Presentation of the Group s Financial Results for H1 2018

Transcription

1 Presentation of the Group s Financial Results for H Warsaw, 21 September 2018

2 Getin Holding Group Macroeconomic conditions POLAND GDP growth 5.2% in Q2 Inflation 2% (YoY) in August Unemployment rate record-low at 5.9% in March (vs 6.9% in January) Interest rates unchanged ( 1.5%) Upcoming local government elections generate a risk of high social expenditure addressed to additional groups of the population RUSSIA Expected GDP growth 1.9% in Q2 Inflation 3.1% in August vs 2.2% YoY in January Unemployment 4.7% in July (vs 5.2% in January) Slow-down of interest rate cuts: last cut by 25 bps to 7.25% in April vs 7.75% in January Strong depreciation of RUB/PLN -12.4% YoY Potential sanctions due to the Skripal case, new findings about manipulations and interventions in the US and EU elections, and Nord Stream II BELARUS Initial GDP reading 3.9% in Q2 vs GDP growth 5.2% in Q NBB continues the interest rate cut policy; the reference rate was cut by another 25 bps to 10.0% in May (vs 18% in January 2017) Inflation 5.0% in April vs 4.1% in July and 4.5% in January Continued depreciation of BYN/PLN by over 14.4% YoY Financial markets shaken by further interest rate cuts combined with elimination of the cap on deposit interest rates UKRAINE Initial GDP reading 3.6% in Q2, 2018 projection 3.2% Inflation 9% in August vs 14.1% in January, 2018 projection 11.8% Unemployment 9.7% in March Continuation of interest rate hikes initiated in September 2017 (from 12.7%); a 200 bps hike since March, currently 18%, more hikes are expected Sharp depreciation of UAH/PLN -9.2% YoY Continued risk of adverse developments in Eastern Ukraine, in internal politics and in relation to the autocephaly Moscow announces repercussions ROMANIA GDP growth of 6.7% in Q and 4.0% in Q Inflation 5.2% in April, the highest level in five years Unemployment 4.5% in March vs 4.6% in January Central Bank started interest rate hikes in January; the rates remained at 1.75% since 2015; three cuts year to date by 75 bps in aggregate; current reference rate 2.50% ROBOR 3M at 3.47% in July (vs 0.49% in September 2016) causing turbulences in the financial market. Central Bank tried to cut the rates with money supplies but a further rise is expected for interbank rates Risk of populist policies pursued by the Government FX RATES USED IN THE CONVERSION OF COMPANIES RESULTS Exchange rates 2018' '06 Y/Y RUB 0,0597 0,0624-4,3% RUB average 0,0591 0, ,4% UAH 0,1423 0,1424-0,1% UAH average 0,1324 0,1459-9,2% BYN 1,8663 1,9348-3,5% BYN average 1,7684 2, ,4% RON 0,9361 0, ,0% RON average 0,9104 0,9359-2,7% 2

3 Getin Holding Group Getin Holding stock price on GPW GH SA & IB SA on WSE GetBack SA IBPL current report on provisions 1,80 1,60 1,40 1,20 1,00 0,80 0,60 0,40 0,20 0,00 GTN share volume [K] GTN [rebased] IDA [rebased] Getin Holding stock price follows the stock price of Idea Bank Polska Sharp fall of Idea Bank SA s stock price in April in response to reports of the bank s investment in GetBack SA bonds Market reacting to Idea Bank Polska s wrife-offs and provisions in Q2 Very strong supply from financial institutions invested in the Group s equity total value of shares from 20 August to 19 September was million Getin Holding shares equal to almost 32% of all shares and 71% of the free float Market valuation of PLN million at 19 September 2018, book value at PLN 1,754.3 million at 30 June 2018, P/BV = 0.10 Risk of entry into the alert list The Management of Getin Holding approved a merger of shares to mitigate the impact of entry into the alert list and quick resumption of continuous trading in the shares. 3

4 Getin Holding Group Structure and growth rate of the drivers of Group results in H mln PLN Marked improvement in the results of the Group s foreign operations net profit of foreign operations PLN 48.7 mn vs PLN 13.4 mn in H Impact of provisions and write-offs of Idea Bank Polska on the results of the Getin Holding Group attributable to the shareholders of the parent entity at PLN (208.9 mn) net* International** Zagranica** 48,7 13,4 x3,6 Russia Rosja 8,5 3,1 x2,7 Belarus Białoruś 4,1 14,2-71,3% Ukraine Ukraina 27,9-6,3 - Romania Rumunia 8,2 2,4 x3,4 MW Trade 2,5 5,2-52,4% Getin Holding 2,4-5,0 - Idea Bank Poland Polska -379,4 97,4 - Non-controlling Udziały niekontrolujące interest 171,6-46,9 - Profit and loss Interest income % Interest expense % Net interest income % Net fee and commission income Other operating income and expense Net operating income % Overhead costs % Provision % Share in result of cons. units of equity method % Profit before income tax Income tax Net profit (loss) Non-controlling interest Net profit attributable to equity holders of the Co excluding one off's*** % * attributable to the shareholders of the parent entity of the Getin Holding Group net of one-offs ** net of consolidation adjustments at GH Group level *** One-off allocated to Q results through write-offs and provisions in the consolidated and separate financial statements of Idea Bank Polska totalling PLN mn net, of which the amount attributable to the shareholders of the parent entity is PLN mn net 4

5 Getin Holding Group Key financial parameters Net profit of the core business 1) [n] -20,7% Lower profit on the core business mainly due to discontinuation of investment products in the Idea Bank Polska Group 59,9 47,5 Increase of the loan and leasing portfolio by almost 10% YoY Lower equity as a result of a correction of errors of previous years, the implementation of IFRS 9 and adjustments for the current period Loans and leasing [n] , ,2 +18,8% , ,9 +9,6% , ,5 Equity 1) [n] 2 149,4-18,4% 1 754, , , ,6 Leasing Kredyty ) attributable to the shareholders of the parent entity of the Getin Holding Group, 5

6 Getin Holding Group Structure of the Group 54.43% POLAND 51.27% RUSSIA 100% 32.92% BELARUS 67.08% 99.59% UKRAINE 100% ROMANIA 100% As at 30 June 2018; the figure presents the interest of Getin Holding in the equity of the parent company in each country 6

7 Segment :: RUSSIA Growing sales / portfolio recovery Segment Russia RUSSIA Profit and loss RUB m Interest income % % Interest expense % % Net interest income % % Net fee and commission income % % Other operating income and expense % % Net operating income % % Overhead costs % % Provision % % Share in result of cons. units of equity method x x3.6 Profit before income tax x x2.9 Income tax % x2.3 Net profit (loss), including: x x3.1 Balance sheet / RUB m / Cash and balances in the Central Bank % % Amounts due from banks % % Net investments in financial lease % % Intangible assets % % Tangible fixed assets % % Other assets % % Total Assets % % Amounts due to banks % % Debt securities in issue % % Other liabilities % % Equity % % Total liabilities and equity % % Performance indicators Leasing receivables [RUB mn] 9 671, ,5 Sharp increase of sales by 68.4% YoY in H1. Segment Russia reported positive net profit of RUB mn, x3.1x YoY Total assets up by 10.1% YoY to nearly RUB 14.8 bn NFC and NII in RUB up by 3.9% and 4.9% YoY Operating expenses in RUB increased, mainly driven by business expansion: sales network expansion: 7 branches added YoY headcount increase by 21% YoY (mainly in sales) LLPs in RUB down by 47.9% YoY Fitch rating B+, outlook stable Strong depreciation of RUB +25,2% , ,3 Net operating income [RUB mn] 907,0 +13,7% 1 030,9 NIM 7,7% 8,3% COR 2,0% 4,6% COF 12,0% 14,0% ROE 8,8% 3,1% ROA 2,0% 0,7% C/I 72,1% 68,0% Segment Russia: Carcade Group, ASF, consolidation adjustments

8 ::IdeaBank Group BELARUS Steady business growth in a difficult environement BELARUS Consolidated data Profit and loss BYN m Interest income % % Interest expense % % Net interest income % % Net fee and commission income % % Other operating income and expense % % Net operating income % % Overhead costs % % Provision Profit before income tax % % Income tax % % Net profit (loss) % % Solid sales growth by 20.4% (in BYN) YoY including: +13.4% retail loans +34.5% SME loans Loans up by 41.6% YoY, deposits up by 56.4% YoY (in BYN). NFC up by 23.4% YoY (in BYN). Net profit in H at BYN 2.3 mn vs BYN 6.9 mn in H NII in BYN down by 18.8% due to further interest cuts imposed by the regulator from 18% in January 2017 to 10.0% now Balance sheet / BYN m / Cash and balances in the Central Bank % % Amounts due from banks % % Amounts due from clients % % Tangible fixed assets % % Other assets % % Total Assets % % Amounts due to banks % % Deposits % % Other liabilities % % Equity % % Total liabilities and equity % % Performance indicators NIM 6,9% 11,1% COR 0,9% -2,0% COF 5,8% 8,0% ROE 5,7% 17,7% ROA 1,2% 4,4% C/I 78,8% 70,6% Idea Bank Group Belarus: Idea Bank, Idea Finance, Idea Broker, consolidation adjustments Sales [BYN mn] 109,8 36,3 73,4 NIM = 6.9% vs 11.1% in H Implementation of IFRS 9 impacted H results by BYN (1.2 mn) +20,4% 132,1 48,9 83,3 SME Loans Retail Loans Loans and deposits [BYN mn] 180,1 181,5 +56,4% +41,6% 255, ,9 Loans Deposits 8

9 Segment :: UKRAINE Positive sales trends and growth in new segments Segment :: UKRAINE Profit and loss Performance indicators NIM 27,4% 18,1% COR 12,3% 17,8% COF 11,4% 14,4% ROE 97,5% -28,5% ROA 10,7% -2,4% C/I 35,6% 45,9% UAH m Interest income % % Interest expense % % Net interest income % % Net fee and commission income x x2.2 Other operating income and expense Net operating income % x2.0 Overhead costs % % Provision % % Profit before income tax Income tax Net profit (loss) Balance sheet / UAH m / Cash and balances in the Central Bank % % Amounts due from banks % % Amounts due from clients % % Financial instruments % % Tangible fixed assets % % Other assets % % Total Assets % % Amounts due to banks x x3.8 Deposits % % Debt securities in issue % % Other liabilities % % Equity % % Total liabilities and equity % % Net operating income [UAH mn] 342,8 Net profit of Segment Ukraine at UAH mn in H vs UAH (43.3 mn) loss in H The profit of the segment includes: Net profit of the Bank at UAH mn vs UAH 63.2 mn Net profit of NFS Group at UAH 56.8 mn vs UAH (205.7 mn) Operating income in UAH up by 100% YoY Costs under control: C/I = 35.6% vs 45.9% in H Loan portfolio in UAH up by 5.8% YoY Results of the Segment strongly driven by FX income at NFS Group level at UAH 34.7 mn x2,0 686,3 Loans [UAH mn] 2 895,8 +5,8% 3 064,

10 ::IdeaBank UKRAINE Solid sales and marked improvement in profitability UKRAINE Profit and loss UAH m Interest income % % Interest expense % % Net interest income % % Net fee and commission income % % Other operating income and expense Net operating income % % Overhead costs % % Provision % % Profit before income tax % x2.1 Income tax x x2.2 Net profit (loss) % x2.1 Balance sheet / UAH m / Cash and balances in the Central Bank % % Amounts due from banks % % Amounts due from clients % % Financial instruments % % Tangible fixed assets % % Other assets % % Total Assets % % Amounts due to banks % % Deposits % % Debt securities in issue % % Other liabilities % % Equity % % Total liabilities and equity % % Net operating income [UAH mn] 343,4 Marked improvement of the Bank s net profit by 113% YoY: UAH mn in H vs UAH 62.3 mn in H Significant growth in sales of loans in H to UAH 1,649.7 mn, up by 52.7% YoY COR = 13.1%, NIM of new sales at 28.0% Costs under control: C/I = 38.6% vs 45.5% in H LLPs increased mainly due to more restrictive provisioning of the non-impaired portfolio following IFRS 9 implementation Loan sales [UAH mn] +68,0% 577, ,1 +52,7% 22823,3 823, ,7 Loans and deposits +7,4% [UAH mn] 2 766, ,3 031,3 +9,1% 3 018,8 Loans Deposits

11 New Finance Service Group UKRAINE Another good quarter of debt collection in Ukraine Profit and loss Q2'2018 Q1'2018 Q2'2018 / Q1'2018 UAH m Q2'2018 Q1'2018 Net interest income % Q2'2018 / Q1'2018 Net fee and commission income % % Other operating income and expense % x15.3 Net operating income % x29.8 Overhead costs % x7.3 Provision % Profit before income tax x Income tax x Net profit (loss) x Balance sheet / UAH m / Amounts due from banks % % Amounts due from clients % % Tangible fixed assets x x4.2 Other assets % % Total Assets % % Amounts due to banks % % Other liabilities % % Equity % % Total liabilities and equity % % Net profit of the debt collection business at UAH 56.8 mn in Q vs UAH 27.9 mn in Q Costs under control: C/I = 30.3% NFS Group s Q2 profit largely driven by FX gains of UAH 25.3 mn vs UAH 9.3 mn in Q Further growth leveraging opportunities 11

12 Segment :: ROMANIA Growing sales and customer base Segment :: ROMANIA Consolidated data Profit and loss Interest income % Interest expense % Net interest income % Net fee and commission income % Other operating income and expense % Net operating income % Overhead costs % Provision x2.1 Profit before income tax x2.2 Income tax % Net profit (loss) x3.4 Balance sheet / Cash and balances in the Central Bank % Amounts due from banks x3.3 Amounts due from clients % Net investments in financial lease % Financial instruments % Intangible assets % Tangible fixed assets % Other assets % Total Assets % Amounts due to banks % Deposits % Debt securities in issue % Other liabilities % Equity % Total liabilities and equity % Segment sales up by 12.6% YoY to RON mn including: bank s sales at RON mn, up by 18.8% YoY leasing company s sales at RON mn, up by 6.4% YoY NII up by 34.9%, NFC down by 10.3% in PLN (customer acquisition wars) Net profit at PLN 8.2 mn in H vs PLN 2.4 mn in H Loan portfolio up by 17.4%, leasing portfolio up by 16.8% Deposits up by 19.7% Segment s total assets up by 16.5% Performance indicators NIM 3,3% 2,8% COR 1,1% 0,6% COF 1,8% 1,8% ROE 10,6% 3,7% ROA 0,8% 0,3% C/I 69,6% 82,6% Segment Romania: Idea Bank, Idea Leasing Group, other companies and consolidation adjustments 12

13 Idea::Bank Group ROMANIA Growing sales and customer acquisition wars ROMANIA Profit and loss Interest income % Interest expense % Net interest income % Net fee and commission income % Other operating income and expense % Net operating income % Overhead costs % Provision x2.3 Profit before income tax % Income tax % Net profit (loss) % Balance sheet / Cash and balances in the Central Bank % Amounts due from banks x4.0 Amounts due from clients % Financial instruments % Intangible assets % Tangible fixed assets % Other assets % Total Assets % Amounts due to banks % Deposits % Debt securities in issue % Other liabilities % Equity % Total liabilities and equity % Net profit [n] 1,7 Loans and deposits [n] 981,8 Net profit grew 94.3% to PLN 3.4 mn in H vs PLN 1.7 mn in H Loans up by 20.4% NII up by 43.6% NFC down mainly due to strong competition pressure and customer acquisition wars New lending up by 15.5% YoY to PLN 283 mn Costs under control NIM at 3.3% Risk under control: COR = 1.1% 1 317,2 +94,3% +20,4% +19,4% 3,4 H2' , ,2 Loans Loan sales [n] Deposits 245,0 15,5% 283,0 Idea Bank Group Romania: Idea Bank, Idea Leasing, other companies and consolidation adjustments 13

14 Idea::Leasing Group ROMANIA Steady growth of leasing ROMANIA Profit and loss Interest income % Interest expense % Net interest income % Net fee and commission income % Other operating income and expense % Net operating income % Overhead costs % Provision % Profit before income tax % Income tax % Net profit (loss) % Balance sheet / Amounts due from banks % Amounts due from clients % Net investments in financial lease % Intangible assets % Tangible fixed assets % Other assets % Total Assets % Amounts due to banks % Other liabilities % Equity % Total liabilities and equity % Leasing [n] 307,3 Net profit up by 87.2% to PLN 3.4 mn in H vs PLN 1.8 mn in H Sales at RON mn, up by 6.4% YoY NFC up by 27.9% YoY NII up by 14.5% YoY NIM at 3.1% Risk under control: COR in leasing at 0.4% New product development +6,3% 326, NFC [n] 6,0 +27,9% 7,7 Idea Leasing Group Romania: Idea Leasing, Idea Broker and consolidation adjustments 14

15 Getin Holding Group Evolution of the net profit on foreign operations Net profit on foreign operations [n] * +37,9% 26,1 +24,6% 18,9 2,2 5,7 12,3 9,5 9,9 6,9 0,2 2,2 6,7 2,5 8,1 7,5 2,9 7,9 Idea Bank Romania Group Idea Bank Ukraine Idea Bank Belarus Carcade Russia 0,8 1,1 0,6 2,3 Q1'2017 Q1'2018 Q2'2017 Q2'2018 * Excluding debt collection in Ukraine 15

16 ::IdeaBank Group POLAND Committed to strategy implementation and value creation POLAND Profit and loss Net interest income % Net fee and commission income Other operating income and expense x9.2 Net operating income Overhead costs % Provision % Share in result of cons. units of equity method % Profit before income tax Income tax Net profit (loss) Balance sheet / Cash and balances in the Central Bank % Amounts due from banks % Amounts due from clients % Net investments in financial lease % Financial instruments % Intangible assets % Tangible fixed assets % Other assets % Total Assets % Amounts due to banks % Deposits % Debt securities in issue % Other liabilities % Equity % Total liabilities and equity % Loans, leasing, and deposits [PLN bn] 16,1 16,5 +7,5% +15,5% 17,3 19, Loans & Leasing Deposits NII down by 24% YoY mainly due to the Bank s higher cost of financing, up by 37 bps YoY from 0.17 bps over WIBOR 3M at 30 June 2017 to 0.54 bps at 30 June 2018 NFC down YoY due to provisions set up against reimbursement of commissions on investment and insurance products bundled with loans Changes to the Group s equity following the implementation of IFRS 9 and the Group s adjustments for previous periods Capital Protection Plan (POK) filed on 24 August 2018 Idea Bank Group Poland: Idea Bank, Idea Getin Leasing Group, Tax Care, Idea Money, other companies and consolidation adjustments 16

17 Getin Holding Group Annex 1: Profit and Loss Account for H n Idea Bank Poland Group Russia Segment Belarus Segment Ukraine Segment Romania Segment MW Trade Interest income Interest expense Net interest income Net fee and commission income Other operating income and expense Net operating income Overhead costs Provision Share in result of cons. units of equity method Profit before income tax Income tax Net profit (loss) Non-controlling interest Net profit attributable to equity holders of the Co Getin Holding Cons. adj. Getin Holding Group Segment Russia: Carcade Group, ASF, consolidation adjustments Segment Ukraine: Idea Bank Ukraine, Idea Leasing Ukraine, Gwarant Legal Support, New Finance Service Group and consolidation adjustments Segment Belarus: Idea Bank Belarus, Idea Broker, Idea Finance, consolidation adjustments Segment Romania: Idea Bank Romania, Idea Leasing Romania, other companies and consolidation adjustments 17

18 Getin Holding Group Annex 2: Balance sheet as at 30 June Idea Bank Poland Group Russia Segment Belarus Segment Ukraine Segment Romania Segment MW Trade Cash and amounts due from Central Bank Amounts due from banks and financial institutions Derivative financial instruments Financial assets at fair value through profit or loss Amounts due from clients Net investments in financial lease Other loans and receivables Financial instruments Investments in associates Intangible assets Tangible fixed assets Investment property Tax assets Other assets Total Assets Amounts due to banks and other commercial institutions Other financial liabilities at fair value through profit or loss Amounts due to customers Debt securities in issue Other liabilities Total liabilities Equity Total liabilities and equity Getin Holding Cons. adj. Getin Holding Group Segment Russia: Carcade Group, ASF, consolidation adjustments Segment Ukraine: Idea Bank Ukraine, Idea Leasing Ukraine, Gwarant Legal Support, New Finance Service Group and consolidation adjustments Segment Belarus: Idea Bank Belarus, Idea Broker, Idea Finance, consolidation adjustments Segment Romania: Idea Bank Romania, Idea Leasing Romania, other companies and consolidation adjustments 18

19 Getin Holding Group Disclaimer This presentation ( Presentation ) has been prepared by Getin Holding S.A. (the Company ) only for information purposes and may not, in any event, be considered or interpreted as an offer and/or a recommendation to enter into any transaction. In particular, it may not be considered or interpreted as an offer to acquire any securities or as an offer, invitation or incentive to make any acquisition offer, to make any investment or carry out any transaction involving such securities, nor may it be considered or interpreted as a recommendation to enter into any transaction, particularly any transaction involving the securities in the Company or any of its subsidiaries, in the United States of America or in any other jurisdiction. Although the information contained in this Presentation is based on generally available and reliable sources, the Company cannot guarantee that this information is full and complete. The Company 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 Company is not required to publicly disclose any possible modification or change to any information, data or statement contained in this Presentation if the Company changes its strategy or intentions or if any unforeseen events or circumstances occur that affect the Company s strategy and/or intentions. No information contained in this Presentation may, by any means, by considered or interpreted as a forecast or any express or implied representation or warranty whatsoever made by the Company or any person acting on behalf of the Company. In addition, neither the Company nor any person acting on its behalf shall be liable, in any way whatsoever, for any loss or damage that may be caused as a result of negligence or otherwise in connection with the use of this Presentation or any information contained in it, or for any damage that might otherwise arise in connection with any information contained in this Presentation. The publication by the Company of the data contained in this Presentation is not a breach of the regulations applicable to companies whose shares are traded on a regulated market, particularly on a regulated market of the Warsaw Stock Exchange (Giełda Papiero w Wartościowych w Warszawie S.A.). 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 fulfil 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 are the current and periodic reports published by the Company in performing its information obligations. The financial and sales figures contained in this Presentation have been rounded off to illion and to one decimal place. *** 19