Mbank Sa · GPW:MBK
Mbank Sa — Debt Investor Presentation (September 2021)
40 slides from Mbank Sa's debt investor presentation, September 2021
Slide 1: mBank Group Inaugural Non-Preferred Senior Green Bond Issuance
mBank Group Inaugural Non-Preferred Senior Green Bond Issuance Investor presentation, September 2021
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) This presentation has been prepared by mBank S.A. (the "Bank") solely for use at meetings regarding the offer and sale of the notes referred to herein (the “Notes”) and constitutes a summary of certain proposed terms of an offering of notes as currently contemplated and has been pre
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) The offering of the securities referred to herein has not been registered with the Commissione Nazionale per le Società e la Borsa ("CONSOB") pursuant to Italian securities legislation. Any offer, sale or delivery of the securities referred to herein or distribution of copies of thi
Slide 4: Agenda
Agenda mBank Group in a snapshot 6 Characteristics of main business lines 7 Overview of financial results 13 Pillars of mBank Group’s strategy 20 Sustainability at mBank 22 mBank Group’s Green Bond Framework 26 Summary of proposed transaction 30 Appendix 31 mBank | Green Bond Presentation | 2021 4
Slide 5: mBank Group in a snapshot
mBank Group in a snapshot General description mBank Group’s market shares in Poland as of 30.06.2021 Set up in 1986, mBank is Poland’s fourth largest universal 9.0% banking group in terms of total assets and it keeps the fifth 8.1% 8.1% 8.5% 7.9% position by net loans and deposits at the end of
Slide 6: Poland's largest organically developed retail banking franchise
Poland’s largest organically developed retail banking franchise Number of mBank’s retail clients (thou.) Business volumes of Retail Banking segment without Kompakt Finanse CAGR Loans (PLN B) Deposits (PLN B) +5% A drop in H1 2021 CAGR CAGR 106.7 5,660 due to closing of +12% +22% 98.0 5,350 5,601 5,4
Slide 7: Development of leading mobile banking offer for individuals
Development of leading mobile banking offer for individuals easiest way to manage Well-designed functionalities for client convenience your finances fully remote account opening with a selfie and agreement approved via a text message pace of spending logging in with a PIN code, recent fingerprin
Slide 8: mBank as a front-runner in mobile banking adoption
mBank as a front-runner in mobile banking adoption Active users of mBank’s mobile application in Poland by the share Number in thousand #1 of mobile users in total active average growth per year +148 2,423 customer base 2,274 +342 1,895 1,484 by the number 1,181 #2 of mobile app 854 565 users among
Slide 9: Supportive demographic profile of mBank's retail client base
Supportive demographic profile of mBank’s retail client base Distribution of Polish banks by attractiveness of customer base in terms of age and education % of customers Poland average Highest share of the under 30 years old Young (<30 years old) 30% mBank’s clients are expected to reach their 28% h
Slide 10: Strong presence and leading expertise in corporate banking
Strong presence and leading expertise in corporate banking Number of mBank’s corporate clients Business volumes of Corporates & Financial Markets segment CAGR Corporate customers split: Loans (PLN B) Deposits (PLN B) 30,417 CAGR +8% 29,083 K1 26,476 2,358 2,347 annual sales +2% CAGR 23,706 over PLN
Slide 11: Development of best digital banking services for corporate clients
Development of best digital banking services for corporate clients company's finances First-class digital banking offer for companies always at hand entirely digital onboarding process, with no in-person contact and printouts required advanced mBank CompanyNet transactional system, allowing for
Slide 12: Summary of key financial highlights
Summary of key financial highlights Total income Cost/Income ratio 1 Net profit Return on equity (ROE) PLN M PLN M +2.7% -2.6pp +139% +3.0pp 2,904 2,982 42.2% 425.82 5.1%2 39.6% 177.9 2.1% H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 Gross loans to customers NPL ratio Customer dep
Slide 13: Highly efficient platform underpinning solid financial results
Highly efficient platform underpinning solid financial results Total income (PLN M) & net interest margin (NIM) Total operating expenses (PLN M) & Cost/Income ratio (C/I) Net interest income Net fee income Net trading and other income Personnel costs Material and other costs BGF contribution 5,524 5
Slide 14: Well-balanced growth of business volumes, strong capital position
Well-balanced growth of business volumes, strong capital position Total gross loans (PLN B) Total customer deposits (PLN B) Individual clients Corporate clients Public sector Individual clients Corporate clients Public sector CAGR +7.3% +12.1% +7.1% CAGR 119.9 +16.2% 156.6 108.2 112.2 111.8 137.7 13
Slide 15: New segmentation to show genuine performance of core business
New segmentation to show genuine performance of core business Summary of financial results for mBank’s core activity and run-off portfolio in H1 2021 Separation of FX mortgage loan portfolio PLN million Core Business Non-core1 mBank Group In order to present the genuine and undistorted performance
Slide 16: Summary of litigations and provisions related to CHF portfolio
Summary of litigations and provisions related to CHF portfolio CHF mortgage loans granted to individual customers Number of individual court cases concerning indexation clauses CHF M, carrying amount new court proceedings equivalent to PLN 11,035 M, +20% CAGR 9.2% of total loan portfolio initiated a
Slide 17: The most diversified funding structure among Polish banks
The most diversified funding structure among Polish banks Structure of mBank Group’s funding Summary of mBank’s long-term funding instruments as of 30.06.2021 as of 30.06.2021 Nominal Issue Maturity Currency Tenor Coupon Other value date date Subordinated liabilities 3.7% Retail 1.4% deposits Issues
Slide 18: Strong capital position with ratios well above the requirements
Strong capital position with ratios well above the requirements Reported ratios compared to regulatory capital requirements for mBank Group as of 30.06.2021 +3.69 pp Countercyclical Capital Buffer (CCyB) is calculated as the weighted average of the countercyclical buffer rates that apply in the coun
Slide 19: MREL requirement for mBank Group
MREL requirement for mBank Group Summary of key information Neither mBank nor Commerzbank are classified as G-SIB. Therefore, mBank is not subject to TLAC. mBank is also not classified as top tier bank (balance sheet > EUR 100 billion). Therefore, it is not subject to MREL under Pillar I. mBank
Slide 20: mBank Group's Strategy for 2020-2023
mBank Group’s Strategy for 2020-2023 In the strategy for 2020-2023, mBank Group focuses on 4 areas Client Platform Acquisition & Ecosystem & long-term relations user experience Four pillars of the strategy for 2020-2023 correspond to the key components of mBank’s business model Employees Efficiency
Slide 21: mBank Group's Strategy for 2020-2023: We will...
mBank Group’s Strategy for 2020-2023 What will mBank be like in the horizon of the strategy for 2020-2023? … continue mBank’s organic growth, based on the constant acquisition of new clients, in particular young people entering the market and dynamic companies from prospective industries. … accompan
Slide 22: mBank's focus on sustainable and responsible banking
mBank’s focus on sustainable and responsible banking Corporate Social Responsibility and Sustainable Development Strategy of mBank Top aim Be among top three leaders of social responsibility in the banking sector Direction guidelines Sustainable Development Goals (SDGs) set by the United Nations Foc
Slide 23: We fulfil our sustainable strategic goals in day-to-day activity
We fulfil our sustainable strategic goals in day-to-day activity Our ESG activities are centred around 3 aspects in line with our sustainable development strategy Reporting on achievements mBank educates mBank promotes prosperity We support organisations Annual Management Board’s Report We s
Slide 24: mBank's ESG recognition and memberships
mBank’s ESG recognition and memberships External ESG assessment 15.9 ESG Risk Rating “mBank's overall ESG-related disclosure follows best practice, signalling strong accountability to investors and the public. The company's ESG-related issues are overseen by the executive team, suggesting that low r
Slide 25: ESG management at mBank
ESG management at mBank ESG management fundamentals mBank Sustainability standards: Policies & procedures Supervisory Board and Management Board of mBank discuss Compliance Policies, i.a. personal data security policy, Anti- ESG-related topics regularly money laundering and counter-terrorism fin
Slide 26: mBank S.A. Group Green Bond Framework
mBank S.A. Group Green Bond Framework The framework published in 2020 aligns with 4 core components of the Green Bond Principles (2018) Use of proceeds Eligible Green Loan Portfolio includes Project Evaluation & Selection Sustainable Development Committee (SDC, in projects with 3Y look-back peri
Slide 27: Eligible portfolios for a Green Bond issuance at mBank S.A.
Eligible portfolios for a Green Bond issuance at mBank S.A. Initial portfolio of eligible assets Green Residential Buildings Wind farms & Solar Energy Projects focus portfolio for mBank's first non-preferred senior transaction Eligibility criteria developed by Drees&Sommer, certified by Loans fi
Slide 28: mBank S.A. Group Green Bond Framework
mBank S.A. Group Green Bond Framework Management of proceeds Reporting Green Bonds’ proceeds are assigned to Eligible Assets Portfolio Reporting for mBank Group’s Green Bonds will be provided under based on the Eligibility Criteria and in compliance with selection the mBank Group Green Bond Annu
Slide 29: External review of mBank S.A. Group Green Bond
External review of mBank S.A. Group Green Bond Second Party Opinion on Green Bond Framework Green Bond certification mBank has commissioned Sustainalytics to provide a Second mBank's First Green Bond has received the Pre-issuance Party Opinion on mBank Group Green Bond Framework Certification by Cli
Slide 30: mBank's Green Bond proposed transaction
mBank’s Green Bond proposed transaction Summary of key terms and conditions Issuer mBank S.A. Issue type Green Bonds, non-preferred senior notes (MREL eligible) Expected issue rating BBB- (Fitch) / BBB- (S&P) Issue amount EUR 500,000,000 (no grow) Maturity September 2027, 6NC5 Coupon Fixed-to-float
Slide 31: Appendix
Appendix mBank | Green Bond Presentation | 2021 31
Slide 32: Macroeconomic situation and outlook: GDP, inflation, rates, currency
Macroeconomic situation and outlook: GDP, inflation, rates, currency GDP path and forecast for Poland (% YoY) Inflation: off 2.5% NBP target, central bank expected to react 12 11.3 5% 9 6.8 4% 4.8 4.3 5.5 5.1 5.2 5.3 5.4 5.1 5.3 5.1 4.4 4.9 6 3.1 3.4 2.8 2.9 3.6 3% 1.9 3 2% 0 1% -3 -0.9 0% -1.5 -6 -
Slide 33: Macroeconomic situation and outlook: monetary aggregates
Macroeconomic situation and outlook: monetary aggregates Corporate loans and deposits (YoY, FX-adjusted) Household loans and deposits (YoY, FX-adjusted) 30% 14% 25% 12% 20% 10% 15% 8% 10% 6% 5% 4% 0% -5% 2% -10% 0% Jan.13 Oct.13 Jul.14 Apr.15 Jan.16 Oct.16 Jul.17 Apr.18 Jan.19 Oct.19 Jul.20 Apr.21 J
Slide 34: Banking sector in Poland is operationally efficient
Banking sector in Poland is operationally efficient Loan penetration in Poland: key credit categories to GDP (%) Capital adequacy and Funding: capital and L/D ratios 2005 2010 2015 2020 Tier 1 capital ratio Loan-to-Deposit ratio 21.0 20.5 18.5% 18.6% 92.3% 90.2% 18.1 18.4 17.1% 17.0% 79.2% 74.8% 15.
Slide 35: Summary of financial results: Profit and Loss Account
Summary of financial results: Profit and Loss Account PLN million 2019 2020 ∆ YoY H1 2020 H1 2021 ∆ YoY Net interest income 4,002.8 4,009.3 +0.2% 2,072.1 1,908.4 -7.9% Net fee and commission income 1,270.6 1,508.3 +18.7% 725.6 920.6 +26.9% Total income 5,524.4 5,866.8 +6.2% 2,903.8 2,981.6 +2.7% Tot
Slide 36: Green Bonds Methodology
Green Bonds Methodology Eligibility criteria for residential buildings in Poland mBank | Green Bond Presentation | 2021 36
Slide 37: mBank S.A. Group Green Bond – EU Taxonomy criteria
mBank S.A. Group Green Bond – EU Taxonomy criteria Primary Energy Demand (PED) of Nearly-Zero-Energy- Top 15% approach (best-in-class) to existing buildings Building (NZEB) Standard in Poland Based on the statistical analysis of residential buildings in Energy performance requirements (non-renew
Slide 38: Primary Energy Demand (kWh/m2/year)
mBank S.A. Group Green Bond – Eligibility criteria for residential buildings by Climate Bond Initiative (CBI) The low carbon trajectory is based on the year of issuance of the green bond and the applied duration of the green bond due to the fact that for each year towards 2050, the requirements for
Slide 39: Contact details
Contact details Karol Prażmo Managing Director for Treasury and Investor Relations +48 607 424 464 karol.prazmo@mbank.pl Joanna Filipkowska Head of Investor Relations +48 510 029 766 joanna.filipkowska@mbank.pl Paweł Lipiński +48 508 468 023 pawel.lipinski@mbank.pl Kamila Kałuża +48 501 533 050 kami
Slide 40: Disclaimer
Disclaimer The certification of the Non-preferred Senior Green Bonds as Climate Bonds by the Climate Bonds Initiative is based solely on the Climate Bond Standard and does not, and is not intended to, make any representation or give any assurance with respect to any other matter relating to the Non-