Slide 1: Bank Millennium Group: Presentation of 2nd quarter 2017 results
BANK MILLENNIUM GROUP Presentation of 2nd quarter 2017 results
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Bank Millennium for its stakeholders for information purpose only. The information presented in this presentation should be read together with other information published by the Bank (on www.bankmillennium.pl), in particular financial and current rep
Slide 3: Presentation of results in 2Q 2017
PRESENTATION OF RESULTS IN 2Q 2017 > Financial performance > Business development > Appendixes
Slide 4: Key profit & loss items
KEY PROFIT & LOSS ITEMS Change Change PLN mln 1H17 1H16 2Q17 1Q17 Y/Y Q/Q Net interest income 841.1 756.0 11.3% 429.9 411.2 4.6% Net commission income 328.6 274.1 19.9% 162.5 166.1 -2.2% Total operating income 1 211.3 1 320.0 -8.2% 632.4 579.0 9.2% TOI without one-offs(*) 1 234.5 1 088.5 13.4% Total
Slide 5: Key balance sheet items
KEY BALANCE SHEET ITEMS Change Change PLN mln June 17 Mar. 17 June 16 Q/Q Y/Y Active customers (ths) 1 557 1 523 +34 1 414 +143 inc. on-line and mobile 1 060 1 023 +37 906 +154 Customer Funds 65 166 64 126 1.6% 60 150 8.3% Customer Funds of individuals 48 592 48 759 -0.3% 44 335 9.6% Deposits 56 988
Slide 6: Euromoney Award for Excellence
EUROMONEY AWARD FOR EXCELLENCE Best Bank for CSR in Central & Eastern Europe Best Bank for CSR In Central and Eastern Europe „For Bank Millennium’s transparent way of presenting CSR activities, diversity and complexity of its programmes, and above all the innovative approach to clients, which makes
Slide 7: Main financial highlights of 2Q 2017
MAIN FINANCIAL HIGHLIGHTS OF 2Q 2017 Further improvement of profitability thanks to business and core income growth Further improvement of Net profit in 2Q 2017 at PLN 173.6 million (+24% q/q). profitability and cost 1H Net profit reached PLN 314.1 million which is 35% higher when adjusting efficien
Slide 8: Profitability and cost efficiency
PROFITABILITY AND COST EFFICIENCY Core income solid yearly growth outperformed modest cost growth, which allowed Cost to Income to come down to 46% Net profit (PLN million) Operating income * (PLN million) +13.4% without one-offs 13.1% ROE 8.9% -8.2% +34.6% without one-offs Visa +9.2% +13.5% -27.1%
Slide 9: Interest and commission income
INTEREST AND COMMISSION INCOME Double-digit yearly growth of Net Interest and Commission Income kept Net Interest Income * (PLN million) Interest on loans and deposit (PLN million) +11.3% 4,09% 4,20% 4,08% 4,05% 4,03% 4,09% 841 Interest of Loans 756 +4.6% 2,56% Interest of Deposits 2,28% 2,44% 2,39%
Slide 10: Asset quality and capital
ASSET QUALITY AND CAPITAL Strong Asset Quality, Liquidity and Capital ratios maintained. Impaired Loans P&L impairment provisions (PLN million) 12,1% 12,3% 11,5% 11,8% 11,1% 45 52 COST OF RISK* Total loans +15.7% Mortgage 122,7 6,2% 106,1 5,5% Other retail 5,0% 10,5 +5.4% 4,6% 4,6% 4,5% 4,5% 43,1 4,
Slide 11: Presentation of results in 2Q 2017
PRESENTATION OF RESULTS IN 2Q 2017 > Financial performance > Business development > Appendixes
Slide 12: Main business highlights in 2Q 2017
MAIN BUSINESS HIGHLIGHTS IN 2Q 2017 Continued strong performance in lending and current account volumes. Retail business 10% yearly growth of retail customer funds 28% yearly growth of current and saving accounts balance PLN mortgage sale at PLN 628 million in 2Q Cash loans sale at PLN 572 million i
Slide 13: Use of electronic channels
USE OF ELECTRONIC CHANNELS High share of electronic channels in product sales volume 1 060k (+17% y/y) Bank Millennium the best digital Retail clients active in mobile and online banking consumer bank in 615k (+42% y/y) Poland according to magazine Retail clients actively using mobile app and mobile
Slide 14: Loans and deposits
LOANS AND DEPOSITS Continuation of solid growth of lending shown in 2Q, part of retail deposits transferred to non- deposit savings Loan Portfolio of the Group (net) (PLN million) Customer Deposits (PLN million) +8.6% without FX mortgage +6.8% +7.5% +7.6% +9.3% +4.8% 46 965 46 992 47 316 +1.1% 56 37
Slide 15: Retail business – deposits and accounts
RETAIL BUSINESS – DEPOSITS AND ACCOUNTS Fast acquisition of new customers and accounts kept, supporting current and savings accounts growth Retail Customer Funds (PLN million) Active retail clients (in thousand.) 9.6% +143 28.4% +20% +34 48 759 48 592 +31 44 335 +41 7 750 8 178 6 789 +37 16 507 15 4
Slide 16: Retail business – loans
RETAIL BUSINESS – LOANS Acceleration of mortgage loans sale continued; PLN mortgage portfolio crossed PLN 10 billion Retail loans (gross) (PLN million) Cash loans new sales (PLN million) 9.0% -11.7% 8.7% -11.2% +2.6% 647 619 34 124 558 572 33 397 33 399 512 486 6 021 6 377 6 564 Consumer loans 9 468
Slide 17: Companies business – deposits and loans
COMPANIES BUSINESS – DEPOSITS AND LOANS Further growth of loans and current accounts balances Companies deposits (PLN million) Loans to companies (gross) (PLN million) +7.8% +4.8% +15.6% 7.5% +7.9% +7.9% +2.4% 15 814 16 574 15 367 15 006 15 370 14 261 2 061 2 142 Factoring 1 853 9 666 9 037 9 967 Te
Slide 18: Companies business – transactions and financing
COMPANIES BUSINESS – TRANSACTIONS AND FINANCING Record sale in factoring and new facilities in trade finance introduced Leasing – new sales (PLN million) Factoring – turnover (PLN million) +16% 755 13.8% 703 690 636 651 653 4 222 3 474 3 709 3 703 3 754 3 757 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1Q 1
Slide 19: Presentation of results in 2Q 2017
PRESENTATION OF RESULTS IN 2Q 2017 > Financial performance > Business development > Appendixes
Slide 20: Macroeconomic overview
Macroeconomic overview Interest rates evolution (%) FX rates evolution Q-o-Q (bp) 0 0 0 Q-o-Q 0% -2% -6% Y-o-Y (bp) 0 2 5 Y-o-Y -4% -5% -7% GDP growth & unemployment (%) Inflation (%) Investments & Consumption (% y/y) 20 Source: NBP, GUS
Slide 21: Macroeconomic overview
Macroeconomic overview Loans to households (PLN billion, % y/y) Households’ deposits (PLN billion, % y/y) Loans to companies (PLN billion, % y/y) Companies’ deposits (PLN billion, % y/y) 21 Source: NBP (*) Data for May 2017
Slide 22: Bank Millennium share performance
BANK MILLENNIUM SHARE PERFORMANCE Market cap/liquidity (PLN million) Bank Millennium share performance vs. main indices (as on 30.062017) 8,9 Avg. daily turnover Market Cap. Change Change Market ratios 30.06.2017 30.12.2016* (%) 30.06.2016 (%) 5,9 5,7 5,7 YTD Yearly The Bank’s share price 10 069 7,4
Slide 23: Most important awards and recognitions
MOST IMPORTANT AWARDS AND RECOGNITIONS In 1H 2017 Bank Millennium received several awards and recognitions Quadruple podium 1st place in the „Personal account” 2nd place in „Mortgage loans” Reliable Employer 2016 Service Quality Star For best employers in terms of Bank Millennium was honoured with 3
Slide 24: Regional Innovation Potential - Millennium Index 2017
REGIONAL INNOVATION POTENTIAL - MILLENNIUM INDEX 2017 The Bank participates in the debate on Polish innovation Bank Millennium index 2017 and 2016 - comparison of results • Bank Millennium conducts research on the diversity and directions of innovation development in Polish voivodships. • The index
Slide 25: Synthetic P&L account
SYNTHETIC P&L ACCOUNT (PLN million) Change Change Pro-forma 1H’16 1H’17 Y/Y 2Q’16 1Q’17 2Q’17 Q/Q Net interest income* 756,0 841,1 11,3% 391,2 411,2 429,9 4,6% Net commission income 274,1 328,6 19,9% 139,8 166,1 162,5 -2,2% Other non-interest income ** 289,9 41,6 -85,6% 249,9 1,7 40,0 2284,2% Operat
Slide 26: Balance sheet
BALANCE SHEET (PLN million) ASSETS 30/06/2016 31/03/2017 30/06/2017 Change y/y Cash and balances with the Central Bank 2 937 1 828 2 172 -26,1% Loans and advances to banks 2 299 969 518 -77,5% Loans and advances to customers 46 965 46 992 47 316 0,7% Amounts due from reverse repo trans. 47 128 65 39
Slide 27: Investor Relations contact
Investor Relations contact: Artur Kulesza Katarzyna Stawinoga Head of Investor Relations Tel: +48 22 598 1110 e-mail: katarzyna.stawinoga@bankmillennium.pl Tel: +48 22 598 1115 e-mail: artur.kulesza@bankmillennium.pl Marek Miśków Tel: +48 22 598 1116 e-mail: marek.miskow@bankmillennium.pl 27 www.ban