Financial presentation of the Group for H1 2016

Transcription

1 Financial presentation of the for H Warsaw, 12 th of August 2016

2 Getin Holding Macro-situation in foreign business POLAND The projected stable annual GDP growth at 3.2% for the second quarter deflation in July was 0.9% YoY according to preliminary readings the unemployment rate in June at 8.8% (vs. 10.3% in January 2016) with the prospect of further declines level of interest rates at a record low 1.5% Risk of growing budget deficit and legislative and political uncertainty RUSSIA the economy is still in recession, despite the better-than-expected growth of GDP for the Q A decrease of 1.2% vs. -3.8% expected. (vs. 3.7% in 2015) lower inflation in The last data for June at 7.2% YoY (vs. 15.6% in 2015) decline in unemployment rate in June to 5.4% (vs. 5.6% in 2015) lowered interest rate in June by 0.5% to 10.5% (vs. 17.0% in January 2016) budget deficit of 4.6% of GDP (vs. 0.5% in 2015) UKRAINE GDP growth 0.1% in the Q The projected growth in the second quarter. 0.3%. Expected change in the trend in 2016 with GDP growth + 1.5% (vs % in 2015) inflation in July at 7.9% YoY, the inflation target for 2016 of 16.0% (vs. 48.5% in 2015) decline in unemployment to 10.3% in March (vs. 11.5% in 2015) NBU discount rate decreased in June to 15.5%,. It was maintained at 22% from September 2015 to April this year plans of decrease in the budget deficit in 2016 to 3.5% of GDP (vs. 4.0% in 2015) expected increase in the share of foreign exchange reserves in foreign debt from 11.3% in 2015 to 13.7% in 2016 expected increase in export in 2016 to 42.7% of GDP (vs. 37.4% in 2015) ROMANIA strong growth of GDP 4.3% for the Q vs. expected 3.7%. The forecast for the entire % (vs + 3.8% in 2015) deflation in July at 0.8% YoY vs. expected inflation for 2016 at 0.3% vs 0.6% for 2015 unemployment in June at 6.4% in April (vs. 6.8% in 2015) in 2016 the expected increase in the budget deficit to 3.0% of GDP (from 1.2% in 2015) since May 2015 interest rates at 1.75% BELARUS maintaining decrease of GDP in the Q % (vs. -3.9% for 2015) the main determinants of decline in GDP are decreasing consumption Retail -4.1% in May (vs. -3.4% in 2015) and lower investment -2.1% (vs. -5.2% in 2015) inflation at the end of June amounted to 12.1% YoY (vs. 13.6% in 2015) record levels of foreign debt to GDP ratio of approx. 71% FOREIGN EXCHANGE RATES APPLIED FOR THE CONVERSION OF THE RESULTS Kursy walut 2015' '06 Y/Y RUB 0,0676 0,0620-8,3% RUB średni 0,0649 0, ,7% UAH 0,1780 0,1603-9,9% UAH średni 0,1729 0, ,2% 1k BYR 0,2410 0, ,0% 1k BYR średni 0,2483 0, ,8% RON 0,9349 0, ,8% RON średni 0,9312 0, ,6% 2

3 Getin Holding Overview of major events Getin Holding stabilisation of the situation in the eastern countries (Russia,Ukraine, Belarus) positive results of foreign activities bond issue and own shares sale RUSSIA hard return into business economic recession focus on rebuilding liquidity and sales cost restructuring BELARUS business scaling improvement of the result and its structure growth of core business incomes POLAND back to M&A sale of GetBack acquisition of Getin Leasing the new market leader in the UKRAINE a significant increase in profitability in H1 16 with a positive financial result at the end of the period. sales growth of 69% YoY improvement in the macroeconomic environment improvement of basic financial parameters ROMANIA break-even! maintaining a positive trend in loans sales and leasing growth YoY the bank was awarded the title of "Best Financial Institution" in Romania. 3

4 Getin Holding Structure and dynamics of elements of the 's performance for H Profit and loss H1'2016 * * Interest income % Interest expense % Net interest income % Net fee and commission income % Other operating income and expense x3.9 Net operating income % Overhead costs % Provision % Share in result of cons. units of equity method Profit before income tax x9.2 Income tax % Profit (loss) from continuing operations x3.6 Profit (loss) from discontinued operations % Net profit (loss) x2.5 Non-controlling interest x2.2 Net profit attributable to equity holders of the Co x2.7 Determinants of YoY change in performance: A significant increase in net interest income by 54% - the result of building a portfolio based on high-margin products The decline in net commission income by 7.7% - the introduction of a conservative model of revenue recognition in this position in the IB (Poland) Increase in operating expenses by 3.4% due to the development of operations in Poland and the additional burden of a regulatory nature, Other operating income and expenses includes PLN million revenue from the sale of the agreement GetBack. Operating revenues net of one-off (GetBack) reached PLN million, which represents an increase YoY by 13.3%. Contribution to the s consolidated results 1 [PLN M] IB Poland Carcade IB Belarus IB Ukraine IB Romania MW Trade Getin Leasing Holding NCI and consolidation adjustments Getin Holding 1)... attributable to equity holders of the Getin Holding parent company 4 *Adjusted data (including an opening balance adjustment in the amount of PLN 16.9 m from bancassurance income)

5 Getin Holding Basic financial parameters The balance of deposits at the end of the second quarter increased YoY by nearly PLN 3 billion to 15.4 billion. LTD (including lease receivables) is 99.3%. Loans and leasing [PLN M] Equity 1) [PLN M] Quarterly net profit 1) [PLN M] x5, , ,5 +10,4% , ,9 +10,8% , , ,8 +12,5% 2 001,6 168,0 139,3** 8 245, , ,2 Leasing Loans 35,0 +11,1%; 38,9 33,3 29, * * Q1'2015* Q2'2015* Q1'2016* Q2'2016* 1)... attributable to equity holders of the Getin Holding parent company *Adjusted data (including an opening balance adjustment in the amount of PLN 16.9 m from bancassurance income) **Impact of the sale of GetBack to profit of the 5

6 Getin Holding The structure of the group 51.27% 55.90% % % 99.52% % As at , the graph presents Getin Holding's interest in the equity of the parent company in each country 6

7 ::IdeaBank POLAND Stable revenue growth and further building customer base POLAND Profit and loss H1'2016 * * 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 % Profit before income tax x5.4 Income tax % Profit (loss) from continuing operations x2.8 Profit (loss) from discontinued operations % Net profit (loss) x2.1 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 [] Q Q Q Factoring** Leasing & car loans*** Operating loans Investment loans Loans, leasing and deposit balance [] +25,2% , ,3 +25,7% , ,8 * Loans & leasing Deposits The result of the for the Q includes profit on the sale of GetBack SA in the amount of mpln (gross). Growth of the net interest income by 77% 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. The decline in net commission income is the result of adopting a conservative model of recognition of revenue on products connected with loans. Product profitability remained at a comparable level, however, there will be positive impact of deferred revenue on the interest margin of the in the future. Strong growth in loans sales QoQ by 28% to 2.4 billion PLN. Doubling the sales of investment loans and an increase in sales to SMEs despite weakness in lending. Increasing the number of customers who have a bank account about 21% YoY and accounting subscription of 14% 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 0.73% in March, to 0.55% in June. CAR and Tier1 for the Bank at the level of 13.7% / 11.3%; of 14.4% / 11.1%. The results of the includes cost of banking tax in the amount of 12.3 mpln for the Q In the results of H1'2016 has been included an impairment loss on investment in an associate Open Finance SA in the amount of 16 million PLN. *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 Poland:, Idea Leasing, Tax Care, Idea Expert, GetBack, Idea Money, other companies and consolidation adjustments 7

8 Carcade RUSSIA Back to the sale & cost restructuring Leasing sales volumes [RUB m] RUSSIA -55,7% 5 889, ,9 Back to the sale despite liquidity constraints. The successful bonds issue in the amount of RUB 2.5 billion, completed in April. Intensive cost restructuring in the first half of 2016: The reduction of fixed costs about 28.1% (18,6% RUB) compared to. Optimization of the sales network and focus on 32 cities - at the end of June, the sales network consisted of 46 branches. Since the beginning of the year closed down 25 branches. The level of employment of approx. 593 people at the end of June vs. 815 in January Further effects of restructuring expected in the second half of the year. Changes in the Management Board - a new CEO. H1'2016 Profit and loss H1'2016 RUB m H1'2016 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 x x3.0 Income tax x x2.5 Net profit (loss) x x3.8 All ratios and dynamics in the text are presented excluding the fx rate effect. Carcade : Carcade, other companies and consolidation adjustments Balance sheet / RUB m / Cash and balances in the Central Bank % % Amounts due from banks x x6.3 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 % % 8

9 ::IdeaBank BELARUS The consistent improvement in profitability BELARUS Sales and portfolio structure [BYR bn] Loans and deposits balance [BYR bn] Net profit for H amounted to PLN 11.1 million - Increase YoY by 30.5% (in BYR + 66,9%) 577,5 193,0-5,9% 543,5 224,8 218,4; 65% 109,1; 33% 0,0; 0% 6,1; 2% , ,7-1,4% -12,6% 2 320, ,0 The decrease in loan sales in BYR YoY by 5.9%, including: -17.1% in retail loans, % in loans to SMEs. Implementation of Internet and mobile banking. Scaling the business - a way out of consumer finance. Improvement of the result and its structure 384,5 318,7 H1'2016 SME loans Retail loans Car loans Loans Deposits Focus on acquiring and maintaining liquidity in BYR. Macroeconomic conditions - economic uncertainty, rising foreign debt, high inflation, denomination. Profit and loss H1'2016 BYR bn H1'2016 Interest income % % Interest expense % % Net interest income % % Net fee and commission income % x2.1 Other operating income and expense % % Net operating income % % Overhead costs % % Provision Profit before income tax % % Income tax % % Net profit (loss) % % Balance sheet / BYR bn / Cash and balances in the Central Bank % % Amounts due from banks % % Amounts due from clients % % Tangible fixed assets % % Other assets % x2.0 Total Assets % % Amounts due to banks % % Deposits % % Other liabilities % % Equity % % Total liabilities and equity % % All ratios and dynamics in the text are presented excluding the fx rate effect. Belarus :, Idea Finance, Idea Broker, consolidation adjustments 9

10 ::IdeaBank UKRAINE Improvement of the result - profit for the first half of 2016 UKRAINE Retail loans sales [UAH m] +29,8% 225,8 322,5 +9,5% 353,0 Loans and deposits balance [UAH m] +11,2% +10,6% 2 365, , , ,8 Break even point exceeded significant improvement in net profit by YoY, 1.0 million PLN compared to a loss for H Improvement in macroeconomic conditions. Business sentiments improved. Loans quarterly sales still (3rd quarter) above 300 million UAH, YoY growth of 69%. 173,9 Credit risk under control, COR = 8.7%. Loans Deposits NIM = 8.7% vs -0.2% in. Costs under control - C/I = 52.3% vs 97.3% in. Q1'2015 Q2'2015 Q1'2016 Q2' Profit and loss H1'2016 UAH m H1'2016 Interest income % % Interest expense % % Net interest income Net fee and commission income % % Other operating income and expense % % Net operating income x x2.5 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 x x5.6 Tangible fixed assets % % Other assets % % Total Assets % % Amounts due to banks % % Deposits % % Debt securities in issue x x4.4 Other liabilities % % Equity % % Total liabilities and equity % % All ratios and dynamics in the text are presented excluding the fx rate effect. Ukraine:, Gwarant Plus, Idea Leasing, consolidation adjustments 10

11 Idea::Bank ROMANIA Robust growth and building of customer confidence Robust growth and build customer ROMANIA Profit and loss H1'2016 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 / Cash and balances in the Central Bank % Amounts due from banks x2.3 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 x4.5 Deposits % Debt securities in issue % Other liabilities % Equity % Total liabilities and equity % Bank loans sales and portfolio structure [] Romania has been recognized by Capital Magazine as The Best Financial Institution of ,3 x2,6 216,7 H1' ,5; 59% 210,2 +12,1% The economy in excellent condition GDP growth of 4.3%, low unemployment Another strong quarter in terms of sales volumes: bank PLN 125,4 million and increased by 38.5% QoQ, leasing company PLN million and an increase of 13.3% QoQ. 235,6 H1'2016 A significant improvement in the result for H Net profit in the first half of PLN 7 million compared to a loss of PLN -9mln for the corresponding period of NIM 1) at 2.9% vs. 2.0%. 142,4; 14% 277,1; 27% 4,0; 0% SME loans Mortgage loans Retail loans Leasing receivables Leasing sales volumes [] 1) Calculated as a relation of interest income to average interest assets in the analysed period (year / quarter) 11 Romania:, Idea Leasing, other companies and consolidation adjustments

12 Getin Holding Appendix 1: Profit and loss for H H1'2016 Poland Carcade Belarus Ukraine Romania 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 12

13 Getin Holding Appendix 2: Balance sheet as of Poland Carcade Belarus Ukraine Romania 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 13

14 Getin Holding 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