BOŚ S.A. Group 1H 2014

Transcription

1 BOŚ S.A. Group 1H 2014

2 Key financial data of BOŚ S.A. Group BOŚ S.A. Group thou PLN 2Q Q H H 2013 Change 1Q 2014 vs. 1Q 2013 Change 2013 vs Net interest income ,5% 13,5% Net commission & fee income ,7% 0,3% Net operating income ,6% 3,9% Gross profit ,8% -15,7% Net profit ,7% -11,4% Net profit of BOŚ S.A. Group (m PLN) Assets (m PLN) Q Q Slajd 2 z 32

3 Key information about BOŚ S.A. Group BOŚ S.A. Group 100% BOS Finance AB BOŚ Ekosystem sp. z o.o. 100% Bank Ochrony Środowiska S.A. 100% BOŚ Eko Profit S.A 99,52% BOŚ Invest Management Sp. z o.o. 100% MS Wind Sp. z o.o. 0,48% 100% 99,998% 100% Dom Maklerski Banku Ochrony Środowiska S.A. BOŚ Nieruchomości Sp. z o.o. 0,002% BOŚ Nieruchomości Sp. z o.o. SKA Structure 17 Branches 78 Operating branches Headquarters 11 Corporate centers Shareholders Number od branches 38,22% 56,62% 5,16% NFOŚiGW ING OFE and ING DFE Others 1H H 2014 Slajd 3 z 32

4 Customers of the Bank Source: Bank, numbers in thousands Number of customers Number of customers using electronic channels , H H H H 2014 Debit and credit cards* Number of accounts* H H 2014 drop in the number of cards in connection with the exchange of cards from Maestro to Mastercard and ending cooperation with VISA. Slajd 4 z H H 2014 * Including savings accounts

5 Marcroeconomic background 1/2 GDP, consumption and investment dynamics Inflation 6 % YoY GDP consumption investment (right axis) % YoY % YoY CPI core inflation Employment and wages dynamics Unemployment rate 6 % YoY % YoY % K YoY employment real wage (right axis) nominal wage (right axis) annual change in number of unemployed unemployment rate Slajd 5 z 32

6 Marcroeconomic background 2/2 Deposits dynamics Loans dynamics % YoY % YoY deposits deposits od individuals deposits of institutions % YoY loans consumer loans % YoY institutional loans mortgages % Interest rates 5,0 PLN PLN exchange rate 4,0 5 4,5 3,5 3,0 3 NBP reference rate WIBOR 3M 5y bond yield 4,0 PLN/EUR PLN/USD (right axis) PLN/CHF (right axis) 2,5 1 3,5 2,0 Slajd 6 z 32

7 Ratios of BOŚ S.A. Group Net interest margin vs net interest income (m PLN) ROA vs total assets (bn PLN) 20 1,5% 350 3,0% ,8% 1,6% 1,5% 1,6% H H ,0% 1,0% 0,0% ,5 17,6 16,9 18,4 0,4% 0,5% 0,4% 0,2% H H ,0% 0,5% 0,0% Net interest income Net interest margin (right axis) Total assets ROA (right axis) ROE vs capital (m PLN) C/I vs total income (m PLN) % ,6% ,5% ,4% 4,6% % 6% 4% 2% ,5% ,1% ,3% 73,4% % 80% 70% 60% H H % H H % Capital ROE (right axis) Total income C/I (right axis) Slajd 7 z 32

8 Financial results of BOŚ S.A. Group thou PLN Item 2Q Q 2014 Change Net interest income ,5% Net commission & fee income ,7% Dividend income ,2% Net operatin income ,7% Result on investment securities ,2% Net income on hedge accounting ,8% Foreign exchange result ,3% Operating profit ,6% General administrative expenses ,7% Net impairment loses ,1% Gross profit ,8% Net profit ,7% Better results in 2Q: Net profit +84,7% Operating profit +11,6% Net interest income +1,5% Net interest income (m PLN) 13,5% Net fee and commission income (m PLN) 0,3% 132,6 150,6 50,9 51,0 1Q Q H H 2014 Slajd 8 z 32

9 Result on banking activities of BOŚ S.A. Group Result on banking activities of BOŚ S.A. Group (m PLN) 8% 8% 20% Result on banking activities mln Q/Q % 62% 135 6% 18% 56% Net fee and commission income +1.1 mln Q/Q 1Q Q 2014 Net interest income Net fee and commission income Net trading income Others Result on banking activities of BOŚ S.A. Group (m PLN) in Slajd 9 z 32

10 Thou Cost of credit BOŚ S.A. Group (m PLN) H H ,0% ,45% -60-0,51% -13-0,23% -25-0,41% -0,2% -0,4% -0,6% Net impairment loses deterioration 11.6 mln YoY Risk margin change by 0,17 p.p. YoY -60 Net impairment loses Risk margin (right axis) -0,8% -80-1,0% Risk Margin annualized net impairment loses for given period / average balance of gross loans and advances to customers for given period. BOŚ S.A. Group net impairment loses per quarter (thou PLN) 1Q Q The rise by 31,1% (2Q 2014 vs. 1Q 2014) due to additional provision for loans granted to client from retail sector. Slajd 10 z 32

11 Balance sheet of BOŚ S.A. Group m PLN Item Change Loans and advances to customers ,5% Higher volumes vs the end of 2013: Amounts due to customers +7,9% Total assets + 6.0% Derivative financial instruments ,0% Cash and deposits with the Central Bank ,1% Deposits with other banks, loans and advances to other banks ,3% Other assets ,2% Total assets ,0% Amounts due to customers ,9% Amounts due to other banks ,3% Liabilities under banking securities issued ,2% Other liabilities ,8% Total equity ,7% Total liabilities ,0% Assets - structure 9% 29% 61% Loans and advances to customers Securities Cash and other assets Credits / Deposits 84,2% 91,3% -7,1 p.p. Liabilities - structure Total assets (m PLN) ,6% 3,7% 7,8% 14,0% Amounts due to customers Liabilities under banking securities issued Amounts due to other banks Other liabilities 72,9% Equity Slajd 11 z 32

12 Liabilities per division Category Division Customers Corporate and public finance (6.3 bn PLN) Corporate customers (5.3 bn PLN) Public finance (1.0 bn PLN) BOŚ S.A. Group Amounts due to customers (14.2 bn PLN) Retail clients (5.8 bn PLN) Ecological funds (0.4 bn PLN) Debt securities issued (2.7 bn PLN) Loans from financial institutions and ecolological funds (2.0 bn PLN) Loans and advances from international financial institutions (1.3 bn PLN) Subordinated debt (0.3 bn PLN) Other clients (0.1 bn PLN) Ecological funds resources intended for lending (0.3 bn PLN) Slajd 12 z 32

13 Gross loans and advances per division Division Customer group including Loan portfolio (capital as of ) of which eco-loan portfolio Corporate clients (4.7 bn PLN) Medium and large enterprises 2.07 bn PLN Corporate and public finance Public finance (2.7 bn PLN) Small enterprises Local governments 2.67 bn PLN 2.4 bn PLN 2.8 bn PLN (37.3% of the corporate and public finance division s loan portfolio) BOŚ S.A. Group Municipal entreprises 0.3 bn PLN Retail Retail clients (4.9 bn PLN) Microenterprises and homeowner associations Retail clients 0.2 bn PLN 4.7 bn PLN 0.16 bn PLN (3.4% of the retail division s loan portfolio) Slajd 13 z 32

14 Eco-loans Balance of eco-loans (m PLN) 23% Constant increase of eco-loans share in total loans. 6% % 7% 48% % 30% Retail Public finance Corporate Eco-loans sale (m PLN) Bank is focused on financing projects in the following areas: energy efficiency, renewable energy sources, collection and waste management, wastewater and sewage, as well as structured finance. 18% % 5% 8% 5% Retail Corporate % % Public finance Slajd 14 z H H 2014

15 Lending portfolio quality % Retail 40% Corporate % Public finance 45% 54% 1% 1% % % 45% 57% 54% Gross loans and advances -305 Write-offs -326 Net loans and advances Gross loans and advances Write-offs Net loans and advances Ratio of non-performing loans by segments 13,4% 11,1% 5,4% 6,3% 4,2% 4,7% 5,6% 6,4% Slajd 15 z 32 Corporate and public finance loans Mortgages Other retail Retail total

16 Brokerage DM BOŚ Number of accounts at the end of June 2014 (in thou) Number of new accounts at the end of June 2014 (in thou) 100,0 80,0 60,0 40,0 67,0 76,9 4,5 4,0 3,5 3,0 2,5 2,0 1,5 4,0 3,9 Source: Bank 20,0 0,0 10,5 Forex Internet Total 1,0 0,5 0,0 0,6 Forex Internet Total Market shares (sessions transactions) Shares Futures Options 20,2% 20,2% 17,8% 20,9% 15,2% 2,7% 2,4% 2,4% 18,9% Source: WSE H H H H H H 2014 Slajd 16 z 32

17 Important events for BOŚ Bank in 1H 2013 Important events In April Fitch Ratings agency upheld its ratings of the BOŚ S.A. Balance of eco-loans as at 30 June 2014 amounted to PLN 2,94 bn PLN, which accounted for 23.9% of the total loan balance. Expansion of product offer The introduction of a preferential loan for the purchase and installation of photovoltaic EkoKredyt Pv and ecological products creating a comprehensive financing solution BOŚ Ekosystem. EKOlokata Pozytywna a new product for clients having an account with BOŚ S.A. Prizes and awards Five initiatives preparded by Bank and Fundacja BOŚ were classified in the report "Responsible Business in Poland Good practices by Responsible Business Forum. Among them were: eko-polska.pl, umocnij swój biznes, 2 złote dla Zwierzaka, Szkolne Smaki Szkoły dobrego żywienia, Pomagam cały rok. EKOprofit account available via BOŚ BossaBank platform was among the best seven accounts which took the first place in TotalMoney review of saving accounts in June. 1st place in the ranking of PLN cash loans July, TotalMoney. 1st place in the ranking of cash loans to PLN January and February, ebroker.pl. 1st place for Łukasz Tarnawa in the ranking of best analysts by Parkiet. Slajd 17 z 32

18 Important events for DM BOŚ in IH 2014 Expansion of product offer BossaFund new investment products were implemented; at the end of March BossaFund offered investment funds managed by 18 investment companies. Implementation of new tools supporting investments: a. Pattern Recognizer application for algorithmic technical trading analysis of BOSSAFX platform. b. Mobile Quotes application for smartphones using the Windows Phone system. Prizes and awards Bull and Bear award from Gazeta Parkiet for DM BOŚ for the best brokerage house in Poland. Additional nomination for bossafx in the category of best Forex trading platform. GPW award for the highest share in the volume of trading in derivatives in GPW award for the highest share in the volume of trading in derivatives without the animator transactions in Financial brand of the year for high-quality, innovative Internet services and building a strong position as a financial market expert. Home&Market award for Bossafund platform in the category of Investment Product. Slajd 18 z 32

19 Slajd 19 z 32 New projects and products

20 Innovative Bank w Interet Challenge Solution Implementation Increased growth of new customers acquisition BOSSABANK - innovative solution for new customers allowing to temporary "park" their funds, medium-term savings at an attractive price and to invest in the market of investment funds in conjunction with insurance protection. START: December 2013 Increase loyalty and sales to existing customers EKO-POLSKA is a meeting place for ecocommunity and people who believe in the credo "I + eco" and the essence of BOŚ mission, promoting healthy lifestyles, environmental solutions, with a possibility to use BOŚ credit offer. START: September 2013 Sales and automation of communication with clients without visiting the branch office New intrenet pages adjusting financial offer for the purpose of reducing the cost of living, especially in terms of energy bills, through OZE solutions and eco-product specialization of the Bank. START: February 2014 Slajd 20 z 32

21 New Model BOŚ branch office: greater efficiency, lower costs Income: The increase of number of selling advisors per branch office by adding the functions and responsibilities of each Director and head of sales. Focusing on selected products with higher margins, mostly pro-ecological loans and advances at the expense of reduction / cancellation of less profitable products. Advisors will have more time for clients due to the back-office centralization and cash automation. Creating a new, positive image (eco-branch office). Costs: Reduction of number of employees as a result of matching the scale of the business in a every single branch starting from Q Implement automation of cash handling (recyclers). Reduction of the space in line with the new model and the modernization of the facility. Withdrawal from unprofitable outlets which do not meet additional business criteria. The opening of offices in the new standard in smaller towns, according to the network development plan. Slajd 21 z 32

22 BOŚ EKOsystem hybrid heating system Includes: Boiler Solar module PV instalation Heat pump HEAT PUMP HEATING Solar collector PV instalation Heat pump Benefits for clients: Savings in operating costs. Comfort and convenience in use. Health and safety. Innovation and full control. Extra space. IT solutions supplier Insurance package Management and energy storage Slajd 22 z 32

23 BOŚ EKOsystem who can benefit? Those interested in a comprehensive solution that will serve in the newly built house. People interested in replacing conventional boiler (eg coal), looking for savings in the cost of house heating. BOŚ EKOsystem in 5 steps: Client orders BOŚ EKOsystem. Recommendation of the best solution. Formalities in one place. Finding the funding. Client uses BOŚ EKOsystem in his house. Slajd 23 z 32

24 SAMOspłacający się dom SELFpaying house Innovative initiative of BOŚ S.A. - the property, which earns on itself by producing electricity. The photovoltaic system with a capacity of 40 kw and revenues from the sale of surplus energy after entering into force of the Act on Renewable Energy Resources ( Ustawa o OZE ). House generates savings through the use of environment-friendly solutions and devices which reduce energy consumption such as solar panels, heat pumps and energy-efficient appliances. 100 thou = houses within 5 years = market worth 60 bn PLN: +1 pp GDP/year, 50 thou new jobs (including 15 thou in construction sector). Polish companies participating in the project: BOŚ Bank S.A., Murator, Amica, Barlinek, Black Red White, Opoczno, Cersanit. Required customer's own contribution: a plot of at least 2 thou m². Slajd 24 z 32

25 EkoKredyt PV EcoCredit PV Domestic photovoltaic installations - own electricity for your house: Real savings in the household budget. Innovation and full control. Comfort and convenience in use. Ecology and energy security. The comprehensive offer of the Bank: Help from the ecology advisers the best financing of photovoltaic installation. 20% discount on the purchase and installation of photovoltaic system through collaboration with suppliers. Help in completing the formalities. Preferential financing up to 100% of investment costs. Insurance. Slajd 25 z 32

26 Jessica JESSICA European Support for Sustainable Investment in City Areas - European Commission initiative developed in collaboration with the European Investment Bank and the Council of Europe Development Bank. It supports regeneration and sustainable urban development through financial engineering mechanisms. BOŚ S.A. was the first institution in Europe which used the whole amount of JESSICA funds in one of the supported regions. BOŚ signed 45 contracts in 3 voivoidships. Slajd 26 z 32

27 Portfolio Guarantee Line De Minimis BOŚ offers loans under the government program of loan guarantees granted by Bank Gospodarstwa Krajowego : Offer designed for SME. Guaranteeing loans for current funding. Amount of individual guarantee: up to 60% of the loan amount (max. PLN 3.5 m; max. 27 months). 0% margin fee (in the 1st year of the guarantee granted by 31 Dec 2013; 0.5% afterwards). Security for BGK - blank promissory note and statement of execution. Slajd 27 z 32

28 Slajd 28 z 32 Appendices

29 Financial results of BOŚ S.A. Group thou PLN 1H H 2013 Change Y/Y Interest income and similar income ,4% Interest expense and similar charges ,0% Net interest income ,5% Fee and commission income ,4% Fee and commission expense ,9% Net commission & fee income ,3% Dividend income ,2% Net trading income ,3% Result on investment securities ,2% Result on hedge accounting ,9% Foreign exchange result ,6% Other operating income ,2% Other operating expenses ,8% Net impairment loses ,1% General administrative expenses ,2% Gross profit ,7% Income tax charge ,1% Net profit ,4% Slajd 29 z 32

30 Consolidated statement of financial position thou PLN Change Y/Y Cash and deposits with the Central Bank ,1% Deposits with other banks, loans and advances to other banks ,3% Held-for-trading securities ,1% Derivative financial instruments ,2% Hedging derivatives ,8% Loans and advances to customers ,5% Investment securities ,0% Investment in assosiate ,0% Intangible assets ,8% Property, plant and equipment ,2% Income tax assets ,9% Other assets ,0% Total assets ,0% Amounts due to the Central Bank ,0% Amounts due to other banks ,3% Derivative financial instruments ,0% Hedging derivatives ,8% Deposits from customers ,9% Liabilities under banking securities issued ,2% Subordinated debt ,3% Provisions ,5% Income tax liabilities ,2% Other liabilities ,6% Equity ,7% Total equity and liabilities ,0% Slajd 30 z 32

31 Disclaimer Neither this document nor any information contained herein may be distributed in the United States, Canada, Japan or Australia. This document is not an offer for the sale of any securities in the United States. The securities of Bank Ochrony Środowiska S.A. ( Company ) have not been and will not be registered under the United States Securities Act of 1933, as amended (the Securities Act ) or any state regulations and may not be offered or sold in the United States or to US Persons (as defined in Regulation S issued under the Securities Act of 1933) absent registration or an exemption from registration under the Securities Act, or in a transaction not subject to the registration requirements of the Securities Act or any state regulations. Neither this document nor any copy of it may be transferred to or transmitted in the United States, Canada, Japan or Australia Canada or distributed or redistributed in Japan, United States or Australia or to any resident thereof. This document does not constitute or form part of any offer to sell or issue, or an invitation to make an offer to purchase any securities, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on or referred to in connection with, any contract. This document is directed only at persons who are (a) outside the United Kingdom or (b) persons who have professional experience in matters relating to investments falling within the definition of investment professionals in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order ) or (c) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as Relevant Persons ). The securities referred to in this document shall be made available only to the indicated persons and any invitation, offer or obligation to subscribe for, purchase or otherwise acquire such securities mill only be made available to or placed by the relevant persons. None other than a relevant person may rely on or refer to this document or any part hereof. This document is merely a promotional instrument and should not, in any circumstances, be relied upon in making decisions as to investments in the Company securities. This document is not to be distributed, directly or indirectly, in the United States of America or in other jurisdictions where public distribution of the information contained herein could be subject to restrictions or be prohibited by law. This document does not constitute an offer to sell or an invitation to subscribe for or acquire any securities. This document may include forward-looking statements which means any statements using such words as will, would, should, expect, intend, estimate, anticipate, project, future, potential, believe, seek, plan, aim, objective, goal, strategy, target, continue and similar expressions or their negatives. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions and other factors that could cause the Company's actual results of operations, performance or growth, to differ materially from those expressed in, or suggested by, these forward-looking statements. The Company has no obligation to update publicly or revise publicly any forward-looking statements contained herein, whether as a result of new information, future events, changed circumstances or any other reason after the date of this document. Slajd 31 z 32

32 Contact for Investors: Web page: BOŚ Bank S.A. Investor Relations Team 32, Żelazna Str Warszawa Slajd 32 z 32