Mbank Sa · GPW:MBK
Mbank Sa — Q1 2019 Earnings Presentation
52 slides from Mbank Sa's earnings presentation, Apr 30, 2019
Slide 1: Results of mBank Group Q1 2019
Results of mBank Group Q1 2019 Strong performance momentum continues Management Board of mBank S.A. Investor Presentation April 30, 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by mBank S.A. for information purposes only and is based on the Condensed Consolidated Financial Statements for the first quarter of 2019, prepared under the International Financial Reporting Standards. For more detailed information on the Bank’s and Gr
Slide 3: Agenda
Agenda Summary of Main Trends in Q1/19 Business Development of Retail and Corporate Segment Key Financials Analysis of the Results after Q1/19 Loans and Deposits Total Income and its Main Components Total Costs and Efficiency Loan Loss Provisions and Portfolio Quality Capital and Liquidity Ratios Ma
Slide 4: Key highlights of Q1 2019
Key highlights of Q1 2019 Net profit of PLN 164.0 M, impacted by contribution to the Resolution Fund Historically high core income of PLN 1,159.1 M fuelled by rising net interest income Net interest income at PLN 930.3 M (+13.9% YoY) on increasing volumes and changing asset mix Net fee and commi
Slide 5: Business Development of Retail Banking and Corporate Banking
Summary of Q1/19 in mBank Group Business Development of Retail Banking and Corporate Banking Number of Retail Clients (thou.) Market shares - Households Innovations and new products +347 6.6% Two new personal accounts Retail Banking 6.5% 6.4% 6.4% +83 +83 6.3% based on simple rules for young 5,685
Slide 6: Key Financials: Profit and Loss Account
Summary of Q1/19 in mBank Group Key Financials: Profit and Loss Account PLN million Q1/18 Q4/18 Q1/19 change QoQ change YoY Net interest income 816.4 923.3 930.3 +0.7% +13.9% Net fee and commission income 268.9 219.2 228.8 +4.4% -14.9% 1 Total income 1,382.4 1,260.5 1,261.4 +0.1% -8.8% Total costs (
Slide 7: Key Financials: Balance Sheet
Summary of Q1/19 in mBank Group Key Financials: Balance Sheet PLN million Q1/18 Q4/18 Q1/19 change QoQ change YoY Total assets 133,640 145,750 150,819 +3.5% +12.9% Gross loans to customers 88,505 97,765 100,813 +3.1% +13.9% Retail client loans 48,802 52,925 54,076 +2.2% +10.8% Corporate client loans
Slide 8: Agenda
Agenda Summary of Main Trends in Q1/19 Business Development of Retail and Corporate Segment Key Financials Analysis of the Results after Q1/19 Loans and Deposits Total Income and its Main Components Total Costs and Efficiency Loan Loss Provisions and Portfolio Quality Capital and Liquidity Ratios Ma
Slide 9: Results of mBank Group: Loans to customers
Results of mBank Group: Loans to customers Upward trend in both corporate and retail loans benefitting from strong economic conditions Development of Gross Loans and Advances to Customers Gross Loans to Corporate Entities (PLN M) (PLN M) +19.0% +13.9% +18.0% +4.4% +12.1% +3.1% +4.4% +3.0% 44,190 46,
Slide 10: Results of mBank Group: New lending business
Results of mBank Group: New lending business Accelerating origination of housing loans, record high non-mortgage lending Sales of Mortgage Loans Sales of Non-mortgage Loans (PLN M, by quarter) (PLN M, by quarter) +50% +16% +29% +13% +16% +13% 1,490 2,575 1,281 151 10% 2,332 2,329 2,272 178 7% 1,153
Slide 11: Results of mBank Group: Customer deposits
Results of mBank Group: Customer deposits Strong inflows recorded in all segments, high share of current accounts in deposit base Development of Customer Deposits Deposits from Corporate Entities (PLN M) (PLN M) +10.7% +14.1% +10.1% +6.6% +14.0% +5.5% +5.5% +5.2% 38,611 37,664 107,648 34,025 35,592
Slide 12: Results of mBank Group: Total income
Results of mBank Group: Total income Core income at record high level despite a shorter quarter, slight rebound of net fees Development of mBank Group’s Total Income (PLN M) -8.8% +X.X% Excluding one-off gain +8.5% 1,382.4 +0.1% 1,261.4 QoQ YoY 1,260.5 219.7 1,208.1 1,210.1 27.7 13.3 1.6 15.5 2.2 10
Slide 13: Results of mBank Group: Total costs
Results of mBank Group: Total costs Underlying costs kept under control, total level inflated by contributions to the BFG Development of mBank Group’s Costs Annual contribution to the Resolution Fund: (PLN M) PLN 116.8 million in Q1/17 PLN 97.1 million in Q1/18 +19.1% PLN 197.3 million in Q1/1
Slide 14: Results of mBank Group: Cost of risk
Results of mBank Group: Cost of risk Lower cost of risk driven by corporate segment, provisioning spread across several sectors Net Impairment Losses and Fair Value Change on Loans 1 mBank Group’s Cost of Risk by Segment (PLN M) (bps) 99 217.0 82 78 2.0 57 61 78 80 73 185.3 -15% 5.8 57 61 170.5 113
Slide 15: Results of mBank Group: Loan portfolio quality
Results of mBank Group: Loan portfolio quality Good quality of loan portfolio evidenced by resilient risk indicators mBank Group’s Impaired Loans Portfolio mBank Group’s NPL Ratio (PLN M) 5.2% +4.2% 5.1% 5.2% mBank Group applies +2.6% a conservative client- 4.8% oriented approach in 4.8% 4,646 4,774
Slide 16: Results of mBank Group: Key regulatory ratios
Results of mBank Group: Key regulatory ratios Strong capital and liquidity position allowing for business expansion mBank Group’s Total Capital Ratio mBank’s NSFR and LCR Increase mostly driven 220% by funding activities, in 20.93% 20.69% 20.65% preparation for wholesale 20.06% 20.21% funding maturi
Slide 17: Agenda
Agenda Summary of Main Trends in Q1/19 Business Development of Retail and Corporate Segment Key Financials Analysis of the Results after Q1/19 Loans and Deposits Total Income and its Main Components Total Costs and Efficiency Loan Loss Provisions and Portfolio Quality Capital and Liquidity Ratios Ma
Slide 18: Macroeconomic Update (1/2)
Macroeconomic Update (1/2) Economic growth to reach 4.5% in 2019 Polish economy is showing strong momentum in Q1/19 Fiscal stimulus will boost growth in H2/19 15% 4% 60 2.0% 2,0% 10% 3% 50 1.6% 1,6% 40 5% 2% 1.2% 1,2% 30 0% 1% 0.8% 0,8% 20 -5% 0% 10 0.4% 0,4% -10% -1% 0 0.0% 0,0% Q1/15 Q3/15 Q1/16 Q
Slide 19: Macroeconomic Update (2/2)
Macroeconomic Update (2/2) Robust credit growth, massive acceleration in deposits Corporate loans and deposits (% YoY, FX-adjusted) Household loans and deposits (% YoY, FX-adjusted) 25% 14% 20% 12% 15% 10% 10% 8% 5% 6% 0% 4% -5% 2% -10% 0% Jan-12 Sep-12 May-13 Jan-14 Sep-14 May-15 Jan-16 Sep-16 May-
Slide 20: 2019 in forecasts and the impact on mBank Group
2019 in forecasts and the impact on mBank Group Macroeconomic environment and challenges for the banking sector Key economic indicators Outlook for mBank 2017 2018 2019F Net interest income & NIM (Slightly positive) GDP growth (YoY) 4.8% 5.1% 4.5% Continued gradual increase of margin driven by cha
Slide 21: Agenda
Agenda Summary of Main Trends in Q1/19 Business Development of Retail and Corporate Segment Key Financials Analysis of the Results after Q1/19 Loans and Deposits Total Income and its Main Components Total Costs and Efficiency Loan Loss Provisions and Portfolio Quality Capital and Liquidity Ratios Ma
Slide 22: Consolidated Profit and Loss Account
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Consolidated Profit and Loss Account Quarterly results (PLN thou.) Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Net interest income 816,424 854,351 902,370 923,329 930,253 Net fee and commission income
Slide 23: Consolidated Statement of Financial Position
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Consolidated Statement of Financial Position Assets (PLN thou.) Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Cash and balances with Central Bank 5,354,319 5,514,886 9,643,274 9,199,264 5,553,368 Loans a
Slide 24: mBank Group's Ratios
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view mBank Group’s Ratios Financial Ratios Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Net Interest Margin (quarterly) 2.59% 2.56% 2.56% 2.60% 2.60% Net Interest Margin YtD 2.59% 2.57% 2.57% 2.58% 2.60% Net
Slide 25: Profit and Loss Account: Net Interest Income
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Profit and Loss Account: Net Interest Income Interest Income Structure Interest Expense Structure (PLN M) (PLN M) +14.0% +0.6% +14.1% +0.3% 1,193.2 1,200.8 1,168.8 33.0 3% 266.5 269.8 270
Slide 26: Profit and Loss Account: Net Fee and Commission Income
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Profit and Loss Account: Net Fee and Commission Income Fee and Commission Income Structure Fee and Commission Expense Structure (PLN M) (PLN M) -4.4% +14.2% +0.2% -4.8% 419.3 409.9 401.4
Slide 27: Balance Sheet Analysis: Assets & Liabilities
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Balance Sheet Analysis: Assets & Liabilities Structure of Assets Structure of Liabilities and Equity (PLN B) (PLN B) 150.8 150.8 146.7 145.8 146.7 145.8 140.0 9.9 6% 140.0 7.0 5% 6.5 7.5
Slide 28: Balance Sheet Analysis: Structure of Loans and Deposits
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Balance Sheet Analysis: Structure of Loans and Deposits Structure of mBank Group’s Gross Loans Structure of mBank Group’s Deposits as of 31.03.2019 as of 31.03.2019 Public sector Corporat
Slide 29: Balance Sheet Analysis: Loan Portfolio Structure
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Balance Sheet Analysis: Loan Portfolio Structure mBank Group’s Sector Exposure by Industry as of 31.03.2019 Households Real estate management 12.8% Building industry 1.3% Financial activi
Slide 30: Balance Sheet Analysis: Funding Structure and Liquidity Levels
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Balance Sheet Analysis: Funding Structure and Liquidity Levels mBank Group’s Funding Structure mBank’s ratings Loan-to-Deposit Ratio as of 31.03.2019 -2.2 pp Fitch Retail 92.9% deposits L
Slide 31: Detailed Development of Capital Ratios
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Balance Sheet Analysis: Detailed Development of Capital Ratios mBank Group’s Tier 1 Capital Ratio +1.04 -0.25 17.55% +0.19 +0.02 17.47% -0.69 +0.14 17.32% -0.02 -0.04 17.10% -0.46 +0.46 +
Slide 32: Details of Capital Requirements
Summary Appendix Profit & Loss Balance Sheet Business Lines Selected Financial Data Subsidiaries Historical view Balance Sheet Analysis: Details of Capital Requirements Regulatory capital requirements for mBank Group as of 31.03.2019 Countercyclical Capital Buffer is calculated as the weighted avera
Slide 33: Detailed Results of the Business Lines: Retail Banking
Summary Appendix Profit & Loss Balance Sheet Business Lines Subsidiaries Historical view Detailed Results of the Business Lines in Q1/19 Retail Banking Investor Presentation – Q1 2019 |33
Slide 34: Retail Banking Summary of Q1/19: Financial and Business Results
Summary Appendix Profit & Loss Balance Sheet Business Lines Retail Banking Subsidiaries Historical view Summary of Q1/19: Financial and Business Results Profit before Tax of the Segment Number of Retail Service Locations (PLN M, by quarter) -3% 346 354 358 361 336 -21% -21% 34 34 33 33 excluding 34
Slide 35: Retail Banking Summary of Q1/19: Loans and Deposits
Summary Appendix Profit & Loss Balance Sheet Business Lines Retail Banking Subsidiaries Historical view Summary of Q1/19: Loans and Deposits Gross Loans to Retail Banking Clients1 Deposits from Retail Banking Clients (PLN M) (PLN M) +10.8% +18.2% +2.2% +3.5% 54,076 68,221 51,821 52,925 65,924 95 51,
Slide 36: Loan Portfolio Structure of mBank Group in Poland
Summary Appendix Profit & Loss Balance Sheet Business Lines Retail Banking Subsidiaries Historical view Loan Portfolio Structure of mBank Group in Poland Market Shares in Household Loans in Poland Product Structure of Retail Banking Loan Portfolio in Poland as of 31.03.2019 7.4% 7.2% 7.1% 6.9% 6.9%
Slide 37: mBank in the Czech Republic and Slovakia
Summary Appendix Profit & Loss Balance Sheet Business Lines Retail Banking Subsidiaries Historical view mBank in the Czech Republic and Slovakia Gross Loans (PLN M) and Share in Total mBank’s retail volume Deposits (PLN M) and Share in Total mBank’s retail volume +1% +11% -1% 8.8% +1% 15.0% 4,706 4,
Slide 38: mBank in the Czech Republic and Slovakia
Summary Appendix Profit & Loss Balance Sheet Business Lines Retail Banking Subsidiaries Historical view mBank in the Czech Republic and Slovakia Mortgage Loans Non-mortgage Loans Customer deposits (CZK M) (CZK M) (CZK M) -1% +12% +8% Czech -2% +1% 0% Republic 17,520 17,632 17,347 4,672 4,719 42,817
Slide 39: Detailed Results of the Business Lines: Corporates & Financial Markets
Summary Appendix Profit & Loss Balance Sheet Business Lines Subsidiaries Historical view Detailed Results of the Business Lines in Q1/19 Corporates & Financial Markets Investor Presentation – Q1 2019 |39
Slide 40: Corporates and Financial Markets Summary of Q1/19
Summary Appendix Profit & Loss Balance Sheet Business Lines Corporates and Financial Markets Subsidiaries Historical view Summary of Q1/19: Financial and Business Results Profit before Tax of the Segment Number of Corporate Service Locations (PLN M, by quarter) 22 -8% Pomorskie 12 2 -40% -40% 30 mBa
Slide 41: Corporates and Financial Markets: Loans and Deposits
Summary Appendix Profit & Loss Balance Sheet Business Lines Corporates and Financial Markets Subsidiaries Historical view Summary of Q1/19: Loans and Deposits Gross Loans to Corporate Entities Deposits from Corporate Customers (PLN M) (PLN M) +19.0% +10.7% +4.4% +6.6% 46,140 38,611 44,190 37,664 41,
Slide 42: Detailed Results of mBank Group's major companies: Subsidiaries
Summary Appendix Profit & Loss Balance Sheet Business Lines Subsidiaries Historical view Detailed Results of mBank Group’s major companies in Q1/19 Subsidiaries Investor Presentation – Q1 2019 |42
Slide 43: mBank Hipoteczny (mBH)
Summary Appendix Profit & Loss Balance Sheet Business Lines mBank Group’s Subsidiaries Subsidiaries Historical view mBank Hipoteczny (mBH) Issuance of Covered Bonds Profit before Income Tax (PLN M, by year) 2,732 (PLN M) established in 1999 Private placement 700 23.8 specialised mortgage bank and -4
Slide 44: mBH: Issuance Activity on the Covered Bonds Market
Summary Appendix Profit & Loss Balance Sheet Business Lines mBank Group’s Subsidiaries Subsidiaries Historical view mBank Hipoteczny (mBH): Issuance Activity on the Covered Bonds Market Summary of Mortgage Covered Bonds issued in 2014-2019 (public issues) Amount Currency Issue date Maturity date Ten
Slide 45: Leasing and Factoring
Summary Appendix Profit & Loss Balance Sheet Business Lines mBank Group’s Subsidiaries Subsidiaries Historical view Leasing and Factoring Leasing contracts Market share & position – 2018 Profit before Tax (PLN M) [data for Q1/19 not available] (PLN M) -9% -12% 7.4% 24.7 established 1,302 22.4 in 199
Slide 46: Historical performance: Profit and Loss Account
Summary Appendix Profit & Loss Balance Sheet Business Lines Subsidiaries mBank Group’s historical performance: Profit and Loss Account Historical view Total Income & Margin NII NFC Trading and other Total Costs & C/I ratio Personnel Material and other BFG (PLN M) (PLN M) 2.2% 2.3% 2.1% 2.3% 2.5% 2.6
Slide 47: Historical performance: Balance Sheet
Summary Appendix Historical Profit & Loss Balance view Profit & Sheet Loss Balance Sheet Business Lines Business Lines Subsidiaries mBank Group’s historical performance: Balance Sheet Subsidiaries Historical view Total Assets Equity & Total Capital Ratio (PLN B) CAGR (PLN M) +7% +11% 19.38% 14.66% 1
Slide 48: mBank's share price performance
mBank’s share price performance No clear trends detected in fluctuations of share prices over the last year mBank’s index membership and weights* mBank’s share performance v. main indices (rebased to 100) – YtD perspective 114 WIG-30 2.391% 112 110 WIG-20 2.521% 108 106 WIG 1.819% +4.6% 104 WIG-Bank
Slide 49: mBank's Mobile Banking
mBank’s Mobile Banking Focus on client convenience through well-designed functionalities mBank launched a new mobile application in April 2017 Key functionalities of the app, inspired by users’ opinions and habits, include: Android Pay and Apple Pay (for Visa and MasterCard Mobile authorisation
Slide 50: mBank Group's Strategy for 2016-2020
mBank Group’s Strategy for 2016-2020 Specific business actions will be based on three strategy pillars 1 2 3 Empathy Mobility Efficiency Be the point of reference in Grow while keeping the FTE Offer the best customer terms of mobile banking base at current level experience i.e. give clients wh
Slide 51: Strategy for 2016-2020: Financial performance targets
mBank Group’s Strategy for 2016-2020 Financial performance targets – 5 key measures Financial measure Target point 1 Cost efficiency: Top3 in Poland, every year Cost/Income ratio to be one of the three most efficient listed banks in Poland 2 Top3 in Poland, every year Owner’s capital profitability:
Slide 52: Contact details
Contact details mBank’s Investor Relations at your service: E-mail address: investor.relations@mbank.pl Ernest Pytlarczyk Direct dial: +48 22 829 14 34 E-mail: ernest.pytlarczyk@mbank.pl Head of Analysis and Investor Relations, Chief Economist Joanna Filipkowska Direct dial: +48 22 829 04 53 Deputy