BANK PEKAO S.A. GENERAL PICTURE

Transcription

1 BANK PEKAO S.A. GENERAL PICTURE

2 Disclaimer This presentation (the Presentation ) has been prepared by Bank Polska Kasa Opieki Spółka Akcyjna ( Bank ) for the clients, shareholders and financial analysts. This presentation should not be treated as an offer or invitation to purchase any securities or financial instruments or as an advice or recommendation in respect to such securities or financial instruments. The presented data are only general information and does not refer to the offered by the Bank products or services. In order to take advantage of the services and products of the Bank, one should be thoroughly familiar with the characteristics of the particular service or product, its rules, risk and legal and tax consequences of the use of particular service or product. The strategy presented in this presentation contains goals which are the ambition of the Management Board and do not constitute any financial results forecast. Rights for the Presentation as a whole are entitled to the Bank. Presentation is a subject to the protection provided by the law, in particular: the Act dated on February 4th, 1994 on Copyright and Related Rights (consolidated text in Journal. Laws of 2006, No. 90, item. 631, as amended); the Act dated on July 27th, 2001 on the Databases protection(journal of Laws No. 128, item. 1402, as amended); the Act dated on April 16, 1993 on Combating Unfair Competition (consolidated text in Journal of Laws of 2003, No. 153, item 1503, as amended) and the Act dated on June 30, 2000 on Industrial Property Law (consolidated text in Journal. Laws of 2003, No. 119, item as amended). This presentation may include forward looking statements, Bank s outlook for the future, future plans and strategies or anticipated events that are not historical facts. Since these statements are based on assumptions, expectations, projections and provisional data about future events, the content is inherently uncertain. Factors that could cause or contribute to differences in current expectations include, but are not limited to: (i) general economic conditions, among which the economic conditions of the business areas and the markets in which Bank and its subsidiaries operate, (ii) the performance of financial markets (iii) changes in laws or regulations and (iv) general competitive conditions locally, regionally, nationally and/or internationally. The Bank does not undertake to publish any updates, modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of the Bank, or should facts or events occur that affect the Bank s strategy or intentions, unless such reporting obligations arises under applicable laws and regulations. Bank, nor any of its representatives shall not be responsible for any loss or damage it may arise from the use of this Presentation or of any information contained herein or otherwise arising in connection to this Presentation. This presentation is not for the distribution, in or into countries where the public dissemination of the information contained herein may be restricted or prohibited by law. 1

3 Agenda General picture Outlook Appendix 2

4 Bank Pekao snapshot EUR Ranking Retail clients 4.8 m 2 Corporate & SME clients 0.3 m Assets 40.3 bl Loans 30.6 bl 2 Retail PLN loans 10.7 bl 2 Corporate loans 18.2 bl 1 Public sector loans 3.7 bl 1 Deposits 31.2 bl 2 Retail deposits 14.3 bl 2 Position of Pekao (1) 1 2 <= Corporate deposits 16.9 bl # of branches Import / Export 21%/26% 1 Mutual funds 4.0 bl 1 Market cap 9.6 bl 1 Share of Pekao in banking sector Total Revenues 12.3% Operating profit 14.1% Net profit 16.7% 3 NOTE: Financial data as at September 30th, EUR = PLN Number of branches as at September 30th, 2015 (1) Market position of Pekao as at June 30th, Commercial banks only, excluding agencies

5 Solid Pekao fundamentals CT 1 ROE 18,2% 14,0% 11,2% 9,0% Pekao Sector Pekao Sector L/D RATIO C/I RATIO 91,4% 95,9% 47,2% 54,2% Pekao Sector Pekao Sector ROA CoR 1,5% 0,50 0,68 1,0% Pekao Sector Pekao Sector 4 Data as of September 30 th, 2015 Source: NBP reports

6 Market share - Retail Market leader in retail lending Market leader in retail deposits Market share 8.8% 9.8% PLN MORTGAGES (%) CONSUMER LOANS - PEX(%) pp pp 17,8% 8,4% 9,5% 16,3% Dec 10 Sep 15 Dec 10 Sep 15 5 Source: Calculation based on adjusted NBP reporting; Dec 2010 September 2015

7 Market share - Corporate Market share Market leader in corporate lending Market leader in corporate deposits Project finance & Leveraged finance Debt capital market Bonds on Catalyst arranged in 2014 Leader in cash management service Trade finance market 16% 17% 25% 22% 27% 17% 20% 6 NOTE: Market share as at September 30th, 2015,

8 Market position - Bank Pekao vs peers Deposits Loans Capitalisation on the Warsaw Stock Exchange PKO 42,1 PKO 43,7 Pekao 9,56 Pekao 30,3 Pekao 28,4 PKO 8,68 BZWBK 22,6 BZWBK 21,7 BZWBK 6,87 ING 19,8 MBank 18,7 ING 3,66 MBank 18,5 ING 16,9 MBank 3,46 GetinNoble 13,3 BGŻBNPP 11,8 Handlowy 2,49 Millennium 12,1 GetinNoble 11,7 Millennium 1,68 BGŻBNPP 10,4 Millennium 10,9 Alior 1,36 Alior 7,4 Alior 6,9 BGŻBNPP 0,99 Note: Consolidated data in bln EUR as at September 30th,

9 Main commercial initiatives conducted by the Bank Lending growth in strategic areas Clients acquisition Agro business Program for enterprises Cards program PeoPay PeoPay Digital Agenda Digital Agenda Klik OC PeoPay Tablet PO gotówk RPekaoBIZN Bankin S a g Workflow mbanki ES 24 Flexia BP ngcr Pekao2 M OC M 4 S 8

10 Pekao 2020 aspiration Increase profit share by sustainably gaining market share in areas with highest value creation potential, with acquisition of ~1 M customers Achieve an overall cost/income <42% strongly leveraging new technologies Maintain an overall risk appetite lower than the market (CoR 0.5% in 2020) leveraging risk-return driven methodologies Keep an healthy liquidity and a self-funded capital position, both at segment and bank level 9

11 Bank Pekao history 1929 Creation of the Bank 1998 Merger with 3 regional banks 1998 IPO Pekao listed on WSE 1999 UniCredit as a strategic investor 2007 BPH spin-off 2012 New brand 10

12 Ownership structure shares and votes during shareholder meetings Minority shareholders shares and votes during shareholder meetings 49,9% 50,1% Polish Pension Funds: 14.4% Polish Mutual Funds: 1.9% Note: Latest available data as at 30th of June

13 Ratings of Bank Pekao S.A. FITCH RATINGS BANK PEKAO S.A. POLAND Long-term rating (IDR) A- A- Short-term rating F2 F2 Viability rating a- Support rating 2 Outlook Stable Stable STANDARD AND POOR'S BANK PEKAO S.A. POLapD Long-term rating BBB+ A- Short-term rating A-2 A-2 Stand-alone bbb+ Outlook Negative* Positive MOODY'S INVESTORS SERVICE LTD BANK PEKAO S.A. (unsolicited rating) POLapD Long-term foreign-currency deposit rating A2 A2 Short-term deposit rating Prime-1 Prime-1 BCA baa1 Outlook Stable Stable/ Negative** 12 Notes: Bank Pekao S.A. s Viability rating at a- from Fitch Ratings, Stand-alone one at bbb+ from Standard and Poor s and BCA at baa1 from Moody s are the highest individual ratings assigned by these rating agencies to banks rated in Poland (*) On 30th of June 2015 Standard & Poor's confirmed Bank's ratings at unchanged levels and changed Outlook to negative. The negative Outlook indicates rating agency view of a one-in-three probability that implementation of EU Bank Recovery and Resolution "BRRD" in Poland could lead to an increased bail-in risk. (**) Stable for the economy and Negative for the banking sector in Poland

14 Pekao Group organizational structure BANK PEKAO SUPERVISORY BOARD MANAGEMENT BOARD President of the Management Board C.E.O President s Office Internal Audit Department Stakeholders Engagement Research & Development Dept. Investors Relations & Market Strategic Analysis Dept. Legal Department Macroeconomic Research Office Compliance Department Retail Banking Division Private Banking Division Corporate Banking and MIB Division Financial Division (CFO) Risk Management Division (CRO) Human Resources Division Global Banking Services Area Logistics and Procurement Division Identity and Communication Area MAIN SUBSIDIARIES OF PEKAO GROUP Brokarage activity Investmetnt activity Assets management Operational and financial lease Recourse, non-recourse factoring, forfaiting 13 Business units Back office units

15 Agenda General picture Outlook Appendix 14

16 Polish economy outlook F 2016F GDP, % y/y Consumption, % y/y Investment, % y/y Unemployment, % eop CPI, % avg M Wibor, % avg Reference rate, % eop Exchange rate EUR, eop Exchange rate USD, eop Public sector balance, % GDP Note: Internal macroeconomic scenario 15

17 Polish banking sector outlook F** 2016F** Loans, % y/y Retail, % y/y *** 5.5 Mortgage loans PLN Consumer loans* Corporate, % y/y SME loans Savings, % y/y Deposits, % y/y Retail, % y/y Corporate, % y/y Mutual Funds, % y/y * all non-mortgage retail loans **internal scenario *** including effect of stronger CHF on existing portfolio

18 Agenda General picture Outlook Appendix 17

19 Selected data Bank Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Sep 15 Outlets ATM's Employees No of PLN current accounts (ths)* No of mortgage loan accounts (ths)** No of clients holding a consumer loan accounts (ths)*** Number of individuals with an access to electronic banking Pekao24 (ths) Number of individuals with an access to mobile banking (ths) Number of business clients (SME) with an access to electronic banking systems (ths) Group Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Sep 15 Employees**** Outlets**** ATM's**** Number of MF accounts (ths)***** Number of Brokerage accounts (ths)****** (*) Number of accounts including pre-paid card accounts 18 (**) Retail clients accounts (***) Pożyczka Ekspresowa (Express Loan) (****) Credit Union (SKOK) Kopernik included since Dec 2014 (****) Pioneer Pekao Investment Management S.A. (*****) Including: Dom Maklerski Pekao (Dom Maklerski), subsidiarycentralny Dom Maklerski Pekao S.A. (CDM), and associated entity Dom Inwestycyjny Xelion Sp. z o.o. (Xelion)

20 Consolidated income statement (1/2) mln PLN M 15 Share in income or cost (%) Net interest income (1) % Net fee and commission % Operating income % Operating costs (2) % Payroll costs % Other administrative expenses % Depreciation % OPERATING PROFIT Provisions Guarantee funds charges PROFIT BEFORE INCOME TAX Income tax GROUP NET INCOME (3) Cost/Income Ratio (%) (4) 49,2% 45,9% 44,4% 44,6% 44,7% 45,8% Cost of Risk (%) 0,68% 0,63% 0,72% 0,71% 0,56% 0,50% NIM (%) 3,5% 3,7% 3,7% 3,4% 3,1% 2,8% L/D (%) 80,1% 85,8% 86,5% 84,6% 88,8% 93,5% (1) NII and dividends and other income from equity investments 19 (2) Costs excl. guarantee funds charges (3) Net profit attributable to equity holders of the Bank (4) Operating cost excluding guarantee funds charges

21 Consolidated income statement (2/2) mln EUR M 15 Share in income or cost (%) Net interest income (1) % Net fee and commission % Operating income % Operating costs (2) % Payroll costs % Other administrative expenses % Depreciation % OPERATING PROFIT Provisions Guarantee funds charges PROFIT BEFORE INCOME TAX Income tax GROUP NET INCOME (3) Cost/Income Ratio (%) (4) 49,2% 45,9% 44,4% 44,6% 44,7% 45,8% Cost of Risk (%) 0,68% 0,63% 0,72% 0,71% 0,56% 0,50% NIM (%) 3,5% 3,7% 3,7% 3,4% 3,1% 2,8% L/D (%) 80,1% 85,8% 86,5% 84,6% 88,8% 93,5% (1) NII and dividends and other income from equity investments 20 (2) Costs excl. guarantee funds charges (3) Net profit attributable to equity holders of the Bank (4) Operating cost excluding guarantee funds charges NOTE: Data recalculated into EUR based on exchange rate

22 The structure of the Group net profit (1/2) mln PLN cumulative Share in entitiy % M 15 Bank Pekao S.A. Banking - Poland Entities - consolidated under full method of which: (*) Pekao Leasing Sp. z o.o. Leasing 36% 4,8 42,0 41,9 40,6 54,6 37,1 Centralny Dom Maklerski Pekao S.A. Brokerage 100% 51,5 46,0 30,5 39,3 42,4 33,4 Pekao Bank Hipoteczny S.A. Mortgage Bank 100% 17,5 17,3 15,7 12,7 10,0 6,6 Pekao Pioneer PTE S.A. Pension Fund 65% 12,4 12,0 11,4 13,8 15,4 2,1 Pekao Faktoring Sp. z o.o. Factoring 100% 11,3 10,7 10,2 10,1 8,2 6,5 Pekao Investment Banking S.A. Brokerage 100% , ,8 Centrum Bankowości Bezpośredniej Sp. z o.o. Call Centre 100% 1,1 3,7 3,2 3,9 2,4 1,4 Pekao Financial Services Sp. z o.o. Servicing MF/PF 100% 9,8 7,4 3,9 6,6 7,2 6,2 Centrum Kart S.A. Cards 100% 4,6 3,7 2,5 1,7 2,6 0,7 Pekao Fundusz Kapitałowy Sp. z o.o. Business consulting 100% 2,8 1,3 1,2 0,6 0,3 0,1 Pekao Property S.A. Real estate development 100% ,6-0,4-0,9 0,0 Entities - valued under the equity method Pioneer Pekao Investment Management S.A. Mutual Funds 49% 57,1 62,3 45,2 48,3 51,8 34,7 Krajowa Izba Rozliczeniowa S.A. Clearing Services 34% 8,4 10,9 7,4 10,0 10,0 5,5 Dom Inwestycyjny Xelion Sp. z o.o. Financial Advisory 50% 0,8 0,7 0,7 1,1 1,5 1,3 Exclusions and consolidation adjustments Group Net Profit (**) (*) Entities in liquidation, sold or indirect ownership not presented (**) Group net profit attributable to equity holders of the Bank (reported) NOTE: Data as reported

23 The structure of the Group net profit (2/2) mln EUR cumulative Share in entitiy % M 15 Bank Pekao S.A. Banking - Poland Entities - consolidated under full method of which: (*) Pekao Leasing Sp. z o.o. Leasing 36% 1,1 9,9 9,9 9,6 12,9 8,8 Centralny Dom Maklerski Pekao S.A. Brokerage 100% 12,2 10,9 7,2 9,3 10,0 7,9 Pekao Bank Hipoteczny S.A. Mortgage Bank 100% 4,1 4,1 3,7 3,0 2,4 1,6 Pekao Pioneer PTE S.A. Pension Fund 65% 2,9 2,8 2,7 3,3 3,6 0,5 Pekao Faktoring Sp. z o.o. Factoring 100% 2,7 2,5 2,4 2,4 1,9 1,5 Pekao Investment Banking S.A. Brokerage 100% , ,3 Centrum Bankowości Bezpośredniej Sp. z o.o. Call Centre 100% 0,3 0,9 0,8 0,9 0,6 0,3 Pekao Financial Services Sp. z o.o. Servicing MF/PF 100% 2,3 1,7 0,9 1,6 1,7 1,5 Centrum Kart S.A. Cards 100% 1,1 0,9 0,6 0,4 0,6 0,2 Pekao Fundusz Kapitałowy Sp. z o.o. Business consulting 100% 0,7 0,3 0,3 0,1 0,1 0,0 Pekao Property S.A. Real estate development 100% ,4-0,1-0,2 0,0 Entities - valued under the equity method Pioneer Pekao Investment Management S.A. Mutual Funds 49% 13,5 14,7 10,7 11,4 12,2 8,2 Krajowa Izba Rozliczeniowa S.A. Clearing Services 34% 2,0 2,6 1,7 2,4 2,4 1,3 Dom Inwestycyjny Xelion Sp. z o.o. Financial Advisory 50% 0,2 0,2 0,2 0,3 0,4 0,3 Exclusions and consolidation adjustments Group Net Profit (**) (*) Entities in liquidation, sold or indirect ownership not presented (**) Group net profit attributable to equity holders of the Bank (reported) NOTE: Data recalculated into EUR based on exchange rate

24 Consolidated balance sheet (1/2) mln PLN Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Sep 15 Share in balance sheet (%) Cash and amounts due from Central Bank % Loans and advances to banks % Loans and advances to customers* % Investment securities % Assets held for sale % Intangible assets % Tangible fixed assets % TOTAL ASSETS % Amounts due to the Central Bank % Amounts due to other banks % Financial liabilities held for trading % Amounts due to customers % Debt securities issued % Total liabilities % Total Shareholders' equity % (*) Including loans and advances from customers and receivables from finance leases 23

25 Consolidated balance sheet (2/2) mln EUR Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Sep 15 Share in balance sheet (%) Cash and amounts due from Central Bank % Loans and advances to banks % Loans and advances to customers* % Investment securities % Assets held for sale % Intangible assets % Tangible fixed assets % TOTAL ASSETS % Amounts due to the Central Bank % Amounts due to other banks % Financial liabilities held for trading % Amounts due to customers % Debt securities issued % Total liabilities % Total Shareholders' equity % (*) Including loans and advances from customers and receivables from finance leases 24 NOTE: Data recalculated into EUR based on exchange rate

26 Bank Pekao on the Warsaw Stock Exchange Bank Pekao S.A. on the Warsaw Stock Exchange (WSE) Bank Pekao SA is listed on the Warsaw Stock Exchange and London Stock Exchange (GDRs program) The largest bank on WSE in terms of market capitalisation (9.6 bln EUR) The biggest Polish company in terms of market capitalisation The second biggest bank in terms of value of turnovers and volume of shares in free float among banks Bank WIG 20, WIG 30, MSCI, CEERIUS Sustainability Index Note: Data as at 30 th of September