Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — H1 2021 Earnings Presentation
40 slides from Erste Bank Polska's earnings presentation, Jul 28, 2021
Slide 1: Financial results of Santander Bank Polska Group for H1 2021
Investor Relations Warsaw 28/07/2021 Financial results of Santander Bank Polska Group for H1 2021
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 H1 2021 Our activities and our people 01
Slide 4: Our people
01 | Results for H1 2021 – Our actions and our people Our people We take care of employees while facing pandemic Current COVID-19 cases status and it’s impact on our work Vaccinations and tests for employees In the first half of 2021, we struggled with the 3rd wave of coronavirus, which We organ
Slide 5: "We will double your impact" fundraiser
01 | Results for Q2 2021 – Our activities and our people “We will double your impact” (“Podwójna moc pomagania”) fundraiser We support psychiatric wards for children and adolescents Mental health of children and adolescents is the second, after oncological diseases, social need in our country. The s
Slide 6: Our people: diversity and inclusivity
01 | Results for H1 2021 – Our actions and our people Our people Actions for diversity and inclusivity We take care of employees on a daily basis ”IT in the female eye” & ”Santander Women” – we implement initiatives aimed at Personal development supporting the development of women and equal opport
Slide 7: Our communication
01 | Results for H1 2021 – Our activities and our people - Marketing Our communication Bank As You Want It ATL campaigns / TV In 2017, we introduced our new brand claim: Campaigns promoting the Account As I Want it with a mobile application, thanks to which our clients can do more BANK AS YOU WANT I
Slide 8: Our business development
Results Our business development 02
Slide 9: General operational data and key volumes
02 | Results for H1 2021 – Our business development General operational data Key volumes SBP* SCB** gross loans 148.4 bn 11.7% stable YoY Branches 427* 55** 173.2 bn deposits 11.2% +4% YoY Employment 9.7k 1.7k customer funds 192.0 bn Customers 5.3m 1.7m +7% YoY Digital Customers 2.8m 181k assets 231
Slide 10: Key financial results and financial ratios for H1 2021
02 | Results H1 2021 – Our business development Key financial results Financial ratios for H1 2021 For H1 2021 Key results Capital position ROE, ROA PLN 4 393m PLN 374m Strong capital position well above PLN 2 788m PLN 1 211m the KNF requirements +1.5% YoY -21.3% YoY -9.9% YoY +17.6% YoY -1.2% YoY o
Slide 11: Our customers
Results for H1 2021 Our customers 03
Slide 12: Our customers in numbers
03 | Results for H1 2021 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 4.8m customers +3% YoY 453k customers +9% YoY 25.3k customers +3% YoY 2.5m digital 20.0k digital +8% YoY 322k digital +8% YoY customers +1% YoY customers customers 1.9m mobile 143k m
Slide 13: New products and services
03 | Results for H1 2021 – Our customers New products and services Retail SME Corporate customers customers customers We have implemented We have launched a new identity We are successfully building the role biometrics in the mobile check for customers opening and position of Santander Bank on
Slide 14: Education and support for customers
03 | Results for H1 2021 – Our customers BCB Customers Education and support for customers We keep working on improving the customer Retail Customers SME Customers experience. In the second quarter, this led to As part of Santander Universidades, we have We have organised “How to improvement o
Slide 15: Selected business data
03 | Results for H1 2021 – Our customers Selected business data Retail customers SME Customers BCB Customers CIB Customers +16% YoY PLN 1.8 bn +12% YoY PLN 1.3 bn +15% YoY +40% YoY +133% YoY +97% YoY Number of Cash loan Balance of Loans Acquisition of Income on eFX Income form Income form Equity Acc
Slide 16: Our financial performance
Results for H1 2021 Our financial performance 04
Slide 17: Gross loans
04 | Results for H1 2021 – Our financial performance Gross loans Comment PLN m Structure of loans* stable +1% Santander Bank Polska S.A. The loan portfolio in H1 2021 was influenced by 10% 148 516 148 184 148 326 149 506 148 380 lower demand for loans and government assistance programs offered to
Slide 18: Customer funds
04 | Results for H1 2021 – Our financial performance Customer funds Comment Deposits Deposits Santander Bank Polska Group PLN m and term funding* +4% Increase in customer funds YoY was influenced by government assistance 10% 166 726 171 522 179 485 173 180 3% programs offered to customers. 165 890
Slide 19: Net interest income and net interest margin
04 | Results for H1 2021 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In Q1 2021, net interest income fell by 9.9% YoY and 1 458 1 383 1 411 1 377 1 411 increased by 2.5% QoQ in Q2. 350 288 309 287 284 Net interest margin for Q2 2021 (
Slide 20: Net fee and commission income
04 | Results for H1 2021 – Our financial performance Net fee and commission income Comment Net fee and commission PLN m Net commission income +17.6% YoY and - income 611 600 553 569 1.8% QoQ 46 46 492 31 39 41 108 Good results in card commissions (+30% YoY) 80 99 108 Other and Credit commissions
Slide 21: Income
04 | Results for H1 2021 – Our financial performance Income Income PLN m 10 2 082 2 134 2 182 2 125 2 269 2 1 102 111 197 202 136 156 Dividends 492 553 569 611 600 Comment Gain/Loss on financing activities and other The Group's total income in the first half of Net fee and commission 1 458 1 383 1
Slide 22: Operating expenses
04 | Results for H1 2021 – Our financial performance Operating expenses Operating expenses PLN m 1 446 1 329 1 267 Comment Other operating expenses 336 247 572 964 930 Total costs in H1 2021 under the influence of regulatory Amortisation/ 148 Depreciation 150 54 148 costs which amounted to PLN 225
Slide 23: Provisions and credit portfolio quality
04 | Results for H1 2021 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio* 1.21% 1,14% 1.06% 1.07% 0.99% 5.8% 6.0% 5.8% 0.96% 5.6% 5.7% 5.2% 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.03.2021 30.06.2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Slide 24: Banking tax and regulatory costs; NPL sales
04 | Results for H1 2021 – Our financial performance Banking tax NPL sales and regulatory costs Amounts payable to the PLN m PLN m NPL sales* 272 283 BFG, KNF and KDPW 209 208 173 177 191 85 295 14 30 192 44 50 47 33 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q1 2020 Q2 2020 Q3 2020 Q4. 2020 Q1
Slide 25: Results for H1 2021
04 | Results for H1 2021 – Our financial performance Results for H1 2021 Results for H1 2021 impacted by regulatory payments and extraordinary factors Comment PLN m On a comparative H1 2021 H1 2020 % YoY Decline in net interest income YoY due to basis* interest rate cuts and the COVID-19 Net inter
Slide 26: Attachments
Attachments 05
Slide 27: SBP and Aviva transaction
05 | Attachments SBP and Aviva transaction On 26 March 2021: 1. the Bank executed a share sale agreement relating to: 4,125 shares in AVIVA Towarzystwo Ubezpieczeń na Życie S.A., representing ca. 10% of the share capital of this company; and 2,968 shares in AVIVA Towarzystwo Ubezpieczeń Ogólnych S
Slide 28: SBP and Aviva transaction: structure of capital ties
05 | Attachments SBP and Aviva transaction: structure of capital ties between SBP and Aviva 10% Aviva Santander Aviva Group Bank Polska International Holdings Ltd S.A. Holdings Ltd 90% Aviva Towarzystwo 10% 49% Santander Aviva Towarzystwo 51% Ubezpieczeń Ogólnych S.A. Ubezpieczeń na Życie S.A. 90% A
Slide 29: Our response to COVID-19
05 | Attachments Our response to COVID-19 Support for personal and business customers The assistance tools provided by the Group as part of initiatives aimed at mitigating the negative effects of the COVID-19 We provided customers with an option to apply for three-month or six-month deferral of pr
Slide 30: Assistance tools during COVID-19 pandemic - moratoria
05 | Attachments Assistance tools for individual customers and companies during the COVID-19 pandemic - moratoria (in PLN thousand) Gross carrying amount Performing Non performing Of which: Of which: Instruments Of which: Of which: exposures with exposures Unlikely to pay with significant with that
Slide 31: Retail Banking - growth in lending activity
05 | Attachments Retail Banking - growth in lending activity PLN m Cash loans portfolio Mortgage loans +2% (gross) -1% portfolio (gross) YoY YoY 51 049 51 023 51 447 50 543 50 782 PLN mortgage loans 9 706 9 530 9 469 9 170 8 732 portfolio: +5% YoY FX FX mortgage loans 14 582 14 680 14 466 14 337
Slide 32: Santander Leasing
05 | Attachments Santander Leasing Portfolio mld PLN Market share 7,6%* + 5% Leasing portfolio at PLN 10.79bn, +5% YoY, 10 803 10 793 Net sales value 3.34bn, +47% YoY, 14% YoY growth in income 10 640 Excellent C/I at 30.3% * Data as of 30/05/2021r. 10 280 10 241 For the second year in a row,
Slide 33: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market Share 6 786 10% PLN m +27% 5 327 r/r 30.06.2020 30.06.2021 In Q2 2021, Santander Factoring maintained its first position on the Turnover 16 825 market in terms of the balance sheet, reporting 27% YoY growth in +22% balances and increase in a re
Slide 34: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 18.89% 21.16% 19.14% L/D ratio 83.13% 16.94% Capital ratios 77.00% 76.60% 73.90% 71.93% 70.10% 30.06.2020 30.06.2021 CAR TIER 1 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.03.2020 30.06.2020 San
Slide 35: Key financial ratios
05 | Attachments Key financial ratios 1H 2021 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group 1H 2021 1H 2020 Cost/ income 61.7% 51.5% Net interest income/ total income 63.5% 71.5% Net interest margin 1) 2.59% 3.09% Net fee and commission income/ total income 2
Slide 36: Key financial ratios - comment
05 | Attachments Key financial ratios - comment 1Q 2021 - Santander Bank Polska Group 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 a
Slide 37: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 18 351 18 126 17 886 30/06/2021 30/06/2020 YoY (%) QoQ (%) 17 259 16 902 3 281 3 201 3 160 3 049 2 904 Retail customers 13 290 14 645 -9% -3% 3 706 3 532 3 738 3 607 3 612 Mortgage Mortgage loans 2 904 3 281 -11% -5% 11 364 11 39
Slide 38: Santander Consumer Bank Group: key financial results for 1H 2021
05 | Attachments Santander Consumer Bank Group Key financial results for 1H 2021 PLN m 1H 2021 1H 2020 Assets 19 295 21 177 Net loans 14 986 16 329 Deposits 8 656 10 098 Total equity 3 815 3 606 PAT 80 161 L/D (%) 173.1% 161.7% C/I (%)* 61.1% 49.9% ROE (%) 4.2% 9.2% ROA (%) 0.8% 1.5% TCR (%)** 28.7%
Slide 39: 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 40: 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