Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — H1 2022 Earnings Presentation
37 slides from Erste Bank Polska's earnings presentation, Jul 28, 2022
Slide 1: Financial Results of Santander Bank Polska Group for H1 2022
Investor Relations Warsaw 28/7/2022 Financial Results of Santander Bank Polska Group for H1 2022
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 2022 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Our communication Social media ATL campaigns / TV • Saving cycle – continuation of the initiative where we March: we launched a campaign to promote Account As I Want It with the mobile app which makes everyday show convenient saving solutions to our customers life easier for our custo
Slide 5: Our people
01 | Our activities and our people Our people COVID-19 pandemic In March, following the removal of coronavirus restrictions by the Ministry of Health, we We develop modern work tools invited our employees to come back to the office and announced removal of the majority On the basis of data analy
Slide 6: Our business development
H1 2022 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for H1 2022 – Our business development General operational data Key volumes SBP* SCB** gross loans 158 bn 11.6% +8% YoY Branches 369* 50** 184 bn deposits 11.4% +4% YoY Employment 9.6k 1.5k customer funds 196 bn Customers 5.6m 1.7m +2% YoY Digital Customers 3.2m 282k assets 245 bn +7% Y
Slide 8: Key financial results and financial ratios
02 | Results for H1 2022 – Our business development Key financial results Financial ratios for 2022 For 2022 Key results Capital position ROE, ROA Strong capital position well above PLN 5 179m PLN 1 281m PLN 6 513m PLN 1 616m the KNF requirements +86% YoY +6% YoY +41% YoY +332% YoY +% YoY on a compa
Slide 9: Our customers
Results for H1 2022 Our customers 03
Slide 10: Our customers in numbers
03 | Results for H1 2022 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.1m customers +5% YoY 494k customers +9% YoY 26.1k customers +3% YoY 20.8k digital 2.8m digital 328k digital +4% YoY customers +12% YoY customers +9% YoY customers 2.1m mobile 154k
Slide 11: New products and services
03 | Results for H1 2021 – Our customers New products and services Retail SME Corporate customers customers customers The customers with access to Santander We have started selling Business Impet We have introduced new functionalities internet can use the Asseco qualified Deposit (“Lokata Bizn
Slide 12: Education and support for customers
03 | Results for H1 2022 – Our customers Education and support for customers Retail Customers SME Customers BCB Customers We have continued our support for Ukrainian As part of the “EmPOWERed in business” customers: project, we worked together with the ‒ we implemented the account as required Po
Slide 13: Selected business data
03 | Results for H1 2022 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers +17% YoY PLN 2.4 bn +5% YoY PLN 1.3 bn +28% YoY +34% YoY +147% YoY +131% YoY Number of Cash loan Balance of Loans Transactional Income on eFX Income from trading Income from cas
Slide 14: Our financial performance
Results for H1 2022 Our financial performance 04
Slide 15: Gross loans
04 | Results for H1 2022 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans Santander Bank Polska S.A. +8% The loan portfolio increased by 9% YoY. Sales of mortgage loans in Q2 2022: +10% vs. Q2 152 252 155 598 158 390 10% 147 212 150 399 2021 and -18% vs. Q1 20
Slide 16: Customer funds
04 | Results for H1 2022 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding +6% Customer funds +2% YoY and -3% QoQ. 185 373 187 320 183 536 9% 173 180 177 320 4% Deposits SBP Group 6% An increase in retail deposits by 4% YoY an
Slide 17: Net interest income and net interest margin
04 | Results for H1 2022 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m Net interest income increased by 86% YoY. In Q2 2022 net interest income increased by 31% 2 935 2 244 323 vs. Q1 2022. 1 731 Interest income increase by 97% YoY an
Slide 18: Net fee and commission income
04 | Results for H1 2022 – Our financial performance Net fee and commission income Comment Net fee and commission 661 PLN m 635 641 621 Net commission income increased by 6% YoY income 600 43 35 50 22 46 98 74 and declined by 6% QoQ. 96 99 108 Good results in accounts and transfer fees Other 136
Slide 19: Income
04 | Results for H1 2022 – Our financial performance Income Income PLN m 3 526 9 Comment 2 988 621 2 556 83 The Group's total income in H1 2022 amounted 2 262 2 206 9 661 175 to PLN 6,513m and increased by 49% Dividends 102 1 126 148 641 compared to H1 2021 and by 18% compared 635 600 to Q1 2022.
Slide 20: Operating expenses
04 | Results for H1 2022 – Our financial performance Operating expenses Operating expenses PLN m Comment 1 343 1 189 38 Other operating expenses 1 101 41 131 Total costs in H1 2022 driven by regulatory levies 910 926 124 133 (BFG and IPS). Regulatory costs (BFG, KNF, 46 35 143 KDPW and IPS) increa
Slide 21: Provisions and credit portfolio quality
04 | Results for H1 2022 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 0.99% 0.89% 0.76% 5.8% 5.4% 5.0% 4.8% 4.7% 0.58% 0.48% 30.06.2021 30.09.2021 31.12.2021 31.03.2022 30.06.2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Balance of prov
Slide 22: Banking tax and regulatory costs, NPL sales
04 | Results for H1 2022 – Our financial performance Banking tax NPL sales and regulatory costs Amounts payable to the PLN m PLN m NPL sales BFG, KNF, KDPW and IPS 329 288 227 214 191 175 83 404 30 31 288 33 34 34 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 SBP SC
Slide 23: Results for H1 2022
04 | Results for H1 2022 – Our financial performance Results for H1 2022 Results for H1 2022 Comment On a H1 2022 H1 2021 % YoY comparative PLN m basis* In H1, further increase in net interest income (31% QoQ and 86% vs.H1 2021) and in net commission Net interest and fee income 6 460 3 998 62% 62%
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 +4% (gross) +2% portfolio (gross) YoY YoY 51 447 52 913 54 327 53 543 53 316 PLN mortgage loans 8 819 7 142 6 482 FX 8 732 8 805 portfolio: +10% YoY PLN FX mortgage loans 14 680 14 671 14 686 1
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio bn PLN Market share Leasing portfolio at PLN 12.15bn, +10% YoY, +10% Net sales value at PLN 3.26bn in H1 2022, - 2.7 % YoY, Excellent C/I at 34.5% 12 157 11 820 11 759 11 499 Santander Leasing was the first in the leasing industry to introduce a bio
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market Share 9% 8 035 PLN m +18% 6 786 In H1 2022, Santander Factoring maintained its first position on the market in terms of the balance sheet, reporting 18% YoY growth in 30.06.2021 30.06.2022 balances and 18% market share. Santander Factoring al
Slide 28: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 19.18% 17.31% 21.16% 19.14% L/D ratio Capital ratios 77,47% 71.93% 72.38% 71.54% 73,92% 30.06.2022 30.06.2021 CAR TIER 1 30.06.2021 30.09.2021 31.12.2021 31.03.2022 30.06.2022 Santander Bank Santan
Slide 29: Key financial ratios
05 | Attachments Key financial ratios H1 2021 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group H1 2022 H1 2021 Cost/ income 38.9% 44.8% Net interest income/ total income 79.5% 63.6% Net interest margin 1) 4.63% 2.6% Net fee and commission income/ total income 19
Slide 30: 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 31: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 30.06.2022 30.06.2021 YoY (%) QoQ (%) 16 902 17 124 17 350 16 830 16 922 2 904 2 895 2 894 2 427 2 295 Retail customers 12 899 13 290 -3% -2% 3 612 3 525 3 539 3 687 4 024 Mortgage Mortgage loans 2 295 2 904 -23% -5% 10 386 10 70
Slide 32: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Key financial results for H1 2022 PLN m H1 2022 H1 2021 Assets 20 114 19 295 Net loans 15 249 14 986 Deposits 9 032 8 656 Total equity 3 936 3 815 PAT 253 80 L/D (%) 168.8% 173.1% C/I (%)* 56.5% 61.1% ROE (%) 13.0% 4.2% ROA (%) 2.5% 0.8% TCR (%)** 28.6%
Slide 33: Environmental: supporting the green transition
05 | Attachments Continued 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 Ranking Best Bank ESG PLN 996m PLN 600m Responsible for CR2 Climate Risk Materiality green build
Slide 34: Main aid activities & support for employees and refugees from Ukraine
05 | Attachments Main aid activities & support for employees and refugees from Ukraine Free international money transfers to/from Ukraine (also for SMEs) Clients with Suspension of account maintenance and card fees (also for SME accounts and debit cards) Ukrainian citizenship Simplification of
Slide 35: Major charity initiatives for Ukrainian refugees
05 | Attachments Major charity initiatives for Ukrainian refugees “Podwójna Moc Pomagania” Free Polish language course conducted in Santander matches private cooperation with the University of Szczecin. donations Total amount collected: PLN 4.25m Humanitarian Corridors "Ukrainian Fairy Tales". Warsa
Slide 36: 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 37: 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