BZWBK Group Results

Transcription

1 1 BZWBK Group Results 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 Table of Contents 3 Macroeconomic Scenario and Financial System Business - Results

4 Macroeconomic Scenario 4 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

5 Macroeconomic Scenario 5 % YoY Private consumption Fixed investments Investments and Consumption EUR billion -12,2 C/A Balance vs. FDI+EU funds Current account balance Foreign direct investments EU funds 8,5 8,5 5,4 6,9 9,3 6,7 10,3 11,0-16,5-15,9-11, Unemployment Rate Fiscal policy indicators % Registered unemployment LFS unemployment (s.a.) 13,5 10,2 sty 08 sty 09 sty 10 sty 11 sty 12 % of GDP General government debt General government deficit 56,4 54,9 55,4 50,9 53,4 7,3 7,9 5,5 3,4 3, Source: National Bank of Poland, Central Statistical Office, Eurostat, Santander Research

6 Financial System: Credit Evolution 6 Slowdown in loan growth at the start of 2012 Total Loans Loans to Corporations PLN billion ,2% PLN billion ,0% 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% ,7% PLN billion 143 1,1% ,5% 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

7 Financial System: Deposits Evolution 7 Deposit growth Total Deposits Corporate Deposits PLN billion ,4% PLN billion 181 9,9% ,5% 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 ,3% 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

8 Table of Contents 8 Macroeconomic Scenario and Financial System Business - Results

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

10 BZWBK Group 10 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 Loans Deposits Total assets * PLN m PLN m PLN m +9.7% Y-o-Y Income PLN 946 m Costs PLN 458 m PBT PLN 411 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 PLN 11,668m 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 PLN 89 m

11 Business: Portfolio Evolution 11 Loan growth driven by Cash Loans, SME and Large Corporate PLN 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

12 Business: Loans by products 12 Personal lending % Y-o-Y Cash Loans Individuals Mortgages PLN m PLN 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

13 Business: Deposits + Funds Evolution 13 Active management of deposits PLN m 5.7% % Y-o-Y Variation Q-o-Q Variation Demand % -0.1% Savings % 8.0% Time Deposits % -13.5% Customer Deposits % -7.1% Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Retail Busine ss Mutual Funds -19.6% 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

14 Business: Market Share 14 Market Share (%) March 2012 December 2011 March 2011 Total Banking System Loans Total Loans Cash Loans Deposits + Funds Total Deposits Personal Deposits Business Deposits

15 Table of Contents 15 Macroeconomic Scenario and Financial System Business - Results

16 Results: Net Interest Income 16 Net Interest Income +12.6% Y-o-Y PLN 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

17 Results: Net Fees 17 Net Fees flat PLN 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

18 Results: Total Income 18 Total Income grew at 6.4% Y-o-Y PLN m Y-o-Y Variation Q-o-Q Variation 6.4% 2.0% Net Interest Income % 3.3% Fees % 0% Subtotal % 2.0% Q11 2Q11 3Q11 4Q11 1Q12 Gain/loss on financial transactions + Others Fees Net Interest Income Gain/Loss on financial transactions + Others % -7.6% Total Income % 1.4%

19 Results: Administrative Expenses and Amortization 19 Total expenses grew at 3.0% Y-o-Y and % Q-o-Q PLN m 3.0% -19.8% Y-o-Y Variation Q-o-Q Variation Staff costs % -8.7% Administrative Expenses % -1.6% Amortization % -66.4% Q11 2Q11 3Q11 4Q11 1Q12 Staff costs Administrative Expenses Amortization Other costs Once-off adjustments 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 * Including the impact of once-off adjustments

20 Results: Net operating income 20 Net operating income growth of 9.7% mainly driven by NII PLN m % % Net Interest Income + Fees Gain on Q11 2Q11 3Q11 4Q11 1Q12 Operating surplus Once-off adjustments financial transactions + Others Adm. Expenses + Amortization + Other costs Net operating income Y-o-Y Variation Q-o-Q Variation % 2.0% % -7.6% (458) (445) 3.0% -19.8% % 34.7%* * Including the impact of once-off adjustments

21 Results: Provisions and Loan Quality 21 Asset quality improved quarter on quarter PLN 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

22 Results: Net Profit 22 Net Profit of PLN 322 Million on , growth of 13% Y-o-Y PLN m 13.0% 57.4% Y-o-Y Variation Q-o-Q Variation Profit before Taxes % 46.4% * Taxes (89) (68) 29.6% 16.9% 89 Net Profit % 57.4%* 205 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 PLN 61.6 m

23 Results: Indicators 23 C/I % Solvency ratio % ROE % -1.6 p.p p.p p.p. 50,0 48,4 14,7 15,2 17,7 21,

24 Conclusions: 24 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 PLN 314 m % y/y + 9.4% q/q (increase excl. once-off adjustments) Group Ongoing integration with Santander Group

25 25 ANNEXES P&L Account Balance sheet Net interest margin evolution

26 P&L Account 26 for the period ( in PLN k): 1Q Q Q Q Q 2011 Interest and similar income Interest expense and similar charges ( ) ( ) ( ) ( ) ( ) Net interest income Fee and commission income Fee and commission expense (50 940) (53 930) (50 195) (49 248) (47 619) Net fee and commission income Dividend income Net trading income and revaluation Gains (losses) from other financial securities (170) Gains (losses) from investment in subsidiaries and associates Other operating income Impairment losses on loans and advances (80 806) (85 524) ( ) (78 750) (94 854) Operating expenses incl.: ( ) ( ) ( ) ( ) ( ) Bank's staff, operating expenses and management costs ( ) ( ) ( ) ( ) ( ) Depreciation/amortisation (36 865) ( ) (34 466) (35 716) (35 900) Other operating expenses (3 773) (18 312) (17 809) (8 765) (4 736) Operating profit Share in net profits (losses) of entities accounted for by the equity method Profit before tax Corporate income tax (88 807) (75 959) (88 806) (82 262) (68 536) Profit for the period incl.: attributable to owners of BZ WBK S.A attributable to non-controlling interests

27 Balance Sheet 27 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

28 Net interest margin evolution 28 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