Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — H1 2024 Earnings Presentation
35 slides from Erste Bank Polska's earnings presentation, Jul 24, 2024
Slide 1: Financial results of Santander Bank Polska Group for 1H 2024
Investor Relations Warsaw 24/07/2024 Financial results of Santander Bank Polska Group for 1H 2024
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 1H 2024 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Our communication For many years, Santander Bank Polska has been close to its customers, helping them prosper. In our campaigns, we communicate our purpose in a consistent way – Santander helps in many ways both in finance and in life. Digital & Social media initiatives Our actions fo
Slide 5: Our people
01 | Our activities and our people Our people Improving employee experience ▪ We completed the first round of the employee satisfaction survey in 2024, achieving Corporate culture the best result in Europe among companies from Banco Santander Group. ▪ We organised a Family Day – we invited children
Slide 6: Our business development
1H 2024 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for 1H 2024 – Our business development General operational data Key volumes SBP* SCB** gross loans 174 bn 12.6% +7% YoY Branches 313* 38** deposits 215 bn 11.0% +7% YoY Employment 9.9k 1.4k customer funds 237 bn Customers 5.9m 1.5m +10% YoY Digital Customers 3.6m 729k assets 283 bn +8%
Slide 8: Key financial results and financial ratios
02 | Results for 1H 2024 – Our business development Key financial results Financial ratios for 2024 For 2024 Key results Capital position ROE, ROA PLN 6 672 m PLN 1 456 m PLN 8 283m PLN 2 360m Strong capital position, well above the KNF requirements +6% YoY +9% YoY +9% YoY +2% YoY +10 % on comparati
Slide 9: Our customers
Results for 1H 2024 Our customers 03
Slide 10: Our customers in numbers
03 | Results for 1H 2024 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.4m customers +2% YoY 516k customers +1% YoY 27.9k customers +2% y/y 3.2m digital 375k digital +8% YoY +5% YoY 21.8k Digital customers customers +2% y/y customers 2.7m mobile 217k m
Slide 11: New products and services
03 | Results for 1H 2024 – Our customers New products and services Retail customers SME customers Corporate customers ▪ We expanded our list of FX accounts to include ▪ We introduced new solutions, including: accounts in CZK, NOK, SEK, DKK, JPY, HUF, CAD - the Business New Energy investment loan to
Slide 12: Education and support for customers
03 | Results for 1H 2024 – Our customers Education and support for customers Retail Customers SME Customers BCB customers ▪ We improved our mobile app, for example: ▪ We finished the “EmPOWERed in business” ▪ We have provided our clients with a pilot carbon footprint - we launched the Financial Coac
Slide 13: Selected business data
03 | Results for 1H 2024 – Our customers Selected business data Retail customers SME Customers BCB customers CIB Customers 4.7m +17% YoY 14.7k 53% +10% YoY +13% YoY +64% YoY +59% YoY Personal Select segment Business Digital Trade finance Income on eFX Income from Income from Equity accounts customer
Slide 14: Our financial performance
Results for 1H 2024 Our financial performance 04
Slide 15: Gross loans
04 | Results for 1H 2024 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans Santander Bank Polska S.A. +7% ◼ The loan portfolio increased by 10% YoY and by 4% QoQ. 168 444 174 345 162 939 164 375 165 212 ◼ Mortgage loan sales: +68% YoY; -38% QoQ 11% ◼ Cash loan sale
Slide 16: Customer funds
04 | Results for 1H 2024 – Our financial performance Customer funds Comment Deposits Deposits PLN m and term funding Santander Bank Polska Group +7% ◼ Customer funds +10% YoY and +3% QoQ. 4% 7% 210 038 209 277 210 308 215 235 Deposits SBP Group 200 656 35% 10% ◼ Retail deposits +11% YoY and +4% QoQ
Slide 17: Net interest income and net interest margin
04 | Results for 1H 2024 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m 3 200 3 396 3 428 3 387 3 285 ◼ In H1 2024, net interest income totalled PLN 6.8bn and 346 362 323 371 391 increased by 6% YoY. In Q2 2024 alone, net interest income rea
Slide 18: Net fee and commission income
04 | Results for 1H 2024 – Our financial performance Net fee and commission income Comment Net fee and commission income PLN m ◼ In H1 2024, net fee and commission income 729 727 678 667 710 increased by 9% YoY and was stable QoQ. 32 37 27 37 30 118 109 Cards 86 81 131 ◼ On an annual basis, good res
Slide 19: Income
04 | Results for 1H 2024 – Our financial performance Income Income PLN m 4 222 4 170 4 152 4 132 Comment 3 870 160 32 36 119 667 710 729 727 678 ◼ The Group's total income in the H1 2024 amounted Net Interest Income to PLN 8.3bn and increased by 9% YoY. ◼ Interest income higher by 6% due to changes
Slide 20: Operating expenses
04 | Results for 1H 2024 – Our financial performance Operating expenses Comment Operating expenses Total costs H1 2024 amounted to PLN 2.6bn and increased PLN m 1 353 ◼ 1 188 1 213 32 1 225 by 11% YoY. This is, among others, the result of a higher BGF 1 063 46 153 45 burden - PLN 253m in 2024 compar
Slide 21: Provisions and credit portfolio quality
04 | Results for 1H 2024 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 4.9% 4.9% 0.80% 0.77% 0.72% 0.70% 0.70% 4.6% 4.6% 4.5% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 30.06.2023 30.09.2023 31.12.2023 31.03.2024 30.06.2024 Net provisions
Slide 22: Banking tax and regulatory costs; NPL sales
04 | Results for 1H 2024 – Our financial performance Banking tax NPL sales and regulatory costs Amounts payable to the BGF, PFSA, KDPW, IPS and BSF PLN m NPL sales PLN m SBP* SCB* 450 314 279 195 219 203 189 198 218 148 125 -4 9 9 81 25 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q1 2023 Q2 2023
Slide 23: Results for 2024
04 | Results for 1H 2024 – Our financial performance Results for 2024 Results for 2024 Comment PLN m ▪ Net profit in H1 2024 totalled PLN 2.4bn. On comparable H1 2024 H1 2023 YoY (%) basis, it increased by 10% YoY. Net interest and fee income 8 128 7 632 6% ▪ Quarterly, net profit decreased by 49% d
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 +7% (gross) +9% advances portfolio (gross) 53 270 53 935 51 205 51 568 50 388 1 745 ◼ PLN mortgage loans 2 293 3 483 2 603 portfolio: +12% YoY 3 696 FX ◼ FX mortgage loans PLN 17 428 52 190 16
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio bn PLN Market share • Leasing portfolio of PLN 14.8bn , +10% YoY +10% 8%* • Great result in the road transport segment: PLN 2.7bn, +31% YoY 14 880 13 965 13 980 14 338 • Financing dynamics for the SME segment 13 364 customers +12 YoY, Corpo + 24% YoY * Da
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market Share 10% PLNm 8 578 -2% 8 436 30.06.2023 30.06.2024 ◼ In Q2 2024, Santander Factoring held the first position on the market in terms of the balance sheet, reporting a slight decline of 2% YoY in Turnover balances. 22 589 23 242 3% ◼ Santander Fa
Slide 28: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 20.77% 19.21% L/D ratio 17.84% 16.72% Capital ratios 73.23% 72.10% 73.19% 73.70% 70.81% CAR TIER 1 30.06.2024 30.06.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 03.06.2024 Santander Bank Santan
Slide 29: Regulatory requirements regarding own funds and eligible liabilities – TLAC/MREL
Regulatory requirements regarding own funds and eligible liabilities – TLAC/MREL TLAC ▪ In accordance with Article 92a of the CRR, the minimum TLAC requirement is 18% of the total risk exposure amount (TREA) and 6.75% MREL of the total exposure measure (TEM). ▪ On 9 May 2024, the Bank was notified b
Slide 30: Key financial ratios
05 | Attachments Key financial ratios 2024 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group H1 2024 H1 2023 Cost/ income 31.1% 30.4% Net interest income/ total income 80.5% 82.8% Net interest margin 1) 5.23% 5.38% Net fee and commission income/ total income 17.6
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 19 697 18 562 18 881 18 566 18 390 30.06.2024 30.06.2023 YoY (%) QoQ (%) 865 1 608 1 574 1 338 1 212 5 941 6 143 6 133 5 950 7 298 Retail customers 12 399 12 621 -2% 0% Mortgage Mortgage loans 865 1 608 -46% -29% 11 013 11 164 11
Slide 33: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Key financial results for 2024 H1 2024 H1 2023 Assets 24 704 22 132 Net Loans*** 18 315 16 951 Deposits 15 029 12 148 Total equity 4 253 4 273 Net profit -147 43 L/D (%) 121.9% 139.5% C/I (%)* 98.7% 72.6% ROE (%) -6.8% 2.0% ROA (%) -1.2% 0.4% CAR (%)**
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