Idea Bank S.A. Group Results

Transcription

1 Idea Bank S.A. Group Results 1H 2015 Record net profit HY2015 / HY2014 despite difficult macroeconomic conditions Presentation of the Management Board for Investors July 29, 2015

2 1H 2015 Fact Sheet Idea Bank Group achieved PLN 181.1m net profit in 1H 2015 (PLN 141.9m excluding non-recurring items) Net profit of Idea Bank Group amounted to PLN 181.1m, up 179% yoy (65.0m in 1H 2014). NF&C of Idea Bank Group increased by 76% up to PLN 241m yoy. NII of Idea Bank Group for 1H2015 at stable level of PLN 147.4m (at interest margin 2.5%). In 1H 2015 Bank acquired 9.2k of new credit customers and sold more then 31k current accounts. NPL ratio (DPD 90+) increased from 7.9% at the end of 2H 2014 to 8.7% at the end of 1H 2015 as a result of maturing loan portfolio. Sales of credit products has been rising, achieving more than PLN 2.8b in 1H Total assets of the Group increased by 55% yoy. Successful cross-selling: 2-years relationship with Idea Bank Group translates, in average, into nearly 3 products saturation, 25% of customers holds 4 and more products. growing 179% as compared to 1H

3 Agenda Summary of Idea Bank Capital Group 1H 2015 results Summary of financial data and key ratios Sales and customers volumes Key initiatives Optimisation of the structure of Idea Bank Group Analysis of 1H 2015 financial results Structure of net income Adjusted Group s financial results (excluding non-recurring item) Structure of loans together with impairment losses and CoR Key regulatory indicators Key financial information relating to subsidiaries Market environment Attachments 3

4 Summary of Income statement and key ratios Successful half of year with stable operating results PLN million 1H H 2014 % change Q Q % change Net interest income 147,4 147,3 0,1% 72,9 74,5-2,1% Net fee and commission income 241,0 136,7 76,3% 127,7 113,3 10,9% Result on investments in purchased debt 44,7 10,0 345,5% 19,1 25,6 25,4% Impairment losses -62,3-51,1 21,9% -33,3-29,0 14,7% General administrative costs -263,2-199,5 31,9% -133,9-129,3 3,5% Net income 181,1 65,0 178,6% 118,0 63,1 87,0% Receivables from clients , ,7 92,2% , ,7 5,9% Liabilities to clients , ,1 49,6% , ,0 1,0% Equity 1 894,0 961,2 97,0% 1 894, ,4 22,1% Total assets , ,3 55,1% , ,9 2,6% 1H H 2014 Zmiana Q Q Zmiana NIM 2,5% 4,8% -2,3p.p. 2,4% 2,4% 0,0 p.p. % share of Net F&C income in Total operating income 53,0% 42,0% 11,0 p.p. 59,6% 51,3% 8,3 p.p. C/I Group 57,9% 61,3% -3,4 p.p. 57,4% 58,5% -1,1 p.p. CoR (excluding purchased receivables) 1,3% 2,0% -0,7 p.p. 1,3% 1,2% 0,1 p.p. ROA 2,3% 1,5% 0,8 p.p. 3,0% 1,6% 1,4 p.p. ROE 21,5% 15,0% 6,5 p.p. 27,0% 16,7% 10,3 p.p. L/D ratio (Group) 99,5% 71,5% 28,0 p.p. 99,5% 90,5% 9,0 p.p. NPL (90+ DPD) 8,7% 7,0% 1,7 p.p. 8,7% 8,4% 0,3 p.p. NPL coverage 52,6% 47,3% 5,3 p.p. 52,6% 47,1% 5,5p.p. CAR (Bank) 15,9% 15,8% 0,1 p.p. 15,9% 14,1% 1,8 p.p. Tier 1 (Bank) 1 365,6 663,9 105,7% 1 365, ,9 13,2% 4

5 1H 2015 rising volumes of sales and customers [1 494] +8% [1 617] Loan sales % [2 887] No. of borrowers Purchased debt Factoring* Leasing Car loans Working capital facilities Investment loans Leasing volumes increased by more than 200% compare to 1H2014 Sales of factoring products increased by 96% compared to 1H 2014 Growth of the customers posessing Bank s account by 17% as compared to 2H The average customer holds nearly 3 products after 2 years of relationship with the Bank H H H 2015 *based on value of financed invoices Cross-selling Length of relationship with customers Number of products 0-6 months >24 months 1 54% 35% 2 22% 28% 3 11% 12% >4 13% 25% Avg. number of products per client Current accounts holders in Idea Bank +13% +17% H' 14 2H' 14 1H' 15 5

6 Key projects of 1H 2015 In 1H 2015 Bank launched and developed innovative projects, rewarded in competitions and rankings Reward in Golden Arrow competition Idea Bank has been rewarded in direct marketing competition Golden Arrow for the mobile cash deposit machine application. The jury has been impressed by this innovative service, which is first solution in the world of this type. Summer working hubs for entrepreneurs In Warsaw Idea Bank has prepared two brand new Idea Hubs arranged specially for working during summer season. One of the HUB is arranged as a garden, the other typical summer style is located close to the Vistula beach. Campain promoting innovative products for SME Idea Bank has prepared the Warsaw outdoor and radio campaign to promote innovative solutions created to the entrepreneurs. The company uses local outdoor media and radio stations for this purpose. The marketing campaigns will take place since July to September The Edison Awards two rewards, and the reward of the Wprost in the SME category Idea Bank won second place in the American competition - the Edison Awards The Idea Cloud has won the silver and the Idea Hub has received the brown medal. The Bank has also been rewarded for the complex and competitive offer for SME the Wprost Wallet. 6

7 Simplification of the Group s capital structure The structure of Idea Bank Group has been optimized and simplified * Idea Bank Group as at Legal merger Idea Bank Group as at Legal merger Legal merger of PDK Biznes Sp z o.o. with Idea Expert SA Legal merger of Development System Sp z o.o, Veso Investment Sp z o.o and Veso Investment Sp z o.o SKA with Development System Sp z o.o Legal merger of Ellisa Investment Sp z o.o, and Carlise Investment Sp z o.o under Idea SPV Sp z o.o name 3 Legal merger * This slide presents crucial subsidiaries only 7

8 Agenda Summary of Idea Bank Capital Group 1H 2015 results Summary of financial data and key ratios Sales and customers volumes Key initiatives The capital structure of the Idea Bank Group Analysis of 1H 2015 financial results Structure of net income Adjusted Group s financial results (excluding non-recurring items) Structure of loans together with impairment losses and CoR Key regulatory indicators Key financial information relating to subsidiaries Market environment Attachments 8

9 The Group financial results in 1H 2015 Over 16.8% ROE with substantial contribution of subsidiaries into net profit of the Group (excluding non-recurring items) (in PLNm) 1H H 2014 change % change Q Q % change Interest income 368,9 280,8 88,1 31% 177,4 191,5-7% Interest expenses -221,5-133,5-88,0 66% -104,5-117,0-11% Net interest income 147,4 147,3 0,0 0% 72,9 74,5-2% Net fee and commission income 241,0 136,7 104,3 76% 127,7 113,3 13% Net other operating income 27,6 31,5-3,9-12% 18,8 8,8 114% Result on investment in purchased debt 44,7 10,0 34,7 347% 19,1 25,6-25% Impairment losses -62,3-51,1-11,2 22% -33,3-29,0 15% General administrative costs -263,2-199,5-63,7 32% -133,9-129,3 4% Pre-tax profit 135,2 74,9 60,3 81% 71,3 63,9 12% Income tax 45,9-9,9 55,8-564% 46,7-0,8-5938% Net profit 181,1 65,0 116,1 179% 118,0 63,1 87% Decomposition of the the Group s net results for 1H2015 The net interest income remains stable in Q2 15 comparing to Q1 15, which is a result of the decrease of the Group financing cost and revaluation of the assets and liabilities after interest rates cuts. Reorganization in Idea Leasing Group resulted in difference between book value and tax value of Idea Leasing & Fleet shares. Group recognized tax loss with positive impact on the financial result in the amount of PLN 19.6m and deferred tax on the remaining unsold portion of the shares in the amount of PLN 19.6m. The increase in operating costs in 1H 15 in comparison to 1H 14 results from consolidation of new companies in the Group (Idea Money, Getback, VB Leasing) that were acquired in 2H ,5 15,1 12,1 88,5 (1,4) 69,8 (23,3) 63,1 Idea Bank Idea Leasing GetBack Idea Money Tax Care Idea Expert Other adjustments Idea Bank Group 9

10 The Group financial results without non-recurring items Group s net profit excluding non-recurring items (reorganization in Idea Leasing Group) achieved PLN 78,8 m in 2Q 15 (up 25% Q/Q) Financial results excluding non-recurring items Impact of non-recurring items on the net profit in PLNm 2Q Q 2015 Zmiana Zmiana % Interest income 177,4 191,5-14,2-7% Interest expenses -104,5-117,0 12,5-11% Net interest income 72,9 74,5-1,6-2% Net fee and commission income 127,7 113,3 14,4 13% Net other operating income 18,8 8,8 10,0 114% Result on investments in purchased debt 19,1 25,6-6,5-25% Impairment losses -33,3-29,0-4,3 15% General administrative costs -133,9-129,3-4,6 4% Pre-tax profit 71,3 63,9 7,4 12% Income tax 7,5-0,8 8,3 1038% Net profit 78,8 63,1 15,7 25% As a result of the reorganization, which objective was to seperate leasinn and car fleet management activities, the Group recognized a benefit from corporate income tax in its income statement in the amount of PLN 39,2 m. The reorganization consisted of following steps: 1. Separation of leasing activity within Idea Leasing & Fleet (former VB Leasing) as an organized part of the business. 2. Contribution of the organized part of the business to Idea Leasing S.A. 3. Disposal (about 50%) of Idea Leasing & Fleet shares (car fleet management) to Idea SPV. As the result of the difference between the tax value and carrying value of sold shares in Idea Leasing & Fleet, the Group recognized tax loss on (positive impact on the financial result) in the amount of PLN 19.6m and deferred tax on the remaining unsold portion of the shares in the amount of PLN 19.6m. Tax loss will be utilized by the Group in The Group expects realization of deferred tax asset in

11 Dynamics of the Group s Income and Costs Despite of unfavourable market conditions, Group generates stable income together with declining operating expenses Structure of the Group's Total Income 10, ,7 147,3 27,3 44,7 8,0 15,4 194,7 184,8 241,0 147,4 1H H H 2015 C/I Group 61,3% 60,3%* 57,9% 284,5 262,2 1H'15/2H'14 +64% +93% +46% -20% Result on investment in purchased debt Result on financial instruments Net fee and commission income Net interest income Structure of the Group s general administrative costs 199,5 18,6 15,5 76,1 89,3 44,9 24,4 32,7 23,2 85,8 80,5 129,3 126,8 1H'15/2H'14-27% -5% -6% -2% Other Depreciation and amortization External services Remuneration A decrease in interest income resulted from interest rates cuts in 2014 and March Other components of income show upward trends. The Group offsets low dinamics on NII by sustantial increase on NF&C income (25% 1H 15 vs 2H 14). The Group continues its strategy to integrate its subsidiaries as well as to simplify its structure. This resulted in a decrease in operating expenses in 1H 15 compared to 2H 14 of 7%. The Bank recognized BFG charges on straight line basis. 1H H H 2015 * Excluding gain on bargain purchase of VB Leasing in 2H 14 11

12 Structure of Net fee and commission income Stable fee and commission income generated by diversified business activities Fee and commission income 1H H 2014 % change Q Q % change Comment: loan comissions 11,7 4,3 174,2% 6,3 5,4 16,8% intermediation in sale of: 179,5 159,2 12,8% 93,1 86,4 7,7% insurance products 128,3 76,1 68,5% 72,9 55,3 31,8% investment products 40,6 44,3-8,4% 15,6 25,0-37,5% The Group with its broad range of products diversifies revenue structure - in particular with regard to revenue from factoring and fees from management of securitization funds assets The main components of NF&C are intermediation in sale of insurance products, assets management, factoring and accounting services. The Group did not suffer from lower intercharge fees. loans and other 10,6 38,7-72,6% 4,5 6,1-25,7% assets under management 43,5 1,9 2228,7% 30,0 13,6 121,1% accounting services 17,7 14,6 21,0% 9,8 7,9 23,0% factoring services 29,8 0,0 n/d 17,2 12,7 35,9% other 10,9 8,1 34,2% 2,4 8,4-71,3% Structure of net fee and commission income Factoring services 10% Accounting services 6% other 4% Sale of third party loan products 3% Loan commissions 4% TOTAL 293,2 188,1 55,9% 158,8 134,4 18,1% Assets under management 15% Sale of investment products 14% Sale of insurance products 44% 12

13 Loan portfolio and credit risk The increase in NPLs as a result of maturing of the loan portfolio Loan and lease portfolio Loan portfolio quality ,1% NPL Leasing 69,6% 70,9% 249 6,3% 206 Q Q Q Q Q Structure 8% 1% 36% 2% 25% 28% NPL (DPD 90+) Purchased receivables Factoring Leasing Car loans Operating loans Investment loans NPL ratio NPL coverage ratio Provisions for DPD 90+ Loan portfolio % share in loan portfolio Avg.LTV (%) 1H H 2014 Avg. Maturity (in months) NPL 1 ratio (%) NPL 1 coverag e ratio (%) NPL 1 ratio (%) NPL 1 coverag e ratio (%) investment loans 28% 56% ,2% 12,6% 8,9% 12,2% working capital facilities 25% n/a 64 10,5% 70,3% 10,4% 70,3% car loans 2% 96% 59 10,8% 68,6% 11,8% 76,8% leasing receivables 2 36% 99% 38 6,3% 70,9% 6,4% 61,8% factoring receivables 1% 33% 2 6,1% 32,3% 6,3% 25,7% Purchased debt 8% n/a n/a n/a n/a n/a n/a Total 100,0% 80,3% 73 8,7% 52,6% 7,9% 45,7% 1) according to DPD 90+, 2) including lease loans, 541 NPL Kredyty 10,2% 10,4% 38,8% 40,6% Q Q NPL ratio NPL coverage ratio NPL (DPD 90+) Provisions for DPD

14 Stable finding structure and satisfactory capital ratio Tier 1 (Bank) CAR Dynamics of financing structure CAR, Tier 1 ratio and RWA L/D ratio 71,5% 6 671,2 +41% 90,5% 9 021,5 +6% 99,5% 9 463,6 478, ,9 205, , , ,7 1H H H 2015 term deposits structured deposits current accounts ,9% 13,5% H H % 16% 15% 14% 13% 12% Maturity of deposits Up to 3 months 2,5% 4,7% From 3 to 6 months 48,2% 62,3% From 6 to 12 months 26,6% 8,5% Over 1 year 22,7% 24,5% The Bank currently is in the process od issuance of subordinated debt up to PLN 500m at floating interest rate WIBOR 3M/6M+ 330bp or fixed interest rates up to 520 bp. The interest will be paid quarterly or semi-yearly. The debts maturity is from 5 to 7 years. The Bank consistently lenghtens the deposits maturity period with a target of 30% of the deposits >1 year and 10% of deposits >3 years at the end of Capital adequacy Idea Bank Idea Bank Group 2H H 2015 RWA CAR 15,9% 14,1% TIER 1 14,9% 14,1% CAR 12,0% 9,3% TIER 1 9,5% 6,6% 14

15 Idea Bank financial results Despite unfavorable market conditions the Bank s financial income remaines stable Income statement 1H H 2014 % change Q Q % change Net interest income 115,3 155,0-25,6% 59,6 55,7 7,1% Net fee and commission income 140,3 94,0 49,3% 71,3 69,0 3,3% Despite low market interest rates the Bank maintains interest margin on credit sales on a comparable level (operating loans 17%, investment loans 7%, car loans 9%) Results on financial instruments 15,4 8,1-51,4% 9,2 6,2 48,2% Net other operating income -5,0-5,8 13,8% -2,6-0,7-270,6% Impairment losses -55,3-61,3-9,7% -28,9-26,4 9,4% General administrative costs -123,4-116,5 6,0% -62,9-60,5 4,0% Pre-tax profit 87,3 73,5 18,8% 44,0 43,3 1,6% Income tax -17,5-14,5-20,7% -8,9-8,5-5,3% Net profit 69,8 59,0 18,4% 35,0 34,8 0,6% Balance sheet % change Receivables from banks and financial institutions 606,7 908,6-64,0% Loans and advances to clients , ,1 10,2% Financial instruments 2 089, ,0-2,3% Investments in associates 908,7 876,0 3,7% Intangible assets 78,4 80,2-2,2% Other assets 868,0 614,9 41,2% TOTAL ASSETS , ,8 6,4% Amounts due to banks and financial institutions 521,3 700,9-25,6% Liabilities due to clients , ,9 6,3% Liabilities from issuance of debt securities 262,4 259,4 1,2% Other liabilities 275,6 220,9 24,8% Equity 1 842, ,7 20,0% TOTAL EQUITY AND LIABILITIES , ,8 6,4% Continued growth sales Bank financial income shows inreasing trend (19% pre-tax profit increased compared to 2H 2014) Bank continues its efforts to increase number and volume of core accounts. As at core deposit amounted to 685m vs 302m as at Q Q Q Q Q 2015 Investment loans Operating loans Car loans 15

16 GetBack Capital Group High cash recoveries from own purchased debt with a growing share of income from servicing debt. Balance sheet % change Purchased debt 231,3 217,7 6,2% Receivables from banks and financial institutions 7,0 16,9-58,6% Investment in associates 71,9 65,5 9,8% Other assets 42,5 19,0 123,7% TOTAL ASSETS 352,7 319,1 10,5% Amounts due to banks and financial institutions 4,8 5,1-5,9% Liabilities from issuance of debt securities 157,7 127,7 33,0% Other liabilities 70,3 120,6-41,7% TOTAL LIABILITIES 232,8 253,4-8,1% EQUITY 119,9 65,7 82,5% 0% Income statement Q Q % change 1H 2015 Net interest income -2,4-2,7-11% -5,1 Net fee and commission income 29,7 13,5 120% 43,2 Net other operating results 5,9 1,8 228% 7,7 Recoveries from purchased debt 13,9 18,7-26% 32,6 Revaluation of purchased debt 2,5 6,6-62% 9,1 General administrative costs -19,0-12,9 47% -31,9 Net profit 34,1 20,4 67% 54,5 50% 40% 30% 20% 10% Key data and events An inrease in Assets under management with a nominal value of PLN m and purchase price of PLN 327 m As at r the Company had under management purchased debts with a nominal value of PLN 7.6b with a purchase assets price of PLN 1b (13.1% of nominal value) Portfolios Bank planuje zakończenie Nominal Purchase (in PLNm) migracji wszystkich value klientów do price nowego systemu do końca Q Forecasted recoveries for period from inception to Actual recoveries for period from inception to Plan realisation Purchased debt 2 045,6 160,0 96,2 109,3 114% Debt under management GetBack s recoveries curves GetBack - prognoza - GB FIZ WD GB forecast; FIZ WD; ( =186%; IRR=18%) GetBack - wykonanie - results (2Y) (2l) + + bank plan portfolio portfelbankowy; forecast; ( =277%; IRR=34%) Corpus Competitor Iuris - portfel X FIZ WD; ( =250%; IRR=30%) Kruk Competitor ; Y ( =274%; IRR=30%) Kredyt Competitor Inkaso Z - krzywa dla portfeli nabytych w latach (Ʃ 200%, IRR 20%) 5 529,5 833,2 56,5 132,5 235% TOTAL 7 575,1 993,2 152,7 241,8 158% 16

17 Idea Leasing Full operational integration of the business and maintaining growing sales after the acquisition of VB Leasing Lease sales structure Balance sheet % change Q1'15 Q2'15 Receivables from banks and financial institutions 68,3 50,1 36,3% Loans and advances to clients 1 062,3 892,5 19,0% Finance lease receivables 2 842, ,6 7,1% Other assets 340,4 284,5 19,6% 2% 1% 24% 24% + 4% 1% 1% 18% 32% cars trucks construction machinery TOTAL ASSETS 4 313, ,7 11,1% machinery & equipment Amounts due to banks and financial institutions 3 919, ,8 11,4% Liabilities from issuance of debt securities 105,8 211,1-49,9% Other liabilities 129,3 81,3 50,5% 5% 44% 636,9 6% 42% 661,2 medical & IT equipment other Equity 158,4 69,3 128,2% TOTAL EQUITY AND LIABILITIES 4 313, ,7 11,1% Key information Income statement 2Q Q 2015* 1Q 2014 % change 1H 2015 Net interest income 16,2 16,2 15,6 3,8% 31,8 Net fee and commission income 8,5 8,5 10,3-17,5% 18,8 Net other operating results 9,3 10,8 2,5 271,3% 11,8 Impairment losses -0,5-0,5-2,1-76,1% -2,6 General administrative costs -15,8-15,8-15,7 0,5% -31,4 Pre-tax profit 17,8 17,8 10,6 67,8% 28,4 Income tax 49,9 10,7 10,2 389,5% 60,1 Net profit 67,7 30,0 20,8 225,5% 88,5 * Excluding non-recurring items In 1H 2015 Idea Leasing repaid PLN 105m of bonds issued in 2014 for financing of acquisition of VB Leasing. Reorganization in Idea Leasing Group resulted in difference between book value and tax value of Idea Leasing & Fleet shares. Group recognized tax loss with positive impact on the financial result in the amount of PLN 19.6m and deferred tax on the remaining unsold portion of the shares in the amount of PLN 19.6m. Till October 2015 the Idea Leasing Group will be generating tax benefit due to optimization in leasing companies its positive impact amounted PLN 30,2m H

18 Limits granted No. Of clients Idea Money Another good quarter in a row of increasing factoring volumes Balance sheet % change Intangible assets 15,4 12,7 21,3% Limits granted and used Tangible assets 2,9 3,6-20,8% Loans and advances to clients 296,0 243,5 21,6% Receivables from banks and financial institutions 24,1 14,1 70,9% Other assets 120,6 55,4 117,7% TOTAL ASSETS 459,0 329,3 39,4% Amounts due to banks and financial institutions 284,8 255,2 11,6% Liabilities from issuance of debt securities 32,8 33,9-3,3% ,6 90,3 107,0 233,6 231,7 262, Other liabilities 106,9 20,8 413,9% TOTAL LIABILITIES 414,8 309,9 33,8% 0 Dec Grudzień Marzec March Czerwiec June EQUITY 34,5 19,4 43,7% Number of factoring customers Income statement 2Q Q 2015 % change 1H 2015 Net interest income 0,4 0,1 300% 0,5 Net fee and commission income 17,0 14,0 21% 31,0 Impairment losses -0,7-1,0 30% -1,7 General administrative costs -6,2-5,5 13% -11, No of customers No of PZF clients Net profit 8,9 6,2 44% 15,1 NPL ratio 6,1 6,6-0,5 p.p. 6,1 NPL coverage ratio 32,3 26,6 5,7 p.p. 32, December 2014 March 2015 June 2015 Avg value of financed invoices in 2Q IM PLN 11k, - PZF PLN 25k. 18

19 Tax Care & Idea Expert Growing network of partners supports development of subscription program Idea Expert strenghten its market position as the Bank intermediary Tax Care Income statement Q Q % change 1H 2015 Net interest income -0,1-0,1 21,0% -0,2 Net fee and commission income 32,1 29,6 8,5% 61,7 Net other operating results -3,1-1,0 212,0% -4,1 General administrative costs -20,8-21,2-1,9% -42,0 EBITDA 11,4 10,5 8,6% 21,9 Income tax -1,7-1,6 3,4% -3,3 Net profit 6,5 5,6 16,1% 12,1 15,8 16,0 16, Tax Care fee and commission income liczba Customers klientów number (tys.) (in thousand) Usługi Accounting księgowe services Pośrednictwo Financial finansowe intermediary Idea Expert Income statement Q Q % change 1H 2014 Net interest income -6,8-7,0-2,9% -13,8 Net fee and commission income 16,4 18,2-9,9% 34,6 Net other operating results 0,5 0,5 0,0% 1,0 General administrative costs -10,5-12,1-13,1% -22,6 EBITDA 7,7 7,9-2,5% 15,6 Income tax -1,9-1,0 90,1% -2,9 Net profit -2,4-1,4-68,6% -3,8 Idea Expert fee and commission income 5% 3% 3% pozostałe Other 61% 53% Cash loans kredyty gotówkowe 69% kredyty Car loans samochodowe 23% 33% 43% kredyty Mortgage hipoteczne loans 3% 3% 1% 19

20 Agenda Summary of Idea Bank Capital Group 1H 2015 results Summary of financial data and key ratios Sales and customers volumes Key initiatives The capital structure of the Idea Bank Group Analysis of 1H 2015 financial results Structure of net income Adjusted Group s financial results (excluding non-recurring items) Structure of loans together with impairment losses and CoR Key regulatory indicators Key financial information relating to subsidiaries Market environment Attachments 20

21 Idea Group`s Clients immune to financial markets Micro entrepreneurs tend to issue debt regardless from the macro-economic conditions and situation on foreign exchange, capital or commodity FX: PLN main crosses, nominal Brent oil in USD and PLN Polish equity market : WIG, WIG20, WIG30 Source: NBP Source: NBP Source: NBP Results of quarterly surveys among customers of Idea Bank Group after 2Q 2015 Turnover forecast for 2015 lower than in 2014 higher than in 2014 in line with 2014 Percentage of entrepreneurs willing to invest The small companies operate in their own rhythm and maintain independent from the macroeconomics conditions. Regardless the external circumstances the owners of the small companies are ready for developing their businesses and incur expenses for the tangible assets. Source: Idea Bank, Research Team 21

22 Corporate governance Individual Investor`s Academy contribution of the Idea Bank into financial markets knowledge After the debut of the shares at the Warsaw Stock Exchange both: the professional institutional investors as well as individual investors including beginners, have obtained a possibility to buy shares of the Bank. Taking into consideration the lastly mentioned group of the investors, the Idea Bank has set up the Individual Investors Academy, which is a compendium of the basic investment knowledge. The knowledge is delivered in the form of the monthly educational packages, which are available at the Bank s internet side. Corporate governance The projects of the Idea Group named Duma Przedsiębiorcy, Inkubator Przedsiębiorczości, Trenerzy biznesu have been added to the list of best practices realised by the corporate social responsible business within the category of social involvement and development of local society. On 30 June 2015, the Issuer s Extraordinary General Meeting has appointed Mr. Piotr Kamiński and Mr. Dariusz Krawczyk as Members of the Bank s Supervisory Board, who shall perform the function of Independent Members of the Supervisory Board in the understanding of 49 of the Bank s Articles of Association, effective as of the day of appointment. On 22 June 2015, the Supervisory Board Meeting has appointed Mrs. Aneta Skrodzka-Książek to position of Member of the Management Board of the Idea Bank, effective as of the July 1, 2015 Aneta Skrodzka-Książek supervise the area of: Corporate Governance of the Capital Group, Operational Risk and Compliance. 22

23 Agenda Summary of Idea Bank Capital Group 1H 2015 results Summary of financial data and key ratios Sales and customers volumes Key initiatives The capital structure of the Idea Bank Group Analysis of 1H 2015 financial results Structure of net income Adjusted Group s financial results (excluding non-recurring items) Structure of loans together with impairment losses and CoR Key regulatory indicators Key financial information relating to subsidiaries Market environment Attachments 23

24 Income statement - Idea Bank Capital Group Continued operations (unaudited) PLN thousand (unaudited) PLN thousand (unaudited) PLN thousand (unaudited) PLN thousand I. Interest income II. Interest expenses III. Net interest income IV. Fee and commission income V. Fee and commission expenses VI. Net fee and commission income VII. Dividend income VIII. Result on financial assets at fair value IX. Foreign exchange result X. Other operating income XI. Other operating expenses XII. Net other operating income XIII. Result on investments in purchased debt XIV. Impairment losses XV. General administrative costs XVI. Result from operating activity XVII. Share in profits (losses) of associates XVIII. Profit (loss) before income tax XIX. Income tax XX. Net profit (loss) Attributable to shareholders of parent company Attributable to non-controlling shareholders

25 Balance sheet Idea Bank Capital Group (unaudited) PLN thousand PLN thousand (unaudited) PLN thousand ASSETS Cash and balances with Central Bank Receivables from banks and financial institutions Financial assets held for trading Derivative hedging instruments Derivative financial instrument at fair value through profit or loss Amounts due from clients: Loans and advances to clients Financial assets at fair value through profit or loss Finance lease receivables Other loans and receivables Available-for-sale financial assets Intangible assets Property, plant and equipment Investment property Investments in associates Fixed assets held for sale Income tax assets Current tax assets Deferred tax assets Other assets TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Amounts due to other banks and financial institutions Derivative hedging instruments Derivative financial instrument at fair value through profit or loss Financial liabilities measured at fair value through profit or loss Amounts due to clients Debt securities in issue Corporate income tax liabilities Other liabilities Deferred tax liabilities Provisions TOTAL LIABILITIES Equity (attributable to shareholders of parent company) Share capital Retained earnings Net profit (loss) Other capital Non-controlling interests Total equity TOTAL LIABILITIES AND EQUITY

26 This presentation (hereinafter referred to as the Presentation ) was prepared by Idea Bank S.A. (hereinafter referred to as the Company ) solely for information purposes, and is intended for clients, investors, Company s shareholders and financial analysts. This Presentation shall not be, in any event, considered as an offer or recommendation to execute any transaction in any case. In particular this Presentation shall not be considered as a proposal to acquire securities, an offer, invitation or solicitation to make any offer to buy or subscribe for, to invest or to execute transaction regarding these securities or as a recommendation or advice to conclude any transaction, in particular involving the securities of the Company or any of its subsidiaries or any other securities in the United States of America or in any other jurisdiction. The information contained in this Presentation is based on publicly available and reliable sources, however the Company cannot guarantee that this information is full and complete.. The Company cannot be held liable for the consequences of any decisions based on any information included in this Presentation. The information contained in this Presentation have not been subject to independent verification and may at any time be a subject to change or modification. As a rule, the Company is not required to publicly update or modify information, data or statements contained in this Presentation in the event of change in the strategy or intentions of the Company or occurrence of unforeseen facts or circumstances which will have an impact on the strategy or intentions of the Company, unless such an obligation is stipulated by law. The information contained in this Presentation may not be, in any case, interpreted as a forecast or as an express or implied statement or assurance made by the Company or persons acting on its behalf. Furthermore, neither the Company nor persons acting on its behalf may be held liable, in any way whatsoever, for any loss or damage that may arise in connection with use of this Presentation or any content of this Presentation or that may arise in any other way in connection with the information contained in this Presentation or on any other basis related to this Presentation. The publication by the Company of the figures contained in this Presentation is not a breach of the regulations applicable to companies which shares are traded on a regulated market, in particular on a regulated market maintained by the Warsaw Stock Exchange in Warsaw. The information provided in this Presentation has already been disclosed in current or periodic reports published by the Company, or constitutes an addition to those reports, and its publication does not require the Company to fulfill the obligation to provide information as imposed on the Company as a public company. Please note that the only reliable source of information on the situation of the Company, its forecasts, events regarding the Company, its financial results and indicators is the current and periodic reports published by the Company as part of its obligation to provide information. Adam Wiśniewski Investor Relations Officer adam.wisniewski@ The Company is solely entitled to the rights regarding the entire Presentation. The Presentation is subject to protection resulting from the provisions of law. The financial and sales data provided in this Presentation have been rounded to PLN million and have been presented with an accuracy to one decimal place. This Presentation is not directed to, or intended for distribution to or on the territory of any country where such publication or distribution of the information contained in this Presentation is subject to restrictions or is forbidden by law. 26