Erste Bank Polska S.a. · GPW:EBP
Erste Bank Polska — Q1 2024 Earnings Presentation
35 slides from Erste Bank Polska's earnings presentation, Apr 30, 2024
Slide 1: Financial results of Santander Bank Polska Group for 1Q 2024
Investor Relations Warsaw 30/04/2024 Financial results of Santander Bank Polska Group for 1Q 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 1Q 2024 Our activities and our people 01
Slide 4: Our communication
01 | Marketing Our communication Digital activities For many years, Santander Bank Polska has been close to its customers, Our actions focused on: helping them prosper. In our campaigns, we communicate our purpose in a consistent way – Santander helps in many ways, • building brand reach and image,
Slide 5: Our people
01 | Our activities and our people Our people Diversity and inclusion Improving employee experience ▪ As part of promoting diversity and inclusion (D&I), we support the development of employee ▪ In Q1, we started activities to implement and embed the Total Experience approach, by e.g. networks. Curr
Slide 6: Our business development
1Q 2024 Results Our business development 02
Slide 7: General operational data and key volumes
02 | Results for 1Q 2024 – Our business development General operational data Key volumes SBP* SCB** gross loans 168 bn 12.1% +5% YoY Branches 315* 38** deposits 210 bn 11.0% +7% YoY Employment 9.8k 1.4k customer funds 231 bn Customers 5.9m 1.6m +10% YoY Digital Customers 3.6m 739k assets 280 bn +9%
Slide 8: Key financial results and financial ratios
02 | Results for 1Q 2024 – Our business development Key financial results Financial ratios for 2024 For 2024 Key results Capital position ROE, ROA PLN 3 387m PLN 729m PLN 4 152m PLN 1 565m Strong capital position, well above the KNF requirements +10% YoY +10% YoY +11% YoY +31% YoY +6% on comparative
Slide 9: Our customers
Results for 1Q 2024 Our customers 03
Slide 10: Our customers in numbers
03 | Results for 1Q 2024 – Our customers Our customers in numbers* Retail customers SME customers Corporate customers 5.3m customers +2% YoY 507k customers +1% YoY 27.8k customers +4% YoY 3.2m digital 372k digital +7% YoY +6% YoY 21.8k Digital customers customers +2% YoY customers 2.7m mobile 209k m
Slide 11: New products and services
03 | Results for 1Q 2024 – Our customers New products and services Retail customers SME customers Corporate customers ▪ We offered our customers the possibility to ▪ We implemented new lending solutions, including: choose interest rate type for cash loans and - Business Express loan with equal insta
Slide 12: Education and support for customers
03 | Results for 1Q 2024 – Our customers Education and support for customers Retail Customers SME Customers BCB customers ▪ We improved our mobile app, for example: ▪ In partnership with the Polish Entrepreneurs - we added Games and multimedia features so Foundation and Polfund, we launched the ▪ We
Slide 13: Selected business data
03 | Results for 1Q 2024 – Our customers Selected business data Retail customers SME Customers BCB customers CIB Customers 4.6m PLN 2.5bn 17.5k 48% +11% YoY +13% YoY +112% YoY +73% YoY Personal Cash loan Business Digital Trade finance Income on eFX Income from Equity Income from accounts sales accou
Slide 14: Our financial performance
Results for 1Q 2024 Our financial performance 04
Slide 15: Gross loans
04 | Results for 1Q 2024 – Our financial performance Gross loans Comment Gross loans PLN m Structure of loans Santander Bank Polska S.A. +5% ◼ The loan portfolio increased by 7% YoY and by 2% QoQ. ◼ Mortgage loan sales: +461% YoY; +52% QoQ 160 624 162 939 164 375 165 212 168 444 11% ◼ Cash loan sale
Slide 16: Customer funds
04 | Results for 1Q 2024 – Our financial performance Customer funds Comment Deposits Deposits PLN m and term funding Santander Bank Polska Group +7% ◼ Customer funds +10% YoY and +1% QoQ. 4% 7% Deposits SBP Group 200 656 210 038 209 277 210 308 197 172 33% 10% ◼ Retail deposits +6% YoY and +3% QoQ 9
Slide 17: Net interest income and net interest margin
04 | Results for 1Q 2024 – Our financial performance Net interest income and net interest margin Comment Net interest income PLN m 3 396 3 428 3 387 3 092 3 200 ◼ In Q1 2024, net interest income totalled PLN 3.4bn and 323 346 362 371 310 increased by 10% YoY. 2 782 2 877 3 050 3 066 3 016 ◼ In Q1 20
Slide 18: Net fee and commission income
04 | Results for 1Q 2024 – Our financial performance Net fee and commission income Comment Net fee and commission income PLN m In Q1 2024, net fee and commission income 678 710 729 ◼ 662 667 37 increased by 10% YoY and +3% QoQ. 37 32 32 30 118 Cards 87 86 81 131 ◼ On an annual basis, good results in
Slide 19: Income
04 | Results for 1Q 2024 – Our financial performance Income Income PLN m Comment 4 170 4 152 4 222 The Group's total income in the Q1 2024 amounted 3 730 3 870 160 ◼ 32 36 to PLN 4.2bn and increased by 11% YoY. Net Interest Income 662 678 667 710 729 ◼ Interest income higher by 10% due to changes in
Slide 20: Operating expenses
04 | Results for 1Q 2024 – Our financial performance Operating expenses Comment Operating expenses ◼ Total costs in 1Q 2024 amounted to PLN 1.35bn and increased PLN m 1 353 8% YoY. This is, among other things, the result of a higher BFG 1 251 1 188 1 213 32 levies - PLN 206m in Q1 2024 compared to P
Slide 21: Provisions and credit portfolio quality
04 | Results for 1Q 2024 – Our financial performance Provisions and credit portfolio quality Cost of credit NPL and NPL coverage ratio 4.9% 4.9% 4.8% 0.80% 0.77% 0.72% 0.70% 4.6% 4.6% 0.64% 31.03.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net provisions
Slide 22: Banking tax and regulatory costs; NPL sales
04 | Results for 1Q 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* 450 314 279 195 219 198 218 148 125 -4 9 9 81 25 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023
Slide 23: Results for 2024
04 | Results for 1Q 2024 – Our financial performance Results for 2024 Results for 2024 Comment PLN m Q1 2024 Q1 2023 YoY (%) ▪ Net profit Q1 2024 totalled PLN 1.6bn. ▪ In Q1 2024 - growth in the net interest and fee income Net interest and fee income 4 116 3 755 10% + 10% YoY and a decrease by 1% in
Slide 24: Attachments
Attachments 05
Slide 25: Retail Banking - growth in lending activity
05 | Attachments Retail Banking - growth in lending activity Cash loans portfolio Mortgage loans and +5% (gross) +10% advances portfolio 53 270 (gross) 50 796 50 388 51 205 51 568 2 293 3 483 2 603 4 534 3 696 ◼ PLN mortgage loans FX 16 956 portfolio: +10% YoY PLN 16 554 ◼ FX mortgage loans 50 976 1
Slide 26: Santander Leasing
05 | Attachments Santander Leasing Portfolio bn PLN Market share +10% ▪ Leasing portfolio at PLN 14.33bn , +10% YoY 8%* ▪ A great start to the year in terms of financing road transport vehicles PLN 1.35bn, +28% YoY 14 338 ▪ Financing for SME customers +20% YoY 13 965 13 980 13 364 13 122 * As at 31/
Slide 27: Santander Factoring
05 | Attachments Santander Factoring Portfolio Market Share PLNm 7 558 -2% 7 398 10% * As at 31/03/2024 31.03.2023 31.03.2024 ◼ In Q1 2024, Santander Factoring was number 2 on the market in terms of the balance sheet, reporting a slight decline of 2% YoY in balances. Turnover ◼ Santander Factoring a
Slide 28: Capital and liquidity position
05 | Attachments Capital and liquidity position Santander Bank Santander Bank Polska S.A. Polska Group 21.04% 19.39% L/D ratio 17.81% 16.59% Capital ratios 73.83% 73.23% 72.10% 73,19% 70.81% CAR TIER 1 31.03.2024 31.03.2023 31.03.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 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 total risk exposure amount (TREA) and 6.75% of the total MREL exposure measure (TEM). ▪ On 5 May 2023, the Bank was notified by th
Slide 30: Key financial ratios
05 | Attachments Key financial ratios 2024 - Santander Bank Polska Group Selected financial ratios of Santander Bank Polska Group Q1 2024 Q1 2023 Cost/ income 32.6% 33.5% Net interest income/ total income 81.6% 82.9% Net interest margin 1) 5.38% 5.4% Net fee and commission income/ total income 17.5%
Slide 31: Key financial ratios
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 18 562 18 881 18 566 18 390 31.03.2024 31.03.2023 YoY (%) QoQ (%) 17 616 1 608 1 574 1 338 1 212 1 820 5 941 6 143 6 133 5 950 Retail customers 12 440 12 759 -3% 0% 4 857 Mortgage Mortgage loans 1 212 1 820 -33% -9% 10 939 11 013
Slide 33: Santander Consumer Bank Group
05 | Attachments Santander Consumer Bank Group Key financial results for 2024 Q1 2024 Q1 2023 Assets 23 375 21 023 Net Loans*** 16 959 16 047 Deposits 13 710 11 203 Total equity 4 443 4 240 Net profit 43 41 L/D (%) 123.7% 143.2% C/I (%)* 62.5% 67.5% ROE (%) 3.9% 3.8% ROA (%) 0.7% 0.8% CAR (%)** 34.3
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