Bank Millennium SA · GPW:MIL
Bank Millennium SA — FY2017 Earnings Presentation
28 slides from Bank Millennium SA's earnings presentation, 2018
Slide 1: Bank Millennium Group – Presentation of 2017 preliminary results
BANK MILLENNIUM GROUP Presentation of 2017 preliminary results
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Bank Millennium for its stakeholders for information purpose only. The information presented in this presentation should be read together with other information published by the Bank (on www.bankmillennium.pl), in particular financial and current rep
Slide 3: Presentation of 2017 Results
PRESENTATION OF 2017 RESULTS > Financial performance > Business development > Appendixes
Slide 4: Summary of 2013-2017 Achievements (1)
SUMMARY OF 2013-2017 ACHIEVEMENTS (1) Improvement of recurrent profitability after impacts of low interest rates and new regulatory / tax charges. Efficiency improving to targeted level. Solvency at record high covering well in excess all new capital thresholds. Net Income (PLN million) Core Income
Slide 5: Summary of 2013-2017 Achievements (2)
SUMMARY OF 2013-2017 ACHIEVEMENTS (2) Solid growth of business volumes supported by strong increase of active clients (strategic 3-year target exceeded). Strong focus on digital channels and quality of service Customer Deposits (PLN million) Retail PLN Loans (PLN million) Companies Loans (PLN millio
Slide 6: Main Financial Highlights of 2017
MAIN FINANCIAL HIGHLIGHTS OF 2017 Continued improvement of profitability and efficiency driven by core income growth. Very high capital ratios after retention of net profit, T2 capital issue and IRB decision impact Improvement of profitability 2017 Net profit reached PLN 681 million which is 31% hig
Slide 7: Profitability and Cost Efficiency
PROFITABILITY AND COST EFFICIENCY Core Income solid yearly growth significantly outpaced cost growth … … allowing Cost to Income to come down to 46% - level targeted in the strategy for 2017 year Net profit (PLN million) Operating income * (PLN million) +12.7% without one-offs *** 10.4% ROE 9.3% +2.
Slide 8: Interest and Commission Income
INTEREST AND COMMISSION INCOME Double-digit yearly growth of Net Interest and Commission Income Net Interest Margin significantly improved versus 2016 Net Interest Income * (PLN million) Interest on loans and deposit (PLN million) +11.6% 1 737 1 556 4,09% 4,20% 4,08% 4,05% 4,03% 4,09% 4,18% 4,22% In
Slide 9: Asset Quality and Liquidity
ASSET QUALITY AND LIQUIDITY Solid asset quality and liquidity; Cost of risk consistent with targeted levels and historical average Impaired Loans P&L impairment provisions (PLN million) 12,1% 12,3% 12,5% 12,2% 11,8% 49 54 Cost of Risk * +10.5% Total loans Mortgage 255,4 231,2 Other retail 2,7 5,0% 8
Slide 10: Capital Adequacy
CAPITAL ADEQUACY Very high capital ratios after subordinated bond issue and IRB decision Further increase to come in 1Q2018 after retention of FY 2017 net profit in own funds Group Capital Ratios * Capital developments 3.5 p.p. • The Bank issued in December PLN 700 million 10-year NC5 above subordin
Slide 11: Presentation of Results in 2017
PRESENTATION OF RESULTS IN 2017 > Financial performance > Business development > Appendixes
Slide 12: Main Business Highlights in 2017
MAIN BUSINESS HIGHLIGHTS IN 2017 Strong business results in 2017 set solid foundations for challenges set in the new strategy for 2018-2020 Main strategic goals Active customers net growth during 3 years reached 351 ths. (target: 300 ths.) in business area are Market share in retail deposits reached
Slide 13: Loans and Deposits
LOANS AND DEPOSITS Solid growth of lending (excluding FX mortgages, which dropped to 30% of total portfolio). Retail deposits decelerated as non-deposit savings surged Loan Portfolio of the Group (net) (PLN million) Customer Deposits (PLN million) +13.7% without FX mortgage +2.5% +11.8% +4.5% +8.9%
Slide 14: Retail Business – Deposits and Accounts
RETAIL BUSINESS – DEPOSITS AND ACCOUNTS Over 1.6 million active customers – 351k net growth during last 3 years (strategic target met) Retail Customer Funds (PLN million) Active retail clients (in thousand) 5.5% +144 +351 ths 26.3% +40 9.1% in 3 years 49 663 +39 47 061 49 035 +34 7 379 8 954 9 319 +
Slide 15: Use of Electronic Channels
USE OF ELECTRONIC CHANNELS High share of electronic channels in product sales volume 1144k (+17% y/y) 711k (+39% y/y) Retail clients active in online and mobile banking Retail clients actively using mobile devices for banking 41% 40% 99% 88% of all new term of all transfers deposits were of all cash
Slide 16: Retail Business – Loans
RETAIL BUSINESS – LOANS Strong growth of PLN mortgage compensates faster amortisation of FX mortgage portfolio Retail loans (gross) (PLN million) Cash loans new sales (PLN million) 9% +1.7% 19% -20% 2 265 2 304 34 084 33 408 32 953 6 269 6 761 Consumer loans 6 849 9 572 PLN mortgage 10 856 11 421 55
Slide 17: Companies Business – Deposits and Loans
COMPANIES BUSINESS – DEPOSITS AND LOANS Accelerated growth of lending to companies and current accounts balances Companies deposits (PLN million) Loans to companies (gross) (PLN million) +12% +4.5% +11% -4.4% +9% +17.0% +13% 16 597 16 930 +2.1% 16 194 15 690 15 955 14 301 9 034 2 092 2 148 9 448 10
Slide 18: Companies Business – New Loans
COMPANIES BUSINESS – NEW LOANS New record sale in factoring and leasing; high pace of new loans granted Leasing – new sales (PLN million) Factoring – turnover (PLN million) +15% +15% 3 034 16 794 2 643 14 640 755 751 838 4 222 4 303 4 512 690 3 757 2016 1Q 17 2Q 17 3Q 17 4Q 17 2017 2016 1Q 17 2Q 17
Slide 19: New Solutions in Millenet and Mobile Application
NEW SOLUTIONS IN MILLENET AND MOBILE APPLICATION Digital solutions are delivering most relevant upgrade of product functionalities; create basis for accelerated growth 2020 Strategy Savings and investments Travel and Moto Mobile contactless Development of e- new platform in app & insurance in app pa
Slide 20: Presentation of Results in 2017 – Appendixes
PRESENTATION OF RESULTS IN 2017 > Financial performance > Business development > Appendixes
Slide 21: Macroeconomic Overview
MACROECONOMIC OVERVIEW 2017 year marked solid acceleration of GDP growth in Poland, which was accompanied by strong appreciation of Polish currency Interest rates evolution (%) FX rates evolution Q-o-Q (bp) 0 -1 -2 Q-o-Q -3.2% -5.2% -4.7% Y-o-Y (bp) 0 -1 -2 Y-o-Y -5.7% -13.4% -16,7% GDP growth & une
Slide 22: Macroeconomic Overview
MACROECONOMIC OVERVIEW Monetary aggregates showed deceleration of deposits growth and acceleration of loans versus 2016 (when excluding FX effect) Loans to households (PLN billion, % y/y) Households’ deposits (PLN billion, % y/y) Loans to companies (PLN billion, % y/y) Companies’ deposits (PLN billi
Slide 23: Bank Millennium Share Performance
BANK MILLENNIUM SHARE PERFORMANCE Bank Millennium was the leader of banks’ shares growth on the Warsaw Stock Exchange in 2017 Market cap/liquidity (PLN million) Bank Millennium share performance vs. main indices Avg. daily turnover (PLN m) Change Market Capitalization Market ratios 29.12.2017* 30.12
Slide 24: Most Important Awards and Recognitions (1)
MOST IMPORTANT AWARDS AND RECOGNITIONS (1) In 2017 Bank Millennium received several awards for quality of products & services and social responsibility … Quadruple podium For 7 years on podium 1st place in „Personal account” First position in customer 2nd place in „Mortgage loans” 1st place in the „
Slide 25: Most Important Awards and Recognitions (2)
MOST IMPORTANT AWARDS AND RECOGNITIONS (2) … as well as for digital solutions BAI * PRIZE WINNER Service Quality Star The best digital consumer bank „Breakthrough Collaboration in in Poland Financial Services” and The best trade finance services Bank Millennium was honoured with for innovative solut
Slide 26: Synthetic P&L Account
SYNTHETIC P&L ACCOUNT (PLN million) Change Change Pro-forma 2016 2017 Y/Y 4Q’16 3Q’17 4Q’17 Q/Q Net interest income* 1 556,5 1 736,9 11,6% 407,3 446,6 449,2 0,6% Net commission income 581,0 663,6 14,2% 156,7 165,5 169,4 2,3% Other non-interest income ** 334,7 124,7 -62,7% 17,3 45,5 37,6 -17,2% Opera
Slide 27: Balance Sheet
BALANCE SHEET (PLN million) ASSETS 31/12/2016 30/09/2017 31/12/2017 Change y/y Cash and balances with the Central Bank 1 779 3 672 2 080 16,9% Loans and advances to banks 1 268 356 254 -79,9% Loans and advances to customers 47 020 47 593 47 411 0,8% Amounts due from reverse repo trans. 91 305 0 -100
Slide 28: Investor Relations contact
Investor Relations contact: Artur Kulesza Katarzyna Stawinoga Head of Investor Relations Tel: +48 22 598 1110 e-mail: katarzyna.stawinoga@bankmillennium.pl Tel: +48 22 598 1115 e-mail: artur.kulesza@bankmillennium.pl Marek Miśków Tel: +48 22 598 1116 e-mail: marek.miskow@bankmillennium.pl 28 www.ban