Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q4 2023 Earnings Presentation
41 slides from Erste Bank Polska's earnings presentation, Jan 31, 2024
Slide 1: Financial results of Santander Bank Polska Group for 2023
Investor Relations Warsaw 31/01/2023 Financial results of Santander Bank Polska Group for 2023 The financial information provided herein and concerning the quarter and the year ended 31 December 2023 includes the selected, preliminary, unaudited data which has been prepared for information purposes,
Slide 2: Agenda
Index Agenda Results 1. Our activities and our people 2. Our business development 3. Our customers 4. Our financial results Strategy of Santander Bank Polska Group 2024-2026 More information 5. Attachments 2
Slide 3: Our activities and our people
Results for 1-3Q 2023 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Our communication Successful cooperation with Piotr Adamczyk Digital activities Piotr Adamczyk has been Santander brand ambassador since April. Piotr is a very popular • Optimised business profile of branches in Google Maps and better actor liked by all age groups. The spots with Piot
Slide 5: Our people
01 | Our actions and our people Our people Better employee experience Diversity & Inclusion We completed work over the Bank’s new strategy for 2024-2026 that will be delivered All the while promoting diversity, equity and inclusion, we continue to support the based on a premise that the employee
Slide 6: Our business development
2023 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for 2023 – Our business development General operational data Key volumes SBP* SCB** gross loans 166 bn 12.1% +4% YoY Branches 336* 50** 209 bn deposits 11.0% +7% YoY Employment 9.8k 1.5k customer funds 228 bn Customers 5.9m 1.6m +9% YoY Digital Customers 276 bn 1.6m 751k assets +7% YoY
Slide 8: Key financial results and financial ratios for 2023
02 | Results for 2023 – Our business development Key financial results Financial ratios for 2023 For 2023 Key results Capital position ROE, ROA PLN 13 116m PLN 2 717m PLN 15 992m PLN 4 831m Strong capital position, well above the KNF requirements +36% YoY +6% YoY +29% YoY +73% YoY +17% on comparativ
Slide 9: Our customers
Results for 2023 Our customers 03
Slide 10: Our customers in numbers
03 | Results for 2023 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.3m customers +3% YoY 533k customers +9% YoY 27.5k customers +4% YoY 3.1m digital 363k digital 21.6k digital +6% YoY +7% YoY customers +2% YoY customers customers 2.6m mobile 198k mobi
Slide 11: New products and services
03 | Results for 2023 – Our customers New products and services Retail customers SME customers Corporate customers We offered 2% Safe Mortgage to our We implemented new solutions in the omnichannel We introduced a series of upgrades to our customers. Smart Loans process, including: electronic
Slide 12: Education and support for customers
03 | Results for 2023 – Our customers Education and support for customers Retail Customers SME Customers BCB Customers We developed an intuitive migration process, We continued to raise awareness of We actively support the foreign expansion of Polish exporters including support for customers m
Slide 13: Selected business data
03 | Results for 2023 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers 4.6m PLN 2.4bn 16.1k 49% +67% YoY +10% YoY +80% YoY +79% YoY Personal Cash loan Business Digital Transactional Income on eFX Income from Global Trade finance accounts sales account
Slide 14: Our financial performance
Results for 2023 Our financial performance 04
Slide 15: Gross loans
04 | Results for 2023 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans Santander Bank Polska S.A. +4% The loan portfolio increased by 4% YoY and by 1% QoQ. 158 393 160 624 162 939 164 375 165 212 11% Mortgage loan sales: +340% Q4 2023/Q4 2022; +22% 31% Q4 2023
Slide 16: Customer funds
04 | Results for 2023 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding +11% Customer funds +9% YoY and +1% QoQ. 4% 6% Deposits SBP Group 200 656 210 038 209 277 196 497 197 172 10% 33% An increase in retail deposits by 7% YoY
Slide 17: Net interest income and net interest margin
04 | Results for 2023 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In 2023, net interest income totalled PLN 13.1bn and 3 092 3 396 3 428 increased by 36% YoY. After excluding the impact of 2 833 3 200 346 362 the so-called „statutory pa
Slide 18: Net fee and commission income
04 | Results for 2023 – Our financial performance Net fee and commission income Comment Net fee and commission income PLN m In 2023, the net fee and commission income 662 678 667 710 +6% YoY and +6% vs. Q3 2023. 619 37 32 32 30 Cards 26 87 86 81 131 On an annual basis, good results in credit fee
Slide 19: Income
04 | Results for 2023 – Our financial performance Income Income PLN m 4 222 4 170 Comment 3 730 3 870 160 32 3 514 667 710 The Group's total income in 2023 amounted to Net Interest Income 62 662 678 619 PLN 16bn and increased by 29% YoY. Fees Higher interest income by 36% due to interest rate 3
Slide 20: Operating expenses
04 | Results for 2023 – Our financial performance Operating expenses Operating expenses PLN m Comment 1 251 1 188 1 213 Staff Costs 27 1 063 46 Total costs in 2023 were PLN 4.7bn and increased by 0.4% 986 134 105 150 32 144 YoY despite the inflationary environment. This is, among 57 142 Administra
Slide 21: Provisions and credit portfolio quality
04 | Results for 2023 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 5.0% 4.8% 4.9% 4.9% 0.80% 0.77% 4.6% 0,72% 0.59% 0.64% 31.12.2022 31.03.2023 30.06.2023 30.09.2023 31.12.2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Balance of provisi
Slide 22: Banking tax and regulatory costs; NPL sales
04 | Results for 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 450 314 279 231 404 195 288 150 148 125 214 12 198 -4 9 9 25 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022
Slide 23: Results for 2023
04 | Results for 2023 – Our financial performance Results for 2023 Results for 2023 Comment PLN m 2023 2022 % YoY Net profit in 2023 totalled PLN 4.8bn. (in Q4 2023 totalled PLN 980m). Net interest and fee income 15 833 12 219 30% Gross income 15 992 12 382 29% In 2023, the net interest and fee
Slide 24: Strategy of Santander Bank Polska Group for 2024-2026
Strategy of Santander Bank Polska Group for 2024-2026
Slide 25: We help you achieve more
We help you achieve more Strategy of Santander Bank Polska Group for 2024-2026 We help people and businesses prosper. We want to create the best banking experience. We simplify and digitise our processes in a responsible way, caring for sustainable development, financial security and environment. No
Slide 26: Becoming the most profitable bank in Poland
We continue to live our purpose of helping people and businesses prosper in order to become the most profitable bank in Poland. THE MOST PROFITABLE BANK IN POLAND Help people and businesses prosper. Be the Best Open Financial Services PLATFORM by acting RESPONSIBLY and earning the lasting LOYALTY of
Slide 27: Total Experience, Total Digitalisation, Total Responsibility
TOTAL EXPERIENCE TOTAL DIGITALISATION TOTAL RESPONSIBILITY 1. A unique corporate culture 1. Digital business model 1. E – Environmental where customer and • Focus on customer and employee • Green transformation of the Bank. employee experience is experiences in the digital world. • Support in custom
Slide 28: Strategic metrics for 2024-2026
Strategic metrics for 2024-2026 KPI Ambition level for the strategy life Return on Equity Top3 for the Polish banking sector NPS Top3 for the Polish banking sector Top Employer Certificate Total Capital Ratio Dividend triggering level Cost of Risk 70-90bps Cost to income ratio <35% Dividend payout r
Slide 29: Attachments
Attachments 05
Slide 30: Retail Banking - growth in lending activity
05 | Attachments Retail Banking - growth in lending activity PLN m Cash loans portfolio Mortgage loans and +1% (gross) +10% advances portfolio (gross) 50 898 50 796 51 205 51 568 50 388 PLN mortgage loans 3 483 2 603 5 751 4 534 3 696 portfolio: +8.5% YoY FX FX mortgage loans PLN 16 341 16 554 p
Slide 31: Santander Leasing
05 | Attachments Santander Leasing Portfolio bn PLN In June, Santander Leasing received the "Gazeta Bankowa" Technobiznes 2023 award and the Best Bank in the "Insurance and other +10% 13 965 13 980 financial institutions" category for being the first in the leasing industry to implement the biometri
Slide 32: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market Share 10% 7 816 PLNm +12% 6 985 In Q4 2023, Santander Factoring held the second position on the 31.12.2022 31.12.2023 market in terms of the balance sheet, reporting 12% YoY growth in balances. Santander Factoring also maintains its first pos
Slide 33: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 18.56% 19.74% 18.02% L/D ratio 17.18% Capital ratios 72.63% 73.83% 73.23% 72.10% 70.81% 31.12.2023 31.12.2022 CAR TIER 1 31.12.2022 31.03.2023 30.06.2023 30.09.2023 31.12.2023 Santander Bank Santan
Slide 34: 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 35: Key financial ratios
05 | Attachments Key financial ratios 2023 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group 2023 2022 Cost/ income 29.5% 37.9% Net interest income/ total income 82.0% 78.0% Net interest margin 1) 5,39% 4.31% Net fee and commission income/ total income 17.0% 20.7
Slide 36: Key financial ratios - definitions
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 37: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 18 562 18 881 18 566 31.12.2023 31.12.2022 r/r (%) kw/kw (%) 17 202 17 616 1 608 1 574 1 338 1 935 1 820 5 941 6 143 6 133 Retail customers 12 433 12 818 -3% -2% 4 384 4 857 Mortgage Mortgage loans 1 338 1 935 -31% -15% 10 883 10
Slide 38: Santander Consumer Bank Group - key financial results for 2023
05 | Attachments Santander Consumer Bank Group Key financial results for 2023 2023 2022 Assets 23 677 20 317 Net Loans*** 17 163 15 634 Deposits 13 688 10 350 Total equity 4 407 4 266 Net profit 141 408 L/D (%) 125.4% 151.1% C/I (%)* 69.6% 57.9% ROE (%) 3.3% 10.1% ROA (%) 0.6% 2.0% CAR (%)** 34.3% 2
Slide 39: 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 145 849 The Best Sustainability >PLN 1.7m PLN 5 499m PLN 2 172m beneficiaries of financially Repor
Slide 40: 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 41: 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