Bank Handlowy W Warszawie S.a. · GPW:BHW
Bank Handlowy W Warszawie — Merger or Acquisition (May 2025)
29 slides from Bank Handlowy W Warszawie's merger presentation, May 27, 2025
Slide 1: Consumer Bank Exit – Bank for Global Business
May 27, 2025 Consumer Bank Exit Bank for Global Business
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Bank Handlowy w Warszawie S.A. (“Citi Handlowy”) solely for information purposes and is addressed to investors and analysts. This Presentation should not be treated as part of an invitation or offer to sell any securities, invest
Slide 3: Consumer Bank Exit – Transaction; Bank for Global Business
• Consumer Bank Exit – Transaction • We set off on a new journey – Bank for Global Business 2025-2027 Strategic Directions
Slide 4: Consumer Bank Exit
Consumer Bank Exit
Slide 5: Strategic Rationale
Strategic Rationale • Focus on institutional clients, with the aim of deepening client relationships Rationale to exit • Directing investments and resources in the area in which Citi Handlowy has competitive advantages as well as scale the Consumer • High sensitivity to rates of Consumer Business re
Slide 6: Transaction Highlights
Transaction Highlights • Sale of Citi Handlowy Consumer Business (incl. credit cards, unsecured loans, PLN mortgages, retail deposits and assets under management, Transaction wealth management, retail brokerage, and micro clients business, as well as c. 1,650 employees and branches servicing Consume
Slide 7: Transaction Financial Implications
Transaction Financial Implications Transaction perimeter (PLN Bn, Q1 2025) Shareholder value and transaction economics (PLN MM) Blended P/BV multiple of 0.85x incl. capital release and earnings Customer loans Customer deposits (P/BV multiple of 0.77x excluding variable consideration) 1,102 (with max
Slide 8: Citi Handlowy Post Demerger (pro forma)
Citi Handlowy Post Demerger (pro forma) Loans (PLN Bn, Q1 2025) Deposits (PLN Bn, Q1 2025) 30 70 25 60 6.0 50 20 22.1 40 15 24.8 30 58.2 10 18.8 20 36.1 5 10 0 0 Current Citi Handlowy Transaction Perimeter Citi Handlowy pro forma Current Citi Handlowy Transaction Perimeter Citi Handlowy pro forma (U
Slide 9: Supporting global ambitions, strengthening Polish businesses
for the love of supporting global ambitions strengthening Polish businesses for the love of progress®
Slide 10: Economic Outlook
Economic Outlook Stable economy with positive outlook driven by investments Poland’s GDP is set for a rebound Rates expected to decline Inflation heading towards Central Bank’s target GDP growth (% YoY) NBP reference rate Inflation 6.9 Forecast (EoP, %) (CPI EoP, % YoY) 18 5.9 5.3 8 Forecast Forecas
Slide 11: Industry Trends and Country Priorities Support a Focus on Institutional Banking
Industry Trends and Country Priorities Support a Focus on Institutional Banking We are focused on helping institutional clients navigate recent trends which create substantial business opportunities Trade • Trade corridors shifting away from traditionally established partners corridors • Capturing i
Slide 12: Citi Handlowy Institutional Banking Today
Citi Handlowy Institutional Banking Today Institutional PLN 3.2 Bn 25% PLN 32.1 Bn PLN 15.3 Bn PLN 377 Bn PLN 12 Tn Banking Revenue Cost/Income Deposits Loans Assets under custody Outgoing payments Value (2024) Product Mix Client Mix 2024 Revenue 2024 Client Revenue 6% Transactional banking Global N
Slide 13: How We Serve Institutional Clients
How We Serve Institutional Clients • Liquidity Management Help move, manage, and invest balances efficiently, while managing risk and optimizing financial outcomes • Payments Deliver a consistent and connected Global SERVICES • Full types of financing re Payments experience powered by agile and BANK
Slide 14: Proven Track Record
Proven Track Record Landmark deals executed for our clients PLN 1.77B Financing of the strategic EUR 3.2 Bn EUR 101MM PLN 1.25 Bn investments in Poland: EUR 300 MM Climate Awareness Energy sector PLN 820 MM IPO on Amsterdam Bond transformation, Syndicated financing decarbonization of the Stock Excha
Slide 15: Bank for Global Business 2025-2027 Strategic Directions
Bank for Global Business 2025-2027 Strategic Directions
Slide 16: Path Forward
PATH FORWARD: Citi Handlowy expertise and Citi’s global network allow us to serve clients in a way others simply cannot. With consumer business divestiture underway, we will accelerate our growth by winning with our institutional clients. 16
Slide 17: Institutional Business Strategy
Institutional Business Strategy Our well-positioned Institutional Business gives us a solid foundation for growth To be the preeminent banking partner for clients with cross-border needs and Vision aspirations. As the most global bank in Poland with 155-years experience in the Polish market, we want
Slide 18: Key Themes – Increased Defense Spending
Key Themes – Increased Defense Spending Given geopolitical situation defense remains the highest priority on the country agenda Poland defense budget (PLN Bn) Client value proposition • Solutions for defense related contracts in the form of long- term financing backed by export agency 187 5% 158 of
Slide 19: Key Themes – Energy Transition
Key Themes – Energy Transition Global industry expertise and deep local relationships allow for active participation in Poland’s energy transformation Transition towards sustainable energy Client value proposition Today 2040 • Global Energy industry expertise • FX and risk management • Trade finance
Slide 20: Key Themes – New Economy Clients
Key Themes – New Economy Clients Dedicated solutions for fast growing Tech industries Market outlook Citi Handlowy - estimated wallet growth Client value proposition 3-year CAGR potential • 24/7 (also high volume) instant payments, including Global FinTech & Payments 22% 5x liquidity and real-time c
Slide 21: Modernize Platforms and Infrastructure
Modernize Platforms and Infrastructure Modern and digital bank of first choice for international and digital native clients Online Banking System connectivity Trade finance – Citi Trade Portal CitiConnect® Full Control • Cost awareness • Limits availability • Transactions status • Customizable repor
Slide 22: Technology Strategy Divided into Blocks
Technology Strategy Divided into 7 Blocks Technology rollout to become the bank of first choice for clients with international needs 01 02 03 GO TO COMMON – PROCESSES & DIGITAL EMPLOYEES GLOBAL CENTRIC APPROACH INFRASTRUCTURE EXCELENCE STRATEGY Empower clients & frontline Unification with Citi of IT
Slide 23: Financial Targets
Financial Targets
Slide 24: Path to Higher Returns Profile
Path to Higher Returns Profile Focus on deepening and broadening client relationships, offering unique client solutions with enhanced allocation of resources and capital 2027 Targets Leading Bank ROE ROA C/I in terms of returns ~19% ~2.6% < 30% CLIENT PRODUCT CAPITAL • Focus on core competences – •
Slide 25: Key Financial Highlights
Key Financial Highlights Improved Returns and Higher Dividend Pool Higher returns for shareholders Net income • Consumer Business net income replaced by Institutional Banking by 2027 • 2027 ROE at ~19% level vs. 15% published in December • Diversified revenue mix and composition of balance • 2027 RO
Slide 26: Unlocked Growth Potential
Unlocked Growth Potential Accelerated growth, efficient business model and disciplined capital management lead to improved ROE 2027 Return on Equity (%) Distribution of undistributed profits Deconsolidation of net Investment of from previous years 2) income 1) and allocated released capital from cap
Slide 27: High Payouts for Shareholders
High Payouts for Shareholders Track record of stable dividend payments Dividend payout PLN 14.4 Bn Global Covid-19 100% financial crisis 90% Value creation for 80% shareholders 70% 60% 75% - 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 99% 99% 98% 50% 94% regular dividend 86% 80% 77% 40% 75% 75
Slide 28: New 2027 KPIs
New 2027 KPIs Our repositioning will shift business mix and allow Citi Handlowy to create more value for shareholders 2025-2027 Universal Bank Strategy New 2025-2027 Strategic Directions (published in December 2024) Bank for Global Business Profitability ROE >15% ROE ~19% ROA >1.8% ROA ~2.6% Efficie
Slide 29: > = O Oo Cc w c = O
> = O Oo Cc w c = O
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