Financial Results for IQ 2005

Transcription

1 Meeting Expectations Warsaw, 4 May 25 Page 1

2 Executive summary Macroeconomic situation Financial results for Appendices Business development Detailed financial data Page 2

3 Highlights Starting from I Q 25 the Bank presents its consolidated financial statements in compliance with IFRS PLNm / Pre-tax profit % Net profit % ROE - pre-tax p.p. ROE - net p.p. C/I p.p. Total net revenue* % Net F&C 23 2% Costs (incl. depreciation) 44 3% Loans** 32,551 11% Deposits** 34,64 8% Assets 52,897 12% Sustained organic growth reflected in significant efficiency improvement * NII + Net F&C + trading result ** dues from/ to clients Consolidated data acc. to IFRS Page 3

4 Net and Pre-Tax Profit in PLNm in PLNm 1 Profit before tax Net profit Profit before tax Net profit % % % +41% Consolidated data acc. to IAS or IFRS Page 4

5 Improved Efficiency (%) ,7 7,2 ROAE* GROAE** 4,9 2,7 11,7 P A S 6,3 18,2 14, 17,7 14,2 ROAE 1.8 GROAE 14.3 IFRS C/I**** 63,8 63,1 62,6 P A S 53, ,1 IFRS ,8,9 ROAA*** 1,6 Acc. to IFRS,8 P A S,3,7 1,5 1.2 IFRS CAR Loans/ Deposits Loans/ Assets Margin***** */ net profit to average equity; **/ gross profit to average equity; ***/ net profit to average assets; ****/ C/I = (overhead costs + depreciation) / total net revenues; *****/ NII / total assets Consolidated data Page 5

6 Bank BPH Strategy in progress Financial Effects of the Bank s New Strategy C/I* - 51% Pre-tax ROE* 22% Annual impact** ca. PLN 34m One-off costs*** ca. PLN 17m 3 new branches opened in, next 7 advanced (for 56 to start up this year) Marketing strategy towards Affluent segment has been developed Branch modernization in progress Further optimization of costs ongoing * in 26; ** revenue growth+cost savings-cost needed, from 27; *** investments+one-offs to be borne in Page 6

7 Bank s Market Shares in Key Products As at Bank BPH Other Mortgages Market PLN 38bn 8,2% 19.8% Credit Cards 87,% 13.% Market PLN 2.m Loans for SE 1.5% Market PLN 36bn 89,5% Corporate loans market share (acc. to NBP classification) decreased (y/y) from 11.9% to 11.7% Bank BPH growing faster than market by (y/y): 15. p.p. 68.7p.p. 4.8 p.p. Page 7

8 Bank BPH in BA-CA Group Profit before tax Bank BPH Other 77,% BA-CA Group EUR 28m 23,% * *before consolidation Page 8

9 Executive summary Macroeconomic situation Financial results for Appendices Business development Detailed financial data Page 9

10 Temporary Slowdown of Economy in 8 6,9 GDP (%, y/y) 5 Consumption (%, y/y) 12 Investment (%, y/y) 11,3 5 6,1 4,8 3,9 3,2 3,5 4,4 5, 2,75 3,3 3,5 2,9 1,5 1,9 1,7 2,4 2,9 6 3,5 3,6 4,1 7,2 8, 1,6 2 I IIPIVQ4F FI FIIIQ5 FIVQ5,5 I IIPIVQ4F FIIQ5 FIIIQ5 FIVQ5 I II PIV4 F FIIIQ FIVQ Contribution to GDP growth Net exports Inventories Fixed investmetns Public consumption Individual consumption GDP 1Q97 4Q97 3Q98 2Q99 1Q 4Q 3Q1 2Q2 1Q3 4Q3 3Q4 2Q5 GDP slowdown due to high statistical base and lower private consumption In 25 GDP will be driven by investments and net exports GDP growth in 25 is expected to reach 4.1% All figures reported as quarter average (unless stated otherwise) Page 1

11 Corporate Loans Still Stagnant Inflation (%, y/y, end of period) and 1M WIBOR 5,3 1,7 5,5 4,4 6,3 6,7 4,4 4,5 Inflation 1M WIBOR 6,5 3,6 5,7 2,1 I IIIQ4 IV4 F FI NPL (share %) 11,3 13,3 15,9 19,2 2,8 19,8 17,3 16,2 14, I II IVQ4 14, Corporate and household credits (%, y/y, end of period) 16,2 13,6 13, 14,4 13,6 3,7-1,7-3,8-4, -5, 11,6 9,3-3,9 Corporate Household,5 3, CPI decline due to very low food prices Further interest rates cuts expected 8,8 IVQ3 I II IVQ4 FI FII FIVQ5 9, 5,3 Corporate and household deposits (%, y/y, end of period) Continuous growth of household indebtedness ,5 32,8 25,9 24,8-2,1-1,8-1,3,5 1,4 I II PIVQ4 F 19,4 15 FI 12,2 1,2 FII Corporate Household 1,5 FIVQ5 8,1,6 All figures reported as quarter average (unless stated otherwise) Page 11

12 Executive summary Macroeconomic situation Financial results for Appendices Business development Detailed financial data Page 12

13 Impact of IFRS on Results For comparability, 24 financial data has been adjusted to IFRS Assets In PLNm PAS IFRS IFRS Adjustment Trading assets 4, ,866.2 Dues from banks 4, ,921.7 Dues from clients 3, ,255.4 Other 1, ,123.9 Total 49, , ,167.2 P&L In PLNm PAS IFRS IFRS Adjustment Net interest income Net F&C Trading result Liabilities In PLNm PAS IFRS IFRS Adjustment Dues to banks 6, ,469.5 Dues to clients 32, ,182.3 Equity 5, ,49.8 Other 5, ,6.1 3,111.6 Total 49, , ,167.2 In PLNm PAS IFRS IFRS Adjustment Administrative costs Pre-tax profit Net profit Page 13

14 Revenue Side - vs. Result on total net revenue in PLN m 1% 2% 6% %* 746 5% 34% 31% 64% 63% Trading result Net F&C Net interest income Net interest income Net F&C Trading result % Sound growth of total net revenue due to: 1% increase in NII 27% jump in trading result Net F&C coverage (%) general costs remuneration costs *Bank BPH only: +18% Consolidated data acc. to IFRS, in mio PLN Page 14

15 Cost Side - vs. Costs (incl. depreciation) in PLN m ,5 6, 39,9,7 1,2 43,5 +3%* Personnel Building maintenance & rents Depreciation Other Loan loss provisions % Implementation of the new strategy mainly contributed to slight growth of costs Built-up provisions in line with cautious policy *Bank BPH only: +9% Consolidated data acc. to IFRS, in mio PLN Page 15

16 Assets Structure - vs Assets % loans* trading assets dues from banks other 1% 5% % Loans corporate (incl. CRE) private individuals SE 6% 26% 3% 14% 12% 58% 7% 35% % 57,9% 59,5% 17,9% 17,9% 6,2% 21,7% 14,5% 4,2%,1%,1% PLN CHF EUR USD others 12% upturn of assets stemming from: 11% increase in loans 23% in dues from banks * Receivables due from clients; Bank BPH only: +13% 6% of loans denominated in PLN Consolidated data acc. to IFRS; in mio PLN Page 16

17 Liabilities Structure - vs. Liabilities 55 Deposits corporate 86% 85,2% deposits* dues to banks 1% private individuals 31% 38% 43% equity other 5% % 69% 62% % 83,5% 6,2% 8,2%,1%,3% 8,6% 7,6%,1%,2% PLN CHF EUR USD others * Liabilities due to clients; Bank BPH only: +16% 8% growth in deposits Sources of finance diversified due to Bank BPH bond issues for retail clients (PLN 462m) Consolidated data acc. to IFRS; in mio PLN Page 17

18 Quality of Consolidated Loan Portfolio Consolidated loan book 1% 17.2% 11.% 1.7% 1,5% 6,9% 4,% 5,3% 2,7% 2,2% 7,1% 5,3% 5,% 1,9% 1,5% 2,% loss doubtful sub-standard Loan portfolio quality improvement 6.5 p.p. drop in share of irregular loans (y/y), and.3 p.p. drop in share of irregular loans in 5% 77,5% 83,7% 84,3% watch normal improvement of irregular loans/ total loans ratio in SE segment due to growth of portfolio and decrease of irregular loans volume % Consolidated data; in mio PLN Page 18

19 Structure of Loan Portfolio as at 31 March 25 (1) Coverage ratio (%) Volume* (in m PLN) Provisions Collateral*** & Provisions Chng.** regular normal watch irregular sub-standard doubtful loss total Provisions as at include general risk provision reclassified to specific provisions * Loan portfolio = loans and guarantees granted (off-balance sheet exposure) ** in *** The value of collateral disclosed refers to loans and guarantees and comprises only collateral diminishing the basis for creation of specific provisions; its value has been determined in accordance with internal regulations Increase of irregular loan portfolio by 2% in results, i.a. from reclassifications of credit exposure to two companies from normal and watch to substandard category Growth of loss loan portfolio by 7% attributed to reclassification of credit exposure of one client from doubtful to loss category *Unconsolidated data, in mio PLN Page 19

20 Structure of Loan Portfolio as at 31 March 25 (2) Coverage ratio (%) Loan* Volume (in m PLN) Provisions Collateral** & Provisions PI SE Corp. Total PI SE Corp. Total PI SE Corp. Total -regular normal watch irregular sub-standard doubtful lost total * Loan portfolio = loans and guarantees granted (off-balance sheet exposure) ** The value of collateral disclosed refers to loans and guarantees and comprises only collateral diminishing the basis for creation of specific provisions; its value has been determined in accordance with internal regulations Share of irregular loans in particular segments: PI - 4%, same as at SE - 22%, down from 24 Corporate - 11%, unchanged *Unconsolidated data, in mio PLN Page 2

21 Business Divisions Contribution Total net revenue (PLN 746m) Other 6% INM 8% IVQs4 PLNm Retail (%) Corporate (%) INM (%) Others (%) Corporate 26% Retail 6% Assets 52, Liabilities 52, Consolidated data acc. to IFRS Page 21

22 Executive summary Macroeconomic situation Financial results for Appendices Business development Detailed financial data Page 22

23 Retail Business Development Income & Profitability Income in PLN m Income change in PLN m C/I* % % IQ IIQ IIIQ IVQ 3-9 p.p % annual growth of income before risk** +33% (or PLN 28m) interest income on loans growth of mortgage portfolio & consumer loans volumes +22% (or PLN 25m) interest income on deposits growing share of sight deposits and market rates +9% (or PLN 14m) F&C result - strong loan activity ( Pożyczka od ręki loan, FX mortgages) * *- interest income on loans and deposits + fees & commissions (including trading) * Without HQ costs Page 23

24 Retail Business Development - Total Sales 14 Retail loan volumes in PLN bn Margins (%): ,2 12,3 12,7 13, 13,9 Retail deposit volumes in PLN bn* Margins (%): ,3 19,6 19,5 19,1 19, % 19 +4% 7 15 I II IVQ4 Market shares (%): I II IVQ4 Market shares (%): ** **) As a result of NBP methodology change implemented in inclusion of PLN 4bn volume of SKOK deposits Bank s market share decreased vs 4Q4. In comparable conditions the share would have increased by a few bps. Strong sales of mortgage loans (+PLN 2.1bn) and consumer loans (+PLN.6bn) Gradual enhancement of deposits base. Attractive offer of new deposits introduced in 24: Intrata PLUS (PLN 594m) and Investment Plans (PLN 241m) * deposits only without corporate bonds (as at the end of each period) Page 24

25 Retail Business Development Credit Cards & Alternative Distribution Channels 27 Credit cards number in % I II* IVQ4 SME and PI (in ) I II IVQ4 Internet banking Call center % +48% *till October 24 Page 25

26 Retail Business Development - ROR ROR accounts for PI in % I II IVQ4 Market shares (%): * 8.* 1% growth (= by 15 ths) in number of personal accounts (ROR) 2nd largest growth of ROR number in * Page 26 * According to Rzeczpospolita decrease in market share in December 24 resulted from first time including figures for internet banks

27 Retail Business Development Mortgage Lending (1) Mortgage loans volume in PLN bn PLN share +35% 6,6 6,2 5,5 7,5 6,9 19,3% 2,1% 2,5% 2,% 18,8% IQ 4 IIQ 4 IIIQ 4 IVQ 4 IQ 5 Market shares (%): % 5% % As at Total PLN FX Av. maturity* 19 years 16 years 21 years Av. amount** PLN 11, PLN 64, PLN 122, Av. LTV 71% 73% 71% NPL 2.4% 4.4% 2.% Growth dynamics (/ ) 35% 32% 36% Fastest growth (2.23 p.p.) of market share over last 12 months (Feb. 5/ Feb. 4) * loans granted in 24; contractual maturity, the actual is 3-5 years shorter ** loans granted in Page 27

28 Retail Business Development Mortgage Lending (2) 7 35 Mortgages tie up customers for many years and create ample opportunities for crossselling. 25% of new affluent acquisitions with mortgage as entrance ticket Mortgage lending to GDP (in %) UK Germany Spain European Average France Italy Hungary Czech Republic Poland Advisors check if client is aware, able to take on and carry FX risk. Restrictive criteria of credibility assessment: the value of installment converted to PLN with a 3% buffer; monthly liabilities (incl. mortgage installment)/ monthly net income = max 5% Loans are linearly paid down (amortization). No balloon payments! No life insurance accepted as equity part Conversion from FX to PLN possible at any time Page 28

29 Corporate Business Development - Volumes & Income Total Corporate Loan Volumes in PLN m % Total Corporate Deposit Volumes PLN m %* I II IVQ4 5 I II IVQ4 C/I** p. p. Fee & Interest Income +17.8% 2 In PLN I II IVQ4 2,6 18, Interest income Fee income Total * Lower volume of deposits in results from seasonal change and should not influence the stable increase trend. ** Without HQ costs. The indicator contains pro-rata budget for employees bonuses. Page 29

30 Corporate Business Development - Market Shares 12 Deposits (%) Loans (%) 11, ,92 11,7 1,79 1,68 1, p.p p.p. 8 IQ3 8 IQ3 Note: data accordingly to NBP segmentation. Source: NBP. Page 3

31 Business Development - Transactional Banking Cash Management Number of TRANS-Collect transactions, as a major part of Cash Management, reached 3.4m in March 25 placing Bank BPH as the second largest bank servicing mass billers Incoming mass payments on corporate clients accounts exceeded 55% of all domestic payments serviced by the Bank Over 65% of electric energy distributors use TRANS- Collect payment identification service Electronic Banking 32% increase of electronic banking transfers (1Q5 vs. 1Q4) 91% as of March 5 of all corporate payments generated electronically. Successful sales of BusinessNet app. 1,1 new clients within 9 months. Nearly 2m transfers via BusinessNet and 35% of all payments via combined Internet Platform (Sez@m and BusinessNet) BusinessNet awarded as: 24 Best IT Project by Gazeta Bankowa in the Electronic banking/e-finance project category; 24 Innovation in the BusinessWeek ranking 12 TRANS Collect (number of transactions per quarter) % IQ3 IIQ3 IIIQ3 IVQ3 I II IVQ4 Electronic vs. paper payments 1% 27% 15% 9% 5% 73% 85% 91% % paper payments electronic payments Page 31

32 Business Development Commercial Real Estate & Structured Finance Bank BPH as one of the market leaders in CRE SYNDICATED LOANS in 24 2nd position in volume and number of syndicated loans in 24 by Rzeczpospolita Positive outlook for transaction pipeline in 25 No. Bank Amount of engagement declared in agreements (MIO PLN) Number of syndicates Organized syndicates Highest share in a single agreement (MIO PLN) 1 Pekao S.A. 1573, , 2 Bank BPH 1552, , 3 PKO BP 159, , 4 BRE Bank 58, , 5 BNP Paribas 478, , 6 Rabobank 433, , 7 Bank Handlowy 394, ,1 8 Kredyt Bank 33,7 5 86,8 9 ING BSK 32, , 1 Raiffeisen Bank 237, ,3 Source: Rzeczpospolita Page 32

33 Leasing Development BPH Leasing s* market share growing systematically over last few years**: % % % % In IQ25 alone means of over PLN 18m leased ranked fifth in the leasing sector*** 2 1 Value of means leased by BPH Leasing S.A. in PLN % Dynamic growth to be continued in 25 * Formerly BA-CA Leasing Poland S.A. ** Source: Związek Przedsiębiorstw Leasingowych (Leasing Enterprises Union) *** Source: Rzeczpospolita Page 33

34 INM Business Development - Sales Area & Custody Average monthly volume of FX options transactions conducted by INM Sales in PLN m % 68 Further growth of business volumes in sophisticated FX hedging solutions for Corporate Clients Average monthly assets under custody in PLN m % Significant increase in assets value under custody due to: new clients acquisition (including new Investment & Pension Funds) clients portfolios organic growth Page 34

35 INM Business Development - Treasury Area Volume of FX spot & forward inter-bank transactions by Trading Department in PLN m % Focus on market making in Polish FX market resulting in further growth of turnover 1 Leader in t-bond and interest rate derivatives trading Volume of inter-bank money market transactions by Asset & Liability Management Department in PLN m % Active market making in all PLN money market products for both domestic and 2 foreign banks Page 35

36 INM Business Development Achievements Fitch: 3 rd place in outstanding short corporate bonds arranged in March 25 (vs. 5 th in March 24) Fitch: 3 rd position in short corporate bonds placed in March 25 (vs. 3 rd in March 24) Implementation of IR futures contract for Polish Treasury Bonds denomintaed in PLN on Warsaw Stock Exchange Leader in long term debt capital markets (arrangement of medium and long term bond issued for Can Pack, EFL, BPH Leasing) Page 36

37 Costs Structure Other Depreciation Building maintenance & rents Personnel 91, 97, 62,1 6,9 58,1 66,6 179,8 179,1 Total Consolidated data acc. to IFRS, in mio PLN Page 37

38 Structure of F&C % Payments Foreign trade Loans Securities 46,% 41,% 5% 33,% 37,% 1% 15,% 15,% 6,% 8,% Total (PLNm) Consolidated data acc. to IFRS Page 38

39 Number of Outlets and Employees* 6 Outlets*** Partner outlets 14 Employees** % * Bank BPH only ** without unpaid, maternity and child-care leaves, in FTEs *** including branches, sub-branches, without Corporate Centres Page 39