Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — H1 2020 Earnings Presentation
37 slides from Erste Bank Polska's earnings presentation, Jul 29, 2020
Slide 1: Presentation of financial results for H1 2020
Investor Relations Warsaw 29/07/2020 Presentation of financial results for H1 2020 Santander Bank Polska Group
Slide 2: Agenda
Index Agenda Results for H1 2020 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 2020 | Our activities and our people 01
Slide 4: Our response to COVID-19
01 | Results for H1 2020 – Our activities and our people Our response to COVID-19 We changed our products and processes to increase safety We took measures to help customers and employees stay safe We temporarily suspended an option to sign a personal or business account agreement We provided pe
Slide 5: Our response to COVID-19: payment moratoria
01 | Results for H1 2020 – Our activities and our people Our response to COVID-19 Temporary payment moratoria Support for personal and business customers Number of clients with loans and advances subject to moratoria (as at end-June 2020) We provided customers with an option to apply for three-mon
Slide 6: Our communication
01 | Results for H1 2020 – Our activities and our people Our communication Bank As You Want It Brand Ambassador In 2017, we introduced our new brand claim: BANK AS YOU Actor Marcin Dorociński WANT IT. We offer products and services which are tailored to became our new brand our customers’ changing n
Slide 7: Euromoney Award
01 | Results for H1 2020 – Our activities and our people Euromoney Award Santander Bank Polska awarded in the prestigious Euromoney competition for its actions for clients and society during the pandemic Santander Bank Polska was the only bank in Poland to be distinguished in Euromoney Awards compet
Slide 8: Our business development
Results for H1 2020 Our business development 02
Slide 9: General operational data and key volumes
02 | Results for H1 2020 – Our business development General operational data Key volumes gross loans 148.5bn 11.7% SBP* SCB** +2% YoY Branches 495* + 150 deposits 165.9bn 11.3% +11% YoY Employment 10.6k + 2.2k customer funds 178.9bn +8% YoY Customers 7.21m customers 2.61m digital customers assets 22
Slide 10: Key financial results and ratios for H1 2020
02 | Results for H1 2020 – Our business development Key financial results for H1 Financial ratios 2020 for H1 2020 Key results Capital position ROE, ROA Strong capital position well above the ROE, ROA – leading position in KNF requirements the peer group PLN 4,330m PLN 476m PLN 3,095m PLN 1,030m -6.
Slide 11: Corporate Social Responsibility (CSR)
02 | Results for H1 2020 – Our business development Corporate Social Awards Responsibility (CSR) GREEN BANK BANK FOR EVERYONE Our objectives Our objectives The green strategy involves: green products and services Development of an inclusive and integrating banking offer that suits diverse customer
Slide 12: Our customers
Results for H1 2020 Our customers 03
Slide 13: Our customers in numbers
03 | Results for H1 2020 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 4.7m 414k +16% 24.7k customers +3% YoY customers customers -2% YoY YoY 2.3m digital 299k digital 20.4k digital customers customers +18% customers no +8% YoY YoY changes 1.6m mobile 1
Slide 14: New products and services
03 | Results for H1 2020 – Our customers New products and services Retail SME Corporate customers customers customers Życie i Zdrowie life insurance with Approx. PLN 4.5bn paid to • Approx. PLN 4bn paid to more than 5k insurance coverage tailored to more than 48k customers as customers as part of
Slide 15: Education and support for customers
03 | Results for H1 2020 – Our customers Education and support for customers Retail SME Corporate customers customers customers Educational campaigns for the elderly: remote banking, Support for customers in partnership with inFakt: contactless payments, trusted profile, internet banking, Helpli
Slide 16: Selected business data
03 | Results for H1 2020 – Our customers Selected business data Retail SME Corporate customers customers customers +38% YoY -39% YoY +24% +5% YoY +10% YoY +7% YoY Number of Cash loan The total sales: Business account Business loans: Number of Accounts PLN 13.4bn number of Increase in income PLN 1.3b
Slide 17: Our financial performance
Results for H1 2020 Our financial performance 04
Slide 18: Gross loans
04 | Results for H1 2020 – Our financial performance Gross loans Comment PLN m Structure of loans* +2% Santander Bank Polska S.A. 153,236 148,516 145,546 148,943 148,647 Gross loans: +2% YoY and -3% QoQ 9% Total mortgage loans: +4% YoY and stable QoQ 68 171 69 095 67 751 71 127 67 126 35% CHF
Slide 19: Customer funds
04 | Results for H1 2020 – Our financial performance Customer funds Deposits Deposits and term funding* Comment PLN m +11% Santander Bank Polska S.A. 149,675 151,027 156,480 157,757 165,890 Deposits 10% Retail deposits: +7% YoY and +1% QoQ 3% Business deposits: +17% YoY and +12% QoQ 64 764 61 89
Slide 20: Net interest income and net interest margin
04 | Results for H1 2020 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m 1,623 1,701 1,647 1,636 In H1 2020, net interest income fell by 4.3% YoY (down 10.9% QoQ in Q2). 1,458 Net interest margin for Q2 2020 (annualised on a quarterly bas
Slide 21: Net fee and commission income
04 | Results for H1 2020 – Our financial performance Net fee and commission income Comment Net fee and PLN m 522 544 542 538 commission income 29 39 492 Net fee and commission income was down 1% YoY 49 31 47 and 9% QoQ, affected by the number of transactions Other 94 80 87 98 made by customers dur
Slide 22: Income
04 | Results for H1 2020 – Our financial performance Income 2,453 2,381 PLN m 2,385 Income 1 1 1 2,249 97 207 191 10 2,082 153 74 544 542 111 522 538 Dividends 492 Gain/ Loss on financing Comment activities and other Net fee and commission 1 624 1 701 1 647 1 636 1458 Total income of Santander Ban
Slide 23: Operating expenses
04 | Results for H1 2020 – Our financial performance Operating expenses Operating expenses 1,241 1,265 PLN m 1,027 982 91 304 152 964 Other operating 46 35 expenses 157 158 150 161 Amortisation/ 574 147 Comment 355 Depreciation 350 319 321 Administrative Total costs were impacted by regulatory cos
Slide 24: Provisions and credit portfolio quality
04 | Results for H1 2020 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio* 5.60% 5.20% 5.20% 5.00% 4.70% 1.06% 0.96% 0.92% 0.88% 0.85% 30.06.2019 30.09.2019 31.12.2019 31.03.2020 30.06.2020 0.81% 0.95% excluding additional ECL allowance 0.
Slide 25: Banking tax, regulatory costs and NPL sales
04 | Results for H1 2020 – Our financial performance Banking tax NPL sales and regulatory costs Amounts payable to the PLN m NPL sales* PLN m BFG, KNF and KDPW 267 272 283 159 104 85 61 51 64 295 0,5 228 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 29 28 26 44 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2
Slide 26: Results for H1 2020
04 | Results for H1 2020 – Our financial performance Results for H1 2020 Comment Results for H1 2020 impacted by one-off items PLN m The decrease in net interest income was affected by On a comparative H1 2020 H1 2019 % YoY interest rate cuts, CJEU judgments and COVID-19 basis* pandemic. Net inter
Slide 27: Attachments
Attachments 05
Slide 28: Retail Banking - growth in lending activity
05 | Attachments Retail Banking - growth in lending activity PLN m Cash loans portfolio Mortgage loans portfolio +4% (gross) +14% (gross) YoY YoY PLN mortgage loans 49,343 49,440 50,596 50,543 48,373 portfolio: +6% YoY 10 156 9 706 9 795 10 022 9 529 FX mortgage loans portfolio: -1% YoY 12 778 1
Slide 29: Santander Leasing
05 | Attachments Santander Leasing Portfolio PLN bn Market share Comment 7.1% +9% Leasing portfolio at PLN 10.3bn, +9% YoY. 7% YoY growth in income. Excellent C/I at 33.2%. 10 314 10 280 PLN 2.27bn net assets financed in H1 2020. 10 036 9 817 9 468 Santander Leasing was awarded a prestigious
Slide 30: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market share 10.2% 5 327 PLN m +3% YoY 5 168 30.06.2019 30.06.2020 Comment In Q2 2020, Santander Factoring maintained its leadership position in terms of total assets. Turnover The company was also ranked first in terms of reverse factoring (up 5% Y
Slide 31: Capital and liquidity position of Santander Bank Polska
05 | Attachments Capital and liquidity position of Santander Bank Polska S.A. Capital ratios of Santander L/D ratio of Santander Bank Polska Group 18.76% Bank Polska 86.30% 85.71% 85.70 16.26% 16.81% 83.13% 14.45% 81.80% 77.00% 30.06.2019 30.06.2020 CAR TIER 1 31.03.2019 30.06.2019 30.09.2019 31.12.
Slide 32: Key financial ratios of Santander Bank Polska Group for H1 2020
05 | Attachments 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 Key financial ratios of assets as at the end of consecutive quarters after the e
Slide 33: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Loans Gross loans 18,433 19,032 19,557 19,164 18,351 PLN m 30/06/2020 30/06/2019 YoY (%) QoQ (%) 3 440 3 299 3 424 3 414 3 281 4 184 Retail customers 14,645 14,651 0% -3% 3 782 3 916 3 995 3 706 Mortgage loans 3,281 3,414 -4% -4% Mortgage 11 237 11 676
Slide 34: Santander Consumer Bank Group: key financial results
05 | Attachments Santander Consumer Bank Group Key financial results for H1 2020 PLN m H1 2020 H1 2019 Assets 21,177 20,679 Net loans 16,329 16,570 Deposits 10,098 9,492 Total equity 3,606 3,173 PAT 161 277 L/D (%) 161.7% 174.6% C/I (%)* 49.9% 38.0% ROE (%) 9.2% 16.7% ROA (%) 1.5% 2.7% TCR (%)** 24.
Slide 35: Corporate Social Responsibility (CSR)
05 | Attachments Corporate Social Awards Responsibility (CSR) SUSTAINABLE MANAGEMENT CSR PROJECTS Our objectives Our objectives Sustainable management and development of an inclusive work Support for local communities and investments in environment universities Our achievements Our achievements Init
Slide 36: Dziękujemy.
Dziękujemy. Contact details Pomagamy klientom indywidualnym i biznesowym w osiąganiu codziennych Maciej Reluga sukcesów. CFO, Chief Economist maciej.reluga@santander.pl Wierzymy, że wszystko co robimy powinno być: 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