Slide 1: Bank Millennium Group 1st half 2015 results
Bank Millennium – 1 Half 2011 results Bank Millennium Group 1st half 2015 results 27 of July 2015
Slide 2: Disclaimer
Bank Millennium – 1st half 2015 results Disclaimer This presentation (the ”Presentation”) has been prepared by Bank Millennium S.A. (the ”Bank”). This Presentation should not be treated as a part of any invitation or offer to sell, invest or deal in any securities or a solicitation of an offer to pu
Slide 3: Agenda
Bank Millennium – 1st half 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 3
Slide 4: Macroeconomic Overview
Bank Millennium – 1st half 2015 results Macroeconomic Overview Interest Rates Evolution (%) Evolution of CHF Libor 3M (%) Q-o-Q (bp) 7 0 0 Y-o-Y (bp) -96 -150 -100 In March 2015 the MPC cut all rates by 50 Evolution of PLN yield curve (%) bps and completed current monetary easing cycle with the re
Slide 5: Macroeconomic Overview
Bank Millennium – 1st half 2015 results Macroeconomic Overview GDP Growth & Unemployment Rate (%) Inflation (CPI %) Investments & Private Consumption (% y/y) FX Rates Evolution Polish economy was resilient to external shocks and kept growing at solid pace in the beginning of 2015 supported by reco
Slide 6: Macroeconomic Overview
Bank Millennium – 1st half 2015 results Macroeconomic Overview Loans to Households Loans to Households (PLN bn) Loans to Companies Deposits in the Polish Banking Sector (PLN bn) (PLN bn) Source: NBP 6
Slide 7: Agenda
Bank Millennium – 1st half 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 7
Slide 8: Main financial highlights in 1H 2015
Bank Millennium – 1st half 2015 results Main financial highlights in 1H 2015 1H 15 net profit at PLN 328 million: +2.4% y/y Resilient profitability 2Q 15 net profit at PLN 165 million: +1.6% q/q ROE at 11.2%, with equity growth of 10.8% y/y Net interest income flat quarterly (-0.8% q/q) indi
Slide 9: Profitability
Bank Millennium – 1st half 2015 results Profitability Net profit (PLN million) Net Profit for 1H’15 amounted to PLN 11.9% 11.2% ROE 327.8 million and grew both yearly and +2.4% quarterly (by 2.4% and 1.6% 320,1 327,8 respectively). +1.6% 162,6 165,2 The growth was supported by lower costs and im
Slide 10: Net Interest Income
Bank Millennium – 1st half 2015 results Net Interest Income Net Interest Income* Net Interest Income* was resilient and (PLN million) had similar mild quarterly decrease in 2Q’15 (-0.8%) as in 1Q’15, following two -4.7% NBP rates cuts in October’14 (reference 733,9 rate by 50 bps and lombard rate
Slide 11: Non-interest Income
Bank Millennium – 1st half 2015 results Non-interest Income Net Commissions Income amounted to PLN 304 Net Commission Income million in 1H’15 and decreased by 4.5% vs. (PLN million) 1H’14. Growth of investment products and loans related fees partially offset much lower -4.5% interchange fees (effe
Slide 12: Operating Costs and Efficiency Ratio
Bank Millennium – 1st half 2015 results Operating Costs and Efficiency Ratio Operating Costs Total costs in 2Q’15 decreased vs. 1Q’15 49.9% 50.1% 50.3% 49.9% COST / INCOME 1.2%. Costs for entire 1H’15 decreased by 1.6% y/y. (PLN million) Y/Y 554,3 545,7 Personnel costs grew in 1H’15 by 1.9% -1.6
Slide 13: Asset quality
Bank Millennium – 1st half 2015 results Asset quality Impaired loans ratio by segments Impaired loans ratio remain on very low 12,3% level: 4.3%. 11,1% 10,8% 10,6% 10,7% 7,3% 7,0% 6,9% 7,1% 7,1% Mortgage loans show slow increase of 4,3% 4,3% 4,2% 4,2% 4,3% impaired ratio (combination of stable 1
Slide 14: Cost of Risk
Bank Millennium – 1st half 2015 results Cost of Risk P&L impairment provisions * Provisions for credit risk in 1H’15 (PLN 66 56 60 51 COST OF 127.2 million) were lower by 9% than RISK** (PLN million) provisions created in 1H’14 and -9.0% represented 56 bps. of average net 139,8 loans. 127,2 53,4 -
Slide 15: Liquidity and Capital Adequacy
Bank Millennium – 1st half 2015 results Liquidity and Capital Adequacy Capital Adequacy Ratios * Group Total Capital Ratio (TCR) in June at 15.2% and CET1 at 14.6% - the levels similar as in December’14. 15,2% 15,2% 13,8% 14,1% 14,2% AGM decision on retention of entire 2014 14,6% 14,5% net profi
Slide 16: Agenda
Bank Millennium – 1st half 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 16
Slide 17: Main business highlights in 1H 2015
Bank Millennium – 1st half 2015 results Main business highlights in 1H 2015 PLN 50 billion record level of deposits crossed Good sale of non-deposit investment products: + PLN 870 million (+13%) in Deposits/accounts/ 1H’15 customers 4th place in net yearly increase of PLN current accounts – th
Slide 18: Customer funds
Bank Millennium – 1st half 2015 results Customer funds Customer Funds of the Group (PLN million) +9.9% +2.6% 56 409 57 869 Customer funds of the Group grew by 52 637 54 145 54 353 6 710 6 761 7 435 7 635 9.9% yearly and by 2.6% quarterly. 6 667 47 435 47 591 48 973 50 234 45 970 Total deposits b
Slide 19: Loan portfolio
Bank Millennium – 1st half 2015 results Loan portfolio Loan Portfolio of the Group (net) (PLN million) Total net loans reached PLN 47 billion +8.4% and increased by 8.4% vs. Jun.14, +1.0% 43 374 43 847 44 143 46 535 46 998 partly driven by CHF/PLN rate change 13 316 13 214 resulting in FX mortgage
Slide 20: Retail business results – deposits
Bank Millennium – 1st half 2015 results Retail business results – deposits Total Deposits from individuals and market share 5,2% 5,3% 5,2% 5,2% 5,4% Retail deposits showed solid growth of 11.3% y/y and 3.9% q/q. +11.3% (PLN million) +3.9% 29 820 30 611 31 785 28 590 29 441 Current and saving acc
Slide 21: Retail business results – current accounts sale
Bank Millennium – 1st half 2015 results Retail business results – current accounts sale Retail PLN current accounts annual growth (March 2015) 300 215,2 210,4 200,0 (thousand) Successful acquisition of new current 200 120,8 108,0* accounts: 133 thousand net increase of 94,0 100 84,0 79,9 57,3 54,3
Slide 22: Online and mobile platform core competency
Online and mobile platform core competency Very agile platform and internal capability to deliver new and innovative changes at a fast pace Client Experience #1 priority, creating value Continuous innovation through screen to screen relations • New mobile applications for Android and iOS: • Simple p
Slide 23: Retail business results - loan portfolio
Bank Millennium – 1st half 2015 results Retail business results - loan portfolio Loans for individuals (gross) Y/Y Q/Q Loans to individuals (gross) grew by (PLN million) 33 831 34 443 9.6% y/y which was partly influenced 31 416 31 643 32 018 1 181 +9.6% +1.8% 1 099 1 132 1 138 1 137 4 218 by growt
Slide 24: Retail business results – cash and mortgage loans
Bank Millennium – 1st half 2015 results Retail business results – cash and mortgage loans Cash Loans new production Cash Loans portfolio (gross) (PLN million) (PLN million) +30% +25% +6% 674 669 4 218 589 3 982 578 3 570 3 741 516 3 376 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 30/06/14 30/09/14 31/12/14 31/03/
Slide 25: Companies business results – loans and deposits
Bank Millennium – 1st half 2015 results Companies business results – loans and deposits Loans to companies (gross) Loans to companies (gross) grew by 5.3% 3,2% 3,2% 3,1% 3,2% 3,1% Y/Y Q/Q yearly, mostly driven by strong growth of (PLN million) factoring and leasing portfolios: +10.2% and 14 119 14
Slide 26: Companies business results – leasing and factoring
Bank Millennium – 1st half 2015 results Companies business results – leasing and factoring Leasing – new production Market 7.7% 6.8% Leasing sales in 2Q’15 at PLN 633 share * million that is 9% higher yearly. (PLN million) +9% Millennium Leasing keeps high 652 position in top 5 leasing companies i
Slide 27: Agenda
Bank Millennium – 1st half 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 27
Slide 28: Major awards and achievements in 1H 2015
Bank Millennium – 1st half 2015 results Major awards and achievements in 1H 2015 Bank Millennium Bank Millennium won in the fourth “Bank on Quality” survey carried out by the TNS Polska „Bank on Quality” research agency. The „Mystery Shopper” survey was carried out in 1483 randomly selected bank b
Slide 29: Bank Millennium share performance
Bank Millennium – 1st half 2015 results Bank Millennium share performance MARKET CAP/LIQUIDITY GENERAL INFORMATION ON BANK MILLENNIUM SHARES 10 069 7 946 8 737 10,2 No of shares: 1 213 116 777 (listed 1 213 007 541) Listed: on Warsaw Stock Exchange since August 1992 5 421 5 362 5,9 Indices: WI
Slide 30: Relation with mortgage loan borrowers
Bank Millennium – 1st half 2015 results Relation with mortgage loan borrowers The Bank fully implemented a set of „Six-pack solution” recommended by Polish Banking Association (ZBP) in order to mitigate negative impact of CHF appreciation, stabilize the level of loans instalments and support clients
Slide 31: Mortgage loans – evolution of CHF instalments
Bank Millennium – 1st half 2015 results Mortgage loans– evolution of CHF instalments Comparison of CHF vs. PLN instalment * CHF rate surge in January caused (in PLN) a temporary growth of mortgage instalments, which was lower than 1 600 scale of increases that occurred with CHFPLN rate at 4.09** d
Slide 32: Synthetic P&L account (pro-forma)
Bank Millennium – 1st half 2015 results Synthetic P&L account (pro-forma) 1H 2014 1H 2015 1Q 2015 2Q 2015 (PLN million) pro-forma pro-forma pro-forma pro-forma Net interest income* 733,9 699,5 351,1 348,4 Net commission income 318,6 304,1 156,7 147,4 Other non-interest income ** 58,9 85,6 37,7 47,9
Slide 33: Business segments results
Bank Millennium – 1st half 2015 results Business segments results (PLN million) Retail segment Companies segment Treasury, ALM and other 1H 2014 1H 2015 change 1H 2014 1H 2015 change 1H 2014 1H 2015 change Net interest income 572,5 530,4 -7,3% 162,4 130,7 -19,5% -3,7 5,6 - Net commission income 246,
Slide 34: Balance Sheet
Bank Millennium – 1st half 2015 results Balance Sheet ASSETS (PLN million) 30/06/2014 31/12/2014 30/06/2015 Cash and balances with the Central Bank 2 607 2 612 1 939 Loans and advances to banks 2 137 2 385 3 736 Loans and advances to customers 43 374 44 143 46 998 Amounts due from reverse repo trans
Slide 35: Contact
Bank Millennium – 1st half 2015 results Contact Website: www.bankmillennium.pl Marek Miśków – analyst Tel: +48 22 598 1116 Contact to Investor Relations Department: e-mail: marek.miskow@bankmillennium.pl Artur Kulesza – Head of Investor Relations Katarzyna Stawinoga Tel: +48 22 598 1115 Tel: +48 22