Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q3 2023 Earnings Presentation
36 slides from Erste Bank Polska's earnings presentation, Oct 25, 2023
Slide 1: Financial results of Santander Bank Polska Group for 1-3Q 2023
Investor Relations Warsaw 25/10/2023 Financial results of Santander Bank Polska Group for 1-3Q 2023
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 1-3Q 2023 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Our communication Successful cooperation with Piotr Adamczyk Other Social Media activities Piotr Adamczyk has been Santander’s brand ambassador since April. Piotr is a very • We have continued an image-building and educational popular actor liked by all age groups. The spots with Piot
Slide 5: Our people
01 | Our activities and our people Our people Improving employee experience Diversity and inclusion We are building continuously positive employee experience. We can see results – both We are working to strengthen the culture of DE&I (Diversity, Equity & Inclusion) through the level of engagemen
Slide 6: Our business development
1-3Q 2023 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for 1-3Q 2023 – Our business development General operational data Key volumes SBP* SCB** gross loans 166 bn 12.1% +3% YoY Branches 342* 50** 210 bn deposits 11.2% +11% YoY Employment 9.7k 1.5k customer funds 227 bn Customers 5.8m 1.7m +12% YoY Digital Customers 3.4m 746k assets 278 bn +
Slide 8: Key financial results and financial ratios
02 | Results for 1-3Q 2023 – Our business development Key financial results Financial ratios for 2023 For 2023 Key results Capital position ROE, ROA PLN 9 688m PLN 2 007m PLN 11 823m PLN 3 851m Strong capital position, well above the KNF requirements +42% YoY +3% YoY +33% YoY +103% YoY +19% on compa
Slide 9: Our customers
Results for 1-3Q 2023 Our customers 03
Slide 10: Our customers in numbers
03 | Results for 1-3Q 2023 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.2m customers +3% YoY 522k customers +4% YoY 27.5k customers +5% YoY 3.1m digital 359k digital 21.5k digital +7% YoY +8% YoY customers +3% YoY customers customers 2.5m mobile 200k
Slide 11: New products and services
03 | Results for 1-3Q 2023 – Our customers New products and services Retail SME Corporate customers customers customers We implemented a new mobile application, Business customers were provided access to BLIK making sure that the migration process was as service in our new mobile application.
Slide 12: Education and support for customers
03 | Results for 1-3Q 2023 – Our customers Education and support for customers Retail Customers SME Customers BCB Customers We prepared a webinar "Eco-loan and other programs for We supported parents in preparations for a new We implemented virtual functionality green and development investmen
Slide 13: Selected business data
03 | Results for 1-3Q 2023 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers 132k PLN 2.4bn 15.5k 50% +69% YoY +10% YoY +107% YoY +90% YoY Personal Cash loan Business Digital Transactional Income on eFX Income from Global Trade finance accounts sales a
Slide 14: Our financial performance
Results for 1-3Q 2023 Our financial performance 04
Slide 15: Gross loans
04 | Results for 1-3Q 2023 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans Santander Bank Polska S.A. +3% The loan portfolio increased by 2% YoY and by 2% QoQ. 159 511 158 393 160 624 162 939 164 375 11% Mortgage loan sales: +98% Q3 2023/Q3 2022; +45% 31% Q3
Slide 16: Customer funds
04 | Results for 1-3Q 2023 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding +11% Customer funds +11% YoY and +5% QoQ. 4% 6% Deposits SBP Group 200 656 210 038 189 501 196 497 197 172 32% 12% An increase in retail deposits by
Slide 17: Net interest income and net interest margin
04 | Results for 1-3Q 2023 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In 1-3Q 2023, net interest income totalled PLN 9.7bn 3 092 3 396 and increased by 42% YoY. After excluding the 2 833 3 200 346 impact of payment holidays, the increa
Slide 18: Net fee and commission income
04 | Results for 1-3Q 2023 – Our financial performance Net fee and commission income Comment Net fee and commission income PLN m In 1-3Q 2023, the net fee and commission 666 662 678 667 income increased by 3% YoY. In the third 619 31 32 37 30 Cards 75 26 87 86 81 quarter -2% vs. Q2 2023. 82 On a
Slide 19: Income
04 | Results for 1-3Q 2023 – Our financial performance Income Income PLN m 3 870 4 222 Comment 3 514 3 730 160 678 667 The Group's total income in 1-3Q 2023 amounted Net Interest Income 62 662 to PLN 11,823m and increased by 33% YoY. 2 354 619 Fees 47 666 Higher interest income due to interest r
Slide 20: Operating expenses
04 | Results for 1-3Q 2023 – Our financial performance Operating expenses Operating expenses PLN m 1 251 Comment 1 179 27 1 188 Staff Costs 60 134 1 063 105 130 986 32 Total costs in 1-3Q 2023 decreased YoY despite the 57 142 144 inflationary environment. This is, among others, the result Administ
Slide 21: Provisions and credit portfolio quality
04 | Results for 1-3Q 2023 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 5.0% 4.9 4.9% 4.9% 0.80% 0.77% 4.8% 0.59% 0.64% 0.55 30.09.2022 31.12.2022 31.03.2023 30.06.2023 30.09.2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Balance of prov
Slide 22: Banking tax and regulatory costs, NPL sales
04 | Results for 1-3Q 2023 – Our financial performance Banking tax NPL sales and regulatory costs Amounts payable to the BGF, PFSA, KDPW, IPS and BSF PLN m PLN m NPL sales 279 404 231 195 288 168 214 150 148 198 125 12 -4 9 25 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q
Slide 23: Results for 1-3Q 2023
04 | Results for 1-3Q 2023 – Our financial performance Results for 1-3Q 2023 Results for 1-3Q 2023 Comment PLN m 1-3Q 2023 1-3Q 2022 % YoY Net profit in 1-3Q 2023 totalled PLN 3.8bn. (in Q3 2023 totalled PLN 1.53bn). Net interest and fee income 11 695 8 767 33% Gross income 11 823 8 867 33% In 1
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 -2% (gross) +10% advances portfolio (gross) 52 164 51 205 50 898 50 796 50 388 PLN mortgage loans portfolio: +4.5% YoY 6 488 5 751 4 534 3 696 3 483 FX FX mortgage loans PLN 15 967 16 341 p
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio bn PLN +10% 13 965 Santander Leasing actively participates, as a financial intermediary of Bank 13 346 Gospodarstwa Krajowego, in the distribution of funds in the form of zero-interest 13 122 loans to SME clients affected by the effects of COVID19 or Russ
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market Share 10% 7 818 PLNm +11% 7 013 30.09.2022 30.09.2023 In Q2 2023, Santander Factoring regained a leading position on the market in terms of the balance sheet, reporting 11% YoY growth in balances. Turnover 33 667 Santander Factoring also main
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% 18.93% L/D ratio 17.16% Capital ratios 75.31% 72.63% 73.83% 73.23% 70.81% 30.09.2023 30.09.2022 CAR TIER 1 30.09.2022 31.12.2022 31.03.2023 30.06.2023 30.09.2023 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 MREL In accordance with Article 92a of the CRR, the minimum TLAC requirement is 18% of total risk exposure amount (TREA) and 6.75% of On 5 May 2023, the Bank was notified by the the total exposure measure (TEM)
Slide 30: Key financial ratios
05 | Attachments Key financial ratios 1-3Q 2023 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group 1-3Q 2023 1-3Q 2022 Cost/ income 29.6% 41.9% Net interest income/ total income 81.9% 76.9% Net interest margin 1) 5.37% 4.1% Net fee and commission income/ total inc
Slide 31: Key financial ratios (definitions)
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 18 881 17 616 18 562 30.09.2023 30.09.2023 r/r (%) kw/kw (%) 17 135 17 202 1 608 1 574 2 282 1 935 1 820 5 941 6 143 Retail customers 12 737 12 993 -2% -1% 4 142 4 384 4 857 Mortgage Mortgage loans 1 574 2 282 -10% -2% 10 712 10
Slide 33: Santander Consumer Bank Group key financial results
05 | Attachments Santander Consumer Bank Group Key financial results for 2023 PLN m 1-3Q 2023 1-3Q 2023 Assets 22 710 20 542 Net Loans*** 17 237 15 404 Deposits 12 860 10 056 Total equity 4 414 4 029 Net profit 134 331 L/D (%) 134.0% 153.2% C/I (%)* 62.1% 51.4% ROE (%) 4.1% 11.2% ROA (%) 0.8% 2.1% C
Slide 34: Further embedding ESG to build a more responsible bank
05 | Attachments 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 11 501 29 776 €451k The Best Annual Report customers received beneficiaries of the Support to educ
Slide 35: 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 36: 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