BZWBK Group Results

Transcription

1 1 BZWBK Group Results January 31 st, 2012

2 Important information Banco Santander, S.A. ("Santander") cautions that this presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends; (2) movements in local and international securities markets, currency exchange rates, and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors and other key factors that we have indicated in our past and future filings and reports, including those with the Securities and Exchange Commission of the United States of America (the SEC ), could adversely affect our business and financial performance. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities or any advice or recommendation with respect to such securities. The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by Santander. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in the presentation. Nothing contained in this presentation is an offer of securities for sale into the United States or in any other jurisdiction. No offering of Securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption there from. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act In making this presentation available, Santander makes no recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments whatsoever and you should neither rely nor act upon, directly or indirectly, any of the information contained in this presentation in respect of any such investment activity. Note: Statements as to historical performance, historical share price or financial accretion are not intended to mean that future performance, historical share price or future earnings (including earnings per share) for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. Note: The results information contained in this presentation has been prepared according to IFRS as applied in Poland. As a result it may differ from the one disclosed by Santander Group. 2

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 1,6 3,9 4,3 2,3 3,1 3,50 3,50 4,50 4,00 4, (e) 2013(e) (e) 2013(e) Inflation (CPI %) Exchange Rate PLN/EUR End of period 3,5 2,6 4,3 3,7 2,5 4,11 3,96 4,42 4,18 3, (e) 2013(e) (e) 2013(e) Source: The National Bank of Poland, Stat Office, Santander Research

5 Macroeconomic Scenario 5 Investments and Consumption C/A Balance vs. FDI+EU funds % YoY EUR billion, in 12 months Private consumption 5,7 2,1 3,2 3,1 9,6 8,7 Current account balance Foreign direct investments EU funds Fixed investments -1,2-0, Unemployment Rate Nov.2011 Fiscal policy indicators % % of GDP General government debt 50,9 54,9 56,7 55,7 53,6 9 7 Registered unemployment rate LFS unemployment rate 5 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 * Official LFS unemployment figures unavailable for December 2011 Source: The National Bank of Poland, Stat Office, Santander Research General government deficit 7,3 7,9 5,0 3,5 3,

6 Financial System: Credit Evolution 6 Recovery in corporate loans, strong rise in mortgages, stagnation in consumer Total Loans Loans to Corporations PLN billion % % PLN billion % % Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Loans to individuals (mortgage credit) Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Loans to individuals (consumer credit) PLN billion 24.2% % PLN billion % % Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Volume Y-o-Y % Source: The National Bank of Poland

7 Financial System: Deposits Evolution 7 Total deposits up 11.7% in Y-o-Y Total Deposits Corporations Deposits PLN billion PLN billion % 11.7% 12.1% 9.9% Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Households Deposits Mutual funds PLN billion % % 24.2% % Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Volume Y-o-Y % Source: The 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 96 ATMs Employees ( FTE s) Corporate Banking Centres* 3 Business Banking Centres** 7 Balance sheet P&L Assets EUR m Loans EUR m Deposits EUR m Total assets +12.6% Y-o-Y Income EUR 930 m Costs (excl. once-off adjustments) EUR 447 m PBT (excl. once-off adjustments) EUR 396 m ROE (excl. once-off adjustments) 21.2 % * Supported by specialist services offices: Property Dep., Large Corporate & Structured Finance Dep., Large Corporate & Sectoral Dep. ** Complemented by 7 representative offices

11 Integration with Santander Group Integration update New business line and customer proposition Global Banking & Markets Division Cross-sell & cooperation opportunities Treasury Bankassurance Card business Asset management Exchange of best practices Trading/Banking book management Risk management & internal control framework Efficiency and cost management Implementation of group wide solutions Once-off adjustments Once-off adjustments relate predominantly to amortization of intangible and fixed assets

12 Business: Portfolio Evolution 12 Loan growth with focus on business EUR m Y-o-Y Q-o-Q 15.1% 3.7% Mortgage % 1.0% Other personal % -1.6% Total personal % -0.1% Business % 5.6% Total gross loans % 3.7% Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Comments Y-o-Y variation excluding FX effect*: Mortgage loans 5% Total personal 7% Business 13% Total Loans 11% PLN loans comprise 67% of total gross loans portfolio; FX loans 33%

13 Business: Loans by products 13 Personal lending +9.9% Y-o-Y Cash Loans Individuals Mortgage EUR m EUR m 15.2% 9.8% % %* Dec.10 Dec.11 Dec.10 Dec.11 FX PLN Comments Gaining market share in cash loans and credit cards Monthly sales of cash loans at its highest in Bank s history * FX mortgage decrease of -4% if FX volatility effect excluded

14 Business: Deposits + Funds Evolution 14 Strong volume increase in deposits EUR m 11.6% % Y-o-Y Q-o-Q Demand % -0.7% Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Retail Business Savings % -1.8% Time Deposits % 12.9% Customer Deposits Business deposits +17.8% YoY Retail deposits +7.5% YoY Mutual Funds % 7% Comments -35.8% Dec.10 Mar.11 Jun.11 Sep.11 Dec.11

15 Business: Loan Market Share affected by FX rate 15 Market Share (%) December 2011 June 2011 December 2010 Total Banking System Loans Total Loans Cash Loans Deposits + Funds Total Deposits Personal Deposits Business Deposits

16 Table of Contents 16 Macroeconomic Scenario and Financial System Business - Results

17 Results: Net Interest Income 17 Net Interest Income +13.5% Y-o-Y EUR m NIM by Q, % 13.5% 1.3% 4,27 4,34 4,27 4,29 4, Q10 1Q11 2Q11 3Q11 4Q11 4Q10 1Q11 2Q11 3Q11 4Q11 Comments Double digit growth of NII due to significant increase in volumes

18 Results: Net Fees 18 Net Fees flat EUR m 1.1% Y-o-Y Q-o-Q -2.9% Investment banking % -15.2% ebusiness & payments % 1.2% Current accounts & money transfer % -1.6% FX fees % 3.4% 4Q10 1Q11 2Q11 3Q11 4Q11 Net Fees Comments Current account pricing strategy supporting growth of ebusiness & payments fees Strong increase of insurance income impacted by accounting policy Loan fees % 7.1% Insurance fees % 0% Other % -17.6% Total % -2.9% 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

19 Results: Total Income 19 Total Income grew at 8.1% Y-o-Y EUR m Y-o-Y Q-o-Q 8.1% -5.7% Net Interest Income % 1.3% Fees % -2.9% Q10 1Q11 2Q11 3Q11 4Q11 Gain/loss on financial transactions + Others Fees Net Interest Income Subtotal % -0.4% Gain/Loss on financial transactions + Others* % -45.5% Total Income % -5.7% * In 2011 dividend from Aviva entities of EUR 15 m, in 2010: EUR 11.7 m

20 Results Total costs 20 Total costs excl. once-off adjustments +4.1 % Y-o-Y Total costs excl. once-off adjustments EUR m p.p. 447 Y-o-Y Q-o-Q Staff costs Administrative Expenses Amortization Other costs Staff costs 1.9% 10.2% Administrative Expenses 5.4% 13.5% Amortization 8.5% -2.0% Other costs 23.5% -41.9% Total costs 4.1% 8.3%

21 Results: Administrative Expenses and Amortization 21 Total expenses excl. once-off adjustments grew at 4.1% Y-o-Y and 8.3 % Q-o-Q EUR m 9.1% % Y-o-Y Q-o-Q Staff costs % 10.2% Administrative Expenses % 13.5% Amortization % -2.0% Other costs % -41.9% Q10 1Q11 2Q11 3Q11 4Q11 Once-off harmonisation adjustments Other costs Amortization Administrative Expenses Staff costs Subtotal % 8.3% Once-off adjustments Total % 28.3% Comments Regulatory costs totalled EUR 10.5 m, + 72% Y-o-Y Once-off adjustments relate predominantly to amortization of intangible and fixed assets

22 Results: Net operating income 22 Net operating income growth of 7.0% mainly driven by NII EUR m % % Q10 1Q11 2Q11 3Q11 4Q11 Once-off harmonisation adjustments Operating surplus Net Interest Income + Fees Gain on financial transactions + Others* Adm. Expenses + Amortization + Other costs Net operating income Once-off adjustments Total net income Y-o-Y Q-o-Q % -0.4% % -45.5% (447) (429) 4.1% 8.3% % -17.2% (21) % -33.4% * In 2011 dividend from Aviva entities of EUR 15 m, in 2010: EUR 11.7 m

23 Results: Provisions and Loan Quality 23 Asset quality improved quarter on quarter EUR m Provisions and Annualised total credit loss ratio NPL (%) 1,31% 1,25% 1,20% 1,21% 1,21% 1,11% 1,00% 1,06% 1,00% 5,5% 5,8% 6,3% 6,0% 6,8% 7,0% 6,7% 6,5% 5,53% Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Coverage ratio (%) 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 39,1% 42,3% 41,3% 45,3% 44,1% 46,4% 50,2% 51,9% 49,0% Provisions Annualised total credit loss ratio 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

24 Results: Net Profit 24 Net Profit of EUR 298 Million on , growth of 17.9% Y-o-Y EUR m 17.9% Y-o-Y Q-o-Q -41.7% 15* Q10 1Q11 2Q11 3Q11 4Q11 Once-off harmonisation adj. Net profit * In 2011 dividend from Aviva entities of EUR 15 m Profit before Taxes % -16.1% -Taxes (77) (77) -0.33% -14.5% Net Profit excluding onceoff adjustments Once-off adjustments Net profit after once-off adjustments Attributable profit after once-off adjustments % -16.4% (21) % -41.7% % -42.5%

25 Results: Indicators 25 C/I, % Solvency ratio, % ROE, % -1.9 p.p p.p p.p. 49,9 48,0 * 15,77 15,10 17,3 21,2 * * C/I incl. once-off adjustments 50.3% * ROE incl. once-off adjustments 19.7%

26 Conclusions: 26 Key points Good growth in loans Dynamic growth of time deposits Focus on net interest margin Loans Credit: +3.7% q/q Business: +5.6% q/q Loan/Deposit ratio: 81.2% Interest income Strong growth in interest income: +13.5% y/y +1.3% q/q Net profit Strong growth in net profit attributable profit of EUR 288 m % y/y % y/y (increase excl. once-off adjustments) Group Ongoing integration with Santander Group

27 27 ANNEXES P&L Account Balance sheet Net interest margin evolution

28 P&L Account 28 for the period: 4Q Q Q Q Q 2010 Interest and similar income Interest expense and similar charges (91 587) (83 900) (78 822) (72 938) (70 784) Net interest income Fee and commission income Fee and commission expense (13 120) (12 211) (11 981) (11 585) (12 277) Net fee and commission income Dividend income Net trading income and revaluation Gains (losses) from other financial securities (41) 544 Other operating income Impairment losses on loans and advances (20 806) (26 239) (19 158) (23 076) (25 104) Operating expenses incl.: ( ) ( ) ( ) ( ) ( ) Bank's staff, operating expenses and management costs ( ) (95 543) ( ) (98 206) ( ) Depreciation/amortisation (26 710) (8 385) (8 689) (8 734) (7 964) Other operating expenses (4 455) (4 333) (2 132) (1 152) (1 807) Operating profit Share in net profits (losses) of entities accounted for by the equity method Profit before tax Corporate income tax (18 479) (21 605) (20 013) (16 673) (20 188) Profit for the period incl.: attributable to owners of BZ WBK S.A attributable to non-controlling interests

29 Balance Sheet 29 4Q Q Q Q Q 2010 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

30 Net interest margin evolution 30 NIM by Q, % 3,80 3,85 3,92 3,36 3,46 3,58 4,27 4,34 4,27 4,29 4,23 3,92 4,01 3,94 3,95 3,87 1Q 10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Incl. swap points Excl. swap points