PKO Bank Polski. Poland - an interesting place on the investment map for the Danish entrepreneurs

Transcription

1 PKO Bank Polski Poland - an interesting place on the investment map for the Danish entrepreneurs Copenhagen, 29th of April 2014

2 Leading bank in Poland and CEE The largest universal bank in Poland since 1919 and among the leading banks in CEE by total assets net income, total equity, loans and deposits, size of customer base and distribution network; No. 1 in the Polish banking sector, the best known bank brand (prompted awareness 93%); One of the Top 28 banks in Europe in terms of market capitalization; Ranked among Top 10 out of 91 European Banks during 2011 EBA stress test and positively passed another EBA capital and transparency exercises ( ); Strong credit rating by S&P (A-) and Moody s (A2); Listed on the Warsaw Stock Exchange since 2004, the largest stock exchange in the CEE. Key financial information (PLN bn) / 2012 Net loans % Total assets % Deposits % Equity % Total Banking Income % Net profit % Earnings per share, diluted (PLN) % Dividend per Share (PLN) x x Loan to Deposit Ratio 93.2% 98.3% 96.4% 98.1% 98.5% +0.4 pp. Impaired Loans Ratio (1) 7.6% 8.0% 8.0% 8.9% 8.2% -0.7 pp. (Core) Tier 1 Ratio 13.3% 11.3% 11.2% 11.8% 12.5% +0.7 pp. Net Interest Margin (2) 3.9% 4.4% 4.6% 4.7% 3.7% -1.0 pp. Cost Income Ratio 47.9% 41.7% 39.6% 40.3% 43.2% +2.9 pp. RoAE (3) 14.8% 14.9% 17.5% 16.0% 13.2% -2.8 pp. Shareholders structure (March 31, 2014) 2

3 Strong leadership on the Polish market 362,000 SME customers 1,074 Agencies 7.4 million Retail customers 2,992 25,437 Employees 6.1 million Users of electronic banking services ATMs 1,186 Branches 12,000 Corporate customers 3

4 Capital Group /key assets/ Nordea* Polska TUnŻ Nordea* Finance Polska Nordea* Bank Polska *On April 2014 Nordea Bank Polska SA stock shares were purchased by PKO Bank Polski SA. Nordea trademark is used with the consent of Nordea Bank AB. 4

5 Poland an attractive investment destination for entrepreneurs GDP cumulative growth % IMF WEO Forecast Poland Czech Republic Romania Denmark Hungary Slovakia Sweden Source : IMF, PKO Bank Polski Ease of Doing Business* in Poland improves Poland Czech Republic Hungary Source: World Bank, *rank in Ease of Doing Business ranking Foreign investment atractivness ranking 2013 rank country 1 China 2 USA 3 India 4 Indonesia 5 Brazil 6 Germany 7 Mexico 8 Thailand 9 United Kingdom 10 Japan 11 Russia 11 Vietnam 13 Australia 14 Poland 15 South Africa 16 Canada 16 France Source: UNCTAD, World Investment Report 2013 Poland is the largest economy among East European EU member states and one of the largest markets in the EU as a whole. Polish economy is growing in a stable manner and avoided outright recession even during the global financial crisis and European debt crisis. The lack of substantial disequilibria in the economy (low and stable inflation rate, falling current account deficit, relatively low government public debt) allow the conduct of predictable economic policies. Investment climate in Poland is improving not only in absolute terms but also relative to main peer countries making Poland one of the most attractive markets for foreign investors globally. 5

6 Poland an attractive investment destination for entrepreneurs economic survey - investment attractiveness of the CEE countries ,99 3,96 3,81 3,77 3,67 3,63 3,55 3,52 3,43 3,35 3,2 3,06 analysis based on the opinion of 1623 companies 6- the most attractive 1 - least attractive source: Deutsch-Polnische Industrie- und Handelskammer; PAIIZ Increase in the number of greenflield projects in Poland (percentage change ) Top 10 Destinations Countries in Europe in 2012 Number of projects Source: The fdi Report 2013 Country 812 UK 410 Germany 278 Spain 265 Russia 244 France 237 Poland 147 Ireland 145 Netherlands 138 Romania 133 Turkey 1062 Other 3891 Total UK 8% Poland +5% Russia -18% Poland is the largest economy among East European EU member states and one of the largest markets in the EU as a whole. Polish economy is growing in a stable manner and avoided outright recession even during the global financial crisis and European debt crisis. The lack of substantial disequilibria in the economy (low and stable inflation rate, falling current account deficit, relatively low government public debt) allow the conduct of predictable economic policies. Germany 4,7% France 12% Investment climate in Poland is improving not only in absolute terms but also relative to main peer countries making Poland one of the most attractive markets for foreign investors globally. Source: The fdi Report 2013, Global greenfield investment trends 6

7 Benefits from EU accession Primary sectors lost in importance after Poland EU accession (gross VA structure) 1.0 GDP per capita catching up with EU 100 % EU average % non-market services construction agriculture, extraction, utilities manufacturing market services Source: Eurostat 40 36% 20 CEE Poland Źródło: MFW, PKB w PPP % of GDP Net EU transfers to Poland PKO BP forecast Źródło: MF, GUS, PKO Bank Polski Poland underwent substantial transformation after joining the EU in The structure of economy changed in favor of more productive manufacturing industries and away from primary sectors, strong trade links with largest EU economies emerged and EU funds absorbtion boosted infrastructure development. To date Poland absorbed EUR 61,4 bn (on net) in EU transfers (both CAP and structural funds) equaling 16% of 2013 GDP. The economy is constantly catching up with the wealthiest countries in Europe, which manifests itself in higher incomes, better education and health care (ex HDI value increased by 12% since EU accession). 7

8 Poland and its funds Poland's largest beneficient of the EU budget ; From the European cohesion policy budget for Poland will receive 82.5 billion Euro; Programs for Infrastructure and Environment 27,5 bilion Euro; Innovative Economy 8,6 bilion Euro; Human Capital 4,4 bilion Euro; Development of Eastern Poland Technical Assistance Regional Programmes Source: 8

9 Benefits from EU accession Harmonized unemployment rate % Poland European Union Euro Area 70 Nominal yearly compensation per employee EUR thous Poland Denmark Finland Sweden Norway United Kingdom Euro Area Source: Eurostat Source: AMECO Since 2004, the unemployment rate in Poland explicitly declined; By Eurostat in February 2014 the unemployment rate in Poland was 9.7 percent. In the same period the unemployment rate for 28 EU countries amounted to 10.6 percent; The labor market situation was only better in few EU countries, including Denmark, where the unemployment rate was 7 percent (in February 2014); Nominal compensation per employee yearly in Poland is lower than in the euro area which means that the work in Poland is more competitive than in other European countries 9

10 Consistent economic reform and integration with the EU translate into continued improvement of conditions for business development Index of Economic Freedom, 2014 The Worldwide Governance Indicators, pt. voice, accountability improvement corruption political stability Poland Sweden 50 Czech Republic Hungary 45 Romania Slovakia Denmark Source: The Heritage Foundation 1 pt. 0.9 Human Development Index rule of law regulatory quality government effectiveness CEE EU Members* Nordic Countries* * Poland Source: World Bank, average for CEE EU Member states as well as Nordic countries. * CEE EU Member States sample includes: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Romania, Slovakia and Slovenia; ** Nordic countries sample includes: Denmark, Finland, Norway and Sweden According to the Heritage Foundation, and the "Wall Street Journal" - Poland has made progress in six of the ten indicators of economic freedom. Poland has reduced government spending, fiscal freedom, monetary, business, investment and trade.. Since 1995 Polish economic freedom improves Romania Poland Hungary Slovakia Czech Republic Denmark Sweden Source: UNDP 10

11 Forecasts of economic growth in Poland suggest the economic recovery in the coming years The GDP growth is gaining momentum after slowdown due to recession in European Union The economy is getting more innovative, in line with Europe 2020 strategy Polish foreign trade as well as direct investment are dominated by partners from the European Union Net FDI inflow to Poland between totaled on average EUR 6.8 bn annually Since 2004 to 2012, FDI stock of Polish companies abroad has grown 17.8 times (from EUR 2.5 to EUR 43.6 bn) Trends in FDI in Poland (stocks) % PKB Reszta świata Unia Europejska Gross domestic expenditure on R&D (% GDP) % PKB Source: Eurostat dane historyczne cel MNiSW In 2012, operating in Poland 58 Danish companies on the Polish market which invested at least EUR 1 million; Danish companies have invested the most in central and northern Poland Source: Central Statistical Office, Ministry of Science and Higher Education 11

12 Prospects for the development of economic cooperation between Polish and Denmark Polish trade with Denmark (12M ma) 2.5 bn EUR exports to Denmark imports from Denmark Trade between Polish and Denmark since 2000 is growing each year; Reduction of the trade took place in 2008 and 2009 due to the global economic crisis; In 2012 the trade turnover between Poland and Denmark amounted 4.1 billion Euro; 0.5 Dec-99 Dec-01 Dec-03 Dec-05 Dec-07 Dec-09 Dec-11 Dec-13 Source: Eurostat 12

13 Investment incentives Governmental grants; Governmental grants are provided on the basis of Program for the support of investments of considerable importance for Polish economy for years ; Beneficiaries - Support can be applied for by companies planning investments in the following priority sectors: - automotive sector, - electronic sector, - aviation sector, - biotechnology sector, - modern services sector, - research and development (R&D). Investment incentives in SEZ; The permitted level of regional aid available to the entrepreneur is dependant on: location of the investment, level of capital input, or costs of employing new workers and also, the size of the business seeking tax relief. Industrial and technology parks Industrial and technology parks are places which, due to a concentrations of firms from one sector and supporting science and research facilities, are enabled to develop quickly. Investment incentives in gminas (municipalities) - real estate tax exemption The following is subject to the real estate tax: - land, - buildings or parts thereof, - buildings or parts of buildings associated with conducting an economic activity. Source: Polish Information and Foreign Investment Agency 13

14 Thank you very much for your attention 14