Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q3 2022 Earnings Presentation
35 slides from Erste Bank Polska's earnings presentation, Oct 26, 2022
Slide 1: Financial Results of Santander Bank Polska Group for 1-3Q 2022
Investor Relations Warsaw 26/10/2022 Financial Results of Santander Bank Polska Group for 1-3Q 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 1-3Q 2022 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Our communication Social Media ATL campaigns 2022 • Savings cycle – continuation of the initiative whereby we give In March we ran a campaign to promote Account As I Want It with saving tips to our customers (cashback for bills, My Goals, the mobile app which makes everyday life easie
Slide 5: Our people
01 | Our activities and our people Our people Hybrid work model We develop modern work tools In September, the Bank implemented a hybrid work model in the Business Support As part of the “paperless HR” strategy, we have implemented an electronic signature for Centre units – the model combines th
Slide 6: Our business development
1-3Q 2022 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for 1-3Q 2022 – Our business development General operational data Key volumes SBP* SCB** gross loans 160 bn 11.6% +6% YoY Branches 347* 50** 189 bn deposits 11.1% +7% YoY Employment 9.6k 1.5k customer funds 202 bn Customers 5.7m 1.6m +3% YoY Digital Customers 3.2m 313k assets 263 bn +13
Slide 8: Key financial results and financial ratios
02 | Results for 1-3Q 2022 – Our business development Key financial results Financial ratios for 2022 For 2022 Key results Capital position ROE, ROA PLN 6 819m PLN 1 947m PLN 8 867m PLN 1 896m Strong capital position well above the KNF requirements +61% YoY +5% YoY +35% YoY +106% YoY +159 % on compa
Slide 9: Our customers
Results for 1-3Q 2022 Our customers 03
Slide 10: Our customers in numbers
03 | Results for 1-3Q 2022 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.1m customers +5% YoY 504k customers +9% YoY 26.3k customers +3% YoY 20.8k digital 2.9m digital 334k digital +3% YoY customers +11% YoY customers +9% YoY customers 2.2m mobile 162
Slide 11: New products and services
03 | Results for 1-3Q 2022 – Our customers New products and services Retail SME Corporate customers customers customers We have launched a motor insurance We have prepared a special offer for We introduced a new version of the comparison engine where customers can get customers who move their
Slide 12: Education and support for customers
03 | Results for 1-3Q 2022 – Our customers Education and support for customers Retail Customers SME Customers BCB Customers Customers can in a simple way apply to Our “EmPOWERed in business” (“MOCne suspend their mortgage loan repayments at w biznesie”) project goes on. We have a bank branch and
Slide 13: Selected business data
03 | Results for 1-3Q 2022 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers +16% YoY PLN 2.3 bn +4% YoY PLN 1.2 bn +18% YoY +32% YoY +131% YoY +128% YoY Number of Cash loan Balance of Loans Transactional Income on eFX Income from trading Income from c
Slide 14: Our financial performance
Results for 1-3Q 2022 Our financial performance 04
Slide 15: Gross loans
04 | Results for 1-3Q 2022 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans Santander Bank Polska S.A. +6% The loan portfolio increased by 6% YoY. Sales of mortgage loans in Q3 2022: -58% vs. Q3 152 252 155 598 158 390 159 511 10% 150 399 2021 and -50% vs. Q2
Slide 16: Customer funds
04 | Results for 1-3Q 2022 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding +7% Customer funds +7% YoY and +3% QoQ. 185 373 187 320 183 536 189 501 9% 177 320 4% Deposits SBP Group 38% 9% An increase in retail deposits by 2%
Slide 17: Net interest income and net interest margin
04 | Results for 1-3Q 2022 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In Q1-Q3 2022, net interest income increased by 61% YoY due to an increase in interest income by 88% YoY 2 935 and interest expense by 479% YoY. 2 244 323 In Q3 20
Slide 18: Net fee and commission income
04 | Results for 1-3Q 2022 – Our financial performance Net fee and commission income Comment Net fee and commission PLN m Net commission income increased by 5% income 666 635 641 661 621 YoY and 7% QoQ. 35 31 50 43 22 75 98 74 Good results in credit fees (+15% YoY), in fx Other 96 99 162 fees (+
Slide 19: Income
04 | Results for 1-3Q 2022 – Our financial performance Income Income PLN m 3 526 2 988 621 Comment 2 556 83 2 354 2 206 661 183 The Group's total income in 2022 amounted to Other 47 128 641 666 PLN 8,867m and increased by 35% compared 635 to the same period of 2021. In Q3 total income Net fee and
Slide 20: Operating expenses
04 | Results for 1-3Q 2022 – Our financial performance Operating expenses Operating expenses PLN m Comment 1 343 1 190 38 1 180 Other operating expenses 1 101 131 Total costs in 1-3Q 2022 driven by regulatory 41 60 926 124 133 130 levies (BFG, IPS and FWK). This category of 46 143 Amortisation/ De
Slide 21: Provisions and credit portfolio quality
04 | Results for 1-3Q 2022 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 0.89% 5.4% 0.76% 5.0% 4.90 0.58% 4.8% 4.7% 0.55 0.48% 30.09.2021 31.12.2021 31.03.2022 30.06.2022 30.09.2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Balance of pro
Slide 22: Banking tax, regulatory costs and NPL sales
04 | Results for 1-3Q 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 329 288 227 214 175 168 83 404 31 288 214 34 34 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 SBP SC
Slide 23: Results for 1-3Q 2022
04 | Results for 1-3Q 2022 – Our financial performance Results for 1-3Q 2022 Results for 1-3Q 2022 Comment PLN m 1-3Q 2022 1-3Q 2021 % YoY In Q3 2022, interest income decreased by 44% due Net interest and fee income 8 767 6 076 44% to the introduction of payment holidays. Increase in Gross income
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 -1% +1.5% (gross) YoY portfolio (gross) YoY 52 913 54 327 53 543 53 316 52 164 PLN mortgage loans 8 819 7 142 6 482 FX 8 805 6 488 portfolio: +4% YoY PLN FX mortgage loans 14 680 14 671 14 686
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio bn PLN Market share 7.9%* Leasing portfolio at PLN 12.53bn, +10% YoY, +10% Net sales value at PLN 4.9bn, - 1.8 % YoY, Excellent C/I at 33.4% 12 531 12 157 *Data on 31/03/2022 11 820 11 759 In Q1 2022, Santander Leasing was the first in the industry
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio 7 013 Market Share 9% PLN m +9% 6 408 30.09.2021 30.09.2022 In Q3 2022, Santander Factoring achieved second position on the Turnover market in terms of the balance sheet, reporting 9% YoY growth in 29 736 balances and 16% market share. PLN m Santand
Slide 28: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 18.93% 17.16% 20.38% 18.38% L/D ratio Capital ratios 77.47% 75.31% 72.38% 71.54% 73.92% 30.09.2022 30.09.2021 CAR TIER 1 30.09.2021 31.12.2021 31.03.2022 30.06.2022 30.09.2022 Santander Bank Santan
Slide 29: Key financial ratios
05 | Attachments Key financial ratios 1-3Q 2021 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group 1-3Q 2022 1-3Q 2021 Cost/ income 41.9% 43.8% Net interest income/ total income 76.9% 64.2% Net interest margin 1) 4.1% 2.61% Net fee and commission income/ total inc
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: 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 Best Bank Diversity 2021 ESG ESG for CR2 €286m €203m IN Check 2022 Euromoney Report3 Materiality g
Slide 32: Santander Consumer Bank Group - loans
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 30.09.2022 30.09.2021 YoY (%) QoQ (%) 17 124 17 350 16 830 16 922 17 135 2 895 2 894 2 427 2 295 2 282 Retail customers 12 933 13 599 -4% 1% 3 525 3 539 3 687 4 024 4 142 Mortgage Mortgage loans 2 282 2 895 -21% -1% 10 704 10 917
Slide 33: Santander Consumer Bank Group - key financial results
05 | Attachments Santander Consumer Bank Group Key financial results for 1-3Q 2022 PLN m 1-3Q 2022 1-3Q 2021 Assets 20 542 19 680 Net loans 15 404 15 201 Deposits 10 056 8 993 Total equity 4 029 3 922 PAT 331 186 L/D (%) 153,2% 169.0% C/I (%)* 51.4% 54.7% ROE (%) 11.2% 6.4% ROA (%) 2.1% 1.2% TCR (%)
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