GETINNOBLEBANKGROUP S FINANCIAL RESULTS FOR THE FIRST HALF OF 2011 PRESENTATION OF AUDITED FINANCIAL RESULTS FOR INVESTORS AND ANALYSTS Warsaw, August 26 th, 2011
SUMMARY Sales of loans in H1 2011 were up by a half compared to the same period of last year. The Bank s loan portfolio balance increased by 25.6% during the last 12 months. In this period, the market has grown by 9.4%. The Bank s balance sheet total and equity in H1 2011 rose by 14.5% and 23.8% respectively. Stress tests for CAR=8%T at CHF/PLN=6.30 PLN 250 m of subbordinated debt issued in Q2 2011 included into complementary capital after received KNF approval. Interest margin increased by 21 basis points (to 3.0%) from Q2 2011 to Q1 2011. Revenue from products other than loans grew steadily as a result of developing the Bank s relationship banking approach. The Bank s costs of operations are under control despite the Group s fast growth pace, which confirms the high efficiency of thebank s operations and its cost discipline. Thnew retail deposit margin dropped by 75 basis points, while the cost of obtaining new deposits was down by 20 basis points (Q2 2011 versus Q2 2010) with growing market rates over the last 12 months. In the last 12 months, retail customers have deposited over PLN 7 billion with the Bank. The Bank maintained its sales profitability in Q2 2011 despite a reverse trend on the market. In 2011, the Bank renewed and collateralised CIRS s of CHF 1.9 billion at prices approx. 50% lower than the current market margins. The Bank places great emphasis on the quality of its loan portfolio: - The quality of new loans improved considerably despite higher write-offs in Q2 2011. -Q2 2011 write-offs were down by PLN 27 million compared to the same period of last year. -The increase in H1 2011 write-offs was in part attributable to a high CHF/PLN exchange rate and the contagion effect. Getin Noble Bank Group companies reported good results. -Lease activity grew at a face pace GetinLeasing is ranked as the 7th largest lease provider on the market. - The number of investment accounts (Noble Securities) rose by 66% compared to the 2010 year-end figure. -In H1 2011, Noble Securities raised more than PLN 815 million for 14 entities through private and public share and bond issues. -Fund assets (Noble Funds) grew at a fast pace 52.0% on a year-to-year basis, more than three times faster than the entire market 1) (16.7%). 1) Figures provided by the Chamber of Fund and Asset Management 2
KEY FINANCIAL RATIOS 30.06.2011 / 31.12.2010 37 620,3 mln PLN +12,5% Loans balance (2Q 11 vs 1Q 2011 increase by 7,9%) 41 322,6 mln PLN +11,6% Deposits balance 4 078,5 mln PLN +23,8% 48 994,7 mln PLN +14,5% Equity (attributable to equity holders of the parent company) Balance sheet total 2Q 2011 / 2Q 2010 339,6 mln PLN +28,5% 212,3 mln PLN -13,7% Net interest income Net fee and commission income 200,8 mln PLN +9,9% Overhead costs(q2 11 vs Q1 11 decrease by 2,0%) 318,6 mln PLN +9,2% 770,9 mln PLN +615,5% 691,2 mln PLN +577,2% 21,83% -10,54 p.p. 9,82% +0,76 p.p. Result on provisions for NIL and other accounts receivable Gross profit Net income (attributable to equity holders of the parent company) C / I 1) CAR 1) 2) 49,28% +34,56 p.p. ROE 1) 1) YTD data 2) stand-alone GNB 3
MORTGAGE LOANS Maintaining the position of vice-leader thanks to a fast pace of sales growth Sale (PLN m) Portfolio (PLN m) 1) +55,5% +31,4% 1 378 1 887 1 967 2 132 2 142 22 999 23 861 26 417 27 709 30 221 Q2'2010 Q3'2010 Q4'2010 Q1'2011 Q2'2011 30.06.2010 30.09.2010 31.12.2010 31.03.2011 30.06.2011 The loans sold by the Bank were predominantly loans in PLN. As a result, the share of foreign-currency loans in relation to the Bank s total loan portfolio is steadily lower, with a drop to 42.8% 2) as at the end of Q2 2011, meaning it was lower by 3.3 percentage points than as at the end of 2010 (with the CHF/PLN exchange rate effect excluded, to 41.9% (lower by 4.2 percentage points) 1) Gross portfolio 2) Stand-alone GNB 4
CAR LOANS Strengthening the position of leader Sale (PLN m) Portfolio (PLN m) 1) +2,6% +7,2% 469 4 347 419 406 422 429 4 054 4 080 4 196 4 234 Q2'2010 Q3'2010 Q4'2010 Q1'2011 Q2'2011 30.06.2010 30.09.2010 31.12.2010 31.03.2011 30.06.2011 Sales grew despite a reverse trend on the market Sales of new cars on the market dropped by 4.4% on a year-to-year basis and imports of used cars by 7.9% on a year-to-year basis 1) Gross portfolio 5
RETAIL LOANS Loan portfolio growth despite a downward trend on the market Sale (PLN m) Portfolio (PLN m) 1) -11,2% +3,8% 307 301 259 335 273 3 576 3 663 3 713 3 630 3 620 Q2'2010 Q3'2010 Q4'2010 Q1'2011 Q2'2011 30.06.2010 30.09.2010 31.12.2010 31.03.2011 30.06.2011 The growth potential is based on the following: targeting the Bank s lending products to safe customer groups (the Bank s existing customers, customers with a credit history), easier access to retail loans by customers documenting the source and amount of their income by providing alternative documents such as PIT- 11, PIT-40, PIT4-40A tax returns or bank statements showing their income, providing special-purpose loans (launching of installment loans in Q2, loans for purchasing shares in selected offerings) In the Q1 2011 consumer loan balance in the banking system decline by PLN 0.7 million, i.e. by 0.5% 1) Gross portfolio 6
SME LOANS Lease activity growing rapidly Sale of loans (PLN m) Portfolio (PLN m) 1) +40,9% +63,7% 307 325 379 499 433 1 466 1 637 1 789 2 068 2 400 Q2'2010 Q3'2010 Q4'2010 Q1'2011 Q2'2011 30.06.2010 30.09.2010 31.12.2010 31.03.2011 30.06.2011 Leasing (PLN m) +171,4% 216 229 288 GetinLeasing moves from 15th to 7th place in Poland The highest increase in sales of leases on the Polish market in 1H 2011 (+212%) 2) 106 130 1) Balance of gross SME loans and leasing portfolio 2) According to ZPL ranking Q2'2010 Q3'2010 Q4'2010 Q1'2011 Q2'2011 7
LOANS: BALANCE AND MARKET SHARE The Bank is growing at double the pace of the entire market growth. Portfolio (PLN m) Market share (%) 1) +25,7% +0,7 p.p. 37 620 29 934 5,1% 4,4% 30.06.2010 30.06.2011 30.06.2010 30.06.2011 In Q2 2011, the Bank s loan balance once again grew at a pace much faster than the entire market (8.0% versus 4.1%) H1 2011 sales amounted to PLN 7.2 billion, which was an increase of over 52% compared to the same period of last year The Bank continued to see the fastest growth in sales to SME and sales of mortgage loans 1) Market shares calculated on the basis of NBP data (market = banks operating in Poland + Polish branches of credit institutions and branches of foreign banks + SKOKs) 8
SHARE OF FOREIGN CURRENCY LOANS IN THE PORTFOLIO New loans being predominantly loans in the Polish currency Share of foreign currency loans in total portfolio (%) 66,1% 62,4% 56,6% 53,8% 50,5% 51,7% 47,4% 46,1% 43,4% 42,8% 31.03.2009 30.06.2009 30.09.2009 31.12.2009 31.03.2010 30.06.2010 30.09.2010 31.12.2010 31.03.2011 30.06.2011 The percentage of foreign currency loans in relation to the entire loan portfolio decreased by a total of 19,6 pp over two years Nearly 93% of new loans in PLN 9
CHF CIRS TRANSACTIONS In 2011, the Bank collateralised its CHF transactions at prices lower by approx. 50% than the current market margins. CHF CIRS transactions entered into and maturing (CHF m) Portfolio of CHF 4 810 m TRANSACTIONS ENTERED INTO/COLLATERALISED 2 055 1 887 MATURING TRANSACTIONS 1 645 1 070 478 647 343 535 650 310 2008 2009 2010 2011 2012 2013 2014 2015 2016 The Bank has no significant CIRS transactions to be renewed by the end of 2012 10
DEPOSITS: BALANCE AND MARKET SHARE In Q2 2011, the deposit balance for the entire market decreased, while GNB s balance grew by almost 5%. Balance (PLN m) +24,9% Market share (%) 1) +0,7p.p. 41 323 5,8% 33 092 5,1% 30.06.2010 30.06.2011 30.06.2010 30.06.2011 In Q2 2011, the Bank s deposit balance grew by PLN 1.8 billion (4.7%), despite a reverse trend in the banking sector, where the deposit balance for the entire market decreased by over PLN 7.5 billion (-1.1%) The Bank took 84% of the increase in the household savings balance on the marketinq2 2011 Nearly 90% of the Bank s deposits carry a fixed interest rate In the last 12 months, the Bank s deposit portfolio has grown by a quarter, i.e. by PLN 8.2 billion, including 95% in retail customers funds 2) 1) Market shares calculated on the basis of NBP data (market = banks operating in Poland + Polish branches of credit institutions and branches of foreign banks + SKOKs) 2) Liabilities to private individulas 11
COST OF FINANCING The margin on new retail deposits dropped by 74 basis points in the last 12 months. 10,00% 9,00% 8,00% 7,00% 6,00% 5,00% 4,00% 3,00% 2,00% 1,00% 0,00% Cost of new PLN retailterm deposits 34631 33056 31594 26544 27570 28802 5,41% 5,03% 4,80% 4,84% 4,70% 4,83% 1,23% 1,14% 0,98% 0,97% 0,60% 0,40% Q1'2010 Q2'2010 Q3'2010 Q4'2010 Q1'2011 Q2'2011 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000-1) cost of deposits margin balance [PLN m] The margin on all retail deposits 1) in H1 2011 was 0.69%, down by 88 basis points compared to the same period of last year The cost of obtaining deposits 2) dropped to 4.67% by 54 basis points compared to H1 2010, with market rates 3) rising by 23 basis points 1) Above the WIBOR 2) All deposits 3) WIBOR 3M 12
INVESTMENT PRODUCTS Rapid growth of revenue (+54% 1H1 2011 vs H1 2010) Fee result(pln m) +52,1% 48 52 61 67 73 Q2'2010 Q3'2010 Q4'2010 Q1'2011 Q2'2011 Deposit terms continued to be grow in length in Q2; 55% of deposits for a term longer than 4 years 76.7% of the funds form the investment products sold in H1 2011 (PLN 715.9 million) came back to Getin Noble Bank as deposits 13
CONTRIBUTION OF COMPANIES TO GROUP PROFIT FOR 1H 2011 The Group s banking activity was the main source of its net income, with income contributed by the other Group companies being on the increase. PLN m cumulatively 288,9 x 791,2 +280,2% 443,0 +85,0% 20,3 1) -38,2% 15,1 x 11,6 +39,3% 12,3 +190,3% 1H 2011 y/y change PLN 299 m from the sale of Open Finance Getin Noble Bank Open Finance Idea Bank (startup) Noble Funds Noble Securities Pozostałe spółki i korekty Grupa GNB (zysk jednostki dominującej) PLN 320,6m concerns adjustment for the loss of control of Open Finance PLN -31,7 m - other adjustments 1) OF result for Q1 2011, until loss of control of Open FInance 14
BALANCE SHEET STRUCTURE Maintaining a secure balance sheet structure Balance sheet structure of the Bank (PLN m) Assets Liabilities 48 995 Other assets Financial instruments Amounts due from banks 10% 6% 7% 7% 8% Other liabilities Share capital Loans and advances to customers 78% 85% Amounts due to customers 30.06.2011 30.06.2011 GetinNoble Bank s balance sheet total increased in 1H 2011 by PLN 6 197 million (+14.5% vs31 Dec. 2010). This increase was the result of, above all, an increase in amounts due to customers by 11.6% and in the loans balance by 12.5% in 1H 2011. In the same period, equity (attrributableto shareholders in the parent company) increased by 23.8% and in last 12 months by almost 1/3. 15
CREDIT RISK Noticeable results of measures aimed at improving asset quality Cost of credit risk (%) 1) Continuing measures aimed at reduceingthe costs of risk : corporate loans car loans 2) mortgage loans retail loans Loans total 30.06.2011 31.12.2010 change 4,3% 3,2% 1,11 p.p. 4,7% 6,0% -1,25 p.p. 2,3% 2,0% 0,30 p.p. 4,9% 9,9% -4,96 p.p. 2,9% 3,5% -0,53 p.p. continuously changing the product range to reduce the costs of risk, particularly in respect of corporate loans and mortgage loans updating statistical tools for customer risk assessment (scoring) effectively carrying out debt recovery and pre-debt recovery activities The rate of growth of impairment charges in 1H 2011 in the Bank was by nearly 6% lower than in 1H 2010 Late payment ratios in respect of the first instalmentof cash and auto loans continuing stable, at the lowest levels since 2008 Retail loans interest on 30 DPD in repayment of the first instalment (%) Car loans interest on 30 DPD in repayment of the first instalment (%) 5,7% 3,8% 3,4% 2,7% 2,0% 1,7% 1,1% 1,6% 1,3% 3,3% 2,2% 3,3% 2,6% 2,2% 1,4% 2,0% 1,7% 01'2008 05'2008 09'2008 01'2009 05'2009 09'2009 01'2010 05'2010 09'2010 01'2011 04'11 01'2008 05'2008 09'2008 01'2009 05'2009 09'2009 01'2010 05'2010 09'2010 01'2011 04'11 1) Result on provision for NIL and other accounts receivable to average loans volume; annualized factor 2) Including leasing 16
CREDIT RISK Steady improvement in the quality of new loans Mortgage loans Relative change in credit risk compared to Q1 2010 (%) Mortgage loans percentage of the DPD90+ balance in the amount of disbursed loans 100,0% 2,0% 100,0% 1,0% 34,3% 46,5% 27,1% 25,8% 24,9% 20,9% 18,7% 1Q'2010 2Q'2010 3Q'2010 4Q'2010 1Q'2011 0,0% Risk measured as the percentage of the DPD30+ balance in the amount of disbursed loans after 3 months Risk measured as the percentage of the DPD90+ balance in the amount of disbursed loans after 6 months period of disbursment 4M after disbursment 5M after disbursment 6M after disbursment 17
KEY FINANCIAL DATA Equity (attributable to equity holders of the parent company) Balance sheet total Loans balance Deposits balance PLN m 30.06.2011 31.12.2010 30.06.2010 30.06.2011/ 31.12.2010 4 078,5 3293,7 3048,5 +23,8% 48 994,7 42797,8 38 791,9 +14,5% 37 620,3 33454,0 29 933,5 +12,5% 41 322,6 37025,7 33091,6 +11,6% 30.06.2011/ 30.06.2010 +33,8% +26,3% +25,7% +24,9% PLN m 2Q 2011 1Q 2011 2Q 2010 2Q 11/ 1Q 11 2Q 11/ 2Q 10 Income Overhead costs Net profit (attributable to equity holders of the parent company) C / I -consolidated (%) 1) ROE 1) NIM 2) CAR 1) 3) 1290,3 568,0 582,2 +127,2% +121,6% -200,8-204,9-182,7-2,0% +9,9% 691,2 100,0 102,1 +591,1% +577,2% 21,83% 36,07% 32,37% -14,24 p.p. -10,54 p.p. 49,28% 12,61% 14,72% +36,66 p.p. +34,56 p.p. 3,0% 2,8% 3,0% +0,21 p.p. +0,02 p.p. 9,82% 9,40% 9,06% +0,40 p.p. +0,76 p.p. 1) YTD data 2) QTD data 3) stand-alone GNB 18
DISCLAIMER This presentation has been prepared for information purposes only to be used by Getin Noble Bank S.A. s customers and shareholders and by market analysts and may not be considered as an offer or recommendation to execute any transactions. The information contained in this presentation is based on publicly available and reliable sources. However, Getin Noble Bank S.A. cannot guarantee that this information is complete. Getin Noble Bank S.A. 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 publication by Getin Noble Bank S.A. of the figures contained in this presentation is not a breach of the regulations applicable to companies whose shares are traded on a regulated market. The information provided in this presentation has already been disclosed in current or periodic reports published by Getin Noble Bank S.A. or constitutes an addition to those reports, and its publication does not require the bank tofulfiltheobligationtoprovideinformationasimposedonthebankasapubliccompany.thecontentofthispresentationmaynot,inanycase,beinterpretedasanexpressorimpliedstatement orassurancemadebythecompanyoritsrepresentatives. Inaddition, neitherthecompanynoritsrepresentativesmaybeheldliable, inanyway(asaresultofnegligenceorforanyotherreason) for any loss or damage that might arise in connection with use of this presentation or any content of this presentation or that might arise in any other way in connection with the information contained in this presentation. n the event of a change to the company s strategy or intentions or in the event of unexpected facts or circumstances affecting the company s strategy or intentions, the company is not responsible for informing the public of any possible modifications or changes to any information, data or statements provided in this presentation. This presentation contains information relating to the Polish banking sector, including information on the company s market share. Except for information described as based on other sources only, the market-related information referred to above has been prepared based on data from the sources of the third persons named in this document and includes estimates, assessments, corrections and opinions based on the company s experience and knowledge of the sector in which the company operates. Since the market-related information referred to above has in part been prepared based on estimates, assessments, corrections and opinions and has not been verified by independent third persons (except for information described as based on the sources of third persons), the information is, to some degree, subjective in nature. It is presumed that the above estimates, assessments, corrections and opinions are based on reasonable grounds and that the market-related information properly reflects the situation in the banking sector and in the markets in which the company operates. However, it is not certain that the estimates, assessments, corrections and opinions are the most appropriate basis for conclusions relating to market information or that market information prepared by other sources will not be considerably different from the market-related information contained in this presentation. Please note that the only reliable source of information on the situation of Getin Noble Bank S.A., forecasts, events, financial results and indicators is the current and periodic reports published by Getin Noble Bank S.A. as part of its obligation to provide information. 19