BANK HANDLOWY W WARSZAWIE S.A. 4Q 2011 consolidated financial results. February 2012

Transcription

1 BANK HANDLOWY W WARSZAWIE S.A. 4Q 2011 consolidated financial results February 2012

2 Fourth quarter of 2011 summary Financial results Net profit Revenues Operating margin 21% QoQ 4% QoQ 7% QoQ Volumes Corporate loans Mortgage loans Demand deposits 9% QoQ 13% QoQ 7% QoQ Business development Operating accounts of individual clients: 3% QoQ and 30% YoY Operating accounts of corporate clients: 1% QoQ and 6% YoY Risk Non-performing loans ratio (NPL): to 8.9% Low level of costs of risk: 0.1% (0.6% in 2011 vs. 2.1% in 2010) Stable capital position capital adequacy ratio at the level of 16.4% Liquidity & Capital - one of the highest in the sector High liquidity Loans/Deposits ratio at the safe level of 63% 2

3 /PLN MM/ Growth of net profit in 4Q 2011 NET PROFIT +13% +21% 4% QoQ Increase of total revenues 0.2% QoQ Decrease of operating costs % QoQ Decrease of net impairment losses 4Q Q Q 2011 ROE 12.9% 0.5 p.p. QoQ ROA 1.6% 0.01 p.p. QoQ Cost/Income 56% 2.5 p.p. QoQ Loans/Deposits 63% 9 p.p. QoQ CAR 16.4% 0.2 p.p. QoQ 3

4 /PLN MM/ Growth of net interest income % % Corporate Banking: +15% QoQ Corporate customers: +0,4% QoQ ; +0,3% YoY Loans income: +4% QoQ; +22% YoY Deposits expenses: +4% QoQ; +25% YoY +15% Corporate Banking 49% Debt securities: +13% QoQ; +3% YoY Financial sector: +30% QoQ; +26% YoY Retail Banking: +1% QoQ +1% Retail Banking 51% Credit cards: +2% QoQ; +5% YoY Loans: +0,2% QoQ; -4% YoY Deposits expenses: +2% QoQ; -13% YoY Interest margin 4Q Q Q 2011 On total assets 3.8% 3.7% 3.8% On interest assets 4.4% 4.4% 4.6% 4

5 PLN MM PLN MM Loans continued growth in corporate banking Corporate loans +37% 6, % Sector: 19% 6,979 +2% 7, % 8,599 7,909 +9% Sector: 4% 33% Public sector and others SMEs & MMEs (+44% yoy) Consistent growth of corporate loans the highest YoY growth since % 26% Global clients (+18% yoy) Corporate clients (+161% yoy) Significant growth beating the sector dynamics 4Q Q Q Q Q 2011 Retail loans -4% Sector: 12% 5,322 5,133 5,118 5,106 5,111-4% -0.3% -0.2% +0.1% A decrease of retail loans 11% Mortgage loans (+83% yoy) Sector: 1% stopped in 4Q % 44% Cash loans (-14% yoy) Credit cards (-5% yoy) Dynamic growth of mortgage loans to PLN 584 million (+13% QoQ; +83% YoY) 4Q Q Q Q Q

6 PLN MM PLN MM Deposits focus on operating accounts +7% Corporate deposits 14,688 7,097 7,592 Sector: 12% 15,688 11,470 12,059 12,352 9,089 6,046 6,328 6,533 5,425 5,731 5, % 6,600 Sector: 13% Time deposits Demand deposits Seasonal growth of corporate deposits (+27% QoQ) Next consecutive quarter of demand deposits growth in line with market trend 4Q Q Q Q Q 2011 Retail deposits +5% Sector14% 5,718 5,855 5,982 5,699 5,692 Increase of retail deposits by +5% QoQ 3,876 3,929 3,667 3,618 3,762 1,842 1,926 2,033 2,074 +7% 2,220 Sector: 1% Time deposits Demand deposits Increase of demand deposits, significantly beating the sector dynamics the effect of a consistent strategy focusing on operating accounts 6 4Q Q Q Q Q 2011

7 /PLN MM/ Net fees and commissions income under pressure -14% Corporate Banking -5% QoQ and -18% YoY % Other Brokerage -1% YoY -47% YoY -5% Corporate Banking 46% Payment orders & cash management -6% YoY 48% 11% 12% 29% Custody -23%YoY Retail Banking -2% QoQ and -10% YoY -2% Retail Banking 54% 52% Credit cards -12% YoY 4Q Q Q 2011 Investment & insurance -9% YoY 38% 3% 7% Cash loans -22% YoY Other +3% YoY 7

8 Treasury result /PLN MM/ PLN 8.5 MM 9% Q Result on customer activity, including financial instruments value adjustment Trading Gains on AFS debt instruments Q Growth of FX transactions volumes concluded with corporate customers by 3% QoQ and 26% YoY Growth of transaction volume concluded via CitiFX Pulse platform by 10% compared to Q

9 Consistent expenses policy /PLN MM/ PLN 0.9 MM 0.2% Q 2011 Telecom & IT Other administrative expenses Staff Marketing Depreciation 4Q 2011 Cost / Income ratio 3Q Q 2011 Change Corporate Banking 47% 45% Retail banking 73% 71% Bank 59% 56% 9

10 /PLN MM/ Further improvement of costs of risk (80) Net impairment losses Non-performing loans ratio (NPL) (50) (20) (13.1) 0.5% (48.3) 35.2 (41.9) (15.4) (16.5) 0.5% (3.0) (28.1) 0.1% (10.3) Q Q Q Q Q % 11.4% 10.8% Bank Corporate Banking Retail Banking 13.6% 9.8% 7.7% 13.3% 8.9% 6.9% 1 Corporate Banking Retail Banking Cost of risk (%) 4Q Q Q Q Q 2011 Provision coverage ratio 1 2 Improving quality of retail and corporate loan portfolios decrease of NPL ratio to 8.9% Provision coverage ratio maintained at a high level of 77% 90% 90% 89% 77% 77% 2 3 Record low level of cost of risk in 2011 (0.1% in 4Q2011 vs. 0.6% in 2011) continued downward trend in Retail Banking and stable level of costs of risk in Corporate Banking 46% 67% 60% 60% Bank Corporate Banking Retail Banking 4Q Q Q Q Q

11 Liquidity and capital adequacy stable and safe position Capital adequacy ratio vs. equity level Loans to deposits ratio Bank vs. banking sector 18.8% 15.8% 18.0% 16.5% 16.4% 111% 111% 115% 117% 116% % 70% 69% 72% 63% 4Q Q Q Q Q2011 4Q Q Q Q Q2011 Equity (PLN B) Capital adequacy ratio Citi Handlowy Sector 11

12 Share price (PLN) Citi Handlowy share price from 2010 Citi Handlowy share price (net, excl. dividend) vs. WIG-Banks and WIG-20 indices Return on investment in Bank s shares in An increase in the Bank s share price by 8% (WIG Banks increase of 1%, WIG20 decrease of 3%) Bank 1 Citi Handlowy 8% 21% 14% 8% 22% 29% Bank 2 11% 11% 95 Bank 3 7% 2% 10% Bank 4-8% 11% 3% 85 Bank 5-4% 7% 2% Bank 6-6% -9% 3% 75 Bank 7-12% -14% 3% 65 Citi Handlowy WIG-Banks WIG 20 Bank 8 Bank 9-56% -16% -56% -16% Share price change Dividend yield % -45% -25% -5% 15% Attention: Change of share price based on closed prices of 01/02/2012 and 4/01/2010 Dividend yield based on dividend paid in

13 Appendix

14 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 1q02 1q03 1q04 1q05 1q06 1q07 1q08 1q09 1q10 1q11 1q02 1q03 1q04 1q05 1q06 1q07 1q08 1q09 1q10 1q11 Macroeconomics review 4Q 2011 GDP growth in Poland considerably better than in the Euro area An increase of investments and a slowdown in consumption at the end of % YoY % YoY % YoY GDP growth in Poland (YoY) Euro area Private consumption (YoY) Fixed investment (YoY, Right Axis) Higher volatility on financial markets arising from concerns about the future of the euro area % GDP growth YoY, Polish economy resistant to signals of a slowdown in the Euro area Strong economic performance caused by a high growth of investments, limited by consumers spending decelerate Debt crisis in the euro area resulting turbulence on foreign exchange market Limited volatility of Polish zloty after intervention of NBP and Ministry of Finance EUR/PLN USD/PLN 14 Source: Citi Handlowy, GUS, Reuters. Attention: 4Q 2011 GDP data estimation based on total 2011 growth according to GUS sources.

15 Retail banking operational data (in thousands) 4Q Q Q 2011 Change YoY % change YoY Current accounts including: % Operating accounts % Saving accounts % Credit cards including: (55) (6%) Co-brand cards (30) (6%) Debit cards % PayPass cards % 15

16 Retail banking volumes (PLN million) 3Q Q 2011 Change QoQ % change QoQ Deposits 5,692 5, % Demand deposits 2,074 2, % Other deposits, including: 3,618 3, % Saving accounts 2,464 2, % Loans 5,106 5, % Credit cards 2,251 2, % Cash loans 2,250 2,189 (60) (3%) Mortgage loans % 16

17 Net profit 4Q 2011 vs. 3Q 2011 /PLN MM/ PLN 37 MM 21% NET PROFIT 3Q 2011 Interests Fees Treasury Other revenue Expenses Net impairment losses Tax NET PROFIT 4Q % Net interest income 4% Net fee and commission income 9% Treasury 0.2% Expenses & depreciation 82% Net Impairment losses 17

18 Net profit 4Q 2011 vs. 4Q 2010 / PLN MM / PLN 26 MM 13.5% NET PROFIT 4Q 2010 Interests Fees Treasury Other revenue Expenses Net impairment losses Tax NET PROFIT 4Q % Net interest income 14% Net fee and commission income 32% Treasury 2% Expenses & depreciation 77% Net impairment losses 18

19 19 4Q 2011 financial data shown in this presentation are based on the stock report containing information on the initial consolidated financial statement of the Capital Group of Bank Handlowy w Warszawie S.A. for the fourth quarter of The stock report has been published on 6th February 2012.