Bank Handlowy W Warszawie S.a. · GPW:BHW

Bank Handlowy W Warszawie — Q1 2023 Earnings Presentation

25 slides from Bank Handlowy W Warszawie's earnings presentation, May 11, 2023

  1. Slide 1: Consolidated financial results for 1Q'23

    Bank Handlowy w Warszawie S.A. Consolidated financial results for 1Q’23 Tax Evasion May 11th, 2023 www.citihandlowy.pl Bank Handlowy w Warszawie S.A.

  2. Slide 2: 1Q'23 Financial results summary

    1Q’23 | Financial results summary Strong start to the year in terms of net profit dynamics Financial results Balance sheet YoY dynamics Total capital ratio Revenue Net profit ROE Loans Deposits TCR PLN 1.2 B PLN 604 MM 27.8% (2%) +14% 17.9% Revenue: increase by 28% QoQ thanks to client activity in l

  3. Slide 3: Business activity

    Business activity

  4. Slide 4: Key achievements | Citi Handlowy

    Key achievements | Citi Handlowy Capital markets Debt securities Debt securities Award Issue of new European Bank shares for Investment Gospodarstwa CCC Bank Krajowego PLN 505 MM PLN 1,290 MM 400 mln euro Lead Manager of issue of Dealer of Eurobonds issue 30th bonds related to to be injected in the

  5. Slide 5: Institutional Banking | Business volumes

    Institutional Banking | Business volumes Long-term loans return observed Loan Volumes (PLN MM) 1Q’23 transaction volumes +2% +7% 1. New institutional loans (PLN MM)* sector +6% sector +2% (14%) 16 302 15 600 15 506 15 506 16 635 QoQ dynamics YoY dynamics (15%) 13% 11% 12% 12% 14% Other 27% 32% Comme

  6. Slide 6: Consumer Banking | Business volumes

    Consumer Banking | Business volumes Record high number of the most affluent clients - Citigold Private Client Loan volumes (PLN MM) 1Q’23 transaction volumes (13%) sector (4%) (4%) 1. FX volumes – affected by a high base of 1Q 2022 sector (2%) • 54% of FX volume is processed via 6 753 CitiKantor 6 5

  7. Slide 7: Social commitment

    Social commitment

  8. Slide 8: 1Q 2023 Corporate Social Responsibility

    1Q 2023 | Corporate Social Responsibility Programs run by Citi Handlowy Foundation Support for Ukraine: • WELCOME! Witamy! program finale - together with Mamo Pracuj Foundation • The program aim: to help Polish and Ukrainian women in coming back to job market • More than 300 participants, 4 cities –

  9. Slide 9: Consolidated financial results

    Consolidated financial results

  10. Slide 10: Total revenue

    Total revenue Revenue – segment split (PLN MM) Revenue – Institutional Banking Revenue improvement in high interest rates environment Continued client income growth trend +49% Client revenue – dynamics YoY* 53% 54% +20% 29% 29% 1 242 14% 1 012 1 039 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 * Client r

  11. Slide 11: Net Interest Income

    Net Interest Income Net interest income – segment split (MM PLN) Net interest margin – comparison with the sector Higher NIM in the Bank comparing to the sector Impact of dropping market rates on net interest income in quaterly view 5,84% 4,93% 5,30% 4,62% Bank +90% 3,23% Banking (6%) sector 3,09% 3

  12. Slide 12: Net fee & commission income

    Net fee & commission income NF&CI – segment split (PLN MM) NF&CI structure and dynamics Decent result in Transactional Banking area due to growing Strong volumes in Transactional Banking volumes in trade financing Brokerage Loans (7%) +2% QoQ / (31%) YoY +11% QoQ 6% Institutional +23% YoY Banking .

  13. Slide 13: Treasury

    Treasury Increased income from treasury activities, driven by the strong appreciation of the polish zloty Treasury result (PLN MM) Balance sheet structure 811 Assets Cash and operations 563 YoY. QoQ 7% 9% 2% 8% with Central Bank and 15% amounts due from 509 342 banks 416 554 +3x (2%) 63% 56% 55% 63%

  14. Slide 14: Expenses

    Expenses Operating expenses (PLN MM) Expenses by type (PLN MM) Higher remuneration expenses and IT expenses partially offset Continued higher remuneration expenses and by lower regulatory costs higher IT expenses related to ICT infrastructure YoY QoQ 414 301 307 316 415 0% +31% 4 2 (1) 24 (37) 8 81

  15. Slide 15: Cost of Risk

    Cost of Risk Cost of Risk Coverage ratio and NPL (%) Return of costs of risk to normalized levels, Good quality of the Bank’s loan portfolio, annual normalized costs of risk 36 basis points in line with the Strategy significantly better comparing to the banking sector (PLN MM) 49 Coverage ratio 35 C

  16. Slide 16: Summary of the Capital Group financial results

    Summary of the Capital Group financial results 1Q23 4Q22 rQoQ 1Q22 rYoY Net interest income 847 897 (6%) 445 90% Net fee and commission income 141 141 (0.2%) 151 (7%) Core revenue 988 1,038 (5%) 596 66% Treasury 256 (3) - 238 7% Other (2) 4 - 1 - Total revenue 1,242 1,039 20% 836 49% Expenses (415)

  17. Slide 17: Citi Handlowy – change in share price

    Citi Handlowy – change in share price Higher yield on Bank share prices comparing to WIG-Banks index Change in Bank’s share price vs. WIG-Banks index BHW valuation vs. other banks* 90 Summary of share price performance 600 000 (1 year perspective) P/E Citi Handlowy: +75% 14 BHW 80 WIG-Banks index: +

  18. Slide 18: Appendix

    Appendix

  19. Slide 19: Forecasts for Polish economy

    Forecasts for Polish economy GDP of Poland (%, YoY) Most likely, the economy’s worst is over. The following quarters can improve activity, inter alia due to fiscal transfers • Inflation of consumer prices is already peak. In turn, makro data suggest that the Polish economy was in the recession at th

  20. Slide 20: Capital Group – profit and loss account

    Capital Group – profit and loss account 1Q23 vs.4Q22 1Q23 vs.1Q22 1Q22 2Q22 3Q22 4Q22 1Q23 PLN MM PLN MM % PLN MM % Net interest income 445 667 732 897 847 165 23% 402 90% Net fee and commission income 151 151 136 141 141 (0) (0%) (11) (7%) Dividend income 0 9 1 0 0 (0) (97%) (0) (93%) Net gain on t

  21. Slide 21: Institutional Banking – profit and loss account

    Institutional Banking – profit and loss account 1Q23 vs.4Q22 1Q23 vs.1Q22 1Q22 2Q22 3Q22 4Q22 1Q23 PLN MM PLN MM % PLN MM % Net interest income 276 447 562 632 583 (49) (8%) 307 111% Net fee and commission income 105 103 94 99 102 2 2% (3) (3%) Dividend income 0 2 1 0 0 (0) (97%) (0) (78%) Net gain

  22. Slide 22: Consumer Banking – profit and loss account

    Consumer Banking – profit and loss account 1Q23 vs.4Q22 1Q23 vs.1Q22 1Q22 2Q22 3Q22 4Q22 1Q23 PLN MM PLN MM % PLN MM % Net interest income 169 219 170 265 265 (0) (0%) 96 57% Net fee and commission income 47 48 42 41 39 (2) (6%) (8) (16%) Dividend income 0 8 - 0 - (0) (100%) (0) (100%) Net gain on t

  23. Slide 23: Balance sheet - assets

    Balance sheet - assets End of period 1Q23 vs. 4Q22 1Q23 vs. 1Q22 1Q22 2Q22 3Q22 4Q22 1Q23 PLN B % PLN B % PLN B Cash and balances with the Central Bank 2,7 4,1 9,1 0,6 1,8 1,2 197% (0,9) (35%) Amounts due from banks 2,1 2,4 1,8 1,0 3,9 2,9 278% 1,8 84% Financial assets held-for-trading 14,3 10,3 10,

  24. Slide 24: Balance sheet – liabilities and equity

    Balance sheet – liabilities and equity End of period 1Q23 vs. 4Q22 1Q23 vs. 1Q22 1Q22 2Q22 3Q22 4Q22 1Q23 PLN B % PLN B % PLN B Liabilities due to banks 4,5 3,3 3,7 4,8 4,7 (0,1) (3%) 0,1 3% Financial liabilities held-for-trading 10,2 9,5 9,4 4,9 3,6 (1,3) (27%) (6,7) (65%) Financial liabilities due

  25. Slide 25: Contact

    38 Contact Investor Relations: relacjeinwestorskie@citi.com Adam Piotrak Investor Relations Head adam.piotrak@citi.com Monika Paczuska Investor Relations Manager monika.paczuska@citi.com 25 25

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