Bank Millennium SA · GPW:MIL
Bank Millennium SA — Q3 2018 Earnings Presentation
26 slides from Bank Millennium SA's earnings presentation, 2018
Slide 1: Bank Millennium Group - Presentation of 3Q 2018 results
BANK MILLENNIUM GROUP Presentation of 3Q 2018 results
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Bank Millennium for its stakeholders for information purpose only. The information presented in this presentation should be read together with other information published by the Bank (on www.bankmillennium.pl), in particular financial and current rep
Slide 3: Presentation of results in 3Q 2018
PRESENTATION OF RESULTS IN 3Q 2018 > Financial performance > Business development > Appendixes
Slide 4: Key profit & loss items
KEY PROFIT & LOSS ITEMS Change Change PLN mln 1-3Q18 1-3Q17 3Q18 2Q18 Y/Y Q/Q Net interest income 1374,1 1287,7 6,7% 481,1 456,3 5,4% Net commission income 499,5 494,2 1,1% 162,9 164,1 -0,7% Total operating income 2 014,9 1 915,4 5.2% 689,6 668,9 3,1% Total costs -948,2 -898,2 5.6% -316,0 -302,0 4,6
Slide 5: Key balance sheet items
KEY BALANCE SHEET ITEMS Change Change PLN mln Sep. 18 June 18 Sep. 17 Q/Q Y/Y Active customers (ths) 1 771 1 714 +57 1 596 +175 inc. on-line and mobile 1 296 1 240 +56 1 101 +195 Customer Funds 69 318 69 236 0.1% 65 632 5.6% Customer Funds of individuals 53 282 52 708 1.1% 49 035 8.7% Deposits 60 22
Slide 6: Main financial highlights of 1-3Q 2018
MAIN FINANCIAL HIGHLIGHTS OF 1-3Q 2018 Consistent growth of net profit and high quality of assets Record quarterly profit of PLN 200 million Net profit increase Net profit of 1-3Q 2018 reached 548 million PLN, which means 9.3% yearly growth Net profit of 3Q 2018 reached 200 million PLN – record
Slide 7: Profitability and cost efficiency
PROFITABILITY AND COST EFFICIENCY Increase of net profit; stable ROE Net profit (PLN million) Operating income * (PLN million) +5.2% 9.5% ROE 9.5% adjusted*** +5.1% +3.1% 2 015 +9.3% 1 915 +3.8% 141 134 690 +3.9% 669 49 46 Other income 502 548 1 782 1 874 193 200 620 644 Core Income** 1-3Q 17 1-3Q 1
Slide 8: Interest and commission income
INTEREST AND COMMISSION INCOME Solid growth of Net interest Income and margin Net Interest Income * (PLN million) Interest on loans and deposit (PLN million) +6.7% 1 288 1 374 4,21% 4,22% 4,29% 4,28% 4,28% 4,30% 4,33% Interest of Loans*** +5.4% 456 481 2,47% 2,56% 2,61% 2,61% 2,51% 2,57% 2,67% Inter
Slide 9: Asset quality, liquidity and capital
ASSET QUALITY, LIQUIDITY AND CAPITAL Low cost of risk and impaired ratio maintained; Strong capital and liquidity ratios Impaired Loans Cost of Risk * (PLN million) 12,5% 12,6% 12,6% Cost of Risk 12,2% 54 47 11,7% ratio (b.p.) IAS 39 IFRS 9 Total loans -9.5% impaired stage 3 192 174 +4.3% Mortgage 6
Slide 10: Presentation of results in 3Q 2018
PRESENTATION OF RESULTS IN 3Q 2018 > Financial performance > Business development > Appendixes
Slide 11: Main business highlights of 1-3Q 2018
MAIN BUSINESS HIGHLIGHTS OF 1-3Q 2018 Acceleration of customer acquisition and fast growth of loans – in line with 2020 strategy • Acceleration of active customer acquisition to +57 ths. in 3Q, +175 ths in the last 12 Retail business months • Strong growth of accounts and cards by c.a. 300 ths y/y i
Slide 12: Loans and deposits
LOANS AND DEPOSITS Strong growth of loans: +14% when excluding FX mortgages; Loan Portfolio of the Group (net) (PLN million) Customer Funds (PLN million) +14% +6% growth without +15% -3% FX mortgages +9% +10% +3% +2% 50 915 65 632 69 236 69 318 50 256 47 593 8 954 9 405 9 096 6 165 6 818 7 101 Consu
Slide 13: Retail business – deposits and accounts
RETAIL BUSINESS – DEPOSITS AND ACCOUNTS Acceleration of customer acquisition in 3Q18; Customers’ Funds keep strong growth Retail Customer Funds (PLN million) Active retail clients (in thousand) 9% +175 +2% -1% +57 17% +39 52 708 53 282 +40 49 035 9 405 9 096 +40 8 954 Investment 1 771 14 878 15 003
Slide 14: Retail business - digital products/channels
RETAIL BUSINESS - DIGITAL PRODUCTS/CHANNELS Strong growth of mobile users; High share of electronic channels in product sales Active digital & mobile customers Traditional and digital channels – Cash loans +195 (in thousand) (in thousand) Digital share in total 45% +236 58 57 1 240 1 296 1 101 44 88
Slide 15: Retail business – loans
RETAIL BUSINESS – LOANS Sale of cash and PLN mortgage loans on stable, high level Retail loans (gross) (PLN million) Cash loans new sales (PLN million) 6% +39% 15% 21% 2 401 -8% 1 729 34 999 35 530 33 408 6 761 7 499 7 755 Consumer loans 769 822 810 558 572 599 10 856 12 609 13 180 PLN mortgage FX m
Slide 16: Companies business – deposits and loans
COMPANIES BUSINESS – DEPOSITS AND LOANS Maintained high pace of growth in companies loans and current accounts balances Companies deposits (PLN million) Loans to companies (gross) (PLN million) +10% -3% +13% -18% +9% +19% +9% -3% +0.6% 17 139 17 234 16 597 16 528 16 036 15 690 2 456 2 363 2 092 Fact
Slide 17: Companies business – new loans
COMPANIES BUSINESS – NEW LOANS Double-digit growth in leasing and factoring sale, trade finance and FX transactions Leasing – new sales (PLN million) Factoring – turnover (PLN million) +11% +16% 2 440 14 273 2 196 12 282 755 751 802 856 781 4 600 4 841 4 832 690 3 757 4 222 4 303 1Q 17 2Q 17 3Q 17 1
Slide 18: New solutions in Millenet and mobile app
NEW SOLUTIONS IN MILLENET AND MOBILE APP Innovation, convenience and simplicity of e-channels are key to building long-term relationships 125 375 Good Start applications Implementation of Konto 360° We introduced savings 58 831 Family 500+ applications from Junior account opening process accounts in
Slide 19: Market leader in quality
MARKET LEADER IN QUALITY Highest quality confirmed again by few independent rankings Bank Millennium once again Bank Millennium appreciated by individual Bank Millennium the most often on the podium (*) clients in the PIBJA and Onet ranking recommended bank • Satisfied customers are the Bank’s best
Slide 20: Presentation of results in 3Q 2018
PRESENTATION OF RESULTS IN 3Q 2018 > Financial performance > Business development > Appendixes 20
Slide 21: Macroeconomic overview
MACROECONOMIC OVERVIEW Economic growth in Poland still solid, but some deceleration observed in 3Q 2018. Inflation accelerated slightly, while interest rates outlook remained unchanged. Interest rates evolution (%) FX rates evolution Q-o-Q (bp) 0 2 -1 Q-o-Q -2.1% -0.2% -1.8% Y-o-Y (bp) 0 -1 -1 Y-o-Y
Slide 22: Macroeconomic overview
MACROECONOMIC OVERVIEW Monetary aggregates showed some recovery of deposits growth, especially in households’ sector, while loans growth advanced slightly Loans to households (PLN billion, % y/y) Households’ deposits (PLN billion, % y/y) Loans to companies (PLN billion, % y/y) Companies’ deposits (P
Slide 23: Bank Millennium share performance
BANK MILLENNIUM SHARE PERFORMANCE Bank’s share price outperformed again all main indexes of the Warsaw Stock Exchange Bank Millennium share performance vs. main indices Market cap/liquidity (PLN million) (annual change as on 28.09.2018) Avg. daily turnover (PLN m) Bank Millennium shares: 32,0% No of
Slide 24: Synthetic P&L account
SYNTHETIC P&L ACCOUNT (PLN million) 1-3Q 2017 1-3Q 2018 Change Change Pro-forma pro-forma pro-forma Y/Y 3Q’17 2Q’18 3Q’18 Q/Q Net interest income* 1 287,7 1 374,1 6,7% 446,6 456,3 481,1 5,4% Net commission income 494,2 499,5 1,1% 165,5 164,1 162,9 -0,7% Other non-interest income ** 133,5 141,3 5,8%
Slide 25: Synthetic balance sheet
SYNTHETIC BALANCE SHEET (PLN million) ASSETS 30/09/2017 30/06/2018 30/09/2018 Change y/y Cash and balances with the Central 3 672 2 147 2 237 -39,1% Bank Loans and advances to banks 356 520 528 48,6% Loans and advances to customers 47 593 50 256 50 915 7,0% Amounts due from reverse repo trans. 305 1
Slide 26: Investor Relations contact
Investor Relations contact: Artur Kulesza Katarzyna Stawinoga Head of Investor Relations Tel: +48 22 598 1110 e-mail: katarzyna.stawinoga@bankmillennium.pl Tel: +48 22 598 1115 e-mail: artur.kulesza@bankmillennium.pl Marek Miśków Tel: +48 22 598 1116 e-mail: marek.miskow@bankmillennium.pl 26 www.ban