Financial presentation of the Group for FY 2016

Transcription

1 Financial presentation of the Group for FY 2016 Warsaw, 24 th of March 2017

2 Better macro-situation at all business markets POLAND GDP growth of 2.8% in 2016, because of higher internal consumption and although of much lower investment ratio Return of inflation in December, noted the first time since 2014 at level 0.8%, continuation of trend in January at 1,8% Unemployment rate in January at 8.6% vs 8.3% in December Interest rate 1.5% - the lowest rate ever Risk of growing budget deficit, legislative and political uncertainty UKRAINE Q4 GDP growth at 4.7% and about 2% in FY Inflation rate in January at 12.6%. Decrease of unemployment to 9.2% in January vs 9.3% in December. Interest rate at 14.0% since October. Expected growth of export in 2017 to 46% of GDP Threat of possible escalation of conflict in eastern Ukraine as part of testing new US administration by Russia RUSSIA Decrease of GDP in 2016 at 0.2%, analysts expected decrease of 0.5% Lower inflation in January at 5% vs 5.4% in December Higher unemployment in January at 5.6% vs 5.3% in December Interest rates at stable level of 10% since September 2016 vs 17% in January 2016 Budget deficit at 4.6% of GDP vs 0.5% in January 2015 Romania Strong GDP performance in Q4 at +4.7% resulting +4.8% for the FY 2016vs 3.9% in 2015 After long period of deflation, in January inflation noted at 0.1%. An unemployment in January decreased to 5.4% vs 5.5% in December. Since May 2015 interest rates at 1.75%. Belarus GDP decrease of 1.9% in Q (December readings). Projected decrease od GDP for 2016 at 2% vs -3.9 in NBB decided in February to cut interest rates about 100bps to 15%. Lower inflation pressure in January at 9.5% vs 10.6% in December. Record level of foreign debt to GDP ratio at approx. 87% Foreign exchange rates applied for the conversion of the results Exchange rates 2015' '12 Y/Y RUB 0,0528 0, ,8% RUB average 0,0616 0,0598-2,9% UAH 0,1622 0,1542-4,9% UAH average 0,1722 0, ,5% BYN 2,1000 2, ,8% BYN average 2,3767 1, ,0% RON 0,9421 0, ,5% RON average 0,9421 0, ,4% 2

3 Overview of major events in 2016 Getin Holding Improvement of the situation in the eastern countries (Russia, Ukraine, Belarus) Stable growth of foreign business RUSSIA better cost effectiveness concentration on cash flow and sales levels first signs of the end of economic crisis BELARUS profitability improvement and its structure improved results in BYN despite of termination of consumer finance business complicated situation of economy with possible positive scenario POLAND improved profit from continuing operations sale of GetBack improved market share of leasing IBPL Group structure optimization UKRAINE stabilization and continuous growth significant GDP growth in Q4 improvement of basic financial ratios active management of loans portfolio ROMANIA achieved breaking even point stable positive trend of of bank and leasing sale low COR level 3

4 Structure and dynamics of elements of the Group's performance for FY 2016 Profit and loss * 2016 / 2015* Interest income % Interest expense % Net interest income % Net fee and commission income % Other operating income and expense x2.1 Net operating income % Overhead costs % Provision % Share in result of cons. units of equity method Profit before income tax x6.6 Income tax Profit (loss) from continuing operations x2.9 Profit (loss) from discontinued operations % Net profit (loss) % Non-controlling interest % Net profit attributable to equity holders of the Co x2.0 Determinants of YoY change in performance: significant improvement of profitability on all markets increase in net interest income by 44.8% - the result of building a portfolio based on high-margin products by IBPL Group and ongoing reduction of COF reduction of overhead costs decrease of 3.1% risk under control, COR = 1.8% Operating revenues net of one-off (GetBack=249.2 mpln and Debito=-4.5 mpln) reached PLN million, which represents an increase YoY by 13.9%. Net profit from continuing operations, attributable to equity holders of the company, excl. one-off, reached mpln in 2016 vs 64.5 mpln in Contribution to the Group s consolidated results [] IB Group Poland Carcade Group IB Group Belarus IdeaBank Ukraine IB Group Romania MW Trade Getin Holding NCI and consolidation adjustments Getin Holding Group *Adjusted data (including an opening balance adjustment in the amount of PLN 19.2 m from bancassurance income) ** attributable to the shareholders of Getin Holding Group parent company. The data include: the result of Assets Service Finance (Russia) and the provision related to Ukrainian segment assets at the level of consolidation adjustments of the Getin Holding Group. The effect of the results of these companies on the Russian segment and the Ukrainian segment is reflected in slide 12. 4

5 Basic financial parameters The balance of deposits at the end of 2016 increased YoY by nearly PLN 3 billion to 17.7 billion. LTD (including lease receivables) is 94.1%. Loans and leasing [] Equity 1) [] Net profit 2) [] +20,4% +16,6% x2, ,2 +10,4% , , , , ,5 259, , ,9 126, , , ,1 Leasing Loans * * * )... attributable to equity holders of the Getin Holding Group parent company 2)... attributable to equity holders of the Getin Holding Group parent company excluding one-offs (GetBack & Debito) *Adjusted data (including an opening balance adjustment in the amount of PLN 19.2 mpln from banc assurance income) 5

6 The structure of the Group 51.27% 54.43% % % 99.59% % As at , the graph presents Getin Holding's interest in the equity of the parent company in each country 6

7 ::IdeaBank Group POLAND Consistent implementation of the strategy and further build of customer base POLAND Profit and loss * 2016 / 2015* Interest income % Interest expense % Net interest income % Net fee and commission income % Profit on the sale of GetBack SA Other operating income and expense Net operating income % Overhead costs % Provision % Share in result of cons. units of equity method x649.3 Profit before income tax x4.6 Income tax Profit (loss) from continuing operations x2.2 Profit (loss) from discontinued operations % 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 % Sales [] Q4'2015 Q3'2016 Q4'2016 Factoring** Leasing & car loans*** Operating loans Investment loans Loans, leasing and deposit balance [] +21,4% , ,0 +19,8% Growth of the net interest income by 61% YoY as the result of a strategy to build a base to result in the long term, through a portfolio based on high-margin products while striving to reduce financing costs. Stable sale on loan products - almost PLN 2,18 billion sale in Q with a significant contribution of leasing (957 mpln in Q vs 748 mpln in Q3 2016). Increase of NIM at Group level as the result of interest income growth by 2% Q/Q and consistent COF lowering by 6% Q/Q Increasing the number of customers who have a bank account about 21% YoY and accounting subscription of 13.4% YoY. The Bank continues the policy of reducing the cost of financing. The margin offered by the Bank over the market rate WIBOR fell from 0.42% in September, to 0.28% in December. CAR and Tier1 for the Bank at the level of 13.6% / 11.5%; Group of 14.4% / 12.0% , ,2 * Loans & leasing Deposits The results of the Group includes cost of banking tax in the amount of 13.5 mpln for the Q (46.5 mpln YTD). The result of the Group for 2016 includes profit on the sale of GetBack SA in the amount of mpln (gross) and Debito in the amount -4.5 mpln (gross). *Adjusted data (including an opening balance adjustment in the amount of PLN 16.9 m from bancassurance income) ** Value of financed invoices *** Including purchased receivables of Getin Leasing, Leasing Idea Romania and Getin Noble Bank Idea Bank Group Poland: Idea Bank, Idea Leasing Group, Tax Care, Idea Expert, GetBack, Idea Money, other companies and consolidation adjustments 7

8 Carcade Russia Group End of restructuring, reconstruction of sales volumes RUSSIA RUB m Profit and loss / / 2015 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 % x2.0 Income tax % % Net profit (loss) x x2.6 Balance sheet / RUB m / Cash and balances in the Central Bank % % 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 % % Deposits Debt securities in issue % % Other liabilities % % Equity % % Total liabilities and equity % % Difficult, but consistent restoration of sales and improved profitability Net profit for the year 2016 amounted to 4 mpln, +148% vs 2015 Net interest income (RUB) increased in Q by +22.6% Q/Q and commission income by Q/Q A new credit line in Q in the amount of RUB 1,100 million. The company conducted intensive cost restructuring in 2016: 813,9 The reduction of fixed costs about 22.4% (RUB) compared to (Q vs Q decrease by 37.3% in RUB) Optimization of the sales network and focus on 32 cities - the sales network consisted of 47 branches. Since the beginning of the year closed down 24 branches. The level of employment of 548 people at the end of September vs. 815 in January. Leasing sales volumes [RUB m] x2,2-1,8% 1 795, ,9 +46,2% 2 577,0 Q1'2016 Q2'2016 Q3'2016 Q4'2016 Overhead costs reduction [RUB m] 1 796,0 Evolution of net fee and commission income [RUB m] -22,4% 71,4 +26,8% 90, ,5 +17,7% 106,6 +10,3% 117,6 Q1'2016 Q2'2016 Q3'2016 Q4'2016 Segment Russia: Carcade Group, Asset Finance Management and consolidation adjustments. Result of Segment Russia presented at slide no

9 ::IdeaBank BELARUS Group The consistent improvement in profitability BELARUS Sales and portfolio structure [BYN m] 130,9-3,0% 126,9 45,1; 29% Net profit for 2016 amounted to 10.7 mbyn, growth by 4.4% YoY The level of sales in line with expectations decrease by -3% (BYN), including: -7.9% in retail loans (out of consumer finance), +7.1% in loans to SMEs. The increase in net interest income by 7.7% (BYN) - focus on products with higher margins 42,0 45,0 109; 70% 1,8; 1% The increase in fee income by x3.4 Further improvement of the quality of cash loans and their collection - all indicators show a stable portfolio quality improvement. Dividend in 2016 in the amount of 10.9 million PLN 88,9 82,0 SME loans Retail loans Car loans Focus on attracting and maintaining liquidity in BYN. Macroeconomic conditions - uncertainty in the market despite signs of improvement, rising foreign debt, high inflation BYN m Profit and loss / / 2015 Interest income % % Interest expense % % Net interest income % % Net fee and commission income x x3.4 Other operating income and expense % % Net operating income % % Overhead costs % % Provision Profit before income tax % % Income tax % % Net profit (loss) % % 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 % % Idea Bank Belarus Group: Idea Bank, Idea Finance, Idea Broker, consolidation adjustments 9

10 ::IdeaBank UKRAINE Positive trends in sales and further capacity-building UKRAINE UAH m Profit and loss / / 2015 Interest income % % Interest expense % % Net interest income x x5.2 Net fee and commission income % % Other operating income and expense % % Net operating income % x2.1 Overhead costs % % Provision % % Profit before income tax Income tax Net profit (loss) Break even point exceeded significant improvement in net profit by YoY, 10.2 million PLN compared to a loss mpln for Loans sales at muah, growth of +65.3% YoY. Credit risk under control, COR = 7.6%, at NIM on new sales in Q at 18.5%. Costs under control - C/I = 50.5% vs 75.2% in Significant improvement in macroeconomic conditions 2% GDP growth in 2016 vs % in Retail loans sales [UAH m] 1 058,4 +65,3% 1 749,1 Loans and deposits balance [UAH m] +23,2% 2 864,9 +10,1% , , ,8 Balance sheet / UAH m / Cash and balances in the Central Bank x x2.2 Amounts due from banks % % Amounts due from clients % % Financial instruments x x6.6 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 m] -0,3% 116,5 116,1 +30,1% -1,5% ,1 148,8 Q1'2016 Q2'2016 Q3'2016 Q4'2016 Loans Deposits Segment Ukraine = Idea Bank Ukraine, Idea Leasing Ukraine, Gwarant Plus and consolidation adjustments. Result of Segment Ukraine has been presented on page no

11 Idea::Bank ROMANIA Group Robust growth and building of customer base ROMANIA Profit and loss / 2015 Interest income % Interest expense % Net interest income % Net fee and commission income % Other operating income and expense x2.6 Net operating income % Overhead costs % Provision % Profit before income tax Income tax Net profit (loss) Balance sheet / Cash and balances in the Central Bank % Amounts due from banks x2.2 Amounts due from clients x2.2 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 % *Calculated as a relation of interest income to average interest assets in the analysed period (year / quarter) Idea Bank Romania: Idea Bank, Idea Leasing, other companies and consolidation adjustments Bank & Leasing sales [] 658,6 433,6 225,0 +45,2% 956,0 485,3 470, The economy in excellent shape GDP growth of 4,8% in 2016, low unemployment Significant growth of sales in 2016 at: bank mpln growth by 109.2% YoY, leasing mpln growth by 11.9% YoY. Significant improvement of result. Net profit in 2016 amounted to 15.2 mpln in comparison to loss at mpln in NIM * at 2.9% vs 2.6% in Portfolio structure [] Leasing Bank Risk under control COR for bank at 0.6% and -0.4% for leasing 643,4; 54% 155,5; 13% 394,8; 33% 3,9; 0% SME loans Mortgage loans Retail loans Leasing receivables 11

12 Appendix 1: Profit and loss for FY 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 Profit (loss) from continuing operations Profit (loss) from discontinued operations Net profit (loss) Non-controlling interest Net profit attributable to equity holders of the Co Getin Holding Cons. adj. Getin Holding Group * In the third quarter of 2016, ASF acquired by Getin Holding SA has been included to Segment Russia. The subject of ASF's business is servicing Carcade's leasing receivables portfolio. ASF's net loss for 2016 amounted to PLN million. ** In the fourth quarter of 2016, in the Segment Ukraine, the reserve has been amounted to PLN -14.7m net on the consolidation adjustments of the Getin Holding Group attributable to Ukrainian assets. Segment Russia: Group Carcade, ASF, consolidation adjustments. Segment Ukarine: Idea Bank Ukraine, Idea Leasing Ukraine, Gwarant Plus and consolidation adjustments. Segment Belarus: Idea Bank Belarus, Idea Broker, Idea Finance, consolidation adjustments. Segment Romania: Idea Bank Romania, Idea Leasing Romania, other companies & consolidation adjustments 12

13 Appendix 2: Balance sheet as of 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: Group Carcade, ASF, consolidation adjustments. Segment Ukarine: Idea Bank Ukraine, Idea Leasing Ukraine, Gwarant Plus and consolidation adjustments. Segment Belarus: Idea Bank Belarus, Idea Broker, Idea Finance, consolidation adjustments. Segment Romania: Idea Bank Romania, Idea Leasing Romania, other companies & consolidation adjustments 13

14 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 Papierów 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 is 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 and to one decimal place. * * * 14