FINANCIAL RESULTS 3Q 2016 Solid results towards full year plan delivery

Transcription

1 FINANCIAL RESULTS 3Q 2016 Solid results towards full year plan delivery Warsaw,

2 Disclaimer This presentation (the Presentation ) has been prepared by Bank Polska Kasa Opieki Spółka Akcyjna ( Bank ) for the clients, shareholders and financial analysts. This presentation should not be treated as an offer or invitation to purchase any securities or financial instruments or as an advice or recommendation in respect to such securities or financial instruments. The presented data are only general information and does not refer to the offered by the Bank products or services. In order to take advantage of the services and products of the Bank, one should be thoroughly familiar with the characteristics of the particular service or product, its rules, risk and legal and tax consequences of the use of particular service or product. The strategy presented in this presentation contains goals which are the ambition of the Management Board and do not constitute any financial results forecast. Rights for the Presentation as a whole are entitled to the Bank. Presentation is a subject to the protection provided by the law, in particular: the Act dated on February 4th, 1994 on Copyright and Related Rights (consolidated text in Journal. Laws of 2006, No. 90, item. 631, as amended); the Act dated on July 27th, 2001 on the Databases protection(journal of Laws No. 128, item. 1402, as amended); the Act dated on April 16, 1993 on Combating Unfair Competition (consolidated text in Journal of Laws of 2003, No. 153, item 1503, as amended) and the Act dated on June 30, 2000 on Industrial Property Law (consolidated text in Journal. Laws of 2003, No. 119, item as amended). This presentation may include forward looking statements, Bank s outlook for the future, future plans and strategies or anticipated events that are not historical facts. Since these statements are based on assumptions, expectations, projections and provisional data about future events, the content is inherently uncertain. Factors that could cause or contribute to differences in current expectations include, but are not limited to: (i) general economic conditions, among which the economic conditions of the business areas and the markets in which Bank and its subsidiaries operate, (ii) the performance of financial markets (iii) changes in laws or regulations and (iv) general competitive conditions locally, regionally, nationally and/or internationally. The Bank does not undertake to publish any updates, modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of the Bank, or should facts or events occur that affect the Bank s strategy or intentions, unless such reporting obligations arises under applicable laws and regulations. Bank, nor any of its representatives shall not be responsible for any loss or damage it may arise from the use of this Presentation or of any information contained herein or otherwise arising in connection to this Presentation. This presentation is not for the distribution, in or into countries where the public dissemination of the information contained herein may be restricted or prohibited by law. 1

3 9M16 highlights Net profit after nine months of PLN 1 785m, in line with 2016 plan, NII growing by 5.3% yoy thanks to volumes and further improvement of NIM to 2.81% in Q3, Continuation of asset mix improvement with key retail lending confirming double digit pace, Operational efficiency and effective risk management confirmed. 2

4 Net profit PLNm -14.7% +5.1% -3.8% +13.6% Q 15 3Q 16 9M 15 9M 16 Nine months net profit at PLN 1 785m, -3.8% yoy (excluding banking tax +13.6% yoy) with Q3 at PLN 521m. ROE at 10.2% with Core Tier I at 18.1%. 3 - dynamic excluding impact of new banking tax; PLN 322m for 9M 2016

5 Gross operating profit PLNm +6.8% +10.4% Q 15 3Q 16 9M 15 9M 16 Double digit growth in nine months operating profit +10.4% yoy, supported by good Q3 performance. 4

6 Operating income PLNm +2.7% +5.6% % +2.6% Q 15 3Q 16 9M 15 9M 16 Core operating income Other Nine months core operating income up by +2.6% yoy thanks to contribution of Q3 results (+3.3% yoy). Total operating income after 9 months at PLN 5 586m, +5.6% yoy. 5

7 Net interest income and net interest margin Net interest income (PLNm) Net interest margin +6.7% ,73% 2,73% 2,75% 2,80% 2,81% 3Q 15 3Q % Q 15 4Q 15 1Q 16 2Q 16 3Q 16 9M 15 9M 16 Nine months NII at PLN 3 269m, +5.3% yoy, driven by customer volumes. Continuation of NIM improvement to 2.81% in Q3 thanks to cost of deposits and retail lending. 6

8 Loans Retail loans (PLNm) Corporate loans (PLNm) +10.5% +1.8% +2.7% +1.2% Sep 15 Jun 16 Sep 16 Sep 15 Jun 16 Sep 16 Key retail loans Other retail loans Key corporate loans Other corporate loans (*) Solid growth in key retail lending +10.5% yoy and +2.7% qoq. Key corporate lending +1.8% yoy and +1.2% qoq while preserving margin target 7 (*) excl. BSB and reverse repo transactions

9 New key retail lending New loans volumes (mln PLN) PLN mortgage stock market share % % 18.1% Q 15 3Q 16 Consumer Loans PLN Mortgage Loans Sep 15 Sep 16 PLN 3.9bn in new retail loans in the third quarter driven by record level of consumer loans and continuously solid PLN mortgages origination. 8

10 Savings Retail savings (PLNm) Corporate deposits (*) (PLNm) +11.5% -10.4% -0.9% +0.8% Sep 15 Jun 16 Sep 16 Sep 15 Jun 16 Sep 16 Retail deposits MF Double-digit growth in retail deposits +11.5% yoy. Corporate deposits dynamic reflecting tactical approach in safe liquidity management. 9 (*) excl. SBB and repo transactions

11 Net fees and commissions PLNm -3.4% +0.1% Q 15 3Q % 9M 15 9M % Other Lending Cards Capital Markets Nine months banking fees and commission up 0.1% yoy with lending and card fees offsetting pressure on other fees. Capital markets down by 14.4% affected by industry-wide pressure, gradually improving q/q dynamic in comparison with previous quarters. 10

12 Operating costs PLNm Cost -1.8% % BFG+ banking tax Cost incl. BFG, banking tax 3Q 15 3Q M 15 9M Personnel costs Non-personel costs Depreciation Nine months operating costs PLN at 2 418m, -0.1% yoy, C/I at 43.3%. Regulatory charges at PLN 518m. 11

13 Assets quality Loans (PLNm) 6.7% 6.4% 6.4% Cost of risk Sep 15 Jun16 Sep 16 NPL Performing NPL ratio Provision coverage ratio 0.49% 0.47% 0.48% 3Q 15 2Q 16 3Q % 74.2% 74.3% Sep 15 Jun 16 Sep 16 Cost of risk at 48 bp. NPL ratio at 6.4%, coverage ratio at 74.3%. 12 Note: Performing loans excl. BSB and reverse repo transactions

14 Conclusions 9 months net profit of PLN 1 785m, +13.6% on comparable bases, on a track to 2016 plan delivery, Strong commercial development driven by double digit key retail volumes and progressing NIM improvement, Operational and risks costs under control, improving further bank efficiency, Solid performance, healthy and effective business model based on sustainable revenues, improving our market position and reinforcing our track record in value creation. 13

15 AGENDA Appendix 14

16 Polish economy outlook F GDP, % y/y Consumption, % y/y Investments, % y/y Unemployment, % eop CPI, % avg M Wibor, % avg Reference rate, % eop Exchange rate EUR, eop Exchange rate USD, eop Public sector balance, % GDP Note: Internal macroeconomic scenario 15

17 Polish banking sector outlook F (2) Loans, % y/y 6.8 3,1 Retail, % y/y 6.6 3,7 Mortgage loans PLN ,8 Consumer loans (1) 6.8 5,8 Corporate, % y/y 8.1 5,9 SME loans 7,0 4,0 Savings (3),% y/y 7,6 6,9 Deposits, % y/y 7.4 7,6 Retail, % y/y 9.4 9,9 Corporate, % y/y ,7 Mutual Funds (4),% y/y 8,9 0,0 16 (1) all non-mortgage retail loans (2) Internal scenario (3) deposits + assets in mutual funds dedicated to retail cliens (4) assets in mutual funds dedicated to retail clients

18 17 Polish economy trends Key parameters (1) GDP (% YoY) FIXED INVESTMENTS (% YoY) 1,9 1,5 7,7 7,3 6,9 6,9 8 3,7 5,5 4,9 1,9 2,7 2,1 4,2 3,6 4 4,8 0,9 0,1 4,8 4,9 5 2,3 3,3 0 0,5 5,3 6 1,8 2,6 3,3 3,3 3,3 3,3 3,6 3,1 3,4 4,3 3 3,1 2,8 5,4 7,8 10,4 9,6 4 6,7 2-0,7-4,7-2,9 24,0 22,6 0,7 0,1 2,5-0,1-3,2-4,9-2,5-3,5-0,2 0,3 12,0 9,6 9,79,7 11,8 5,8 4,4 4,4-1,8 0-9,3 5,0 5,3 19,2 15,9 13,014,5 0,0-4,9-6, Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q13 2Q13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 GDP Pr Consumption contribution Net export contribution Investment contribution TRADE BALANCE ACCOUNT (bln EUR) PRIVATE CONSUMPTION (% YoY) 8,2 6,3 4,9 5, ,4 2,6 3,6 3,2 6 5,8 1,7 2,7 2,6 3,1 3,7 0,8 2,4 2,1 0,2 0 0,2 3,6 3,3-0,5 0,7 0,7 2,3 2,9 2,3 2,8 3,13,13,1 3 3,23,3 3,8-3,3-4,1-3,8-5,2-5,9-4,6-6,5-1,6-2,1-2,3-2,0-3,1-3,5-4,1-2,5-3,3-3,4-2,8-2,2-1,2 0,5-1,9-1,1 0,3-0,1-0,8-0,4-1,2 0,3-0,7 1,6 1,0 1,01,4-0,7 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 Source: Central Statistical Office; March 2007 September 2016

19 18 Polish economy trends Key parameters (2) CORPORATE EMPLOYMENT (ths. eop) 5 800, , , , , , , , , , ,00 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 UNEMPLOYMENT (%) AVERAGE CORPORATE WAGES (% YoY) 7,8 8,99,8 10,1 11,8 12,0 7,8 11,0 5,4 6,3 3,5 3,43,6 2,7 3,8 3,3 4,3 4,35,25,3 3,8 5,4 4,6 2,3 2,6 2,0 2,23,03,0 4,1 4,1 3,5 3,4 3,9 3,13,6 3,43,74,4 4,2 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 Avg. Corporate Wages CPI RETAIL SALES (real terms, % YoY) 17,4 14,0 12,8 16,1 12,1 11,8 4,8 1,0 1,0 8,4 3,6 4,7 0,3 1,1 2,9 7,3 6,0 8,8 7,1 6,98,4 2,7 1,9-2,00,01,5 3,9 4,25,5 5,1 2,6 3,74,2 3,5 2,84,84,4 5,7 5,9 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 9,4 8,9 12,3 11,6 11,2 10,9 9,5 14,3 11,1 10,610,9 12,1 11,7 11,5 13,0 12,4 11,9 11,8 13,3 12,5 13,3 13,4 12,3 12,4 11,5 14,3 13,2 13,013,4 13,5 12,0 10,2 11,4 11,5 9,7 9,79,9 8,7 8,3 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 Source: Central Statistical Office; March 2007 September 2016

20 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q 11 2,0 2,4 3,2 3,7 3,6 3,3 3,0 2,2 2,2 2,9 3,5 4,7 4,3 4,1 3,9 4,1 4,3 4,2 4,4 4,2 4,2 4,0 3,8 4,7 5,9 5,7 5,1 6,6 6,7 6,2 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 2,9 3,9 3,8 4,6 4,1 4,6 4,1 4,0 4,9 4,7 4,2 5,1 4,9 5,0 4,8 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 0,3-0,3-0,7-1,5-0,9-0,7-0,5-0,9-0,8-0,8 1,3 0,5 0,7 0,6 1,1 2,3 2,7 2,7 2,7 2,7 2,7 1,9 1,7 1,7 1,7 1,7 1,7 1,7 3,4 4,1 19 Polish economy trends Key parameters (3) EXCHANGE RATES INFLATION, INTEREST RATES Source: NBP CPI REF. RATE 3M WIBOR

21 20 Banking sector trends Key parameters - yoy (4) HOUSEHOLDS AND CORPORATE LENDING (% YoY) HOUSEHOLDS AND CORPORATE DEPOSITS (% YoY) Households Corporate Households Corporate Q 02 4Q 03 4Q 04 4Q 05 4Q 06 4Q 07 4Q 08 4Q 09 4Q 10 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 02 4Q 03 4Q 04 4Q 05 4Q 06 4Q 07 4Q 08 4Q 09 4Q 10 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 TOTAL SECTOR LENDING (% YoY) TOTAL SECTOR DEPOSITS (% YoY) Q 02 4Q 03 4Q 04 4Q 05 4Q 06 4Q 07 4Q 08 4Q 09 4Q 10 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 02 4Q 03 4Q 04 4Q 05 4Q 06 4Q 07 4Q 08 4Q 09 4Q 10 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 Source: NBP; December 2002 September 2016

22 Banking sector trends Key parameters - YTD (5) HOUSEHOLDS LENDING (% YTD) HOUSEHOLDS DEPOSITS (% YTD) 50% 45% 40% 35% % 30% 25% % 25% 20% 20% 15% 15% 10% 5% 0% 10% 5% 0% -5% XII' I II III IV V VI VII VIII IX X XI XII -5% XII' I II III IV V VI VII VIII IX X XI XII CORPORATE LENDING (% YTD) CORPORATE DEPOSITS (% YTD) 35% 30% 25% 20% % 12% 7% % 2% 10% 5% 0% -3% -8% -5% I II III IV V VI VII VIII IX X XI XII -13% XII' I II III IV V VI VII VIII IX X XI XII Source: NBP; January 2007 September

23 17,2% 18,0% 17,8% 18,2% 17,8% 18,2% 17,8% 17,9% 17,3% 17,3% 16,1% 15,6% 13,9% 12,8% 13,0% 14,7% 14,4% 14,2% 12,3% 12,2% 12,3% 12,4% 12,2% 12,3% 3,2% 3,1% 3,4% 3,4% 3,3% 2,9% 2,9% 2,9% 2,9% 1,9% 2,0% 2,1% 2,2% 2,3% 2,5% 2,6% 2,7% 2,8% 2,9% 3,0% 3,0% 3,1% 3,1% 3,2% 12,4% 12,5% 12,6% 13,1% 12,7% 12,3% 12,7% 12,7% 11,5% 12,2% 13,2% 12,3% 13,4% 12,4% 14,1% 11,4% 11,3% 11,1% 9,9% 11,2% 8,8% 8,2% 7,6% 9,7% 9,8% 9,1% 9,4% 9,3% 7,4% 7,3% 7,2% 7,7% 7,6% 8,4% 9,0% 8,7% 9,6% 9,7% 6,6% 7,5% Jun 15 Sep 15 Dec 15 May 16 Jun 16 Sep 16 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Dec 14 Mar Banking sector trends Non-performing loans (6) HOUSEHOLDS NPL RATIO CORPORATE NPL RATIO Source: NBP SME Corporate 1,5% 1,6% 1,8% 9,1% 10,0%11,3%13,1%14,8%15,8%16,9% 1,2% 1,3% 1,4% 1,5% Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Mortgage Cash 4,5%4,9% 6,0%6,6% 6,7%7,2% 7,2% 7,4% 7,2% 7,3% 7,2% 7,5% 7,3% 7,5% 7,4% 7,5% 7,2% 7,1% 7,1% 7,0% 7,0% 6,9% 6,5% 6,8% 6,6% 6,5% 6,2% 6,3% 6,2% 6,2% Mar 09 Jun 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Total retail 10,1% 8,4% 11,5% 9,6% 11,2%12,2% 12,2% 12,4% 11,5% 10,9% 10,7% 10,5% 10,4% 11,1% 11,3% 11,7% 11,8% 11,8% 11,5% 11,5% 11,4% 10,7% 11,2% 11,3% 10,9% 10,6% 9,8% 9,7% 9,6% 9,4% Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Total corporate

24 23 Selected data

25 Consolidated balance sheet mln PLN Sep 15 Jun 16 Sep 16 Q/Q % Y/Y % Cash and amounts due from Central Bank % 11% Loans and advances to banks % -13% Loans and advances to customers* % -2% Investment securities % -3% Assets held for sale % 30% Intangible assets % -8% Tangible fixed assets % -5% TOTAL ASSETS ,7% -4,4% Amounts due to the Central Bank % 566% Amounts due to other banks % -30% Financial liabilities held for trading % 51% Amounts due to customers % -1% Debt securities issued % -55% Total liabilities ,3% -5,0% Total Shareholders' equity ,4% -0,5% (*) Including loans and advances from customers and receivables from finance leases 24

26 Consolidated income statement mln PLN 3Q 15 2Q 16 3Q 16 Q/Q% Y/Y% 9M M 2016 Y/Y % Net interest income (1) ,7% 6,4% ,9% Net fee and commission ,0% -3,5% ,9% Operating income ,8% 2,7% ,6% Operating costs (2) ,3% -1,8% ,1% OPERATING PROFIT ,9% 6,8% ,4% Provisions ,1% 2,9% ,7% Guarantee funds charges ,6% -3,8% ,4% Banking tax ,4% #DZIEL/0! #ARG! -322 #ARG! PROFIT BEFORE INCOME TAX ,8% -16,0% ,1% Income tax ,2% -21,3% ,9% GROUP NET INCOME (3) ,6% -14,7% ,8% Cost/Income Ratio (%) (4) 47,3% 40,3% 45,2% 4,9-2,1 45,8% 43,3% - 2,5 Cost of Risk (%) 0,49% 0,47% 0,48% 0,0-0,0 0,50% 0,47% - 0,0 ROE (%) 10,8% 11,7% 9,3% - 2,4-1,5 10,4% 10,2% - 0,2 ROE normalised (%) (5) 17,0% 18,4% 14,7% - 3,7-2,3 15,8% 16,0% 0,2 ROA (%) 1,5% 1,7% 1,3% - 0,4-0,2 1,5% 1,5% - TCR (%) - Basel 3 17,7% 18,1% 18,1% - 0,4 17,7% 18,1% 0,4 NIM (%) (6) 2,73% 2,80% 2,81% 0,0 0,1 2,79% 2,78% - 0,0 L/D (%) (7) 89,7% 93,6% 94,6% 1,0 4,9 89,7% 94,6% 4,9 25 (1) NII and dividends and other income from equity investments (3) Net profit attributable to equity holders of the Bank (5) ROE assuming TCR at 10% (6) NIM calculated based on average daily working assets (2) Costs excl. guarantee funds charges (4) Operating cost excluding guarantee funds charges (7) Loans excluding repo and buy-sell-back transactions, deposits includes only clients liabilities and debt issue excluding reverse repo transactions and sell buy-back

27 Selected data Bank Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Q/Q % Y/Y % Outlets ,5% -5,0% ATM's ,0% -0,7% Employees ,0% -2,4% No of PLN current accounts (ths)* ,1% 2,9% No of mortgage loan accounts (ths)** ,5% 6,9% No of clients holding a consumer loan accounts (ths)*** ,0% -0,2% Number of individuals with an access to electronic banking Pekao24 (ths) ,3% 8,1% Number of individuals with an access to mobile banking (ths) ,0% 53,8% Number of business clients (SME) with an access to electronic banking systems (ths) ,4% 3,9% Group Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Q/Q % Y/Y % Employees**** ,9% -2,6% Outlets**** ,5% -5,0% ATM's**** ,0% -0,7% Number of MF accounts (ths)***** ,4% -8,2% Number of Brokerage accounts (ths)****** ,6% -2,1% (*) Number of accounts including pre-paid card accounts 26 (**) Retail clients accounts (***) Pożyczka Ekspresowa (Express Loan) (****) Credit Union (SKOK) Kopernik included since Dec 2014 (*****) Pioneer Pekao Investment Management S.A. (******) Including: Dom Maklerski Pekao (Dom Maklerski), subsidiarycentralny Dom Maklerski Pekao S.A. (CDM), and associated entity Dom Inwestycyjny Xelion Sp. z o.o. (Xelion)

28 Activity by segments mln PLN Retail Banking Private Banking Corporate&Investment Banking Assets&Liabilities Management & Others Group 9M 15 9M 16 Y/Y % 9M 15 9M 16 Y/Y % 9M 15 9M 16 Y/Y % 9M 15 9M 16 Y/Y % 9M 15 9M 16 Y/Y % Net interest income (1) % % % % % Non-interest income % % % % % Operating income % % % % % Operating costs (2) % % % -12,5 0,0-100% % OPERATING PROFIT % % % % % Net write-downs/provision % % % % % Guarantee funds charges % % % % Banking tax PROFIT BEFORE INCOME TAX % 3,8 17,6 361% % % ,1% (1) Total net interest income, dividends and other income from equity investments 27 (2) Operating cost excluding guarantee funds charges

29 The structure of the Group net profit mln PLN cumulative Group's share in capital % 9M 15 9M 16 Y/Y Y/Y % Bank Pekao S.A. Banking - Poland 1 917, , ,8% Entities - consolidated under full method 165,3 88,2 #ARG! -47% of which: (*) Pekao Leasing Sp. z o.o. Leasing 100% 37,1 27,4-9,70-26% Centralny Dom Maklerski Pekao S.A. Brokerage 100% 33,4 18,2-15,20-46% Pekao Bank Hipoteczny S.A. Mortgage Bank 100% 6,6 6,2-0,40-6% Pekao Pioneer PTE S.A. Pension Fund 65% 2,1 0,9-1,20-57% Pekao Faktoring Sp. z o.o. Factoring 100% 6,5 6,6 0,10 2% Pekao Investment Banking S.A. Brokerage 100% 9,8 20,2 0,00 106% Centrum Bankowości Bezpośredniej Sp. z o.o. Call Centre 100% 1,4 1,8 0,40 29% Pekao Financial Services Sp. z o.o. Servicing MF/PF 100% 6,2 5,9-0,30-5% Centrum Kart S.A. Cards 100% 0,7 0,4-0,30-43% Pekao Fundusz Kapitałowy Sp. z o.o. Business consulting 100% 0,1 0,3 0,20 200% Pekao Property S.A. Real estate development 100% 0,0-0,2-0,20 ####### FPB "MEDIA" Sp. z o.o. Real estate development 100% 0,2 0,1 0,10-50% Entities - valued under the equity method 41,5 29, % Pioneer Pekao Investment Management S.A. Mutual Funds 49% 34,7 28,1-6,60-19% Krajowa Izba Rozliczeniowa S.A. Clearing Services 5,70% 5,5 0,0-5,50-100% Dom Inwestycyjny Xelion Sp. z o.o. Financial Advisory 50% 1,3 1,5 0,20 15% Exclusions and consolidation adjustments -270,4-158, % Group Net Profit (**) 1 854, , ,7% 28 (*) Entities in liquidation, sold or indirect ownership not presented (**) Group net profit attributable to equity holders of the Bank (reported) NOTE: Data as reported

30 Customers financing mln PLN Sep 15 Jun 16 Sep 16 Q/Q % Y/Y % Loans* ,1% 4,5% retail % 8% corporate % 1% Non quoted securities ,5% 12,1% Other % 17% Nominal value adjustment % 40% Impairment losses % 5% Net loans and advances % -2% Securities issues by non monetary entities** Reverse repo and buy-sell-back transactions ,0% -6,2% ,0% -100,0% TOTAL CUSTOMERS FINANCING*** % -2% (*) Including debt securities eligible for rediscounting at Central Bank, net investments in financial leases to customers 29 (**) Securities issued by non monetary entities including local governments (***) Total customers financing includes Loans and advances at nominal value, Securities issued by non monetary entities, reverse repo transactions and buy-sell-back

31 Loans exposure - sectors SECTOR DESCRIPTION* Wholesale and retail trade; repair of motor vehicles and motorcycles 12,9% 14,2% 15,2% 15,1% Public administration and defence; compulsory social security 13,0% 11,9% 10,9% 10,5% Real estate activities 12,6% 10,4% 10,5% 11,9% Electricity, gas, steam and air conditioning supply 8,8% 9,0% 8,6% 7,8% Finanace and Insurance activity 5,9% 9,6% 7,8% 4,1% Transportation and storage 6,3% 6,8% 7,2% 6,7% Construction 5,8% 5,1% 6,3% 6,8% Mining and quarrying 3,0% 3,9% 4,4% 3,1% Manufacture of metals, metal products and machinery 3,8% 3,8% 4,0% 4,8% Manufacture of beverages and food products 3,4% 3,1% 3,8% 4,4% Manufacture of chemicals, pharmaceuticals and refined petroleum products 3,8% 2,8% 2,9% 4,5% Information and communication 4,3% 5,0% 2,7% 2,5% Manufacture of rubber, plastic and non-metalic products 2,3% 1,9% 2,1% 2,2% Other manufacturing 5,4% 4,5% 5,2% 5,5% Other sectors 8,7% 8,0% 8,4% 10,1% Total 100% 100% 100% 100% Note: Based on the annual Group data including current exposure and commitment 30

32 Key lending products Stock PLN mortgage loans volumes (mln PLN) Consumer loans volumes (mln PLN) +10.1% +12.4% +2.5% +3.7% Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 31

33 Mutual funds Mutual funds volumes (mln PLN ) -0.3% +3.6% Mutual funds - assets structure (PPIM SA) % 13% Third party funds distributed by the Group PPIM SA Sep 15 Jun 16 Sep 16 72% Market share (%) 17,9% 17,3% 17,1% Equity funds Balance funds Money and bonds funds Sep 15 Jun 16 Sep 16 Note: Market share funds distributed by Pekao Group, compared with the market of retail investment funds available for individuals 32

34 Ratings of Bank Pekao S.A. FITCH RATINGS PEKAO POLAND Long-term rating (IDR) A- A- Short-term rating F2 F2 Viability rating a- - Support rating 2 - Outlook Stable Stable S&P GLOBAL RATINGS* PEKAO POLAND Long-term rating BBB+ BBB+ Short-term rating A-2 A-2 Stand-alone bbb+ - Outlook Negative Negative MOODY'S INVESTORS SERVICE LTD PEKAO (unsolicited rating) POLAND Long-term foreign-currency deposit rating A2 A2 Short-term deposit rating Prime-1 Prime-1 BCA baa1 - Outlook Stable/ Negative** Negative 33 * On April 28, 2016, the name Standard & Poor's Ratings Services was changed to S&P Global Ratings. ** Outlook Stable on ratings of liabilities in domestic currency / Negative on ratings of liabilities in foreign currencies. Bank Pekao S.A. has the highest viability rating assigned by Fitch Ratings, the highest Stand-Alone Credit Profile rating assigned by S&P Global Ratings, and the highest Baseline Credit Assessment as well as long- and short-term counterparty risk ratings assigned by Moody s Investors Service. On 9th of November 2016 Fitch Ratings reviewed and affirmed Bank Pekao S.A. ratings at unchanged levels. At the same time Fitch placed Bank s Support rating on Rating Watch Negative.

35 Investor relations team s contact and calendar CONTACT DETAILS Q&A related to the presentation: Dariusz Choryło Executive Director ph.: dariusz.chorylo@pekao.com.pl 9 February April May 2016 FINANCIAL CALENDAR Annual Report 2015 and Webcasting Start of Blackout Period First Quarter Report and Webcasting Dorota Faszczewska-Ward ph.: dorota.faszczewska-ward@pekao.com.pl Iwona Milewska ph.: iwona.milewska@pekao.com.pl Krzysztof Szlichciński ph.: krzysztof.szlichcinski@pekao.com.pl 20 July August October November 2016 Start of Blackout Period Semi-annual Report and Webcasting Start of Blackout Period Third Quarter Report and Webcasting 34 Visit us at: Blackout Period two weeks period before publication of financial statements. During this period we do not organise meetings with investors and analysts