Bank Millennium Sa · GPW:MIL
Bank Millennium Sa — Investor Presentation (June 2023)
31 slides from Bank Millennium Sa's investor presentation, June 2023
Slide 1: Bank Millennium Group Institutional Presentation
BANK MILLENNIUM GROUP INSTITUTIONAL PRESENTATION June 2023 1
Slide 2: Agenda
AGENDA 1. 2. 3. 4. Macroeconomic Banking sector Bank Millennium Financial environment in Poland general overview performance in Poland and strategy 2
Slide 3: Macroeconomic environment in Poland
01 BANK’S PRESENTATION Macroeconomic environment in Poland 3
Slide 4: Macroeconomic Overview: Economy
MACROECONOMIC OVERVIEW Economy Data from real economy (% y/y) PMI indexes for Poland and Germany (pts) Economic growth in Poland continued to slow in first months of 2023 as high inflation and high interest rates reduced households’ consumption. In the same time investments continued to grow with su
Slide 5: Macroeconomic Overview: Financial markets
MACROECONOMIC OVERVIEW Financial markets Evolution of FX rates WIBOR 3M and market expectations (%) in 1Q23 the Monetary Policy Council continued a wait-and-see approach that had been adopted due to the mounting risks for economic activity, but also stubbornly high inflation. In the Bank’s opinion,
Slide 6: Macroeconomic Overview: Monetary aggregates
MACROECONOMIC OVERVIEW Monetary aggregates Loans to households Mortgage loans Loans to companies Demand for loans is stabilizing (PLN bn, % y/y) (PLN bn, % y/y) (PLN bn, % y/y) at low levels. Elevated inflation and high interest rates reduced production of new loans. Consumer and mortgage loans are
Slide 7: Banking sector in Poland
02 INSTITUTIONAL PRESENTATION Banking sector in Poland 7
Slide 8: Polish Banking Sector Overview
POLISH BANKING SECTOR OVERVIEW (*) 30 fully registered banks, 493 co- Strong resilience during the pandemic crisis – operative banks (active mainly in rural only one bank was subject to resolution areas of the country) and additional 34 procedure (due to pre-pandemic issue), fall- international bank
Slide 9: Bank Millennium is Poland's #7 Bank by Assets
BANK MILLENNIUM IS POLAND’S #7 BANK BY ASSETS As on March 31, 2023 (PLN billion) 444,0 450 Loans and advances to clients 420 45 Debt securities 390 360 Other financial assets 330 146,0 292,6 Other assets 300 258,6 270 34 240 227,7 217,5 42 210 89,0 18 180 54,8 31 148,2 41,2 150 57,6 21 113,8 120 237
Slide 10: Recent M&A Transactions in the Polish Banking Sector
RECENT M&A TRANSACTIONS IN THE POLISH BANKING SECTOR Upper logo: Acquirer 1) Lower logo: Acquired entity 1) 2) 2) 2007 2009 2011 2012 2013 2014 2015 2015 2017 2018 2019 2020 1) 1) (*) 1) 2) 2) 2) 3) 3) (*) Most of assets/liabilities of Idea Bank acquired as a part of resolution process at the turn o
Slide 11: Bank Millennium general overview and strategy
03 INSTITUTIONAL PRESENTATION Bank Millennium general overview and strategy 11
Slide 12: History of Bank Millennium at a Glance
HISTORY OF BANK MILLENNIUM AT A GLANCE 1989 1992 1997 1998 2003 2006 2010 2015 Bank Inicjatyw BIG S.A. is the first Merger with Bank Joint venture with BIG Bank GDAŃSKI Change of the Bank's Successful capital Increase of a Gospodarczych BIG bank listed on the Gdański (a regional Portuguese BCP to re
Slide 13: 2022-24 Strategy: Inspired by People
2022-24 STRATEGY: INSPIRED BY PEOPLE For years clients have been at the center Pillars of ’Millennium 24’ strategy: of our thinking. We talk, listen, understand and co-create our solutions together. Now, we are to leverage this approach in even more intensive way … 01 02 03 Top quality and Bank of t
Slide 14: Strategy 2022-2024 Execution
STRATEGY 2022 - 2024 EXECUTION STRATEGIC GOALS: 2021 2022 2024 cel • Bank is progressing with the execution of its 3-year business Number of active strategy adopted for the period 2022 to 2024. retail clients (thsnd.) 2 694 2 887 >3 000 • Operationalisation of the strategy is based on an intense pro
Slide 15: Mortgages – Our Long-Term Customer Acquisition Product
MORTGAGES – OUR LONG-TERM CUSTOMER ACQUISITION PRODUCT Millennium Mortgage Bank (MBH) started operating performance on June 14, 2021 Rationale for establishing MBH Share of mortgage loans in total portfolio (top 9 banks) (%) 80% 1Q22 1Q23 MBH will provide opportunities for medium term sustainable 70
Slide 16: Bank Millennium Today
BANK MILLENNIUM TODAY 2.9 million (*) active retail clients, 6% average market share, of which 7-8% 2.5 million (*) online active clients in retail segment and 4% in corporate 2.2 million (*) mobile active clients business Well developed retail banking Profitability under pressure platform with 635
Slide 17: Market Shares in Main Products
MARKET SHARES IN MAIN PRODUCTS YE20 YE21 YE22 March 2023 YE20 YE21 YE22 March 2023 Total loans 6.1% 6.1% 5.9% 5.7% Total deposits 5.3% 5.5% 5.6% 5.6% Loans to individuals 8.0% 8.2% 8.2% 8.2% Deposits of individuals 6.7% 6.8% 6.8% 6.6% mortgages 8.6% 8.7% 8.6% 8.5% demand deposits (**) 7.2% 7.0% 7.1%
Slide 18: Bank Millennium's Physical Footprint
BANK MILLENNIUM’S PHYSICAL FOOTPRINT (as at 31 March 2023) Network of 622 branches: own and mini branches Branches -24 678 676 665 655 646 635 633 635 622 225 224 222 215 218 220 224 229 231 453 452 443 440 428 415 409 406 391 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Own Partners' outlets Employ
Slide 19: Relations with BCP and BM's Management Composition
RELATIONS WITH BCP AND BM’s MANAGEMENT COMPOSITION Sale of 15.4% through ABB in BCP's stake - evolution since 1998 March’15 2015-2022 50,1% ▪ BCP demonstrated in the past strong support to 2010 BCP subscribed PLN691m during the right issue 65,5% Bank Millennium in Poland; commitment in equity was sh
Slide 20: Solid Foundations Appreciated by Investors
SOLID FOUNDATIONS APPRECIATED BY INVESTORS Bank Millennium's shareholder structure (31.12.2022) Annual change of Bank Millennium share performance vs. WIG Banks index 27,5% 0.3% Stable 50,1% shareholder - 2.8% 5,6% 8,0% 8,9% BCP Nationale-Nederlanden OFE (Pension Fund) Participation in domestic stoc
Slide 21: ESG: Environment
ESG: ENVIRONMENT Sustainability has long been included in our business strategy. Now we plan to become climate neutral Our advanced capabilities in the … will support our leading position on the ESG & Sustainability development … climate neutrality path Strong own emissions’ Reduction of … and striv
Slide 22: ESG: Social
ESG: SOCIAL Banking in Millennium – responsible and without barriers Our strong position has been ... and our aspiration is continue to achieve ambitious goals recognised on the market … in the coming years Best Bank for CSR Customers In CEE 2017 Customer centric service focused on superb quality, f
Slide 23: ESG: Governance
ESG: GOVERNANCE Highest quality and standards Our strong position has been ... and our aspiration is continue to achieve ambitious goals recognised on the market … in the coming years +10 years of membership Ethical approach to business Regularly revised Code of Ethics and compliance assessment Sign
Slide 24: Financial performance
04 INSTITUTIONAL PRESENTATION Financial performance 24
Slide 25: Synthetic P&L Account
SYNTHETIC P&L ACCOUNT SYNTHETIC P&L ACCOUNT Reported results 1Q22 1Q23 Change Y/Y 4Q22 Change Q/Q Net interest income 961 1 262 31% 1 349 -6% Including cost of credit holidays 0 0 - 99 - Net interest income without credit holidays 961 1 262 31% 1 250 1% Net commission income 221 201 -9% 202 -1% Othe
Slide 26: Balance Sheet
BALANCE SHEET 31.03.2022 31.12.2022 31.03.2023 Change y/y ASSETS Cash and balances with the Central Bank 8 286 9 536 5 452 -34% Loans and advances to banks 986 733 586 -41% Loans and advances to customers 78 703 76 565 75 380 -4% Amounts due from reverse repo trans. 26 5 0 -100% Debt securities 18 7
Slide 27: Financial Highlights of 1Q23
FINANCIAL HIGHLIGHTS OF 1Q23 Strong core profitability, efficiency and asset quality. Two consecutive quarters of material positive net results despite elevated costs related to FX-mortgage portfolio. Positive net profit in 1Q23 Adjusted net profit* NII** and NIM strongly up PLN252mn +37% y/y +31%;
Slide 28: Financial Highlights of 1Q23
FINANCIAL HIGHLIGHTS OF 1Q23 Strong core profitability, efficiency and asset quality. Two consecutive quarters of material positive net results despite elevated costs related to FX-mortgage portfolio. Positive net profit in 1Q23 Adjusted net profit* NII** and NIM strongly up PLN252mn +37% y/y +31%;
Slide 29: Most Important Awards and Achievements in 1Q23
THE MOST IMPORTANT AWARDS AND ACHIEVEMENTS OF BANK MILLENNIUM IN 1Q23 Fantastic people, winning teams and the highest standards of service confirmed by independent rankings and competitions 1st place for the team of economists in the Service Quality Star REFINITIV ranking and 2nd place for the 1st p
Slide 30: ESG Activities
ESG Activities Millennium Group for the fourth time distinguished in the Bloomberg Gender-Equality index • Banco Comercial Portugues entered the international Bloomberg Gender-Equality index for the fourth time in a row. In 2023, it achieved its best result so far. • The Bloomberg Gender-Equality In
Slide 31: Investor Relations - Contact
RELACJE Z INWESTORAMI - KONTAKT Kierujący Departmentem Relacji z Inwestorami Katarzyna Stawinoga Tel: +48 22 598 1110 Dariusz Górski e-mail: katarzyna.stawinoga@bankmillennium.pl Tel: +48 514 509 925, +48 22 598 1115 e-mail: dariusz.gorski@bankmillennium.pl Marek Miśków Tel: +48 22 598 1116 e-mail: