained its first position on the Turnover market in terms of the balance sheet, reporting 23.3% YoY growth in 35 556 balances and increase in the respect
Slide 28: SBP and Aviva transaction
05 | Attachments SBP and Aviva transaction In relation to Aviva Group’s decision to exit the Polish market through the sale of its companies to Allianz Holding eins GmbH (Allianz), on 26 March 2021 Santander Bank Polska S.A. took steps to complete the transaction concerning Aviva Group companies. Th
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: 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 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 20.42% 18.38% 18.58% 16.63% L/D ratio Capital ratios 73.90% 71.93% 72.38% 71.54% 70.10% 31.12.2020 31.12.2021 CAR TIER 1 31.12.2020 31.03.2020 30.06.2020 30.09.2020 31.12.2020 Santander Bank Santan
Slide 33: Key financial ratios
05 | Attachments Key financial ratios 2021 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group 2021 2020 Cost/ income 59.6% 51.9% Net interest income/ total income 64.7% 68.1% Net interest margin 1) 2.71% 2.87% Net fee and commission income/ total income 27.0% 24.9
Slide 34: Key financial ratios
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 17 886 31.12.2021 31.12.2020 YoY (%) QoQ (%) 17 259 16 902 17 124 17 350 3 160 3 049 2 904 2 895 2 894 Retail customers 13 811 14 148 -2% 2% 3 738 3 607 3 612 3 525 3 539 Mortgage Mortgage loans 2 894 3 160 -8% - 10 988 10 603 10
Slide 36: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Key financial results for 2021 PLN m 2021 2020 Assets 20 488 20 382 Net loans 15 515 15 907 Deposits 9 283 9 533 Total equity 3 822 3 773 PAT 183 334 L/D (%) 167.1% 166.9% C/I (%)* 60.3% 48.6% ROE (%) 4.8% 9.3% ROA (%) 0.9% 1.6% TCR (%)** 26.2% 24.4% So
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