BZWBK Group. Results 1Q12. April 26 th, 2012

Transcription

1 BZWBK Group Results 1Q12 April 26 th, 2012

2 2 This presentation as regards the forward looking statements is exclusively informational in nature and cannot be treated as an offering or recommendation to conclude any transactions. Bank Zachodni WBK shall not be liable for any consequences of decisions taken based on the forward looking statements contained in this document.

3 Important information Banco Santander, S.A. ("Santander") cautions that this presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends; (2) movements in local and international securities markets, currency exchange rates, and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors and other key factors that we have indicated in our past and future filings and reports, including those with the Securities and Exchange Commission of the United States of America (the SEC ), could adversely affect our business and financial performance. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities or any advice or recommendation with respect to such securities. The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by Santander. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in the presentation. Nothing contained in this presentation is an offer of securities for sale into the United States or in any other jurisdiction. No offering of Securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption there from. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act In making this presentation available, Santander makes no recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments whatsoever and you should neither rely nor act upon, directly or indirectly, any of the information contained in this presentation in respect of any such investment activity. Note: Statements as to historical performance, historical share price or financial accretion are not intended to mean that future performance, historical share price or future earnings (including earnings per share) for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. Note: The results information contained in this presentation has been prepared according to IFRS as applied in Poland. As a result it may differ from the one disclosed by Santander Group. 3

4 Table of Contents 4 Macroeconomic Scenario and Financial System Business - Results

5 Macroeconomic Scenario 5 GDP (real annual growth %) Interest Rate NBP reference rate (%) End of period (e) 2013(e) (e) 2013(e) Inflation (CPI %) Exchange Rate PLN/EUR End of period (e) 2013(e) (e) 2013(e) Source: National Bank of Poland, Central Statistical Office, Santander Research

6 Macroeconomic Scenario 6 % YoY Private consumption Fixed investments Investments and Consumption EUR billion C/A Balance vs. FDI+EU funds Current account balance Foreign direct investments EU funds Unemployment Rate Fiscal policy indicators 16 % Registered unemployment LFS unemployment (s.a.) Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 % of GDP General government debt General government deficit Source: National Bank of Poland, Central Statistical Office, Eurostat, Santander Research

7 Financial System: Credit Evolution 7 Slowdown in loan growth at the start of 2012 Total Loans Loans to Corporations PLN billion % PLN billion % 8.8% Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Loans to individuals (mortgage credit) -0.9% Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Loans to individuals (consumer credit) PLN billion 24.2% % PLN billion % % Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Volume Y-o-Y Variation % Source: National Bank of Poland

8 Financial System: Deposits Evolution 8 Deposit growth Total Deposits Corporate Deposits PLN billion % PLN billion % % 9.1% Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Household Deposits Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Mutual funds PLN billion % 24,2% ,3% 9.8% Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Volume Y-o-Y Variation % Source: National Bank of Poland

9 Table of Contents 9 Macroeconomic Scenario and Financial System Business - Results

10 Table of Contents 10 Macroeconomic Scenario and Financial System Business - Results

11 BZWBK Group 11 BZ WBK features Branches incl. agencies 102 ATMs Employees ( FTE s) 9.2 k Corporate Banking Centres 3 Business Banking Centres 7 Balance Sheet P&L Assets EUR m Loans EUR m Deposits EUR m Total assets * +9.7% Y-o-Y Income EUR 224 m Costs EUR 108 m PBT EUR 97 m ROE** 21.1 % * The percentage YoY growth in total assets as at excludes the impact of a once-off transaction at end March, 2011 of EUR m relating to the tender for BZ WBK shares by Banco Santander. The transaction was settled on 1 April 2011 ** Excluding Q4, 2011 once-off adjustments of EUR 21 m

12 Business: Portfolio Evolution 12 Loan growth driven by Cash Loans, SME and Large Corporate EUR m Y-o-Y Variation Q-o-Q Variation 14.8% 0.2% Mortgage % -0.5% Other personal % 2.1% Total personal % 0.6% Business % 0.1% Total gross loans % 0.2% Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Comments Y-o-Y variation excluding FX effect: Mortgage loans 6% Total personal 8% Business 15% Total Loans 13% PLN loans comprise 69% of total gross loan portfolio

13 Business: Loans by products 13 Personal lending % Y-o-Y Cash Loans Individuals Mortgages EUR m EUR m 15.3% 9.9% % %* Mar.11 Mar.12 Mar.11 Mar.12 FX PLN Comments Gaining market share in cash loans Highest sale ever of cash loans in March * FX mortgage decrease of 1.5% excluding FX effect

14 Business: Deposits + Funds Evolution 14 Active management of deposits EUR m 5.7% % Y-o-Y Variation Q-o-Q Variation Demand % -0.1% Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Retail Business Mutual Funds -19.6% Savings % 8.0% Time Deposits % -13.5% Customer Deposits % -7.1% Business deposits -19.1% Q-o-Q due to maturity of once off large corporate deposits. Retail deposits +8.2% Y-o-Y Mutual funds +8.8% Q-o-Q Comments Mar.11 Jun.11 Sep.11 Dec.11 Mar.12

15 Business: Market Share 15 Market Share (%) March 2012 December 2011 March 2011 Total Banking System Loans Total Loans Cash Loans Deposits + Funds Total Deposits Personal Deposits Business Deposits

16 Table of Contents 16 Macroeconomic Scenario and Financial System Business - Results

17 Results: Net Interest Income 17 Net Interest Income +12.6% Y-o-Y EUR m NIM by Q, % 12.6% 3.3% 4,34 4,27 4,29 4,23 4, Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 Comments Active management of Net Interest Margin

18 Results: Net Fees 18 Net Fees flat EUR m -2.5% Y-o-Y Variation Q-o-Q Variation 0% ebusiness & payments % -1.7% Investment banking % -2.6% Current accounts & money transfer % -0.8% FX fees % -10.1% 1Q11 2Q11 3Q11 4Q11 1Q12 Net Fees Comments Investment banking revenues impacted by lower volumes Strong underlying increase in insurance income Loan fees % -0.7% Insurance fees % 48.2% Other % 12.1% Total % 0% 1. Brokerage fees, distribution and management fees 2. Includes off-balance sheet guarantees commissions, issue arrangement fees, credit cards fees, structured product fees and other

19 Results: Total Income 19 Total Income grew at 6.4% Y-o-Y EUR m Y-o-Y Variation Q-o-Q Variation 6.4% 2.0% Net Interest Income % 3.3% Fees % 0% Q11 2Q11 3Q11 4Q11 1Q12 Subtotal % 2.0% Gain/Loss on financial transactions + Others % -7.6% Total Income % 1.4% Gain/loss on financial transactions + Others Fees Net Interest Income

20 Results: Administrative Expenses and Amortization 20 Total expenses grew at 3.0% Y-o-Y and % Q-o-Q EUR m 3.0% -19.8% Y-o-Y Variation Q-o-Q Variation Staff costs % -8.7% Administrative Expenses % -1.6% Q11 2Q11 3Q11 4Q11 1Q12 Staff costs Administrative Expenses Amortization Other costs Once-off adjustments * Including the impact of once-off adjustments Amortization % -66.4% Other costs % -79.4% Total % -19.8% * Comments Increased marketing costs Y-o-Y Cost 4.8% Q-o-Q excluding once-off adjustments in Q Initial costs related to the Kredyt Bank merger reflected in Q1 expenses

21 Results: Net operating income 21 Net operating income growth of 9.7% mainly driven by NII EUR m 9.7% 34.7% Q11 2Q11 3Q11 4Q11 1Q12 Operating surplus Once-off adjustments Net Interest Income + Fees Gain on financial transactions + Others Adm. Expenses + Amortization + Other costs Net operating income Y-o-Y Variation Q-o-Q Variation % 2.0% % -7.6% (108) (105) 3.0% -19.8% % 34.7%* * Including the impact of once-off adjustments

22 Results: Provisions and Loan Quality 22 Asset quality improved quarter on quarter EUR m Provisions and Annualised total credit loss ratio NPL (%) 1,25% 1,20% 1,21% 1,21% 1,11% 1,00% 1,06% 1,00% 0,82% 5,8% 6,3% 6,0% 6,8% 7,0% 6,7% 6,5% 5,5% 5,4% Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Coverage ratio (%) 42,3% 41,3% 45,3% 44,1% 46,4% 50,2% 51,9% 49,0% 49,8% Provisions Annualised total credit loss ratio 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

23 Results: Net Profit 23 Net Profit of EUR 76 Million on , growth of 13% Y-o-Y EUR m 13.0% 57.4% Y-o-Y Variation Q-o-Q Variation Profit before Taxes % 46.4% * Taxes (21) (16) 29.6% 16.9% Net Profit % 57.4%* Attributable profit % 58.3% 1Q11 2Q11 3Q11 4Q11 1Q12 * Including the impact of once-off adjustments Net profit Once-off adjustments * In Q dividend from Aviva entities of EUR 14.6 m

24 Results: Indicators 24 C/I % Solvency ratio % ROE % -1.6 p.p p.p p.p. 50,0 48,4 14,7 15,2 17,7 21,

25 Conclusions: 25 Key points Good growth in loans Improving margin on deposits q/q Focus on net interest margin Loans Personal: +10.0% y/y Business: +17.2% y/y Loan/Deposit ratio: 87.7% Interest income Strong growth in interest income: +12.6% y/y +3.3% q/q Net profit Strong growth in net profit attributable profit of EUR 74 m % y/y + 9.4% q/q (increase excl. once-off adjustments) Group Ongoing integration with Santander Group

26 26 ANNEXES P&L Account Balance sheet Net interest margin evolution

27 P&L Account 27 for the period (EUR k): 1Q Q Q Q Q 2011 Interest and similar income Interest expense and similar charges (91 481) (89 006) (81 535) (76 601) (70 882) Net interest income Fee and commission income Fee and commission expense (12 043) (12 750) (11 867) (11 643) (11 258) Net fee and commission income Dividend income Net trading income and revaluation Gains (losses) from other financial securities (40) Gains (losses) from investment in subsidiaries and associates Other operating income Impairment losses on loans and advances (19 104) (20 220) (25 499) (18 618) (22 426) Operating expenses incl.: ( ) ( ) ( ) ( ) ( ) Bank's staff, operating expenses and management costs (98 613) ( ) (92 850) (99 351) (95 439) Depreciation/amortisation (8 716) (25 958) (8 149) (8 444) (8 488) Other operating expenses (892) (4 329) (4 210) (2 072) (1 120) Operating profit Share in net profits (losses) of entities accounted for by the equity method Profit before tax Corporate income tax (20 996) (17 958) (20 996) (19 449) (16 204) Profit for the period incl.: attributable to owners of BZ WBK S.A attributable to non-controlling interests

28 Balance Sheet 28 1 Q Q Q Q Q 2011 ASSETS Cash and balances with central bank Loans and advances to banks Financial assets held for trading & hedging Loans and advances to customers Investment securities Investments in associates and joint ventures Intangible assets Property, plant & equipment Current income tax assets Net deferred tax assets Assets held for sale Other assets Total assets LIABILITIES Deposits from central bank Deposits from banks Financial liabilities held for trading & hedging Deposits from customers Debt securities in issue Subordinated liabilities Current income tax liabilities Other liabilities Total liabilities Equity Equity attributable to owners of BZ WBK S.A Share capital Other reserve funds Revaluation reserve Retained earnings Profit of the current period Non-controlling interest Total equity Total equity and liabilities

29 Net interest margin evolution 29 NIM by Q, % 3,85 3,92 4,27 4,34 4,27 4,29 4,23 4,27 3,46 3,58 3,92 4,01 3,94 3,95 3,87 4,05 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Incl. swap points Excl. swap points

30 Mexico