Bank Millennium Sa · GPW:MIL
Bank Millennium Sa — FY2015 Earnings Presentation
40 slides from Bank Millennium Sa's earnings presentation, Feb 1, 2016
Slide 1: Bank Millennium Group 2015 results
Bank Millennium Group 2015 results 1 February 2016 „Bank on Quality” No 1 in Poland
Slide 2: Disclaimer
Bank Millennium – 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 purchase an
Slide 3: Summary of 2011-2015 achievements (1)
Bank Millennium – 2015 results Summary of 2011-2015 achievements (1) Net Income Net Interest Income Net Commission Income ROE 11.1% 10.2% 10.6% 11.8% 9.1% (PLN million) (PLN million) CET1 11.4% 12.9% 13.4% 14.5% 16.4% CAGR* +3.7% 1465 1419 CAGR* +2.9% (PLN million) 1191 1227 1271 612 596 589 CAGR* +
Slide 4: Summary of 2011-2015 achievements (2)
Bank Millennium – 2015 results Summary of 2011-2015 achievements (2) Deposits & Liquidity Deposits of Individuals Deposits of Companies Loans/Deposits ratio (PLN million) (PLN million) 106,8% 95,4% 91,5% 92,0% 87,3% (PLN million) CAGR* +11.5% 35 616 52 810 47 591 29 820 45 305 26 018 27 051 CAGR* 41
Slide 5: Agenda
Bank Millennium – 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 5
Slide 6: Macroeconomic Overview
Bank Millennium – 2015 results Macroeconomic Overview Interest Rates Evolution (%) Evolution of CHF Libor 3M (%) Q-o-Q (bp) 0 0 0 Y-o-Y (bp) -34 -50 -50 Evolution of PLN yield curve (%) The central bank kept rates at record low levels during 4Q. However, markets started to price-in a rate cut by t
Slide 7: Macroeconomic Overview
Bank Millennium – 2015 results Macroeconomic Overview GDP Growth & Unemployment Rate (%) Inflation (CPI %) Investments & Private Consumption (% y/y) FX Rates Evolution Polish economy kept growing at a solid pace in 2015 driven by domestic demand and still solid growth of exports. Situation in th
Slide 8: Macroeconomic Overview
Bank Millennium – 2015 results Macroeconomic Overview Loans to Households Households’ deposits (PLN bn) (PLN bn) (% y/y) Loans to Companies Corporate sector deposits (% y/y) (PLN bn) (% y/y) (PLN bn) Source: NBP 8
Slide 9: Agenda
Bank Millennium – 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 9
Slide 10: Main financial highlights in 2015
Bank Millennium – 2015 results Main financial highlights in 2015 Yearly net profit PLN 547 million; 4Q affected by extraordinary charges: PLN 102.5 million extraordinary payment to Bank Guarantee Fund Net profit under 4Q extra PLN 15.6 million participation in Mortgage Support Fund charges P
Slide 11: Profitability
Bank Millennium – 2015 results Profitability Net profit Net Profit for 2015 reached PLN 547 million and (PLN million) 11.8% 9.1% 11.1% ROE fell by 16% vs. 2014. Excluding 4Q one-off charges, yearly net profit would reach PLN 667.4 +2.5% million, which would mean PLN 16.5 million -16% one-off charg
Slide 12: Net Interest Income
Bank Millennium – 2015 results Net Interest Income Net Interest Income* Net Interest Income* continued (PLN million) moderate growing trend in 2nd half of the year (+1.2% q/q in 4Q’15) gradually -3.2% rebounding after the two interest rate cuts. 1465,0 1418,7 +1.2% Net Interest Margin was stable
Slide 13: Non-interest Income
Bank Millennium – 2015 results Non-interest Income Net Commission Income Net Commissions Income amounted to PLN (PLN million) 596 million in 2015 and only decreased by -2.5% 2.5% vs. 2014 despite the 42% drop (-53,7 611,7 596,2 million) of payment card fees due to interchange fees cut. -7.3% In
Slide 14: Operating Costs and Efficiency Ratio
Bank Millennium – 2015 results Operating Costs and Efficiency Ratio Operating Costs Cost/Income ratio (PLN million) 71,1% -2.2% 53.9% 1111,4 1087,0 50.2% 50.4% 52,2% -4.3% 564,4 540,1 51,6% 50,3% without one- 49,9% 49,2% off charges +3.5% 4Q14 1Q15 2Q15 3Q15 4Q15 274,4 271,2 266,0 275,4 547,0 546,9
Slide 15: Asset quality
Bank Millennium – 2015 results Asset quality Impaired/ past due loans ratio by segments * Impaired Impaired loans ratio did not change in 4Q 10,8% 10,7% 11,2% 11,8% and remained at 4.6% as at the end of the 10,6% year (the second lowest among main Polish 6,9% 7,1% 6,7% 6,4% banks). 7,0% 4,3% 4,6%
Slide 16: Cost of Risk
Bank Millennium – 2015 results Cost of Risk P&L impairment provisions * Provisions for credit risk in 2015 (PLN 241 million) were lower by 9.1% than in COST OF 61 52 60 51 59 38 RISK** 2014 and represented 52 bps. of average -9.1% net loans (less by 9 bps vs. 2014 level). 265,5 (PLN million) 241,2
Slide 17: Liquidity and Capital Adequacy
Bank Millennium – 2015 results Liquidity and Capital Adequacy Group Capital Adequacy Ratios * Group Capital Ratio grew strongly in 2015 to 16.7% (TCR) and 16.4% (CET1) 16,7% 16,0% The Management Board of the Bank 15,2% 15,2% will submit to the Annual General 16,4% 14,2% 15,5% Shareholders Meetin
Slide 18: Agenda
Bank Millennium – 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 18
Slide 19: Main business highlights in 2015
Bank Millennium – 2015 results Main business highlights in 2015 Accelerating growth of retail deposits: +PLN 5.8 bn (or 20%) y/y and +PLN 2.7 bn (or 8%) q/q Deposits/accounts/ 281 thousand new current accounts acquired during 2015 year customers 1.37 million active customers at year-end (+85 t
Slide 20: Loan portfolio
Bank Millennium – 2015 results Loan portfolio Loan Portfolio of the Group (net) (PLN million) +5.0% Total net loans amounted to PLN 46.4 +0.4% billion and increased by 5% y/y. In 46 535 46 998 46 191 46 369 44 143 quarterly terms the loans grew by 12 707 13 316 13 214 13 415 13 463 0.4% vs. Septem
Slide 21: Customer funds
Bank Millennium – 2015 results Customer funds Customer Funds of the Group (PLN million) Customer funds of the Group grew by +10.2% +2.7% 10.2% yearly and by 2.7% quarterly, of 57 869 58 299 59 894 54 353 56 409 which deposits grew by 11% y/y and 7 111 7 083 6 761 7 435 7 635 3.2% q/q. 48 973 50 23
Slide 22: Retail business results – acquisition of new accounts and customers
Bank Millennium – 2015 results Retail business results – acquisition of new accounts and customers Current account acquisition (cumulative) 280,6 in tsd 230,8 201,3 173,7 128,4 105,9 64,3 51,6 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 281 thousand current accounts Active Retail Clients opene
Slide 23: Retail business results – deposits
Bank Millennium – 2015 results Retail business results – deposits Total Deposits from individuals and market share 5,2% 5,2% 5,4% 5,5% 5,6% Retail deposits showed solid growth of 19.6% y/y and 8.1% q/q, keeping strong (PLN million) +19.6% quarterly increase (+PLN 2.67 billion in +8.1% 4Q’15). 35 6
Slide 24: Retail business results - loan portfolio
Bank Millennium – 2015 results Retail business results - loan portfolio Loans for individuals (gross) Y/Y Q/Q Loans to individuals (gross) grew by (PLN million) 5% y/y. 33 831 34 443 33 441 33 615 32 018 1 181 +5.0% +0.5% 1 137 1 203 1 223 1 138 4 218 +7.5% +1.7% 3 982 4 322 4 437 3 741 +18.6% +2.
Slide 25: Retail business results – cash and mortgage loans
Bank Millennium – 2015 results Retail business results – cash and mortgage loans Cash Loans new production Cash Loans portfolio (gross) (PLN million) (PLN million) +16.6% 2484 +18.6% 2130 4 322 4 437 4 218 3 982 3 741 674 669 584 557 2014 1Q 15 2Q 15 3Q 15 4Q 15 2015 31/12/14 31/03/15 30/06/15 30/09
Slide 26: Digital transformation
Bank Millennium – 2015 results Digital transformation Online platform’s high adaptability offers on the spot implementation of innovative solutions Best in class users’ experience is our top priority Continuously innovative • Simple, need-driven processes, Implementation of responsive technology in
Slide 27: Companies business results – loans
Bank Millennium – 2015 results Companies business results – loans Loans to companies (gross) 3,1% 3,2% 3,1% 3,0% 3,0% Y/Y Q/Q (PLN million) 14 119 14 028 14 190 14 215 +5.4% +0.2% 13 483 Loans to companies (gross) grew by 5.4% 1 626 1 697 1 818 1 926 +21.1% +5.9% 1 591 yearly, mostly driven by str
Slide 28: Companies business results – transactions and deposits
Bank Millennium – 2015 results Companies business results – transactions and deposits Domestic payments Volume of FX transactions (thousand) (PLN million) +19% 8 854 +22% 8 028 8 455 7 441 7 252 6 511 5 350 5 199 4 968 4 704 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 Deposits from c
Slide 29: Companies business results – leasing and factoring
Bank Millennium – 2015 results Companies business results – leasing and factoring Leasing – new production Market Leasing sales in 2015 at almost PLN 2.5 7.7% 6.5% billion, that is 9.3% higher yearly. share * (PLN million) Sales rebound in 4Q’15: +24% q/q. +9.3% 2 462 Millennium Leasing keeps
Slide 30: Agenda
Bank Millennium – 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 30
Slide 31: 2015 major awards and achievements (1)
Bank Millennium – 2015 results 2015 major awards and achievements (1) First place in Newsweek’s Friendly Bank 2015 ranking 1st in the „Traditional Banking” category 1st in the „Internet Bank” category No 1 in Poland 1st in the „Mortgage Banking” category For the fourth time Bank Millennium
Slide 32: 2015 major awards and achievements (2)
Bank Millennium – 2015 results 2015 major awards and achievements (2) Bank Millennium is the best Digital Corporate Bank according to magazine Global Finance For the second time Bank Millennium also won the ranking “Best Trade Finance Services”. The winners of the 2015 World’s Best Corporate/Insti
Slide 33: 2015 major awards and achievements (3)
Bank Millennium – 2015 results 2015 major awards and achievements (3) Bank Millennium received the Responsible Business Certificate in a programme organized by ERIF Defaulters’ Register. The award was given for regular use of the Register’s tools in processes, for building security of business tra
Slide 34: Bank Millennium share performance
Bank Millennium – 2015 results Bank Millennium share performance Market cap/liquidity General information on Bank Millennium shares 9,0 No of shares: 1 213 116 777 (listed 1 213 007 541) 10 069 8 737 Listed: on Warsaw Stock Exchange since August 1992 6 745 Index: WIG, mWIG40, WIG Banks, WIG RE
Slide 35: Change of Bank Millennium shareholders structure in 2015
Bank Millennium – 2015 results Change of Bank Millennium shareholders structure in 2015 Bank Millennium shareholders structure (before and after the transaction*) Bank Millennium S.A. BEFORE EUR 304 m/PLN 1.2 bn ABB Secondary Sole Global Coordinator JP Morgan *** Joint Bookrunners JP Morgan, Dom Mak
Slide 36: Mortgage loans – evolution of CHF instalments
Bank Millennium – 2015 results Mortgage loans – evolution of CHF instalments Comparison of CHF vs. PLN instalment * CHF rate surge in January caused a (in PLN) temporary growth of mortgage instalments, which was lower than scale of increases that occurred with CHF/PLN rate at 4.02** during 2008 an
Slide 37: Actions to support mortgage loan borrowers
Bank Millennium – 2015 results Actions to support 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 wit
Slide 38: Synthetic P&L account (pro-forma)
Bank Millennium – 2015 results Synthetic P&L account (pro-forma) 2014 2015 3Q 2015 4Q 2015 (PLN million) pro-forma pro-forma pro-forma pro-forma Net interest income* 1 465,0 1 418,7 357,5 361,7 Net commission income 611,7 596,2 151,6 140,4 Other non-interest income ** 138,9 2,3 31,6 -114,9 Operating
Slide 39: Balance Sheet
Bank Millennium – 2015 results Balance Sheet ASSETS (PLN million) 31/12/2014 30/09/2015 31/12/2015 Cash and balances with the Central Bank 2 612 1 710 1 946 Loans and advances to banks 2 385 2 772 2 349 Loans and advances to customers 44 143 46 191 46 369 Amounts due from reverse repo transactions 1
Slide 40: Contact
Bank Millennium – 2015 results Contact Website: Katarzyna Stawinoga Twitter: Tel: +48 22 598 1110 e-mail: katarzyna.stawinoga@bankmillennium.pl Contact to Investor Relations Department: Artur Kulesza – Head of Investor Relations Marek Miśków – analyst Tel: +48 22 598 1115 Tel: +48 22 598 1116 e-mail