GETINNOBLEBANKGROUP FINANCIAL RESULTS FOR THE FIRST THREE QUARTERS OF2013. Presentation of non-audited financial results for investors and analysts

Transcription

1 GETINNOBLEBANKGROUP FINANCIAL RESULTS FOR THE FIRST THREE QUARTERS OF2013 Presentation of non-audited financial results for investors and analysts Warsaw, November 15 th, 2013

2 GETIN NOBLE BANK Effective actions in all strategic areas. Net profit for the third quarter of 2013 above PLN 100 m. NET PROFIT 1) [PLN m] Efforts within net interest income successfully accomplished. Historically low cost of funding. Spread offered to the Clients for 3 months period deposits in relation to WIBOR 3M decreased in period of Oct 12-Nov 13 from ca. 120 bps to ca. 10 bps. Bank has lowered its deposit rates 1,5 times faster than the market rates decrease. Monthly net interest income revealing significant improvement (stand-alone: PLN 88,1 m in Jul 13; PLN 87,0 m in Aug 13; PLN 89,9m in Sep 13; PLN 94,5 m in Oct 13). Reference rates of majority of loan book have been adjusted (to the lowest WIBOR rates in Polish history). 24% increase of F&C result in the 3 rd quarter of 2013 (q/q). Increase (q/q) noted for the first time in last six quarters. Risk under control regular decrease in risk provisions level. Risk provisions in the first three quarters of 2013 lower by PLN 289 m / 38% y/y. Regular decrease of cost of risk: 1.42p.p. at the end of September 2013, i.e. 84 bps less than at the end of New loans production within accepted risk appetite levels. Regular transactions of NPL portfolio sale. Cost level controlled despite intensive growth of business scale. Stable level of operating costs despite increasing scale of business, Strategy implementation and acquisitions: - Acquisition of Dexia Kommunalkredit Bank Polska S.A., acquisition of a retail part of Bank DnBNORD Polska S.A. (including 37 branches together with branch staff) and private banking operations of DZ Bank Polska S.A. - Minor increase of costs resulting from finalisation of acquisitions (excluding this impact costs decreased on a year-to-year basis). Strong operational cashflow and safe balance structure. CAR of 12,6% as at the end of September 2013, i.e. 1,1percentage points of increase during 12 months Sub-debt total issue as at the end of October 2013 of over PLN 1,67billion. All included into equity. The 90,1% 4) loan-to-deposit ratio is one of the lowest in the banking sector. 1) Attributable to equity holders of the parent company 2) Above WIBOR 3M 3) Consolidated data 4) Loans including leasing Q 12 4Q 12 1Q 13 RETAIL DEPOSITS MARGIN 2) [bps] 120 X 12 XI bps 10 OPERATING COSTS [PLN m] 3) 3,8% Q Q Q 13 F&C RESULT [PLN m] 3) +24% Q Q 13 3Q 13 RISK PROVISIONS [PLN m] 3) -51% 132 3Q 12 3Q 13 2

3 GETIN UP How do we pursue the Strategy 11 nearly 2.4 m place Getin Noble Bank holds in Przyjazny Bank Newsweeka 2013 ranking (the highest advance in the market) Clients already in the Bank; i.e. increase of 12% in the last 12 months over 15% share of current and saving deposits in total deposit portfolio at the end of September % 30% k increase of average monthly high yield loans sale in 2013 in connection with strategic change in sales mix comparing to the previous year decrease of average monthly sale of mortgage loans in 2013 comparing to the previous year monthly increase of current accounts PLN 900 m record level of loans for SME Clients sale in 3Q 2013 EUR 100 m of funds from European Investment Bank allocated in August 2013 (2 months after the funds were received within the signed agreement with EIB); funds dedicated to the development of SME activities and to leasing market 67% y/y increase of net interest income in 3Q % PLN 289 m 31% over 26 k 30 income from current accounts (ROR) increase in 1-3Q 2013 on a year-to-year basis lower credit risk provisions in the first three quarters of 2013 on a year-to-year basis FX loans share; continuously decreasing (36% one year before) Clients using new Getin UP mobile banking (the best in the world!) brand new Getin UP branches operating already; further ones pending 3

4 CHANGES IN THE BANK NOTICED AND AWARDED GNB AWARDED!!! Prizes and awards The best mobile banking in the world! Banking Technology Awards 2013in Best Use of Mobile Technology in Financial Services category. Another award for MasterCard Display Card -Grand Prix received during Golden Drum 2013festival in New or Innovative category, rewording the most innovative projects. Getin Bank marketing honoured by Brief magazine as the best 2013 marketing in Poland. 4

5 NOBLE BANK DEVELOPMENT

6 KEY FINANCIAL RATIOS Development with maintained stability and secure situation. 3Q 2013; change vs2q 2013 PLN m Loan balance (incl. leasing) ,1 +0,9% Deposit balance ,2 +1,8% Balance sheet total ,4 +2,6% Equity 4 787,2 +0,3% (attributable to equity holders of the parent company) ROE 7,8% +0,6 p.p. C/I 1) 43,7% +1,8 p.p. CAR 1) 12,6% +0,4 p.p. PLN m Net interest income 277,4-4,6% Net fee and commission income 159,9 +24,3% Result on risk provisions -131,6-8,1% Costs -220,9 +1,8% Current and saving deposits 15,3% +0,6 p.p. share in total deposits Loans / deposits 90,1% -0,8 p.p. Cost of risk 1,2) 1,2% -0,1 p.p. PLN m Profit before tax 114,3-3,8% Net profit 100,2-2,6% (attributable to equity holders of the parent company) # Clients [m] 2,4 +2,4% 1) Stand-alone GNB 2) Result on provision for NIL and other accounts receivable to average loans volume 6

7 PROFIT OF THE BANK AND GROUP COMPANIES FOR THREE QUARTERS OF2013 The Group s banking activity was the main source of its net income. PLN m cumulatively 255,8-2,7% 15,2 +45,1% 10,3-37,8% 4,9 x2,4 7,5 x 1) 19,6 2) -47,5% -50,8 +46,5% 262,5-10,9% 2013 change y/y 3) Getin Noble Bank Noble Funds Noble Securities Getin Leasing Group BPI Bank Polskich Inwestycji Open Finance Group Other activities and consolidation adj. GNB Group (profit of the parent company) PLN -19,8 m concerns adjustment for settlement of transfer of Open Finance shares and purchase of DKBP PLN -16,8 m dividend from Noble Funds and Getin Leasing PLN -14,3 m of other adjustments 1) Former Dexia Kommunalkredit Bank Polska [DKBP]. Profit without Q ) PLN 19,6 m profit of associated company included into GNB consolidated profit. 3) 2012 figures for the merged banks Getin Noble Bank and Get Bank. 7

8 DEPOSITS: BALANCE AND MARKET SHARE Stable deposit base. Sources of financing diversification. Portfolio balance (PLN m) 1) Market share (%) 2) ,7% ,0 p.p. 6,4% 6,4% Increaepof deposit balance of PLN 2.8 blnin 2013, mainly in effect of acquisition of PLN 2,2 billion of deposits from DnBNORD. Deposits of Bank s business clients increased within the last 12 months by 15%, i.e. over 3 times faster than the market. Continuation of efficient efforts on diversification of financing sources. On August 2 nd 2013 Getin Noble Bank S.A. have signed a REPO agreement under which Getin Noble Bank receives a 3-year CHF 150 m financing. 1) For 2012 figures for merged banks Getin Noble Bank and Get Bank 2) Market shares calculated on the basis of NBP data (market = banks operating in Poland + Polish branches of credit institutions and branches of foreign banks + SKOKs) 8

9 LOANS: BALANCE AND MARKET SHARE Effective change of the Bank s strategy lower sales of mortgage loans offset by higher sales of high-margin products Portfolio balance (PLN m) 1) Market share (%) 2) Sale of loans (PLN m) 3) +9,4% +0,2 p.p. (monthly avgerage) 5,6% ,4% Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Focus on the sale of products with shorter amortisationperiods and higher spreads, such as cash, cars, SMEs loans and leases, according to the Strategy. Sales growth of these products in 2013 was further up against the average level for the previous year by 26%, with a decrease in sales of mortgage loans by nearly 1/3. Sales in the first quarters of 2013 amounted to PLN 8,6 bln, i.e. increase by 8% on a year-to-year basis. 4) Share of foreign-currency loans in relation to the Bank s total portfolio is steadily lower, with a drop to 31.4% 4) as at the end of September 2013, meaning it was lower by 4.8 p.p. than one year before. 1) 2012 figures for merged banks Getin Noble Bank and Get Bank. Loans with leasing. 2) Market shares calculated on the basis of NBP data (market = banks operating in Poland + Polish branches of credit institutions and branches of foreign banks + SKOKs) 3) Stand-alone GNB; 2012 figures for the merged banks of Getin Noble Bank and Get Bank 4) Stand-alone GNB 9

10 LOANS SALES MIX Sale structure change; shorter-term, faster-amortising loans, higher lending margins Sales structure 1) avg. month-to-month sale [PLN m] Other loans avg. month-to-moth sale [PLN m] -48% -64% +18% +48% % car loans & leasing % mortgage loans other loans retail loans Q 2013 MARGIN 2) 1,9% 6,8% Sale of mortgage and cash loans [PLN m] % 277 SME and corporate loans Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Mortgage loans Cash loans 1) Consolidated figures 2) A lending margin over WIBOR 3M for loans sold in 2012; the target margin level in the case of mortgage loans 10

11 RETAIL AND SME/CORPORATE LOANS Dynamically growing sales of high-margin loans Corporate loans portfolio grew nearly 12 times faster than the market Sale (PLN m) 1) Portfolio (PLN m) 1,2) +38,8% +14,5% RETAIL LOANS High sales dynamic on the difficult market. Over the last 12 months the Bank s consumer credit balance grew by 14.5%, that means 5-time faster than the entire banking sector (+2.6%). Total sales in the first three quarters of 2013 increased by nearly 1/3 on a year-to-year basis. Q3'2012 Q4'2012 Q1'2013 Q2'2013 Q3' ,0% +60,3% SME AND CORPORATE LOANS Continuation of a dynamic increase in number of corporate Clients. Over thsof corporate customers are already in the Bank, i.e. increase of 20% in the first three quarters of Q3'2012 Q4'2012 Q1'2013 Q2'2013 Q3' Loans granted in three quarters of 2013 of PLN 899 m, i.e. nearly doubled y/y. Total loans sold in three quarters of 2013 at a record level of PLN 2,5 bln. That was 40% more than in the same period of the previous year. Intensive development of operations within public sector. These clients loans portfolio at the end of September 2013 of PLN 480 m was 16% higher than at the end of June 2013 and 77% higher than in the previous year. Negative market dynamic at the same time of -2%. 1) 2012 figures for merged banks Getin Noble Bank and Get Bank 2) Gross portfolio 11

12 CAR LOANS AND LEASING Maintained position of leader in car loans Sale of car loans (PLN m) Portfolio (PLN m) 1) +4,7% -0,9% Q3'2012 Q4'2012 Q1'2013 Q2'2013 Q3' Leasing (PLN m) 2) +55,0% 3 th place in the market for leases on vehicles after the first half of ) 4 th place of Getin Leasing in the market of leasing companies in October ) st place in registration of cars and commercial vehicles among leasing companies in period July -September ) Q3'2012 Q4'2012 Q1'2013 Q2'2013 Q3'2013 1) Balance of gross car loans portfolio 2) Net value of the leased assets 3) Figures according to ZPL 4) Figures according to CEPiK 12

13 CREDIT RISK Noticeable results of measures aimed at improving asset quality corporate loans 2) car loans mortgage loans retail loans loans total Cost of credit risk (%) 1) change 1,0% 1,2% -0,24 p.p. 2,8% 2,5% 0,29 p.p. 0,6% 0,8% -0,20 p.p. 5,4% 5,3% 0,11 p.p. 1,2% 1,4% -0,13 p.p Impairment charges and loans balance (PLN m) 4) A further decrease in credit risk charges in 3Q 2013, i.e. by over PLN 136 m / 51% on a year-toyear basis. Decrease path in risk provisions level maintained 3Q 2013 provisions 8% lower q/q. In the last 12 months cost of risk decreased by nearly a half. The quality of the Bank s new loan portfolio maintained within the limits of its risk appetite policy. Regular transactions of NPL portfolio sale Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 impairment charges loans portfolio balance Avg monthly impairment charges (PLN 000) Q'2011 2Q'2011 3Q'2011 4Q'2011 1Q'2012 2Q'2012 3Q'2012 4Q'2012 1Q'2013 2Q'2013 3Q'2013 TOTAL LOANS car loans mortgage loans retail loans corporate loans ) 4) 0 1) Result on provision for NIL and other accounts receivable to average loans volume; stand-alone GNB 2) Including leasing 3) Stand-alone GNB 4) Q and Q figures for the merged banks of Getin Noble Bank and Get Bank 13

14 KEY FINANCIAL DATA PLN m / / Equity (attributable to equity holders of the parent company) 4 787, , ,7 +2,5% +11,2% Sub debt 1675,2 1229,6 1108,9 +36,2% +51,1% Balance sheet total , , ,5 +10,4% +13,0% Loans balance (incl. leasing) 47807, , ,6 +8,1% +9,4% Deposits balance , , ,4 +5,7% +6,7% PLN m 3Q Q Q Q 13/ 2Q 13 3Q 13/ 3Q 12 Net interes income 277,4 290,8 313,7-4,6% -11,6% Net fee and commission income 159,9 128,6 187,8 +24,3% -14,9% Overhead costs -220,9-217,0-200,5 +1,8% +10,2% Net profit (attributable to equity holders of the parent company) 100,2 102,9 60,1-2,6% +66,7% C /I consolidated (%) 1) 43,7% 41,9% 35,5% +1,8 p.p. +8,2 p.p. ROE 1) 7,8% 7,2% 10,8% +0,6 p.p. -3,0 p.p. NIM 1) 1,9% 2,0% 2,3% -0,1 p.p. -0,4 p.p. CAR 2) 12,6% 12,2% 11,5% +0,4 p.p. +1,1 p.p. 1) YTD data 2) Stand-alone GNB 14

15 DISCLAIMER This presentation has been prepared for information purposes only to be used by Getin Noble Bank S.A. s customers and shareholders and by market analysts and may not be considered as an offer or recommendation to execute any transactions. The information contained in this presentation is based on publicly available and reliable sources. However, Getin Noble Bank S.A. cannot guarantee that this information is complete. Getin Noble Bank S.A. takes no responsibility for the consequences of any decisions based on any information contained in this presentation. The information contained in this presentation has never been subject to independent verification and may at any time be subject to change or modification. The publication by Getin Noble Bank S.A. of the figures contained in this presentation is not a breach of the regulations applicable to companies whose shares are traded on a regulated market. The information provided in this presentation has already been disclosed in current or periodic reports published by Getin Noble Bank S.A. or constitutes an addition to those reports, and its publication does not require the bank tofulfiltheobligationtoprovideinformationasimposedonthebankasapubliccompany.thecontentofthis presentationmaynot,inanycase,be interpretedasanexpressorimplied statement or assurance made by the company or its representatives. In addition, neither the company nor its representatives may be held liable, in any way (as a result of negligence or for any other reason) for any loss or damage that might arise in connection with use of this presentation or any content of this presentation or that might arise in any other way in connection with the information contained in this presentation. n the event of a change to the company s strategy or intentions or in the event of unexpected facts or circumstances affecting the company s strategy or intentions, the company is not responsible for informing the public of any possible modifications or changes to any information, data or statements provided in this presentation. This presentation contains information relating to the Polish banking sector, including information on the company s market share. Except for information described as based on other sources only, the market-related information referred to above has been prepared based on data from the sources of the third persons named in this document and includes estimates, assessments, corrections and opinions based on the company s experience and knowledge of the sector in which the company operates. Since the market-related information referred to above has in part been prepared based on estimates, assessments, corrections and opinions and has not been verified by independent third persons (except for information described as based on the sources of third persons), the information is, to some degree, subjective in nature. It is presumed that the above estimates, assessments, corrections and opinions are based on reasonable grounds and that the market-related information properly reflects the situation in the banking sector and in the markets in which the company operates. However, it is not certain that the estimates, assessments, corrections and opinions are the most appropriate basis for conclusions relating to market information or that market information prepared by other sources will not be considerably different from the market-related information contained in this presentation. Please note that the only reliable source of information on the situation of Getin Noble Bank S.A., forecasts, events, financial results and indicators is the current and periodic reports published by Getin Noble Bank S.A. as part of its obligation to provide information. 15