Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q4 2022 Earnings Presentation
35 slides from Erste Bank Polska's earnings presentation, Feb 2, 2023
Slide 1: Financial Results of Santander Bank Polska Group for 2022
Investor Relations Warsaw 22/02/2023 Financial Results of Santander Bank Polska Group for 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 2022 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Our communication Social Media “Fairy tales for adults” – an image-building and educational cybersecurity campaign that won 1 gold and 2 bronze awards in the ATL campaigns 2022 “Złote Spinacze” competition and was also recognised by the jury of In 2022, we continued ATL communication
Slide 5: Our people
01 | Our activities and our people Our people Our response to the war in Ukraine We develop modern work tools After the Russia’s invasion in Ukraine in late February 2022, we immediately launched As part of the “paperless HR” strategy, we have implemented an electronic signature for some HR comm
Slide 6: Our business development
2022 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for 2022 – Our business development General operational data Key volumes SBP* SCB** gross loans 158 bn 11.8% +4% YoY Branches 351* 50** 196 bn deposits 11.3% +6% YoY Employment 9.2k 1.5k customer funds 209 bn Customers 5.7m 1.7m +3% YoY Digital Customers 3.2m 348k assets 259 bn +7% YoY
Slide 8: Key financial results and financial ratios
02 | Results for 2022 – Our business development Key financial results Financial ratios for 2022 For 2022 Key results Capital position ROE, ROA PLN 9 652m PLN 2 566m PLN 12 381m PLN 2 799m Strong capital position well above the KNF requirements +62% YoY +3% YoY +35% YoY +152% YoY +146% on comparativ
Slide 9: Our customers
Results for 2022 Our customers 03
Slide 10: Our customers in numbers
03 | Results for 2022 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.2m customers +5% YoY 491k customers +4% YoY 26.4k customers +2% YoY 21.1k digital 2.9m digital 340k digital +3% YoY customers +10% YoY customers +9% YoY customers 2.3m mobile 171k mob
Slide 11: New products and services
03 | Results for 2022 – Our customers New products and services Retail SME Corporate customers customers customers Our personal customers can buy a We have prepared a new promotional loan We continued the development of SimplySign qualified electronic signature offer for our business customers
Slide 12: Education and support for customers
03 | Results for 2022 – Our customers Education and support for customers Retail Customers SME Customers BCB Customers We have implemented a new remote We have organised the 1st edition of process for granting a spouse consent to a “EmPOWERed in business” (“MOCne w cash loan and consolidation lo
Slide 13: Selected business data
03 | Results for 2022 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers +16% YoY PLN 2.3 bn 17.2k 51% +10% YoY +28% YoY +126% YoY +113% YoY Number of Cash loan Business Digital Transactional Income on eFX Income from trading Income from cash Accounts s
Slide 14: Our financial performance
Results for 2022 Our financial performance 04
Slide 15: Gross loans
04 | Results for 2022 – Our financial performance Gross loans Comment Gross loans Santander Bank Polska S.A. PLN m Structure of loans The loan portfolio increased by 4% YoY. +4% Sales of mortgage loans in Q4 2022: -80% vs. Q4 2021 and -45% vs. Q3 2022. Sales of cash loans 158 393 10% 152 252 155
Slide 16: Customer funds
04 | Results for 2022 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding +6% Customer funds +3% YoY and +3% QoQ. 3% 7% Deposits SBP Group 187 320 189 501 196 497 10% 185 373 183 536 35% An increase in retail deposits by 2% YoY
Slide 17: Net interest income and net interest margin
04 | Results for 2022 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In 2022, net interest income was PLN 9.7bm and in Q4 2022 alone PLN 2.8bn. 2 935 2 833 In Q4 2022 alone, there was a comparable decrease 2 244 323 337 in net interest i
Slide 18: Net fee and commission income
04 | Results for 2022 – Our financial performance Net fee and commission income Comment Net fee and commission PLN m Net commission income increased by 3% income 666 641 661 621 619 YoY and decreased by 7% QoQ. 35 31 43 22 75 25 Other 98 74 On annual basis good results in fx (+27%), in 99 82 162
Slide 19: Income
04 | Results for 2022 – Our financial performance Income Income PLN m 3 526 3 514 62 2 988 621 619 Comment 2 556 83 2 354 183 661 The Group's total income in 2022 amounted to Other 47 641 666 PLN 12,382m and increased by 35% compared to the same period of 2021. Net fee and commission 2 935 2 833 E
Slide 20: Operating expenses
04 | Results for 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 2022 driven by regulatory levies 41 60 986 124 133 130 (BFG, IPS and BSF). This category of costs 143 57 Amortisation/ Deprec
Slide 21: Provisions and credit portfolio quality
04 | Results for 2022 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 0.76% 4.98 4.95% 0.58% 0.59% 4.90 0.55 4.83% 0.48% 4.70% 31.12.2021 31.03.2022 30.06.2022 30.09.2022 31.12.2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Balance of provi
Slide 22: Banking tax and regulatory costs, NPL sales
04 | Results for 2022 – 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 404 288 227 214 231 288 175 168 150 214 83 31 34 12 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 S
Slide 23: Results for 2022
04 | Results for 2022 – Our financial performance Results for 2022 Results for 2022 Comment PLN m 2022 2021 % YoY In 2022, interest income and net commission Net interest and fee income 12 219 8 449 45% income increased by 45% compared to 2021. Gross income 12 382 9 142 35% Total costs -4 698 -3 9
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 -6% (gross) +2.5% advances portfolio (gross) 54 327 53 543 53 316 52 164 50 898 PLN mortgage loans 8 819 7 142 6 482 FX 6 488 5 751 portfolio: -1% YoY PLN 15 043 FX mortgage loans 14 671 14
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio bn PLN Santander Leasing constantly supports eco-transformation and green + 9% investments, with extended financing worth PLN 660 milion in 2022. 12 808 The company joined the programme of government subsidies for zero- 12 531 emission cars - My electric
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market Share 9% PLNm 7 598 -8% 6 985 31.12.2021 31.12.2022 In Q4 2022, Santander Factoring achieved second position on the market in terms of the balance sheet, reporting 8% YoY decline in balances. Turnover Santander Factoring also maintains its fi
Slide 28: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 19.27% 17.54% 19.05% 17.10% L/D ratio Capital ratios 77.47% 75.31% 71.54% 73.92% 72.63% 31.12.2022 31.12.2021 CAR TIER 1 31.12.2021 31.03.2022 30.06.2022 30.09.2022 31.12.2022 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 2021 ESG Report3 Bank of the Year Grand prize in the Polish PLN 1,433m PLN 1,154m Euromoney For Fi
Slide 30: Key financial ratios
05 | Attachments Key financial ratios 2022 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group 2022 2021 Cost/ income 37.9% 43.6% Net interest income/ total income 78,0% 65.2% Net interest margin 1) 4.31% 2.72% Net fee and commission income/ total income 20.7% 27.2
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
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 17 202 31.12.2022 31.12.2021 r/r (%) kw/kw (%) 17 350 16 830 16 922 17 135 2 894 2 427 2 295 2 282 1 935 Retail customers 12 818 13 811 -7% 1% 3 539 3 687 4 024 4 142 4 384 Mortgage Mortgage loans 1 935 2 894 -33% -15% 10 917 10
Slide 33: Santander Consumer Bank Group key financial results for 2022
05 | Attachments Santander Consumer Bank Group Key financial results for 2022 PLN m 2022 2021 Assets 20 317 20 488 Net loans 15 634 15 515 Deposits 10 350 9 283 Total equity 4 266 3 822 PAT 408 183 L/D (%) 151.1% 167.1% C/I (%)* 57.8% 60.3% ROE (%) 10.1% 4.8% ROA (%) 2.0% 0.9% TCR (%)** 29.1% 26.2%
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