Bank Zachodni WBK Group Results 2012

Transcription

1 1 Bank Zachodni WBK Group Results 2012 January 31 st, 2013

2 Bank Zachodni WBK S.A. ("BZ WBK") cautions that this presentation contains forward-looking statements. 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, macro-economic, 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 that we have indicated in our past and future filings and reports 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. 2 Forward-looking statements speak only as of the date on which they are made and are based on the knowledge, information available and views taken on the date on which they are made; such knowledge, information and views may change at any time. BZ WBK does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 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 BZ WBK. 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. In making this presentation available, BZ WBK gives no advice and makes no recommendation to buy, sell or otherwise deal in shares in BZ WBK or in any other securities or investments whatsoever. 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. Note: Statements as to historical performance or financial accretion are not intended to mean that future performance, 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

3 Table of Contents 3 Overview + Strategy Market Environment Business - Results

4 Table of Contents 4 Overview + Strategy Market Environment Business - Results

5 Highlights 5 Sustained Profit Generation Net profit: EUR350m; + 21% y-o-y Total income +8.2% y-o-y Total expenses -5.6% y-o-y 43% Cost to income ratio Capital Strength* and Liquidity Business Development Qtr 4 Net Interest Margin at 4.4%.; + 17bps y-o-y Strong credit growth in Consumer Loans, SME and Large Corporate Growth in fee income lines.; Assets under management + 24% y-o-y Merger with Kredyt Bank Total Capital Ratio at 16.6% Core Tier 1 Ratio at 14.3% Loan to deposit ratio at 84.7% Legal merger completed on 4 th January Integration plan rolling out *According to local criteria

6 Key Facts 6 25 Zachodnio- Pomorskie Szczecin 23 Lubuskie Pomorskie Kujawsko- Pomorskie 87 Łódź Wielkopolskie BZ WBK (without KB branches) as at Poznań 30 Gdańsk Warmińsko- Mazurskie Mazowieckie Podlaskie Wroclaw 25 7 Dolnośląskie Łódzkie Opolskie 7 92 Częstochowa Lubelskie Świętokrzyskie GDP per capita by region Śląskie Kraków 7 Podkarpackie PLN Małopolskie 8 70 Warsaw 6 Lublin BZ WBK Features Branches incl. agencies 109 ATMs Employees ( FTE s) 8.8 k Corporate Banking Centres 3 Business Banking Centres 7 Balance Sheet Profit & Loss 2012 Assets EUR m Loans EUR m Deposits EUR m Total assets * +2,4% Y-o-Y *excluding currency movement Income EUR 989m Costs EUR (434)m PBT EUR 439m ROE 20,7%

7 Table of Contents 7 Overview + Strategy Market Environment Business - Results

8 Macroeconomic Scenario 8 GDP (real annual growth %) Interest Rate NBP Reference Rate (%) End of period (e) (e) Inflation (CPI %) Exchange Rate PLN/EUR End of period (e) (e) Source: National Bank of Poland, Central Statistical Office, Santander Research

9 Macroeconomic Scenario 9 Investments and Consumption C/A Balance and Foreign Trade Turnover Private consumption %YoY Current account balance (EURbn) Export (%YoY) Import (%YoY) (e) Fixed -2.5 investment (e) 2013(e) Unemployment Rate Fiscal Policy Indicators % Labour Force Survey Unemployment (seasonally adjusted) by Eurostat 10.6 % of GDP General government debt Jan 10 Jan 11 Jan 12 Source: National Bank of Poland, Central Statistical Office, Eurostat, Santander Research General government deficit (e) 2013(e)

10 Financial System: Credit Evolution 10 Credit Growth Total Loans Loans to Corporations PLN billion 13.7% PLN billion 18.1% % Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Loans to Households (Mortgage Credit) Dec.11 Mar.12 Jun.12 Sep.12 Dec % Loans to Households (Consumer Credit) PLN billion % PLN billion % % -4.9% Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Volume Y-o-Y Variation % Source: National Bank of Poland

11 Financial System: Deposit Evolution 11 Deposit Growth Total Deposits Corporate Deposits PLN billion 11.7% PLN billion % % -7.6% Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Household Deposits Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Mutual Funds PLN billion % % ,6% -1,5% Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Volume Y-o-Y Variation % Source: National Bank of Poland

12 Table of Contents 12 Overview + Strategy Market Environment Business - Results

13 Business: Portfolio Evolution 13 Loan growth driven by Cash Loans, SME and Large Corporate EUR m Y-o-Y Variation Q-o-Q Variation 5.0% 0.2% Mortgage ,3% 1,6% Other personal ,3% 3,0% Total personal ,0% 2,2% Business ,1% -0,8% Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Total gross loans ,0% 0,2% Comments Y-o-Y variation excluding FX effect: Mortgage Loans 9% Total Personal Loans 11% Business Loans 6% Total Loans 8% PLN loans comprise 70% of total gross loan portfolio

14 Business: Loans by Product 14 Personal Lending +9.0 % Y-o-Y Cash Loans Mortgages EUR m EUR m 15.9% 6.3% % % Dec.11 Dec.12 Dec.11 Dec.12 FX PLN Comments Cash loan sales supported by successful marketing campaign Increased cash loan market share

15 Business: Deposits + Funds Evolution 15 Active Management of Deposits EUR m 0.5% 1.5% Y-o-Y Variation Q-o-Q Variation Demand ,7% 5,0% Savings ,5% 0,9% Time Deposits ,2% -0,1% Customer Deposits ,5% 1,5% Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Retail Business Comments Total Deposits + 4.5% Y-o-Y, excl. large deposit at end-2011 Mutual Funds 23.8% Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Business Deposits -6.5% Y-o-Y (+ 2.9 % Y-o-Y, excl. large deposit at end-2011) Retail Deposits +5.6% Y-o-Y Mutual Funds +23.8% Y-o-Y

16 Business: Market Share 16 Market Share (%) Market Share (%) December 2012 June 2012 December 2011 Total Banking System Loans Total Loans Cash Loans Deposits + Funds Total Deposits Personal Deposits Business Deposits

17 Table of Contents 17 Overview + Strategy Market Environment Business - Results 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

18 Results: Net Interest Income 18 Annual Net Interest Income +11.2% Y-o-Y EUR m NIM by Q, % 11.2% 2.1% 4,23 4,27 4,32 4,34 4,40 4Q11 1Q12 2Q12 3Q12 4Q Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Comments Favourable product mix supporting NIM Reducing interest rate enviroment

19 Results: Net Fees 19 Net Fees + 2% Y-o-Y / Lower Investment Banking fees offset by other lines EUR m Y-o-Y Variation Q-o-Q Variation 2.0% ebusiness & payments ,5% 1,1% 4.6% Investment banking ,9% 3,2% Current accounts & money transfer ,6% 8,3% FX fees ,2% -4,8% 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Net fees Comments Net Fees + 11% (excl. Investment Banking ) Q-o-Q growth in investment banking fees due to increased fund sales. Strong Y-o-Y increase in Insurance income and Loan fees Loan fees ,9% 38,2% Insurance fees ,6% -3,8% Other ,1% -6,7% Total ,0% 4,6% 1. Brokerage fees, distribution and management fees 2. Includes off-balance sheet guarantees commissions, issue arrangement fees, credit card fees, structured product fees and other

20 Results: Total Income 20 Total Income +8.2% Y-o-Y EUR m Y-o-Y Variation Q-o-Q Variation 8.2% Net Interest Income ,2% 2,1% 14.5% Fees ,0% 4,6% Subtotal ,6% 3,0% Gain/Loss on financial transactions + Others ,5% 184,1% Total Income ,2% 14,5% 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Gain/Loss on financial transaction + Others Fees Net Interest Income Comments Review of the investment strategy due to very positive performance of the Polish Bond market during 2012 Investment book repositioned leading to total gains of EUR41.6m during 2012 Dividend income received in Qtr 2 from Aviva entities lower by 25.5% at EUR11m

21 Results: Administrative Expenses and Amortization 21 Total Underlying Costs 3.1% Y-o-Y EUR m -5.6% Y-o-Y Variation Q-o-Q Variation 4.3% Staff costs ,1% 3,4% Administrative Expenses ,3% 2,5% Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Amortization ,1% - Other costs ,1% 120,0% Total ,1% -4,3% Intergration/adjustments ,3% 7,7% Total ,6% 4,3% Staff costs Amortisation Once-off adjustments Administrative Expenses Other costs Comments Excellent cost management across all cost lines Consultancy and other costs related to the Kredyt Bank merger reflected as integration expenses Adjustments related to one off accounting policy adjustment in 2011

22 Results: Net Operating Income 22 Net Operating Income +22.1% mainly driven by NII EUR m Y-o-Y Variation Q-o-Q Variation 22.1% 22.9% Net Interest Income + Fees ,6% 3,0% Gain on financial transactions + Others ,5% 184,1% Adm. Expenses + Amortization + Other costs (434) (460) -5,6% 4,3% Net operating income ,1% 22,9% 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Operating surplus Once-off adjustments Comments Net operating income + 26% excl. KB Integration costs (EUR9m) and 2011 once off adjustments (EUR21m)

23 Results: Provisions and Loan Quality 23 Provision charge impacted by large individual case Provisions and Annualised total credit loss ratio NPL (%) 1,21% 1,11% 1,00% 1,06% 1,00% 0,82% 1,10% 1,13% 1,23% 6,8% 7,0% 6,7% 6,5% 5,5% 5,4% 5,6% 5,3% 5,4% 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q Coverage Ratio (%) 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 44,1% 46,4% 50,2% 51,9% 49,1% 49,8% 47,8% 48,7% 53,5% Provisions Annualised total credit loss ratio 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

24 Results: Net Profit 24 Net Profit % Y-o-Y EUR m 19.2% YoY 19.5% Y-o-Y Variation Q-o-Q Variation Profit before Taxes ,1% 20,0% Taxes (89) (75) 18,7% 21,6% Net Profit ,2% 19,5% Attributable profit ,1% 21,3% 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Net profit Dividend income In 2012 dividend from Aviva entities totalled PLN11m % YoY

25 Results: Key Indicators 25 C/I % Solvency Ratio % ROE % 6.4 p.p. 1.5 p.p. 1.0 p.p. 50,3 43, C/I excl. KB integration costs at 43.0% 15,1 16, Core Tier 1 Ratio at 14.3% 19,7 20, ROE excl. KB integration costs at 21.2 %

26 Conclusions 26 Deposits Active management of deposit base Customer deposits +4.5% Y-o-Y (excl. large deposit Y/E 2011) Loans Customer Loans + 8.0% Y-o-Y (excluding FX effect) Main drivers: Cash loans, SME and Corporate loans Income/Costs Income growth driven by net interest income line Costs under tight control Operating profit Investment book repositioning due to favourable market conditions offset by lower Aviva dividend Efficiency Headcount reduction 6% during 2012 Underlying Cost / Income Ratio at 43.0%

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

28 Profit & Loss Account 28 for the period (EUR k): 4Q Q Q Q Q 2011 Interest and similar income Interest expense and similar charges (96 161) (96 365) (89 509) (92 524) (90 021) Net interest income Fee and commission income Fee and commission expense (13 823) (12 355) (12 109) (12 181) (12 896) Net fee and commission income Dividend income (422) Net trading income and revaluation Gains (losses) from other financial securities Gains (losses) from investment in subsidiaries and associates Other operating income Impairment losses on loans and advances (38 362) (28 821) (33 483) (19 322) (20 451) Operating expenses incl.: ( ) ( ) ( ) ( ) ( ) Bank's staff, operating expenses and management ( ) (97 558) (97 236) (99 738) ( ) Depreciation/amortisation (8 024) (8 154) (7 991) (8 815) (26 254) Other operating expenses (2 709) (1 040) (1 600) (902) (4 379) Operating profit Share in net profits (losses) of entities accounted for by the equity method Profit before tax Corporate income tax (25 647) (21 167) (21 478) (21 236) (18 163) Profit for the period incl.: attributable to owners of BZ WBK S.A attributable to non-controlling interests

29 Balance Sheet 4Q 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

30 Net Interest Margin Evolution 30 NIM by Q, % 4,27 4,34 4,27 4,29 4,23 4,27 4,32 4,34 4,40 3,92 4,01 3,94 3,95 3,87 4,05 4,17 4,14 4,22 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q 12 4Q12 Incl. swap points Excl. swap points

31 31 Contact: Bank Zachodni WBK S.A. Investor Relations Agnieszka Dowżycka IR Director Pl. Andersa 5, XIII p Poznań tel.+ 48 (61)