Bank Millennium Sa · GPW:MIL
Bank Millennium Sa — Q1 2019 Earnings Presentation
28 slides from Bank Millennium Sa's earnings presentation, 2019
Slide 1: Bank Millennium Group: Presentation of 1Q 2019 results
BANK MILLENNIUM GROUP Presentation of 1Q 2019 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 1Q 2019 results
PRESENTATION OF 1Q 2019 RESULTS > Financial performance > Business development > Appendixes
Slide 4: Key profit & loss items
KEY PROFIT & LOSS ITEMS PLN min 1Q19 118 as 4Q 18 os Net interest income 500.3 436.7 4.6%) 503.8 -0.7% Net commission income 163.2 172.5 -5.4% 161.6 1.0% Total operating income 740.8 656.4 712.7 3.9% Total costs -384.5 -330.2 16.4% -319.8 20.2% Costs without BFG fees -300.4 275.5 301.7 Loan loss pro
Slide 5: Key balance sheet items and other relevant indicators
KEY BALANCE SHEET ITEMS AND OTHER RELEVANT INDICATORS PLN min March 2019 March 2018 snares Dec. 2018 hemes Active customers (ths) 1 897 1675 222 1 838 +59 inc. on-line and mobile 1 469 1201 C268) 1364 +105 Customer Funds 75 478 69 080 9.3% 74 723 1.0% Deposits 66 673 59 474 12.1% 66 244 0.6% Deposit
Slide 6: Main financial highlights of quarter 2019
MAIN FINANCIAL HIGHLIGHTS OF 1 QUARTER 2019 Further improvement of profitability and high capital ratios ahead of acquisition of Euro Bank Interest income growing fast. Costs disturbed by Profitability improvement BFG annual fee • Net profit of 1Q 2019 reached 160 million PLN, which • Net interest i
Slide 7: Profitability and cost efficiency
PROFITABILITY AND COST EFFICIENCY Profitability increase; higher BFG resolution fee impact seen in 1Q. ROE at 9.1% and Cost to Income improvement to 46.1% Net profit (PLN million) reported (with equal ROE BFG fee distribution through the year) 1Q 18 1Q19 Operating cost (PLN million) 7 growth without
Slide 8: Interest and commission income
INTEREST AND COMMISSION INCOME Interest income show robust dynamics; Commissions still depressed by weaker capital markets although some signs of improvement can be seen in 1Q Net Interest Income * (PLN million) Interest on loans and deposit (PLN million) 4,28% 4,30% 4,33% 4.41% 441% Interest of Loa
Slide 9: Asset quality, liquidity and capital
ASSET QUALITY, LIQUIDITY AND CAPITAL Improving asset quality and cost of risk within expected level. Strong liquidity and very high capital ratios after profit retention and T2 issue Impaired Loans (IFRS? stage 3) Cost of Risk * (PLN million) 11,7% 11,3% ratio (b.p.) 10,4% —# Total loans —® Mortgage
Slide 10: Presentation of results in 1Q 2019
PRESENTATION OF RESULTS IN 1Q 2019 > Financial performance > Business development > Appendixes
Slide 11: Main business highlights of quarter 2019
MAIN BUSINESS HIGHLIGHTS OF 1 QUARTER 2019 Continuation of organic growth strategy while preparing for closing of Euro Bank acquisition Retail business Companies business • +222 ths yearly growth in number of active retail • Solid growth of loans to companies kept: +14.9% customer y/y • 988 mln PLN
Slide 12: Loans and deposits
ANS AND DEPOSITS Strong growth of business volumes: - loans +18% (excluding FX mortgages) - deposits +12% Loan Portfolio of the Group (net) (PLN million) Customer Deposits (PLN million) 2 growth without FX mortgages +15.4% 414.9% 52712 53 940 #8 48 000 66 244 66 673 c ~ ™ Consumer loans <a ae ee 456
Slide 13: Retail business: deposits and accounts
RETAIL BUSINESS — DEPOSITS AND ACCOUNTS Strong pace of customer acquisition of last two quarters of 2018 kept in 1Q’19. Customers’ Funds show robust dynamics despite 2018 decrease in investment products Retail Customer Funds (PLN million) Active retail clients {in thousand) GTA 222 > 2% <> 52752 982
Slide 14: Retail banking: digital channels
RETAIL BANKING – DIGITAL CHANNELS Strong growth in number of digital users to almost 1.5 million . Growing share of electronic channels in products sale Active digital and mobile clients Cash loans - traditional and digital channels +22% (in thousand) (in thousand) 37% Digital share in sales 48% +40
Slide 15: Retail banking: mobile channel
RETAIL BANKING – MOBILE CHANNEL Strong growth of products sold through mobile applications BLIK (*) transactions HCE (**) cards portfolio (in thousand) (in thousand) 207% +84% 198 4 674 179 4 028 107 1 524 1Q 2018 4Q 2018 1Q 2019 1Q 2018 4Q 2018 1Q 2019 Parking fares and public transportation ticket
Slide 16: New solutions in the Millennium and mobile applications
NEW SOLUTIONS IN THE MILLENNIUM AND MOBILE APPLICATIONS Another quarter of innovation and development of e-banking. . Twój e-PIT Apple Pay Temporary card block Possibility of paying the tax directly in the Contactless payments by phone and Possibility of quick and convenient Twój e-PIT service throu
Slide 17: Goodie: Bank Millennium's smartshopping platform
GOODIE – Bank Millennium’s smartshopping platform Maintaining growth rate of app downloads; continued development and new functionalities Loyalty Cards set up 400,000 in 41 Shopping centres 1.1 million downloads from app start coffee shop and restaurant stamp 100,000 cards set up 200,000 app downloa
Slide 18: Retail business: loans
RETAIL BUSINESS – LOANS Record quarterly sale for cash loans of PLN 988 million. PLN mortgage loans sales in 1Q visibly higher than an year ago Retail loans (gross) (PLN million ) Cash loans new sales (PLN million ) 10.7% +29% 17.5% 20% +22% 988 -0.3% -7.5% in currency 37 111 822 810 809 36 400 769
Slide 19: Companies business: deposits and loans
COMPANIES BUSINESS - DEPOSITS AND LOANS Solid pace of growth of companies business volumes * loans +14% * deposits +15% Companies deposits (PLN million) Loans to companies (gross) {PLN million) 414.9% +12% 18513 18 846 16 328 18144 18 628 16313 2610 Term deposits 6506 6597 31/03/18 31/12/18 31/03/19
Slide 20: Companies business: new loans
COMPANIES BUSINESS – NEW LOANS Robust growth in leasing and factoring sale and trade finance. Leasing – new sales (PLN million ) Factoring – turnover (PLN million ) +7.5% +7.1% 5 494 1 064 4 841 4 927 4 600 4 832 856 862 802 781 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 Comments Vo
Slide 21: Presentation of results in 1Q 2019
PRESENTATION OF RESULTS IN 1Q 2019 > Financial performance > Business development > Appendixes 21
Slide 22: Macroeconomic overview
MACROECONOMIC OVERVIEW Economic growth in Poland moderated slightly in 1Q 2019 but is expected to recover because of fiscal stimulus. Inflation remains in the NBP range supporting expectation for stable interest rates. Interest rates evolution (%) FX rates evolution Q-o-Q (bp) 0 0 0 Q-o-Q 0.0% 0.9%
Slide 23: Macroeconomic overview: loans and deposits
MACROECONOMIC OVERVIEW 1Q 2019 showed further increase of deposits, especially in households sector. Credit growth advanced slightly as well, mostly because of fx changes. Loans to households (PLN billion, % y/y) Households’ deposits (PLN billion, % y/y) Loans to companies (PLN billion, % y/y) Compa
Slide 24: 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 29.03.2019) Bank Millennium shares: Avg. daily turnover (PLN m) No of sha
Slide 25: Awards and rankings
Ztoty Bankier \ »A socially sensitive bank” — for financial education program for preschoolers implemented by the Bank Millennium Foundation The best multi-channel quality of service” »Safe Bank - Best Practices” itl, Sf rh : i=] GIQBAL FINANCE Bank Millennium was hailed in the annual Best Bank Awar
Slide 26: Synthetic P&L account
SYNTHETIC P&L ACCOU (PLN million) Pro-forma 1Q’18 1Q'19 ie Net interest income* 436,7 500,3 14,6% Net commission income 172.5 163,2 -5,4% Other non-interest income ** 47,2 77.3 63,7% Operating Income 656,4 740,8 12,9% General and administrative costs -316,8 -351,1 10,8% Depreciation -13,4 -33,4 149,
Slide 27: Balance sheet
BALANCE SHEET (PLN million) ASSETS 31/03/2018 31/12/2018 31/03/2019 Change y/y ess) and balances with the Central 2881 2 450 1737 -39,7% Loans and advances to banks 448 731 Al4 -7,5% Loans and advances to customers 48 000 2712) 53 940 12,4% Amounts due from reverse repo trans. 141 250 797 465,7% Deb
Slide 28: 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 28 www.ban