Bank Millennium Sa · GPW:MIL
Bank Millennium Sa — Q3 2015 Earnings Presentation
39 slides from Bank Millennium Sa's earnings presentation, Oct 23, 2015
Slide 1: Bank Millennium Group 3Q 2015 results
Bank Millennium Group 3Q 2015 results 23 October 2015 „Bank on Quality” No 1 in Poland
Slide 2: Disclaimer
Bank Millennium – 3Q 2015 results Disclaimer This presentation (the ”Presentation”) has been prepared by Bank Millennium S.A. (the ”Bank”). This Presentation should not be treated as a part of any invitation or offer to sell, invest or deal in any securities or a solicitation of an offer to purchase
Slide 3: Market leader in the quality and customer satisfaction level
Bank Millennium – 3Q 2015 results Market leader in the quality and customer satisfaction level Bank Millennium 1st in the „Traditional Banking” category 1st in the „Internet Bank” category 1st in the „Mortgage Banking” category In the prestigious Newsweek’s Friendly Bank ranking (*) The Best Branc
Slide 4: Clear track record in the quality improvement …
Bank Millennium – 3Q 2015 results Clear track record in the quality improvement … Consistent focus on quality improvement*, which was one of the top priorities in the Bank’s strategy since 2010, brought visible progress in the Newsweek’s ranking, both in traditional banking …. 2010 2011 2012 2013 20
Slide 5: … supports acquisition of new accounts and customers …
Bank Millennium – 3Q 2015 results … supports acquisition of new accounts and customers … Current account acquisition (cumulative) in tsd 230,8 201,3 173,7 128,4 105,9 64,3 51,6 Over 200 thousand current accounts opened in 2015, mainly of the new Konto Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 360°
Slide 6: … with strong usage of online platform
Bank Millennium – 3Q 2015 results … with strong usage of online platform Platform’s high adaptability offers on the spot implementation of innovative solutions Best in class users’ experience is our top priority Continuously innovative • Simple, need-driven processes, Implementation of responsive te
Slide 7: Agenda
Bank Millennium – 3Q 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 7
Slide 8: Macroeconomic Overview
Bank Millennium – 3Q 2015 results Macroeconomic Overview Interest Rates Evolution (%) Evolution of CHF Libor 3M (%) Q-o-Q (bp) 0 0 0 Y-o-Y (bp) -56 -150 -100 Evolution of PLN yield curve (%) The central bank kept rates at record low levels during 3Q. Bank expects the official interest rates to be
Slide 9: Macroeconomic Overview
Bank Millennium – 3Q 2015 results Macroeconomic Overview GDP Growth & Unemployment Rate (%) Inflation (CPI %) Investments & Private Consumption (% y/y) Polish economy kept growing at a solid pace in the FX Rates Evolution first half of 2015 supported by recovery in the Eurozone and strong domestic
Slide 10: Macroeconomic Overview
Bank Millennium – 3Q 2015 results Macroeconomic Overview Loans to Households Households’ deposits (PLN bn) (PLN bn) Loans to Companies Corporate sector deposits (PLN bn) (PLN bn) Source: NBP * data for September - Bank Millennium estimations based on preliminary M3 data 10
Slide 11: Agenda
Bank Millennium – 3Q 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 11
Slide 12: Main financial highlights in 1-3Q 2015
Bank Millennium – 3Q 2015 results Main financial highlights in 1-3Q 2015 Stable net profit: at PLN 493 million YTD and PLN 166 million in 3Q Stable profitability and Operating costs fell 2.5% y/y, despite higher BFG* fees improving cost efficiency Cost to income in 3Q at 49.2% ROE at 11.1%,
Slide 13: Profitability
Bank Millennium – 3Q 2015 results Profitability Net profit (PLN million) 12.1% 11.1% ROE Net Profit for 1-3Q’15 amounted to PLN 493.5 million and stood at the similar 0% level as in 1-3Q’14 493,2 493,5 On quarterly basis Net Profit grew in +0.3% 3Q’15 by 0.3%. 162,6 165,2 165,7 Minor yearly de
Slide 14: Net Interest Income
Bank Millennium – 3Q 2015 results Net Interest Income Net Interest Income* (PLN million) Net Interest Income* grew by 2.6% in 3Q’15 after relatively slight quarterly -4.9% decrease in two previous quarters as an 1111,0 1056,9 outcome of material NBP rates cuts. +2.6% Interest on loans indicate r
Slide 15: Non-interest Income
Bank Millennium – 3Q 2015 results Non-interest Income Net Commission Income Net Commissions Income amounted to PLN (PLN million) 456 million in 1-3Q’15 and decreased by -2.9% 2.9% vs. corresponding period of 2014 469,5 (interchange fees base effect). In quarterly 455,7 terms commissions already gr
Slide 16: Operating Costs and Efficiency Ratio
Bank Millennium – 3Q 2015 results Operating Costs and Efficiency Ratio Operating Costs Cost/Income ratio (PLN million) -2.5% 51,6% 832,3 811,7 50,3% 49,9% 49,3% 49,2% 422,7 400,6 -5.2% -1.9% 3Q14 4Q14 1Q15 2Q15 3Q15 274,4 271,2 266,0 -3.1% 409,6 411,1 136,2 134,3 130,1 138,3 136,9 135,9 Total cost
Slide 17: Asset quality
Bank Millennium – 3Q 2015 results Asset quality Impaired/ past due loans ratio by segments * Impaired loans ratio amounted to 4.6% as at Impaired the end of September and is one of the 11,2% lowest among the main Polish banks. 11,1% 10,8% 10,6% 10,7% 7,0% 6,9% 7,1% 6,7% 7,3% Share of loans past-
Slide 18: Cost of Risk
Bank Millennium – 3Q 2015 results Cost of Risk P&L impairment provisions * Provisions for credit risk in 1-3Q’15 (PLN 63 57 60 51 59 COST OF 196 million) were lower by 2.7% vs RISK** corresponding period of 2014 and -2.7% represented 57 bps. of average net 201,5 196,0 (PLN million) loans. 72,3 150
Slide 19: Liquidity and Capital Adequacy
Bank Millennium – 3Q 2015 results Liquidity and Capital Adequacy Capital Adequacy Ratios * 16,0% Group Capital Ratio grew to 16.0% (TCR) 15,2% 15,2% and 15.5% (CET1) thanks to recognition of 14,1% 14,2% 15,5% 50% of 1H 2015 consolidated net profit - 14,5% 14,6% according to consent issued by the P
Slide 20: Agenda
Bank Millennium – 3Q 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 20
Slide 21: Main business highlights in 1-3Q 2015
Bank Millennium – 3Q 2015 results Main business highlights in 1-3Q 2015 1st in the „Traditional Banking” category Quality and customer satisfaction leadership 1st in the „Internet Bank” category 1st in the „Mortgage Banking” category Strong growth of retail deposits maintained: +12.1% y/y (3
Slide 22: Customer funds
Bank Millennium – 3Q 2015 results Customer funds Customer Funds of the Group (PLN million) Customer funds of the Group grew by +7.7% +0.7% 7.7% yearly and by 0.7% quarterly, of 56 409 57 869 58 299 54 145 54 353 7 635 7 111 which deposits grew by 7.9% y/y and 6 710 6 761 7 435 1.9% q/q. 47 435 47
Slide 23: Loan portfolio
Bank Millennium – 3Q 2015 results Loan portfolio Loan Portfolio of the Group (net) Total net loans amounted to PLN 46.2 (PLN million) +5.3% -1.7% billion and decreased slightly by 1.7% 46 535 46 998 46 191 vs. June’15, mainly due to FX mortgage 43 847 44 143 portfolio decrease. 13 316 13 214 13 41
Slide 24: Retail business results – deposits
Bank Millennium – 3Q 2015 results Retail business results – deposits Total Deposits from individuals and market share 5,3% 5,2% 5,2% 5,4% 5,5% Retail deposits showed solid growth of 12.1% y/y and 3.7% q/q, keeping strong (PLN million) +12.1% quarterly increase of PLN 1.2 billion. +3.7% 31 785 32 9
Slide 25: Retail business results - loan portfolio
Bank Millennium – 3Q 2015 results Retail business results - loan portfolio Loans for individuals (gross) Y/Y Loans to individuals (gross) grew by (PLN million) Q/Q 5.7% y/y – some deceleration due to 33 831 34 443 33 441 31 643 32 018 1 137 1 181 1 203 +5.7% -2.9% decrease of FX mortgage loans. 1
Slide 26: Retail business results – cash and mortgage loans
Bank Millennium – 3Q 2015 results Retail business results – cash and mortgage loans Cash Loans new production Cash Loans portfolio (gross) (PLN million) (PLN million) +25% 1927 +21% +2.5% 1541 4 218 4 322 3 982 3 570 3 741 674 669 584 1-3Q 14 1Q 15 2Q 15 3Q 15 1-3Q 15 30/09/14 31/12/14 31/03/15 30/0
Slide 27: Companies business results – loans
Bank Millennium – 3Q 2015 results Companies business results – loans Loans to companies (gross) 3,2% 3,2% 3,1% 3,2% 3,1% 3,0% Y/Y Q/Q (PLN million) 14 119 14 028 14 190 +4.6% +1.2% 13 563 13 483 Loans to companies (gross) grew by 4.6% 1 545 1 626 1 697 1 818 +17.7% +7.2% 1 591 yearly, mostly drive
Slide 28: Companies business results – transactions and deposits
Bank Millennium – 3Q 2015 results Companies business results – transactions and deposits Domestic payments International payments (thousand) (thousand) +18% +12% 8 028 8 455 71 74 7 441 66 69 7 144 7 252 64 III kw.14 IV kw.14 I kw.15 II kw.15 III kw.15 III kw.14 IV kw.14 I kw.15 II kw.15 III kw.15 D
Slide 29: Companies business results – leasing and factoring
Bank Millennium – 3Q 2015 results Companies business results – leasing and factoring Leasing – new production Market 7.7% 6.8% Leasing sales in 1-3Q’15 at PLN 1747 share * million, that is 0,8% higher yearly. (PLN million) Millennium Leasing keeps high position +0.8% in top 5 leasing companies in
Slide 30: Agenda
Bank Millennium – 3Q 2015 results Agenda Macroeconomic overview Financial performance Business development Appendixes 30
Slide 31: Recent major awards and achievements (1)
Bank Millennium – 3Q 2015 results Recent major awards and achievements (1) First place in Newsweek’s Friendly Bank ranking 1st in the „Traditional Banking” category 1st in the „Internet Bank” category 1st in the „Mortgage Banking” category 360 Account for students took first place in Banki
Slide 32: Recent major awards and achievements (2)
Bank Millennium – 3Q 2015 results Recent major awards and achievements (2) Bank Millennium is a finalist in the prestigious „BAI-Finacle Global Banking Innovation Awards 2015” for the most innovative banking institutions in the “Channel Innovation” category for launching omnichannel service, which
Slide 33: Bank Millennium share performance
Bank Millennium – 3Q 2015 results Bank Millennium share performance Market cap/liquidity General information on Bank Millennium shares 10 069 11,0 No of shares: 1 213 116 777 (listed 1 213 007 541) 8 737 7 133 Listed: on Warsaw Stock Exchange since August 1992 5 362 5,9 Indices: WIG, mWIG40, W
Slide 34: Mortgage loans– evolution of CHF instalments
Bank Millennium – 3Q 2015 results Mortgage loans– evolution of CHF instalments CHF rate surge in January caused a Comparison of CHF vs. PLN instalment * (in PLN) temporary growth of mortgage instalments, which was lower than scale of increases that occurred with CHF/PLN rate at 3.93** during 2008
Slide 35: Actions to support mortgage loan borrowers
Bank Millennium – 3Q 2015 results Actions to support mortgage loan borrowers The Bank fully implemented a set of „Six-pack solution” recommended by Polish Banking Association (ZBP) in order to mitigate negative impact of CHF appreciation, stabilize the level of loans instalments and support clients
Slide 36: Synthetic P&L account (pro-forma)
Bank Millennium – 3Q 2015 results Synthetic P&L account (pro-forma) (PLN million) 1-3Q 2014 1-3Q 2015 2Q 2015 3Q 2015 pro-forma pro-forma pro-forma pro-forma Net interest income* 1 111,0 1 056,9 348,4 357,5 Net commission income 469,5 455,7 147,4 151,6 Other non-interest income ** 94,3 117,2 47,9 31
Slide 37: Business segments results
Bank Millennium – 3Q 2015 results Business segments results (PLN million) Retail segment Companies segment Treasury, ALM and other 1-3Q 2014 1-3Q 2015 change 1-3Q 2014 1-3Q 2015 change 1-3Q 2014 1-3Q 2015 change Net interest income 869,0 800,4 -7,9% 242,8 195,8 -19,4% -6,3 19,5 - Net commission inco
Slide 38: Balance Sheet
Bank Millennium – 3Q 2015 results Balance Sheet ASSETS (PLN million) 30/09/2014 30/06/2015 30/09/2015 Cash and balances with the Central Bank 1 705 1 939 1 710 Loans and advances to banks 1 711 3 736 2 772 Loans and advances to customers 43 847 46 998 46 191 Amounts due from reverse repo transaction
Slide 39: Contact
Bank Millennium – 3Q 2015 results Contact Website: www.bankmillennium.pl Marek Miśków – analyst Tel: +48 22 598 1116 Contact to Investor Relations Department: e-mail: marek.miskow@bankmillennium.pl Artur Kulesza – Head of Investor Relations Katarzyna Stawinoga Tel: +48 22 598 1110 Tel: +48 22 598 11