Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q1 2023 Earnings Presentation
35 slides from Erste Bank Polska's earnings presentation, Apr 25, 2023
Slide 1: Financial Results of Santander Bank Polska Group for Q1 2023
Investor Relations Warsaw 25/04/2023 Financial Results of Santander Bank Polska Group for Q1 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 Q1 2023 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Our communication Social Media “Fairy tales for adults” – we have continued an image- building and educational cybersecurity campaign that won 1 gold and 2 bronze awards in the “Złote Spinacze” Piotr Adamczyk is the new ambassador of Santander competition and was recognised by the jur
Slide 5: Our people
01 | Our activities and our people Our people Improved employee experience We develop modern work tools We are building a corporate culture with a focus on the employee and continuous improvement of Our internal platforms and services are kept up-to-date to reflect the new legislation. In Q1, we
Slide 6: Our business development
Q1 2023 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for Q1 2023 – Our business development General operational data Key volumes SBP* SCB** gross loans 161 bn 11.8% +3% YoY Branches 349* 50** 197 bn deposits 11.3% +5% YoY Employment 9.6k 1.5k customer funds 211 bn Customers 5.7m 1.7m +5% YoY Digital Customers 3.4m 767k assets 259 bn +5% Y
Slide 8: Key financial results and financial ratios
02 | Results for Q1 2023 – Our business development Key financial results Financial ratios for Q1 2023 For Q1 2023 Key results Capital position ROE, ROA PLN 3 092m PLN 662m PLN 3 745m PLN 1 192m Strong capital position well above the KNF requirements +38% YoY +0,3% YoY +25% YoY +24% YoY +40% on comp
Slide 9: Our customers
Results for Q1 2023 Our customers 03
Slide 10: Our customers in numbers
03 | Results for Q1 2023 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.2m customers +4% YoY 503k customers +4% YoY 26.8k customers +2% YoY 21.4k digital 3.0m digital 352k digital +3% YoY customers +7% YoY customers +9% YoY customers 2.3m mobile 182k m
Slide 11: New products and services
03 | Results for Q1 2023 – Our customers New products and services Retail SME Corporate customers customers customers We launched a special offer for new money in We proposed to our customers another We implemented further improvements the Max Savings Account (Konto Max special offer for Busin
Slide 12: Education and support for customers
03 | Results for Q1 2023 – Our customers Education and support for customers Retail Customers SME Customers BCB Customers As the first bank on the market we Together with inFakt, provider of introduced a fully remote process of seeking eAccounting (eKsięgowość) service, we and getting statements
Slide 13: Selected business data
03 | Results for Q1 2023 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers +12% YoY PLN 2.3bn 19.2k 54% +83% YoY +11% YoY +134% YoY +91% YoY Number of Cash loan Business Digital Transactional Income on eFX Income from Global Trade finance Accounts sale
Slide 14: Our financial performance
Results for Q1 2023 Our financial performance 04
Slide 15: Gross loans
04 | Results for Q1 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 2% YoY. 155 598 158 390 159 511 158 393 160 624 Mortgage loan sales: -73% Q1 2023/Q1 2022; 11% +20% Q1 2023/Q4 2022 32% C
Slide 16: Customer funds
04 | Results for Q1 2023 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding +5% Customer funds +5% YoY and +1% QoQ. 4% 7% Deposits SBP Group 189 501 196 497 197 172 187 320 183 536 34% 11% An increase in retail deposits by 1% Y
Slide 17: Net interest income and net interest margin
04 | Results for Q1 2023 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In Q1 2023, net interest income totalled PLN 3.1bn 2 935 2 833 3 092 and increased by 9% compared to the previous 2 244 323 337 310 quarter and by 38% YoY. 328 1 641
Slide 18: Net fee and commission income
04 | Results for 1Q 2023 – Our financial performance Net fee and commission income Comment Net fee and commission PLN m In Q1 2023, net fee and commission income income 666 662 661 621 619 did not change YoY and increased by 7% 35 31 31 Other 22 75 25 87 98 74 QoQ. 82 162 154 YoY strong results
Slide 19: Income
04 | Results for Q1 2023 – Our financial performance Income Income PLN m 3 746 3 526 3 514 2 988 621 62 662 619 Comment 83 2 354 661 The Group's total income in Q1 2023 amounted Other 47 to PLN 3,746m and increased by 25% YoY. 666 Higher net interest income due to interest rate 3 092 2 935 2 833
Slide 20: Operating expenses
04 | Results for Q1 2023 – Our financial performance Operating expenses Operating expenses PLN m Comment 1 343 1 190 38 1 266 131 1 180 43 Total costs in Q1 2023 influenced by the inflationary Other operating expenses 41 60 986 134 133 130 environment, strong pressure on wages and 57 Amortisation/
Slide 21: Provisions and credit portfolio quality
04 | Results for Q1 2023 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 4.90 4.95% 4.83% 4.82% 4.70% 0.59% 0.64% 0.59% 0.55 0.48% 31.03.2022 30.06.2022 30.09.2022 31.12.2022 31.03.2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Balance of p
Slide 22: Banking tax and regulatory costs, NPL sales
04 | Results for Q1 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 404 288 279 231 175 168 195 288 150 214 83 31 12 187 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 20
Slide 23: Results for Q1 2023
04 | Results for Q1 2023 – Our financial performance Results for Q1 2023 Results for Q1 2023 Comment PLN m Q1 2023 Q1 2022 % YoY In Q1 2023, net interest and fee income increased Net interest and fee income 3 755 2 905 29% by 29% compared to 2022. Gross income 3 746 2 988 25% Total costs -1 266 -1
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) +5% advances portfolio (gross) 53 543 53 316 52 164 50 898 50 796 PLN mortgage loans FX 7 142 6 482 portfolio: -0,3% YoY 6 488 5 751 4 534 PLN FX mortgage loans 15 043 15 460 po
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio The company has provided access to a dedicated website - zielonepanele.pl - PLNbn where customers can see the benefits of investing in photovoltaics. This way, the company wants to reach a new group of customers and expand +10% knowledge about the benefit
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market Share 10% 7 558 PLNm +1% 7 448 In Q1 2023, Santander Factoring achieved second position on the 31.03.2022 31.03.2023 market in terms of the balance sheet, reporting 1% YoY growth in balances. Santander Factoring also maintains its first posit
Slide 28: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 21.04% 19.39% 18.12% 16.19% L/D ratio Capital ratios 77.47% 75.31% 73.92% 72.63% 73.83% 31.03.2023 31.03.2022 CAR TIER 1 31.03.2022 30.06.2022 30.09.2022 31.12.2022 31.03.2023 Santander Bank Santan
Slide 29: 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 Euromoney Bank of the Global ESG Ethical €173m €170m Market Year Monitor Company 2022 Leader For F
Slide 30: Key financial ratios
05 | Attachments Key financial ratios Q1 2023 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group Q1 2023 Q1 2022 Cost/ income 33.8% 39.8% Net interest income/ total income 82.6% 75.1% Net interest margin 1) 5.4% 4.02% Net fee and commission income/ total income 17
Slide 31: 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 32: Santander Consumer Bank Group - loans
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 17 202 17 616 31.03.2023 31.03.2023 r/r (%) kw/kw (%) 16 830 16 922 17 135 2 295 2 282 1 935 1 820 2 427 Retail customers 12 759 13 143 -3% 0% 3 687 4 024 4 142 4 384 4 857 Mortgage Mortgage loans 1 820 2 427 -25% -6% 10 716 10 6
Slide 33: Santander Consumer Bank Group - key financial results
05 | Attachments Santander Consumer Bank Group Key financial results for 2023 PLN m Q1 2023 Q1 2022 Assets 21 023 19 615 Net loans 16 047 15 024 Deposits 11 203 8 814 Total equity 4 240 3 916 PAT 41 146 L/D (%) 143.2% 170.4% C/I (%)* 67.5% 47.3% ROE (%) 3.8% 15.1% ROA (%) 0.8% 2.9% TCR (%)** 29.8% 2
Slide 34: 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 35: 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