Slide 1: Results of mBank Group Q2 2014
Results of mBank Group Q2 2014 PLN 1 billion in revenues Management Board of mBank S.A. Investor Presentation July 30, 2014
Slide 2: Key highlights of Q2 2014
Key highlights of Q2 2014 Record high total income driven by core revenues Net Profit of PLN 324.8 M … • NII up 4.4% QoQ and 12.2% YoY amid accelerating lending • NFC up 0.9% QoQ and 16.5% YoY Profit & Loss on growing client business Volumes on upward trajectory • Gross loans at PLN 72.7 B Best-in-c
Slide 3: Agenda
Agenda Summary of Q2/14 in mBank Group Key Financials Client acquisition and Market shares Development of retail and corporate business Analysis of Q2/14 Results Development of Loans and Deposits Development of Income and Costs Loan Portfolio Quality Funding Structure Details Capital and Liquidity R
Slide 4: Key Financials: Profit and Loss Account
Summary of Q2/14 Results in mBank Group mBank Analyzer Key Financials: Profit and Loss Account in PLN M Q2/14 Q1/14 Change Q2/Q1 Q2/13 Net interest income 617.2 591.0 +4.4% 550.2 Net Fee & Commission income 243.7 241.4 +0.9% 209.3 Total income 1,023.8 956.6 +7.0% 932.9 Total costs (455.3) (430.6) +5
Slide 5: Key Financials: Balance Sheet
Summary of Q2/14 Results in mBank Group mBank Analyzer Key Financials: Balance Sheet in PLN M Q2/14 Q1/14 Change Q2/Q1 Q2/13 Gross loans to customers 72,732 73,390 -0.9% 74,426 Retail client loans 39,664 38,973 +1.8% 39,042 1 Core corporate client loans 27,912 26,957 +3.5% 27,442 Amounts due to cust
Slide 6: Business Development: Client acquisition and Market shares
Summary of Q2/14 in mBank Group Business Development: Client acquisition and Market shares Number of Retail Clients (thou.) Number of Corporate Clients +5.2% +9.0% +1.4% +2.4% 4,427 4,490 16,001 16,333 16,600 17,006 4,269 4,326 4,368 15,602 1,266 1,255 1,710 1,778 648 663 673 688 704 1,253 4,795 4,8
Slide 7: Development of Retail and Corporate business
Summary of Q2/14 in mBank Group Development of Retail and Corporate business Sales of Mortgage Loans Sales of Non-Mortgage Loans (PLN M, by quarter) (PLN M, by quarter) +76% +17% +32% +11% 863 1,134 93 11% 970 1,024 102 9% 647 656 928 901 585 198 23% 5% 49 82 195 17% 6 28 52 66 489 164 164 21% 203 1
Slide 8: Agenda
Agenda Summary of Q2/14 in mBank Group Key Financials Client acquisition and Market shares Development of retail and corporate business Analysis of Q2/14 Results Development of Loans and Deposits Development of Income and Costs Loan Portfolio Quality Funding Structure Details Capital and Liquidity R
Slide 9: Development of Loans to Customers
Analysis of Q2/14 in mBank Group mBank Analyzer Development of Loans to Customers Growth in core lending continues Development of Gross Loans and Advances to Customers (PLN M) -6.0% -2.3% +1.7% -4.1% -0.5% -0.9% +3.5% 32,523 30,211 31,884 30,564 -0.9% 29,475 74,426 73,390 72,732 5,081 3,006 3,287 4,
Slide 10: Development of Deposits
Analysis of Q2/14 in mBank Group mBank Analyzer Development of Deposits Dynamic deposit growth in retail, core corporate deposits stable Development of Amounts due to Customers (PLN M) -2.8% +1.8% +8.0% -5.2% +6.3% -0.5% -2.2% +1.1% 27,351 26,636 26,753 28,069 26,595 63,596 63,294 4,352 62,195 61,67
Slide 11: Income of mBank Group
Analysis of Q2/14 in mBank Group mBank Analyzer Income of mBank Group Robust revenues at record high levels Development of mBank Group’s Income (PLN M) +9.7% +7.0% QoQ YoY 1,023.8 964.2 956.6 932.9 945.0 4.1 45.8 46.9 33.7 9.9 22.2 32.5 25.3 110.2 36.2 16.3 78.4 92.1 86.3 2.8 102.5 9.8 0.0 2.3 14.8
Slide 12: Costs of mBank Group
Analysis of Q2/14 in mBank Group mBank Analyzer Costs of mBank Group Best-in-class efficiency with C/I ratio below 45% Development of mBank Group’s Costs (PLN M) +9.0% +5.7% of which QoQ YoY 455.3 BFG levy 441.6 430.6 417.9 416.8 25.2 30.0 (annual and 24.0 20.1 29.5 prudential): 52.0 48.6 45.8 PLN 1
Slide 13: Loan Loss Provisions & Risk Costs
Analysis of Q2/14 in mBank Group Loan Loss Provisions & Risk Costs Cost of risk in line with full year guidance Net Impairment Losses on Loans and Advances mBank Group’s Cost of Risk by Segment (PLN M) (bps) 173.6 98 92 88 159.5 155.9 68 70 51 70 70 76.7 55 51 79.4 117.1 72.7 103 100 93 88 89 86 47.
Slide 14: Loan Portfolio Quality
Analysis of Q2/14 in mBank Group Loan Portfolio Quality A conservative NPL recognition approach and sound asset quality mBank Group’s Impaired Loans Portfolio mBank Group’s NPL Ratio (PLN M) 6.4% The increase in the Q4/13 6.3% 6.1% NPL ratio results from a methodology 4,424 4,512 4,636 change toward
Slide 15: Funding Structure Details
Analysis of Q2/14 in mBank Group Funding Structure Details A well diversified and safe funding profile mBank Group’s funding structure mBank’s ratings mBank Group’s funding strategy as of June 30, 2014 • Funding needs reduced by CHF loan book Fitch repayments (c. CHF 350-400 M per annum) Retail Othe
Slide 16: Key Regulatory Ratios
Analysis of Q2/14 in mBank Group Key Regulatory Ratios A Basel III ready and liquid balance sheet mBank Group’s Capital Adequacy Ratio / Total Capital Ratio mBank’s NSFR and LCR 19.2% 19.4% 187% 18.2% 177% 173% 174% 18.1% 5.2% 5.2% 16.3% 15.8% 5.1% 2.7% 2.6% 122% 112% 111% 113% 109% 111% Basel III r
Slide 17: Agenda
Agenda Summary of Q2/14 in mBank Group Key Financials Client acquisition and Market shares Development of retail and corporate business Analysis of Q2/14 Results Development of Loans and Deposits Development of Income and Costs Loan Portfolio Quality Funding Structure Details Capital and Liquidity R
Slide 18: Macroeconomic Update (1/2)
Macroeconomic Update (1/2) A soft patch, just a soft patch. Inflation is nowhere to be seen. GDP forecast (% YoY) The soft patch is a reality; more than one reason at play mBank’s 8 15% 4% forecast 4.7 4.5 4.3 4.4 4.9 6 3.7 4.2 3.7 4.0 10% 3% 3.4 2.9 3.0 4 2.7 2.5 2.7 2.0 5% 2% 1.4 2 0.7 0.4 0.8 0%
Slide 19: Macroeconomic Update (2/2)
Macroeconomic Update (2/2) Green shoots in bank credit, household deposits still sluggish Corporate loans and deposits (% YoY) Household loans and deposits (% YoY) 30% 25% 20% 20% 15% 10% 10% 5% 0% 0% -10% -5% Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12 Jul-12 Dec-12 May-13 Oct-13 Mar-14 Jan-10 Jun-10
Slide 20: Agenda
Agenda Summary of Q2/14 in mBank Group Key Financials Client acquisition and Market shares Development of retail and corporate business Analysis of Q2/14 Results Development of Loans and Deposits Development of Income and Costs Loan Portfolio Quality Funding Structure Details Capital and Liquidity R
Slide 21: Appendix
Appendix Page Page Additional Information: Selected Financial Data No. Detailed Results of the Business Lines No. Consolidated Profit and Loss Account under IFRS 22 Retail Banking 36-40 Consolidated Statement of Financial Position 23 Summary of Q2/14: Financial Results and Volumes 37-38 mBank Group’
Slide 22: Consolidated Profit and Loss Account under IFRS
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer Additional Information: Selected Financial Data Business Lines Subsidiaries Consolidated Profit and Loss Account under IFRS Quarterly results (PLN thou.) Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Net interest income 550,232 570,000 588,
Slide 23: Consolidated Statement of Financial Position
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer Additional Information: Selected Financial Data Business Lines Subsidiaries Consolidated Statement of Financial Position Assets (PLN thou.) Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Cash and balances with Central Bank 2 039 840 794 706
Slide 24: mBank Group's Ratios
Summary Appendix Historical view Profit & Loss Balance Sheet Additional Information: Selected Financial Data Business Lines Subsidiaries mBank Group’s Ratios Financial Ratios Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Net Interest Margin (quarterly) 2.15% 2.23% 2.31% 2.30% 2.30% Net Interest Margin YtD 2.14% 2.1
Slide 25: mBank Group's historical performance (1/3)
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer mBank Group’s historical performance (1/3) Business Lines Subsidiaries Net Interest Income & NIM Net Fee and Commission Income (PLN M) (PLN M) CAGR 2.3% 2.2% 2.5% 2.4% 2.2% 2.1% 2.3% +9% CAGR +8% +23% +13% 840 787 835 746 2,
Slide 26: mBank Group's historical performance (2/3)
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer mBank Group’s historical performance (2/3) Business Lines Subsidiaries Operating Costs Pre-provision Income & C/I ratio (PLN M) (PLN M) CAGR +2% 54.2% 51.8% 47.7% 46.5% 45.7% 46.5% 44.7% CAGR +11% +8% +16% 1,545 1,617 1,680
Slide 27: mBank Group's historical performance (3/3)
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer mBank Group’s historical performance (3/3) Business Lines Subsidiaries Total Assets Equity & CAR (PLN B) (PLN M) CAGR +4% 11.50% 15.90% 14.96% 18.73% 19.38% 18.18% 15.79% +7% CAGR +7% +24% 102.1 104.3 108.1 111.9 90.0 98.9 8
Slide 28: Net Interest Income & Margin
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer Additional Information: Selected Financial Data Business Lines Subsidiaries Net Interest Income & Margin Interest Income Structure Interest Expense Structure Change in the presentation (PLN M) (PLN M) of premiums on bonds: s
Slide 29: Fee and Commission Income
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer Additional Information: Selected Financial Data Business Lines Subsidiaries Fee and Commission Income Fee and Commission Income Structure (PLN M) QoQ YoY 369.2 353.8 344.8 331.2 331.8 49.6 13% -6.6% +20.4% 47.4 53.1 41.2 42.
Slide 30: Trading and Other Income
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer Additional Information: Selected Financial Data Business Lines Subsidiaries Trading and Other Income Net Trading Income Structure Gains less Losses from Investment Securities (PLN M) (PLN M) +8% +20% 36.2 110.2 102.5 92.1 28
Slide 31: Balance Sheet Analysis: Assets & Liabilities
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer Additional Information: Selected Financial Data Business Lines Subsidiaries Balance Sheet Analysis: Assets & Liabilities Structure of Assets Structure of Liabilities (PLN B) (PLN B) 111.9 111.9 108.1 107.1 4.0 3% 108.1 107.1
Slide 32: Balance Sheet Analysis: Currency Structure
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer Additional Information: Selected Financial Data Business Lines Subsidiaries Balance Sheet Analysis: Currency Structure Currency Structure of Loans to Customers (net) Currency Structure of Amounts due to Banks and Customers1
Slide 33: Balance Sheet Analysis: Structure of Loans and Deposits
Summary Appendix mBank Historical view Profit & Loss Balance Sheet Analyzer Additional Information: Selected Financial Data Business Lines Subsidiaries Balance Sheet Analysis: Structure of Loans and Deposits Structure of mBank Group’s Gross Loans Structure of mBank Group’s Deposits as of June 30, 20
Slide 34: Balance Sheet Analysis: Loan Portfolio Structure
Summary Appendix Historical view Profit & Loss Balance Sheet Additional Information: Selected Financial Data Business Lines Subsidiaries Balance Sheet Analysis: Loan Portfolio Structure mBank Group’s Sector Exposure by Industry as of June 30, 2014 Households Real estate management 18.8% Construction
Slide 35: Detailed Development of Core Tier 1 and CAR
Summary Appendix Historical view Profit & Loss Balance Sheet Additional Information: Selected Financial Data Business Lines Subsidiaries Balance Sheet Analysis: Detailed Development of Core Tier 1 and CAR mBank Group’s Core Tier 1 Ratio +0.15 14.21% -0.24 14.02% -0.07 +0.11 -0.03 -0.63 +0.60 -0.33 1
Slide 36: Detailed Results of the Business Lines: Retail Banking
Summary Appendix Historical view Profit & Loss Balance Sheet Business Lines Subsidiaries Detailed Results of the Business Lines in Q2/14 Retail Banking Investor Presentation – Q2 2014 |36
Slide 37: Retail Banking Summary of Q2/14: Financial Results
Summary Appendix Historical view Profit & Loss Balance Sheet Retail Banking Business Lines Subsidiaries Summary of Q2/14: Financial Results Profit before Tax of the Segment Number of Retail Outlets (PLN M, by quarter) +26% 258 260 260 258 258 -1% 35 35 35 35 35 23 24 24 24 24 301.3 297.5 67 68 68 67
Slide 38: Retail Banking Summary of Q2/14: Loans and Deposits
Summary Appendix Historical view Profit & Loss Balance Sheet Retail Banking Business Lines Subsidiaries Summary of Q2/14: Loans and Deposits Gross Loans to Individuals1 Deposits from Individual Customers (PLN M) (PLN M) +1.6% +6.0% +1.8% +2.7% 39,664 35,726 39,042 38,855 38,973 34,203 34,784 38,308
Slide 39: Mortgage and Non-mortgage Loans: Portfolio Structure
Summary Appendix Historical view Profit & Loss Balance Sheet Retail Banking Business Lines Subsidiaries Mortgage and Non-mortgage Loans: Portfolio Structure and Key Parameters mBank’s Mortgage Loan Portfolio Currency Structure of Retail Banking Mortgage Loan Portfolio (Loans to individuals of Retail
Slide 40: mBank in the Czech Republic and Slovakia
Summary Appendix Historical view Profit & Loss Balance Sheet Retail Banking Business Lines Subsidiaries mBank in the Czech Republic and Slovakia Gross Loans (PLN M) and Share in Total mBank’s retail volume Deposits (PLN M) and Share in Total mBank’s retail volume +15% +3% +7% 5.7% +8% 13.6% 2,437 5,
Slide 41: Detailed Results: Corporates & Financial Markets
Summary Appendix Historical view Profit & Loss Balance Sheet Business Lines Subsidiaries Detailed Results of the Business Lines in Q2/14 Corporates & Financial Markets Investor Presentation – Q2 2014 |41
Slide 42: Corporates and Financial Markets: Financial Results
Summary Appendix Historical view Profit & Loss Balance Sheet Corporates and Financial Markets Business Lines Subsidiaries Summary of Q2/14: Financial Results Profit before Tax of the Segment Corporate Branch Network Offices (PLN M, by quarter) Branches +10% -11% 47 47 47 47 47 18 18 18 18 18 132.1 1
Slide 43: Corporates and Financial Markets: Loans and Deposits
Summary Appendix Historical view Profit & Loss Balance Sheet Corporates and Financial Markets Business Lines Subsidiaries Summary of Q2/14: Loans and Deposits Gross Loans to Corporate Entities Deposits from Corporate Customers (PLN M) (PLN M) -6.0% -2.8% -4.1% -5.2% 32,523 31,884 28,069 27,351 26,75
Slide 44: Corporates and Financial Markets: Market Shares
Summary Appendix Historical view Profit & Loss Balance Sheet Corporates and Financial Markets Business Lines Subsidiaries Market Shares mBank’s Market Shares in Investment Banking Services1 mBank in the Market for Non-Treasury Debt for Q2/142 (PLN M) 42,572 16.3% 24.5% 25,562 18,970 8,659 5,779 2,16
Slide 45: Detailed Results of mBank Group's Subsidiaries
Summary Appendix Historical view Profit & Loss Balance Sheet Business Lines Subsidiaries Detailed Results of the mBank Group’s companies in Q2/14 Subsidiaries Investor Presentation – Q2 2014 |45
Slide 46: Financial Results of Major Companies
Summary Appendix Historical view Profit & Loss Balance Sheet mBank Group’s Subsidiaries Business Lines Subsidiaries Summary of Q2/14: Financial Results of Major Companies Profit before Tax of Consolidated Subsidiaries (PLN M) Q2 +3% Q1 30.9 29.8 -7% 24.8 +47% 23.0 17.6 19.3 +117% 18.1 9.6 10.0 15.2
Slide 47: mBank Hipoteczny (mBH)
Summary Appendix Historical view Profit & Loss Balance Sheet mBank Group’s Subsidiaries Business Lines Subsidiaries mBank Hipoteczny (mBH) Loan Portfolio: Balance-sheet Exposure Profit before Tax (PLN M, net value) (PLN M) established in 1999 +1% +47% +1% specialised mortgage bank and the largest is
Slide 48: Leasing and Factoring (Poland)
Summary Appendix Historical view Profit & Loss Balance Sheet mBank Group’s Subsidiaries Business Lines Subsidiaries Leasing and Factoring (Poland) Leasing contracts Market share & position – H1 2014 Profit before Tax (PLN M) (PLN M) +18% 7.1% -7% established 1,490 24.8 in 1991 23.0 1,264 Rank 9.6 pr
Slide 49: Dom Maklerski mBanku (mDM)
Summary Appendix Historical view Profit & Loss Balance Sheet mBank Group’s Subsidiaries Business Lines Subsidiaries Dom Maklerski mBanku (mDM) Market Shares in Q2/14, by volume Profit before Tax (PLN M) established in 1991 incl. block Session +24% transactions transactions providing a full range of
Slide 50: BRE Ubezpieczenia (BRE Insurance)
Summary Appendix Historical view Profit & Loss Balance Sheet mBank Group’s Subsidiaries Business Lines Subsidiaries BRE Ubezpieczenia (BRE Insurance) Bancassurance Retail Direct Insurance (Internet platform) Gross Written Premiums (PLN M) Gross Written Premiums (PLN M) -17% +2% 1,012.9 70.8 72.1 838
Slide 51: mBank Analyzer
mBank Analyzer mBank Analyzer Further enhancing our reporting standard Analyse, customise, export and print selected data on mBank Group, covering all periods since Q1/06 in quarterly and annual series Includes FX Comprehensive Summary of Data covering Details on each structure and report on key fin
Slide 52: Contact details
Contact details mBank’s Investor Relations at your service: E-mail address: investor.relations@mbank.pl Wojciech Chmielewski Direct dial: +48 22 829 14 34 E-mail: wojciech.chmielewski@mbank.pl Head of Investor Relations Paweł Lipiński Direct dial: +48 22 829 15 33 E-mail: pawel.lipinski@mbank.pl Deb