Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — H1 2023 Earnings Presentation
36 slides from Erste Bank Polska's earnings presentation, Jul 26, 2023
Slide 1: Financial Results of Santander Bank Polska Group for H1 2023
Investor Relations Warsaw 26/07/2023 Financial Results of Santander Bank Polska Group for H1 2023
Slide 2: Agenda
Index Agenda Results 1. Our activities and our people 2. Our business development 3. Our customers 4. Our financial results More information 5. Attachments 2
Slide 3: Our activities and our people
Results for H1 2023 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Our communication Good start of the cooperation with Piotr Adamczyk Our agenda in Social Media Piotr Adamczyk has been our brand ambassador since April. He is a very popular • We have continued an image-building and educational actor liked by all age groups. He has performed in comedi
Slide 5: Our people
01 | Our activities and our people Our people Improving employee experience Diversity and inclusion We have completed the first transfer of the Bank’s shares to the employees covered by the share- We are engaged in activities focused on building an inclusive work environment for people with disa
Slide 6: Our business development
H1 2023 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for H1 2023 – Our business development General operational data Key volumes SBP* SCB** gross loans 163 bn 12.1% +3% YoY Branches 345* 50** 201 bn deposits 11.2% +9% YoY Employment 9.7k 1.5k customer funds 216 bn Customers 5.8m 1.7m +10% YoY Digital Customers 3.4m 748k assets 264 bn +7%
Slide 8: Key financial results and financial ratios
02 | Results for Q1 2023 – Our business development Key financial results Financial ratios for H1 2023 For H1 2023 Key results Capital position ROE, ROA PLN 6 292m PLN 1 340m PLN 7 601m PLN 2 322m Strong capital position well above the KNF requirements +22% YoY +5% YoY +17% YoY +43% YoY +21.4% on co
Slide 9: Our customers
Results for H1 2023 Our customers 03
Slide 10: Our customers in numbers
03 | Results for H1 2023 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.2m customers +3% YoY 511k customers +3% YoY 27.2k customers +4% YoY 21.4k digital 3.0m digital 356k digital +3% YoY customers +7% YoY customers +8% YoY customers 2.4m mobile 191k m
Slide 11: New products and services
03 | Results for H1 2023 – Our customers New products and services Retail SME Corporate customers customers customers We refreshed our account and debit card offer, We organised the Entrepreneur Week offering including Santander Account, Santander Max Account, deposits, POS, 10% payback at gas s
Slide 12: Education and support for customers
03 | Results for H1 2023 – Our customers Education and support for customers Retail Customers SME Customers BCB Customers A new post-sales instruction – commercial We started #afFIRMation – a series grace period – is now available so that of training sessions for entrepreneurs customers can flex
Slide 13: Selected business data
03 | Results for H1 2023 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers PLN 2.5bn PLN 1.6bn 16.5k 52% +72% YoY +12% YoY +156% YoY +115% YoY Cash loan Mortgage loan Business Digital Transactional Income on eFX Income from Global Trade finance sales s
Slide 14: Our financial performance
Results for H1 2023 Our financial performance 04
Slide 15: Gross loans
04 | Results for H1 2023 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans Santander Bank Polska S.A. +3% The loan portfolio increased by 1% YoY. 162 939 158 390 159 511 158 393 160 624 Mortgage loan sales: -31% Q2 2023/Q2 2022; 11% +108% Q2 2023/Q1 2023 31%
Slide 16: Customer funds
04 | Results for H1 2023 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding +9% Customer funds +10% YoY and +3% QoQ. 4% 7% Deposits SBP Group 189 501 196 497 197 172 200 656 183 536 34% 11% An increase in retail deposits by 6%
Slide 17: Net interest income and net interest margin
04 | Results for H1 2023 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m 3 092 3 200 In H1 2023, net interest income totalled PLN 6.3bn 2 935 2 833 323 and increased by 22% YoY. 323 337 310 In Q2 2023, there was a increase in net interest
Slide 18: Net fee and commission income
04 | Results for H1 2023 – Our financial performance Net fee and commission income Comment Net fee and commission income PLN m In H1 2023, net fee and commission income 666 662 678 increased by 5% YoY and by 2% QoQ. 621 619 Other 31 31 37 YoY strong results in credit fees (+14% YoY), 22 75 25 87
Slide 19: Income
04 | Results for H1 2023 – Our financial performance Income Income PLN m 3 730 3 870 3 526 3 514 62 662 678 621 619 Comment 2 354 The Group's total income in H1 2023 amounted Other 47 to PLN 7,601m and increased by 17% YoY. 666 Higher net interest income due to interest rate 3 092 3 200 2 935 2
Slide 20: Operating expenses
04 | Results for H1 2023 – Our financial performance Operating expenses Operating expenses PLN m Comment 1 343 38 1 251 131 1 180 43 1 063 Total costs in H1 2023 declined YoY despite the Other operating expenses 60 986 134 130 32 inflationary environment thanks to lower regulatory 57 142 Amortisat
Slide 21: Provisions and credit portfolio quality
04 | Results for H1 2023 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 4.9 5.0% 4.9% 0.80% 4.8% 4.7% 0.59% 0.64% 0.55 0.48% 30.06.2022 30.09.2022 31.12.2022 31.03.2023 30.06.2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Balance of provis
Slide 22: Banking tax, regulatory costs and NPL sales
04 | Results for H1 2023 – Our financial performance Banking tax NPL sales and regulatory costs Amounts payable to the BGF, PFSA, KDPW, IPS and BSF PLN m PLN m NPL sales 404 288 279 288 214 231 175 168 195 150 148 12 198 83 -4 31 25 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q1 2022 Q2 2022 Q3
Slide 23: Results for H1 2023
04 | Results for H1 2023 – Our financial performance Results for H1 2023 Results for H1 2023 Comment PLN m H1 2023 H1 2022 % YoY In H1 2023, net interest and commission income Net interest and fee income 7 632 6 460 18% increased by 18% compared to H1 2022 and by 3% Gross income 7 601 6 513 17% in
Slide 24: Attachments
Attachments 05
Slide 25: Retail Banking - growth in lending activity
05 | Attachments Retail Banking - growth in lending activity PLN m Cash loans portfolio Mortgage loans and -5% (gross) +8% advances portfolio (gross) 53 316 52 164 50 898 50 796 50 388 PLN mortgage loans 6 482 portfolio: -0,3% YoY 6 488 5 751 4 534 3 696 FX 15 967 FX mortgage loans PLN 15 043 15
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio In June, Santander Leasing received the "Gazeta Bankowa" Technobiznes 2023 bn PLN award and the Best Bank in the "Insurance and other financial institutions" +10% 13 346 category for being the first in the leasing industry to implement the biometric signa
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market Share 10% 8 603 PLNm +7% 8 035 30.06.2022 30.06.2023 In Q2 2023, Santander Factoring regained a leading position on the market in terms of the balance sheet, reporting 7% YoY growth in balances. Turnover 22 589 Santander Factoring also mainta
Slide 28: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 20.77% 19.21% 19.18% L/D ratio 17.31% Capital ratios 77.47% 75.31% 72.63% 73.83% 73.23% 30.06.2023 30.06.2022 CAR TIER 1 30.06.2022 30.09.2022 31.12.2022 31.03.2023 30.06.2023 Santander Bank Santan
Slide 29: Regulatory requirements regarding own funds and eligible liabilities – TLAC/MREL
Regulatory requirements regarding own funds and eligible liabilities – TLAC/MREL TLAC MREL In accordance with Article 92a of the CRR, the minimum TLAC requirement is 18% of total risk exposure amount (TREA) and 6.75% of On 5 May 2023, the Bank was notified by the the total exposure measure (TEM)
Slide 30: Key financial ratios
05 | Attachments Key financial ratios H1 2023 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group H1 2023 H1 2022 Cost/ income 30.4% 38.9% Net interest income/ total income 82.8% 79.5% Net interest margin 1) 5.38% 4.63% Net fee and commission income/ total income 1
Slide 31: Key financial ratios
05 | Attachments Key financial ratios 1. Net interest income annualised on a year-to-date basis (excluding interest income from the portfolio of debt securities held for trading and other exposures related to trading) to average net earning assets as at the end of consecutive quarters after the end
Slide 32: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 17 616 18 562 30.06.2023 30.06.2023 r/r (%) kw/kw (%) 16 922 17 135 17 202 1 608 2 295 2 282 1 935 1 820 5 941 Retail customers 12 621 12 899 -2% -1% 4 024 4 142 4 384 4 857 Hipoteczne Mortgage loans 1 608 2 295 -30% -12% 10 603
Slide 33: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Key financial results for 2023 PLN m H1 2023 H1 2022 Assets 22 132 20 114 Net Loans*** 16 951 15 249 Deposits 12 148 9 032 Total equity 4 273 3 936 Net profit 43 253 L/D (%) 139.5% 168.8% C/I (%)* 72.6% 56.5% ROE (%) 2.0% 13.0% ROA (%) 0.4% 2.5% CAR (%)
Slide 34: Further embedding ESG to build a more responsible bank
05 | Attachments Further embedding ESG to build a more responsible bank Environmental: Social: building a Governance: doing supporting the more inclusive business the right green transition society way Diversity IN Double Power 2022 ESG Golden CSR PLN 1 280m Check of Help Report Leaf by Polityka 3rd
Slide 35: Thank You.
Thank You. Contact details Our purpose is to help people and business prosper. Maciej Reluga CFO, Chief Economist Our culture is based on believing maciej.reluga@santander.pl that everything we do should be: Agnieszka Dowżycka Head of Investor Relations agnieszka.dowzycka@santander.pl
Slide 36: Disclaimer
Disclaimer 1. This presentation may contain forward-looking statements including, without limitation, statements concerning future business development and financial performance. These forward-looking statements: represent our judgment and future expectations concerning the development of our busi