Bank Handlowy W Warszawie S.a. · GPW:BHW
Bank Handlowy W Warszawie — Investor Presentation (December 2006)
41 slides from Bank Handlowy W Warszawie's investor presentation, December 2006
Slide 1: Bank Handlowy w Warszawie S.A.
Bank Handlowy w Warszawie S.A. December 2006
Slide 2: Agenda
Agenda Strategy and business highlights Distribution channels Corporate and Investment Bank Consumer Bank Financial snapshot after 3Q 2006 2
Slide 3: Strategy and business highlights
citibank handlowy Bank Handlowy w Wars QO Strategy and business highlights
Slide 4: History of Citibank Handlowy
History of Citibank Handlowy 1870 – Bank Handlowy w Warszawie established as a privately- owned joint stock company by a group of investors formed by Leopold Kronenberg 1918-1939 – Bank Handlowy develops into the largest privately- owned bank in Poland 1939-1945 – the Bank continues its operations d
Slide 5: From past to present
From past to present Merger in March 2001 6% (TOP 4 bank) Revenue Market Share 3% (TOP 12 bank) PLN 21.5 billion Assets PLN 9.6 billion 14,000 Corporate Customers 2,000 240,000 Consumer Customers 45,000 156 Outlets 8 4,700 Employees 800 Wealth Platinum Management TS Retail Banking G Commercial Bank
Slide 6: Distribution channels
citibank handlowy Bank Handlowy w Wars QO Distribution channels
Slide 7: Tailored branch network
Tailored branch network Branch network currently – 230 branches 39 13 106 Joint branches 85 Corporate 22 Retail CitiFinancial Retail Servicing Out of 85: Branches that service CitiBusiness clients 72 Multifunctional 12 CitiGold 1 Investment Center Branch network in 2007 – 314 branches Słupsk Gdań Gd
Slide 8: Citiservice
Citiservice Specialised Citiservice team to handle corporate clients’ queries and investigations over the phone High standards of service: 99,48% customer calls are answered within 10 seconds Exceeding expectations by offering transaction banking products based on client knowledge and daily relation
Slide 9: CitiPhone
CitiPhone High standards in waiting time, waiting time for 80% phone calls - below 20 seconds Each day every tenth customer signs up for a new service or product Toll free CitiPhone number for customers calling from abroad Under CitiPhone – integration of electronic and phone channels Number of prod
Slide 10: Strategy – closer to the Client
Strategy – closer to the Client Alternative channels 1/9 BP gas stations Innovative access channels – BP gas stations, malls 5 Outlets in companies – mini-branches 6 4 2007 1/9 2/23 100 BP gas stations 8 10 malls 7 4 4 20 Mini –branches 4 1/6 1/9 10
Slide 11: Corporate and Investment Bank
citibank handlowy Bank Handlowy w Wars QO Corporate and Investment Bank
Slide 12: CIB business model
CIB business model Strong product coverage in all segments Segmentation Criteria Turnover Product focus Market share Product focus ($ MM) Platinum Tailored / sophisticated >250 20% products PLATINUM Cash Mgmt & Trade dominated GOLD Tailored 7% GOLD Market Middle 50-250 GT S CBG SILVER 25-50 Hybrid 9
Slide 13: Platinum
Platinum The best Corporate Bank in Poland Market Market position share High penetration and 90% satisfaction 20% PLATINUM GOLD GT S SILVER BLUE Citibank Handlowy Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Tailwinds Strategy Strong economic growth (GDP, export, GRB – grow with increased flows and foreign in
Slide 14: Platinum – key deals closed in 2006
Platinum – key deals closed in 2006 Deals closed Syndicated Syndicated loan loan MTN Revenue Revenue bonds bonds Club-deal Club-deal facility facility MTN program program IIII Tranche Tranche EUR EUR 604 604 mn mn PLN PLN PLN 400 400 mn mn USD USD 780 780 mn mn MLA MLA PLN 100 100 mn mn MLA MLA MLA
Slide 15: CBG
CBG The engine of growth Market Revenue structure by sub-segment* share Gold 33% PLATINUM GOLD GT 6.9% Blue** S 58% SILVER 8.7% Silver 9% BLUE 9.4% * 2006 September YTD ** Including Public Sector Clients Strategy initiatives Revenue growth supported by a number of Customer Satisfaction initiatives -
Slide 16: GTS Segment
GTS Segment The best in class for GRB customers Revenue structure by sub-segment* Market share FI 41% PLATINUM GOLD GT GRB S 65% 59% SILVER BLUE * 2006 July YTD Driven by quality and innovation Strategy Revenue growth - Operating account strategy (multiproduct & volume x-sell) - Client acquisition/w
Slide 17: Treasury
Treasury Customer business Revenue structure after 3Q 2006 Customer Acquisition and attrition Gain/loss on AFS management sale Conversion of active customers and new 12% customer acquisition through on-line Trading 16% trading platform Platform capacity; Call Manager (IVR) implementation to manage >
Slide 18: Consumer Bank
citibank handlowy Bank Handlowy w Wars O Consumer Bank
Slide 19: Consumer Bank – segments
Consumer Bank – segments Customer Product offer Segment High income CitiGold Wealth Management, credit cards A A CitiBlue Medium Accounts, credit cards, credit products, Middle income B investment and insurance products Ci CitiBanking ti B us Low incomeC1 Credit cards, credit products, ine Low insur
Slide 20: Consumer Bank – market position
Consumer Bank – market position 2006 2006 Wealth Management Distribution of foreign mutual funds 2006 17% The Bank’s share in revenue of 40% 83% retail banking segment in Poland(Q2, 2006) 60% 4,3 % 2006 2006 2006 Value of credit card 95,7 Internet users transactions % 8% 27% 73% 92% Citibank Other b
Slide 21: Credit cards
Credit cards Number of cards issued Number of transactions Transaction value 12% Citibank Handlowy 25% 27% Other banks 75% 73% 88% * NBP data for 2Q 2006 Credit cards average net receivables 637 thousand credit cards issued as at Sept 30, 2006 MM PLN 32% Differentiated offer! Safest cards! The bigge
Slide 22: Strategy – cards - even more innovations
Strategy – cards - even more innovations Cash loan on a credit card over the phone – unique Product portfolio (in PLN million) functionality in the market Record interest in the product PLN 123 MM and How doest it work? 19 thousand of clients Increasing the credit card limit on the basis on an indiv
Slide 23: Investment and Insurance products
Investment and Insurance products Mutual Fund assets acquired Single Premium Unit Structured through the Bank Linked Products 24% 81% 57% 3Q 05 3Q06 3Q 05 3Q06 3Q 05 3Q06 19% Client choice in the best Polish and foreign mutual funds: 81% Best return investment funds Coherent investment management Hi
Slide 24: Strategy – account
Strategy – account Mortgage loans and savings accounts Online transfers free of charge Account opening via the Internet – e-account Multifunctional, transparent debit card (possibility to perform non-cash transactions via the Internet) 2006 2007 Number of e-statement users increased by 60% (vs. Q3,
Slide 25: Strategy – Clients – CitiFinancial
Strategy – Clients – CitiFinancial Mortgage loan Credit card for CitiFinancial customers About 60% increase in the number of branches by the end of 2007 Number of CitiFinancial branches 120 100 80 60 40 Customer-friendly education program – „Droga 20 do dobrego kredytu” [The Road to Good Credit] 0 2
Slide 26: 3Q 2006 Financials snapshot
citibank handlowy 0 3Q 2006 Financials snapshot
Slide 27: Almost 80% of the previous year profit achieved after 3Q 2006
Almost 80% of the previous year profit achieved after 3Q 2006 MM PLN 616 600 120 485 4Q 400 179 142 3Q 2Q 107 200 180 1Q 236 138 0 2005 3Q06 Source: Bank’s Financial Disclosures 27
Slide 28: Cumulative 3Q 2006 results
Cumulative 3Q 2006 results PLN MM 3Q 06 3Q 05 % Net interest income 771.9 769.1 2.8 0.4% Net fee and commission income 447.2 439.2 8.0 1.8% Dividend income 3.7 2.1 1.6 75.5% Treasury 286.3 481.1 (194.8) (40.5%) Other operating revenue 61.1 53.5 7.6 14.1% Recurring income 1,570.1 1,745.0 (174.9) (10.
Slide 29: Ratios
Ratios 3Q 2006 3Q 2005 VARIANCE Operating Income, MM PLN 1,570 1,745 (10.0%) Gross income, MM PLN 625 632 (1.1%) Net income, MM PLN 485 497 (2.4%) Return on Equity 11.2% 10.1% Return on Assets 1.8% 1.8% Cost / Income 66.5% 66.5% Capital Adequacy Ratio 15.1% 14.6%* * as at Dec 31, 2005 Source: Bank’s
Slide 30: Balance Sheet structure
Balance Sheet structure Assets Liabilities 36,4 36,4 10% 10% 32,9 2.8 32,9 (18%) 3.4 Liabilities in 10.3 trading portfolio Loans – non- 9.6 7% financial 17.9 Deposits – non- 5.8 4% financial Loans - financial (11%) 17.3 6.5 Deposits - financial Available for sale 12.2 7.2 69% Other Liabilities 7.6 5
Slide 31: Loans
Loans Non-financial sector loans 26% 31% 74% 69% Corporates Individuals 31.12.2005 30.09.2006 Corporate clients loans Retails loans -2,5% 24% 8000 Market (excl. Market mortgage) 6000 2000 4000 9% 17% 2000 0 0 31.12.05 30.09.06 31.12.05 30.09.06 Source: Estimates, pro-forma data 31
Slide 32: Deposits
Deposits Non-financial sectors deposits 27% 25% 73% 75% Corporates Individuals 31.12.2005 30.09.2006 Non-Financial Corporate deposits Individuals’ deposits Market Market 4% 6000 12000 2% 12% 5% 4000 8000 4000 2000 0 0 31.12.05 30.09.06 31.12.05 30.09.06 Source: Estimates, pro-forma data 32
Slide 33: Expenses under control
Expenses under control 1140 1,040 -2% 1,015 68 43% 98 940 740 437 CitiFinancial -4% 419 GCB 540 CIB 340 534 -7% 498 140 -60 3Q05 3Q06 Corporate segment costs under control, decrease of technology and telecommunication costs Positive effects of restructuring actions in retail, even better visible wit
Slide 34: Cost of Credit
Cost of Credit Loans portfolio quality Impairment split as at 30 Sept 2006 19000 26% 17000 15000 13000 Not at risk 74% 11000 loans 9000 At risk of Individual Impairment loss 7000 impairment Portfolio approach 5000 Provisions 3000 1000 13% 12% -1000 -3000 31.12.2005 30.09.06 2005 3Q06 Provision cover
Slide 35: Cumulative 3Q 2006 results – Corporate and Investment Bank
Cumulative 3Q 2006 results Corporate and Investment Bank MM PLN I/(D) I/(D) Result on activity, 1140 MM PLN 3Q06 3Q05 % Results on activity 887 1,110 (223) (20%) 940 One-off events 105 - 105 - 449 740 - 43% Expenses and depreciation (570) (608) (38) (6%) 258 Provisions 73 68 5 7% 540 Gross profit 49
Slide 36: Cumulative 3Q 2006 results – Consumer Bank
Cumulative 3Q 2006 results Consumer Bank MM PLN I/(D) I (D) Result on activity, MM PLN 3Q06 3Q05 % 600 Results on activity 547 546 1 - 33 15% 38 500 One-off events 20 - 20 - 174 400 16% 201 Expenses and depreciation (445) (467) (22) (5%) Provisions - (16) 16 n.m. 300 Gross profit 122 64 59 92% 200 3
Slide 37: Cumulative 3Q 2006 results – CitiFinancial
Cumulative 3Q 2006 results CitiFinancial MM PLN I/(D) I (D) Result on activity, 125 MM PLN 13 3Q06 3Q05 % Results on activity 132 81 51 63% 100 158% Expenses and depreciation (99) (69) 30 43% 5 75 Provisions (25) (13) (12) 95% 119 Gross profit 8 (1) 9 n.m. 50 57% Assets 826 529 297 56% 76 25 Liabili
Slide 38: Share price / market ratios
Share price / market ratios Market ratios Market capitalization: PLN 10.3 bn ($ 3.6 bn) P/E 17.03 (banking sector average: 21.6) P/BV 2.02 (banking sector average: 3.8) 80 1,200 Volume 1,000 Stocks (thousands) 75 BHW stock price Stock Price (PLN) 800 70 600 65 400 60 200 55 0 6 6 6 6 6 5 06 06 6 6 5
Slide 39: Shareholders structure changes
Shareholders structure changes Current shareholders structure 23% 10.2 pp higher free-float as compared to the end of 2Q 06 2% COIC IFA 12.7 pp out of 14.33% BHW shares available for exchange has been Pozostali converted 75% Current total free float: $ 835 MM As at 8 Dec, 2006 Shareholders changes 2
Slide 40: Investor Relations
Investor Relations Sławomir Sikora President of the Management Board Lidia Jabłonowska-Luba Management Board Member, CFO Katarzyna Otko-Dąbrowska Investor Relations citibank handlowy Bank Handlowy w Warszawie S.A. Ul. Senatorska 16 00-923 Warszawa Polska Tel. +48 (22) 657 72 00 www.citibankhandlowy.
Slide 41: citibank handlowy
citibank handlowy
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