Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q3 2020 Earnings Presentation
40 slides from Erste Bank Polska's earnings presentation, Oct 27, 2020
Slide 1: Presentation of financial results for 1-3Q 2020
Investor Relations Warsaw 27/10/2020 Presentation of financial results for 1-3Q 2020 Santander Bank Polska Group
Slide 2: Agenda
Index Agenda Results for 1-3Q 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 1-3Q 2020 | Our activities and our people 01
Slide 4: Our response to COVID-19
01 | Results for 1-3Q 2020 – Our activities and our people Our response to COVID-19 We took care of smooth operations We changed our products and processes We introduced to increase safety remote work solutions We implemented temporary solutions to support borrowers from A range of communication
Slide 5: Our response to COVID-19: safety of customers and employees
01 | Results for 1-3Q 2020 – Our activities and our people Our response to COVID-19 We took care of safety of customers and employees We took care of our We took measures to help customers and employees stay employees’ health safe During the peak of the pandemic We provided personal protective e
Slide 6: Q3: quarter of isolation, change of our behaviours
01 | Results for 1-3Q 2020 – Our activities and our people Q3: quarter of isolation Change of our behaviours We have carried out the “Power to Help” (“PoMoc jest w nas”) charity In view of the epidemic situation in Poland, the Bank’s Management campaign in order to increase social awareness about ca
Slide 7: Our response to COVID-19: support for customers
01 | Results for 1-3Q 2020 – Our activities and our people Our response to COVID-19 Support for personal and business customers Number of clients for whom the bank recognized aid tools by 30/09/2020 as part of initiatives aimed at mitigating the We provided customers with an option to apply for th
Slide 8: Our communication
01 | Results for 1-3Q 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 became our new brand WANT IT. We offer products and services which are tailored to ambassador. As the surv
Slide 9: Responsible Banking (CSR)
02 | 1-3Q 2020 Performance Results – Development of our business Responsible Banking (CSR)* SUSTAINABLE MANAGEMENT CSR PROJECTS Our goals Our goals Sustainable management and building an inclusive work Supporting local communities and investments in environment. universities Our achievements Our ach
Slide 10: Responsible Banking (CSR): Green Bank, Inclusive Bank
02 | 1-3Q 2020 Performance Results – Development of our business Responsible Banking (CSR)* GREEN BANK INCLUSIVE BANK Our goals Our goals The Green Strategy includes: Development of an inclusive and integrating banking green product offering offer tailored to different customer needs and support
Slide 11: Euromoney Award
01 | Results for 1-3Q 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 comp
Slide 12: Our business development
Results for 1-3Q 2020 Our business development 02
Slide 13: General operational data and key volumes
02 | Results for 1-3Q 2020 – Our business development General operational data Key volumes SBP* SCB** gross loans 148.2 bn 11.8% -1% YoY Branches 481* 336 166.7 bn deposits 11.3% +10% YoY Employment 10.5k 2.0k customer funds 181.3 bn Customers 5.2m 2.0m +8% YoY Digital Customers 2.7m 176k assets 222
Slide 14: Key financial results and financial ratios
02 | Results for 1-3Q 2020 – Our business development Key financial results Financial ratios for 1-3Q 2020 For 1-3Q 2020 Key results Capital position ROE, ROA Strong capital position well above ROE, ROA – leading position in PLN 6 465m PLN 956m PLN 4 477m PLN 1 583m the KNF requirements the peer gro
Slide 15: Our customers
Results for 1-3Q 2020 Our customers 03
Slide 16: Our customers in numbers
03 | Results for 1-3Q 2020 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 4.7m customers no +3% YoY 422k customers +15% YoY 24.8k customers changes 306k digital 20.4k digital 2.4m digital +9% YoY customers +19% YoY customers +1% YoY customers 1.7m mobile
Slide 17: New products and services
03 | Results for 1-3Q 2020 – Our customers New products and services Retail SME Corporate customers customers customers We have made Special offer: We help customers in their development by available transfers LUX MED medical services supporting them during the pandemic - from other banks in p
Slide 18: Education and support for customers
03 | Results for 1-3Q 2020 – Our customers Education and support SME Customers BCB Customers for customers We educate our customers about products and services for SME, and In the last three months, we organised a series Retail Customers how to: of webinars for customers about the situation in v
Slide 19: Selected business data (3Q 2020)
03 | Results for 1-3Q 2020 – Our customers Selected business data (3Q 2020) Retail customers SME Customers BCB Customers CIB Customers +30% YoY -42% YoY -8% YoY +122% YoY +67% YoY -20% YoY +2% YoY +9% YoY Number of Sales of loans Income on eFX Financial markets Income from Cash loan Business account
Slide 20: Our financial performance
Results for 1-3Q 2020 Our financial performance 04
Slide 21: Gross loans
04 | Results for 1-3Q 2020 – Our financial performance Gross loans Comment PLN m Structure of loans* +1% -1% Santander Bank Polska S.A. Gross loans: +1% YoY and -1% QoQ 148 943 148 647 153 236 148 516 148 184 Total mortgage loans: +3% YoY and stable 8% QoQ 69 095 67 751 71 127 67 126 66 405 CH
Slide 22: Customer funds
04 | Results for 1-3Q 2020 – Our financial performance Customer funds Comment Deposits Deposits PLN m and term funding* +10% Santander Bank Polska Group Deposits 165 890 166 726 151 027 156 480 157 757 10% Retail deposits: +6% YoY and stable QoQ 3% Business deposits: +16% YoY and +2% 64 764 61 8
Slide 23: Net interest income and net interest margin
04 | Results for 1-3Q 2020 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m In 1-3Q 2020, net interest income fell by 9.2% YoY (down 1 701 1 647 1 636 1 458 1 383 5.2% QoQ in Q3). 409 372 358 350 288 Net interest margin for Q3 2020 (annual
Slide 24: Net fee and commission income
04 | Results for 1-3Q 2020 – Our financial performance Net fee and commission income Comment Net fee and commission PLN m Net fee and commission income was down income 544 542 29 538 39 553 0.2% YoY and +12.4%. While Q2 was affected 49 492 31 39 by the number of transactions made by 87 94 98 80 Ot
Slide 25: Income
04 | Results for 1-3Q 2020 – Our financial performance Income Income 1 2 453 1 2 381 1 2 249 PLN m 207 191 10 2 082 2 134 74 2 544 111 197 542 538 492 553 Dividends Comment Gain/Loss on financing activities and other 1 701 1 647 1 636 Total income of Santander Bank Polska Net fee and commission 1
Slide 26: Operating expenses
04 | Results for 1-3Q 2020 – Our financial performance Operating expenses Operating expenses 1 241 1 265 PLN m 982 91 304 152 964 930 Other operating 35 expenses 158 150 54 161 146 Comment Amortisation/ 574 147 Depreciation 350 319 324 Total costs were impacted by regulatory costs totalling PLN 32
Slide 27: Provisions and credit portfolio quality
04 | Results for 1-3Q 2020 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio* 1.06% 1.07% 0.96% 0.92% 0.88% 0.85% 5.60% 5.70% 4.70% 5.00% 5.20% 5.20% 0.81% 0.95% 0.97% 0.88% excluding excluding excluding additional ECL additional ECL additi
Slide 28: Banking tax and regulatory costs, NPL sales
04 | Results for 1-3Q 2020 – Our financial performance Banking tax NPL sales and regulatory costs Amounts payable to the PLN m PLN m NPL sales* BFG, KNF and KDPW 267 272 283 159 104 85 295 61 51 64 228 14 0,5 29 28 26 44 50 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q1 2019 Q2 2019 Q3 2
Slide 29: Results for 1-3Q 2020
04 | Results for 1-3Q 2020 – Our financial performance Results for 1-3Q 2020 Comment Results for 1-3Q 2020 impacted by one-off items The decline in net interest and commission PLN m On a comparative 1-3Q 2020 1-3Q 2019 % YoY income due to interest rate cuts, CJEU basis* judgments and the COVID-19
Slide 30: Attachments
Attachments 05
Slide 31: Retail Banking - growth in lending activity
05 | Attachments Retail Banking - growth in lending activity PLN m Cash loans portfolio Mortgage loans +3% (gross) +7% portfolio (gross) YoY YoY 49 343 49 440 50 596 50 543 50 782 PLN mortgage loans 9 529 10 156 9 706 9 530 portfolio: +5% YoY 10 022 FX mortgage loans 13 749 14 241 14 654 14 582
Slide 32: Santander Leasing
05 | Attachments Santander Leasing Portfolio PLN m Market share 7.1%* +10% Leasing portfolio at PLN 10.2bn, +10% YoY. 8% YoY growth in income. 10 314 Excellent C/I at 33.2%. 10 280 10 241 PLN 3.7bn net assets financed in 1-3Q 2020. 10 036 9 817 In Q3 2020, Santander Leasing signed an Operati
Slide 33: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market share PLN m -2% 10.3% YoY 5 320 5 196 31.09.2019 31.09.2020 Turnover In Q3 2020, Santander Factoring maintained its first position on the market in terms of balance sheet. PLN m -1% YoY Santander Factoring also maintains its first position in
Slide 34: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Polska S.A. Santander Bank Santander Bank Polska Polska Group 16.14% 18.70% 16.76% L/D ratio 86.30% 85.71% 85.70% 83.13% 14.31% 81.80% Capital ratios 77.00% 76.60% 30.09.2019 30.09.2020 CAR TIER 1 31.03.2019 30.06.2019 30.09.2019 31.12.2
Slide 35: Key financial ratios
05 | Attachments Key financial ratios 1-3Q 2020 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group 1-3Q 2020 1-3Q 2019 11) Cost/ income 48.9% 45.7% Net interest income/ total income 69.3% 69.7% Net interest margin 1) 2.95% 3.50% Net fee and commission income/ tota
Slide 36: Key financial ratios - comment
05 | Attachments Key financial ratios - comment 1-3Q 2020 - 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
Slide 37: Santander Consumer Bank Group: loans
05 | Attachments Santander Consumer Bank Group Loans PLN m Gross loans 19 032 19 557 19 164 18 351 18 126 30/09/2020 30/09/2019 YoY (%) QoQ (%) 3 440 3 299 3 424 3 281 3 201 4 184 Retail customers 14 595 15 116 -3% 0% 3 916 3 995 3 706 3 532 Mortgage Mortgage loans 3 201 3 440 -7% -2% 11 676 12 074
Slide 38: Santander Consumer Bank Group: key financial results
05 | Attachments Santander Consumer Bank Group Key financial results for 1-3Q 2020 PLN m 1-3Q 2020 1-3Q 2019 Assets 20 637 21 103 Net loans 16 109 17 048 Deposits 9 917 9 638 Total equity 3 709 3 322 PAT 265 428 L/D (%) 162.4% 176.9% C/I (%)* 47.1% 37.4% ROE (%) 9.9% 16.8% ROA (%) 1.7% 2.8% TCR (%)*
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