Bank BPH 1Q 2015 Earnings

Transcription

1 Bank BPH 1Q 2015 Earnings Webcast 1

2 Overview of 1Q 2015 Profitability Net income of PLN 12 MM and pre-tax income of PLN 22 MM Performance Retail loans and commercial limits granted of PLN 1.6 B good sale of core products continued improvement of products and distribution channels Costs Focus on operational cost control costs down 2% y/y and 6% q/q Losses Impaired loans down PLN 361 MM q/q and PLN 969 MM y/y NPL ratio of 7.7% down 1.7 pp. q/q and 3.9 pp. y/y effective debt sale, retail work-out and commercial restructuring Safe & sound CAR at 16.6% and Tier 1 at 14.1% under Basel 3 rules liquidity and market risk maintained at a safe level Rec. U implemented 2

3 Financial performance PLN MM 1Q 15 VPQ VPY Net interest income Net F&C 215 (8%) (8%) 74 (17%) (19%) Net receivables evolution* (PLN MM, average) Total net revenue (12%) (12%) Impairment charges 4 Improvement Improvement 13,572 13,235 12,970 12,698 12,413 RANR 2 Costs 311 (10%) (8%) 286 (6%) (2%) 5,120 5,068 5,046 5,049 5,063 4,052 3,846 3,711 3,842 3,761 2Q'14 3Q'14 4Q'14 Core portfolio stabilizing Pre-tax profit 22 (21%) (44%) Commercial Retail core Retail exit Net income 12 17% (55%) 1/ Total net revenue = NII + Net F&C + Net trading income 2/ Risk Adjusted Net Revenue = Total net revenue + Impairment charges Losses and costs under control in low rate environment fees under pressure */ Constant FX as of 1Q 14 3

4 Retail performance highlights Total retail sales* (PLN MM) % y/y 652 Investments gross sales (PLN MM) PLN mortgage sales (PLN MM) 28 C/A balance (PLN MM, eop) 93% y/y 54 C/A offer development 3% money back on LubięTo! current account ZUS preferred bank: special offer, marketing and educational campaign Cash loans sales of PLN 591 MM, up 24% y/y supported by Multiczwórka and Bez napinki promotions 0% fee for granting mortgage loan Mortgage loan placed 1st in Bankier.pl March 2015 ranking** New technologies NFC payments, on-line agreements, new mobile banking application 22% y/y 19% y/y ,736 2,059 Net sales of PLN 160 MM up 98% y/y */ Incl.: cash loans, mortgage loans, cards, overdrafts **/ LTV 80% category 4 Continued solid growth in retail sales

5 Commercial performance highlights Renewals New SME sales* (PLN MM) 6% y/y 299 Factoring turnover (PLN MM) 13% y/y Corporate sales* (PLN MM) C/A balance (PLN MM, eop) 45% y/y % y/y ~1.5 K new commercial customers in 1Q Very good factoring sales 33.5 K financed invoices, up 52% y/y Introduction of recommendation (DTI filters) decreasing SME renewals Continued cooperation with BGK portfolio with guarantees of ~PLN 420 MM, up 8% q/q Auto Sezam loan recognized by Home&Market magazine... BPH given JP Morgan s 2014 Elite Quality Recognition Award % y/y 438 2,445 9% y/y 2,230 Strong growth in new limits */ Limits granted 5

6 Retail key metrics (excl. mortgage) PLN MM & deposits (AVG, gross) 5,127 4,609 7,923 10% 7,301 8% (avg, net, performing) 3,465 3,481 4Q' NII 115 Fees & FX income down 20% down 21% PLN 32 MM income lost due to 4Q & 1Q rate caps Deposits Revenue down 20% Losses RANR improvement down 11% Rate cap affecting revenues... partially offset by risk performance 6

7 FX mortgage key metrics PLN MM (AVG, gross) 13,551 14,299 (avg, net) 4Q'14 up 10% 12,772 14,020 NII Fees & FX income up 13% down 49% 6% Revenue down 14% 30+ delinquency FX MTG* 1.83% 1.73% 1.52% 1.38% Losses increase 88.1% Current average LtV for FX MTG 99.6% 96.2% 96.5% RANR down 55% Dec'14 Jan'15 Feb'15 Mar'15 Dec'14 Jan'15 Feb'15 Mar' */ With delinquency cut-off at 180 dpd 7 CHF appreciation FX portfolio growth

8 PLN mortgage key metrics PLN MM (AVG, gross) (avg, net) NII Fees & FX income 1,808 1,798 1,584 1,582 4Q' Revenue Losses improvement RANR Stable PLN mortgage portfolio 8

9 SME key metrics PLN MM & deposits (AVG, gross) 2,160 2,270 2,341 1,929 (avg, net) 4Q'14 1,597 1,590 NII Fees & FX income down 12% down 14% 11% 3% Deposits Revenue Losses RANR down 13% down 14% Portfolio reaching inflection 9

10 Corporate key metrics PLN MM & deposits (AVG, gross) 2,420 2,561 2,276 2,303 (avg, net) down 3% 2,264 2,203 NII Fees & FX income 4Q'14 6% 10% Deposits Revenue Losses RANR improvement up 7% Stabilized profitability and good quality 10

11 Business cost performance Costs (PLN MM) C/I ratio (%) down 2% up 9 pp % 94% Costs down revenue pressure causing C/I up 11

12 Asset quality Losses NPL ratio (46) (8) 11.6% 11.3% 11.3% 9.4% 7.7% Costs of defaults Recoveries IBNR Cost of risk ratio 1 0.2% -0.1% Cost of defaults ratio 1 0.7% 0.0% Higher IBNR and successful debt sale Q'14 3Q'14 4Q'14 Performing loans (PLN B) Impaired loans (PLN B) NPL NPL ratio in line with the market Retail 30+ delinquency(%) 2 Corporate and Mid SME Average PD (%) 5.2% 5.1% 4.8% 4.1% 4.1% 3.7% 3.7% 3.6% 3.3% 3.0% 1.7% 1.6% 1.5% 1.4% 1.5% 3.3% 3.0% 2.0% 1.6% 2.6% 2.4% 2.4% 1.3% 1.2% 1.2% 2Q'14 3Q'14 4Q'14 MTG PID SME MICRO Stable delinquency trend 2Q'14 3Q'14 4Q'15 Mid SME Corporate and very good quality of commercial portfolio 1/ Costs measured in the relation to total credit portfolio 2/ With delinquency cut-off at 180 dpd 12

13 Capital and liquidity positions Capital ratios (%, eop) CAR at 16.6% and Tier 1 ratio at 14.1% well above Basel 3 methodology the regulatory minimums Compliant with Basel 3 requirements Liquidity buffer of PLN 1.6 B in 1Q Market risk exposures on a safe level Awaiting KNF guidelines on additional own funds requirements for FX lending Mar'15 CAR Tier1 Strong capital and liquidity positions 13

14 Summary 1. 1Q profitability depressed by rate cap and CHF costs 2. Core retail receivables growing with strong sales momentum into 2Q Corporate and factoring sales with double-digit growth SME developing slowly 4. Strong portfolio quality maintaining low levels of losses key ratios improving 5. CHF portfolio proving to be robust during period of volatility 6. Continued strong CAR 7. Providing appropriate support to GE during their process to explore ownership share in the Bank 14

15 Disclaimer This presentation does not constitute or form any part of an offer, invitation or inducement to sell or subscribe, or any solicitation of an offer to purchase or subscribe for any securities. This presentation does not purport to contain all information that a prospective investor might require, and neither this presentation nor any part of it nor the fact of its distribution shall form the basis of, or be relied on in connection with, any contract for the purchase or subscription of any securities. The forecasts and forward-looking statements contained in this presentation are necessarily based upon a number of assumptions and estimates that, while considered reasonable by us, are inherently subject to significant business, operational, economic and competitive uncertainties and contingencies, many of which are beyond our control, and upon assumptions with respect to future business decisions that are subject to change. Actual results may differ materially from those projected. Certain items of numerical information and other amounts and percentages set forth in this presentation may not add up to the correct total due to rounding. 15