Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q1 2020 Earnings Presentation
37 slides from Erste Bank Polska's earnings presentation, Apr 28, 2020
Slide 1: Santander Bank Polska SA Group Financial results during 1Q 2020
28/04/2020 Santander Bank Polska SA Group Financial results during 1Q 2020
Slide 2: Forward-looking statements disclaimer
Santander Bank Polska S.A. („Santander”) cautions that this presentation contains forward-looking statements. These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic
Slide 3: Agenda
1. Strategy and business 2. Santander Group Results 3. Appendix 3
Slide 4: Strategy and business
Strategy and business 01
Slide 5: Branch network and basic financial data
Branch network and basic financial data 31.03.2020 YoY Business and results PLN Gross Loans 153.2 bn +7% Deposits 157.8 bn +7% Total customer funds 169.8 bn +4% • 7.24m customers** Assets 215.9 bn +3% • 2.61m digital customers*** Market Share* Gross loans 11.9% Deposits 11.6% Network and Employees S
Slide 6: 1Q 2020 Basic financial highlights
1Q 2020 Basic financial highlights +1.7% ■ Net Interest Income vs. 2019 +5.0% underlying* ■ Fee income vs. 2019 +3.5% +0.3% ■ Total income PLN 2 249m vs. 2019 +2.6% underlying* vs. 2019 -49.6% ■ Profit after tax PLN 171m +2.8% underlying* * On a comparative basis for separate categories, i.e.: assum
Slide 7: 1Q 2020 Basic financial highlights
1Q 2020 Basic financial highlights TCR 16.79% ■ Strong capital position well above PFSA criteria CET1 14.91% 8.5% ROE 10.6% underlying* ■ ROE, ROA – leading position in Peer Group Banks 0.9% ROA 1.2 % underlying* Santander Bank Polska Group 93.6% ■ Secure funding position (L/D ratio) Santander Bank
Slide 8: Retail Banking: Business growth in January and February, slowdown in March
Retail Banking Business growth in January and February, slowdown in March Accounts As I Want growth We have been recognized +47% YoY 1.9 mln opened accounts #1 ’The best bank in Poland’ Winner in main category in the +10% Cash loans growth „Institution of the Year” 5 stars in prestigious vs. 1Q’19 S
Slide 9: Retail Banking: Digital channels development
Retail Banking Digital channels development 2,6 Active digital customers Sales growth in remote channels mln +9% YoY • Personal accounts … x 4,0 vs. 1Q’19 • SME accounts … x 11,7 vs. 1Q’19 • Cash loans… x 1,7 vs. 1Q’19 1,6 Mobile users m +17% YoY Transactions New functionality 25,0 in mobile banking
Slide 10: SME Banking: Improved banking for entrepreneurs
SME Banking Improved banking for entrepreneurs Strong growth Recognized by experts +30% of SME Installment loans vs. 1Q’19 #1 The best bank for entrepreneurs Sales PLN 849 m in the „Institution of the Year” SME financing ranking by mojebankowanie.pl +9% performing portfolio growth YoY Balance 13,9 b
Slide 11: Retail business vs. Covid-19 outbreak
Retail Banking Retail business vs. Covid-19 outbreak Communication to customers – SMS and electronic channels Distribution network • Promoting digital channels usage • Temporary closure of 10-20% branch network • Communication to customers on changes in branches availability and • Shorter opening ho
Slide 12: Business and Corporate Banking
Business and Corporate Banking Selected products’ sales Year-on-year revenue growth: Award from Bank Gospodarstwa Krajowego for the highest sales in the market of the State aid programme Biznesmax for SMEs / small Corporates 12% Cash Management – Bank achieved 45% plus share in the entire market s
Slide 13: Corporate & Investment Banking
Corporate & Investment Banking Selected products’ sales Chosen transactions Year-on-year revenue growth: Co-arrangement of the first green bond issue in Poland of PLN 1bn among 33% Cash management services non-financial entities Acting as a Joint Bookrunner of EUR 1.5bn Eurobond issue with negat
Slide 14: Business and Corporate Banking and CIB – strategy vs. COVID-19
Business and Corporate Banking and Corporate and Investment Banking – strategy vs. COVID-19 What we did for our Customers: We intensified our daily contacts with them with specific talking points directed at the analysis of their current business situation and needs. Our bankers have made over 3
Slide 15: Santander Group Results
Santander Group Results 03
Slide 16: Loan Performance
Loan Performance Gross Loans +7% YoY and +3% QoQ Total gross loans 31.03.2020 31.03.2019 YoY (%) QoQ (%) PLN m +7% Individuals 82 110 75 908 8% 2% Mortgage 52 511 49 758 6% 3% 148 943 148 647 153 236 Other personal 29 599 26 150 13% 0% 143 332 145 546 Business 71 127 67 423 5% 5% 68 171 69 095 67 75
Slide 17: Total Customer Funds
Total Customer Funds Total Customer Funds +4% YoY Total Deposits 31.03.2020 31.03.2019 YoY (%) QoQ (%) PLNm Demand 61 505 50 426 22% 5% +7% +% Savings 43 052 36 570 18% 7% Time 53 200 60 750 -12% -8% 149 675 151 027 156 480 157 757 147 746 Total 157 757 147 746 7% 1% 59 179 60 665 64 764 61 896 58 5
Slide 18: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Net Interest Income +1.7% YoY and -0.6% QoQ. Net Interest Income Net Interest Margin (%) 1,2 PLNm 1 701 1 609 1 623 1 647 1 636 409 372 358 3.56% 394 403 3.48% 3.48% 3.37% 3.32% 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 202
Slide 19: Net fees
Net fees Net fees +3% YoY Net fees Main items of fee income PLNm 1Q 2020 1Q 2019 YoY (%) QoQ (%) 544 542 538 520 522 29 Cards 81 81 0% -8% 47 49 39 49 87 94 98 Customer + Other 201 188 7% 5% 82 80 Loan + Insurance 120 121 -1% -15% 121 116 129 140 120 Capital market fees* 98 82 20% 5% 195 193 191 201
Slide 20: Gross Income
Gross Income Gross Income at the same leve as in the previous year Gross income 1Q 2020 1Q 2019 YoY (%) QoQ (%) Net Interest Income 1 636 1 609 2% -1% PLNm Net Fees 538 520 3% -1% 2 385 2 453 2 381 Subtotal 2 175 2 129 2% -1% 2 242 2 249 97 1 207 191 Gains/losses on financial transactions 33 81 -60%
Slide 21: Operating Expenses
Operating Expenses Total costs adjusted by one off items -0.4% YoY Operating expenses 1Q 2020 1Q 2019 YoY (%) QoQ (%) PLNm General and administrative expenses (1 022) (1 057) -3% 33% 1 241 1 265 1 236 82 58 27 1 027 982 256 39 152 Staff costs (448) (525) -15% 0% 153 0 46 0 35 48 157 158 161 Administ
Slide 22: Loan-loss provisions (LLPs) and Credit Quality
Loan-loss provisions (LLPs) and Credit Quality Cost of risk under the pressure of pandemic situation, NPL ratio stable QoQ mln PLN LLPs and Cost of credit NPL and Coverage ratio* Cost of credit 0.96% 0.92% 0.88% 0.85% 0.81% 7% 60% 0.88% excl. provision from expected credit losses 53.6% 53.4% 53.8% 5
Slide 23: Bank Tax, Regulatory Costs and NPL Sales
Bank Tax, Regulatory Costs and NPL Sales Costs related to BGF and PFSA NPL Sales* Santander Bank Polska: 1Q 2020 NPL sales of PLN 272.1m, PBT impact PLN 5.8m. SCB: 1Q2020 NPL sales of PLN 282.5m, PBT gain of PLN 28.7m. 295 228 Santander Bank Polska 29 28 26 SCB 267 272 283 1Q 2019 2Q 2019 3Q 201
Slide 24: 1Q 2020: results under pressure of regulatory factors and loan-loss provisions
1Q 2020: results under pressure of regulatory factors and loan-loss provisions 1Q 2020 result under influence of significant regulatory and restructuring costs mln zł Growth in core income 1Q 2020 1Q 2019 2020% Underlying* Costs impacted by regulatory and legal charges NII + Fee income 2 175 2 129 2
Slide 25: Conclusions
Conclusions In March 2020, the Group’s priorities and focus areas changed due to the outbreak of the SARS-CoV-2. The most important issue was to ensure the safety of employees and customers, whilst maintaining the continuity of business and services. In view of the COVID-19 pandemic, Santander Ban
Slide 26: Appendix
Appendix 04
Slide 27: Provisions for reimbursement of a portion of fees charged for early repayment
Provisions for reimbursement of a portion of fees charged from customers for early repayment of consumer loans Impact of provisions for the reimbursement obligation on consolidated profit before tax in 1Q 2020 On 11 September 2019, the CJEU issued a ruling in case C 383/18, in which it held that p
Slide 28: Structure of Loans and Deposits / Term Funding
Structure of Loans and Deposits / Term Funding Gross Loans* Deposits & Term Funding* Term funding 12% CIB 9% Other 2% Mortgage 35% Personal current deposits BCB 37% 25% Corporate term deposits 13% Non-mortgage Corporate current SME personal deposits Personal term 12% 19% 20% deposits 16% Total PLN 1
Slide 29: Retail Banking: Credit action growth
Retail Banking Credit action growth PLN mln Cash loans portfolio (gross) Mortgage loans portfolio (gross) 48 373 49 343 49 440 50 596 47 890 10 022 9 529 10 156 10 081 9 795 14 241 14 654 13 749 12 155 12 778 37 809 38 578 39 321 39 911 40 440 31.03.19 30.06.19 30.09.19 31.12.19 31.03.20 31.03.19 30
Slide 30: SME (excluding SCB)
SME (excluding SCB) SME Loans (gross) PLNm 14 623 14 793 15 168 13 897 14 377 31.03.2019 30.06.2019 30.09.2019 31.12.2019 31.03.2020 Comment SME portfolio growth by +9% YoY. 30
Slide 31: Corporate & CIB
Corporate & CIB Corporate & CIB (gross) PLNm 49 305 49 324 49 686 48 406 50 853 31.03.2019 30.06.2019 30.09.2019 31.12.2019 31.03.2020 Comment Corporate and CIB gross loan portfolio 3% YoY: Corporate loans -1% YoY and CIB +15% YoY. 31
Slide 32: Leasing & Factoring (excluding SCB)
Leasing & Factoring (excluding SCB) Leasing – empowering the 5th position on the market* Leasing Portfolio (PLN m ) Market share* (%) Comment +12% 6.8% 10 314 10 036 Leasing portfolio PLN 10bn, i.e. +12% y/y 9 817 9 468 Total Income growth +7% y/y 9 129 Net value of financed assets in 1Q 2020
Slide 33: Capital & Liquidity Position
Capital & Liquidity Position Santander Group Capital Ratio Santander Bank Polska (excl. SCB ) Loan to Deposits Ratio (L/D) 16.47% 16.79% 14.63% 14.91% 87.82% 86.30% 85.50% 85.36% 84.24% 85.71% 85.70% 81.80% 83.13% 31.03.2018 30.06.2018 30.09.2018 31.12.2018 31.03.2019 30.06.2019 30.09.2019 31.12.201
Slide 34: Group: Key ratios 1Q 2020
Santander Bank Polska Group: Key ratios 1Q 2020 Selected financial ratios of Santander Bank Polska Group 1Q 2020 1Q 2019 11) Total costs/Total income 56.3% 55.1% Net interest income/Total income 72.8% 71.7% Net interest margin 1) 3.32% 3.48% Net commission income/Total income 23.9% 23.2% Customer ne
Slide 35: SCB Group - Loans
SCB Group - Loans Gross Loans SCB +7% YoY Total gross loans PLNm mln PLN 31.12.2019 31.12.2018 YoY (%) QoQ (%) +7% 19 557 Individuals 15 169 14 439 5% -1% 18 433 19 032 19 164 17 846 3 414 3 440 3 299 3 424 Mortgage 3 424 3 507 -2% 4% 3 507 3 916 4 184 3 995 3 407 3 782 Consumer finance 11 745 10 93
Slide 36: SCB Group - Key Financial Results 1Q 2020
SCB Group - Key Financial Results 1Q 2020 PLNm 1Q 2020 1Q 2019 Assets 21 713 20 201 Net Loans 17 172 16 032 Deposits 9 956 8 932 Total equity 3 525 3 023 Net profit 99 128 L/D (%) 172.5% 179.5% C/I (%)* 53.9% 40.6% ROE (%) 11.3% 15.8% ROA (%) 1.8% 2.6% TCR (%)** 18.6% 19.2% Source: Santander Consume
Slide 37: Contacts
Contacts: Maciej Reluga CFO, Chief Economist maciej.reluga@santander.pl Agnieszka Dowżycka Investor Relations Director agnieszka.dowzycka@santander.pl