Bank Millennium SA · GPW:MIL
Bank Millennium SA — Q3 2017 Earnings Presentation
28 slides from Bank Millennium SA's earnings presentation, 2017
Slide 1: Bank Millennium Group: Presentation of 3rd quarter 2017 results
BANK MILLENNIUM GROUP Presentation of 3rd quarter 2017 results
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Bank Millennium for its stakeholders for information purpose only. The information presented in this presentation should be read together with other information published by the Bank (on www.bankmillennium.pl), in particular financial and current rep
Slide 3: Presentation of results in 3Q 2017
PRESENTATION OF RESULTS IN 3Q 2017 > Financial performance > Business development > Appendixes
Slide 4: Key profit & loss items
KEY PROFIT & LOSS ITEMS Change Change PLN mln 1-3Q 17 1-3Q 16 3Q17 2Q17 Y/Y Q/Q Net interest income 1 287,7 1 149,1 12,1% 446,6 429,9 3,9% Net commission income 494,2 424,3 16,5% 165,5 162,5 1,9% Total operating income 1 869,0 1 890,9 -1,2% 657,6 632,4 4,0% TOI without one-offs(*) 1 880,6 1 659,4 13
Slide 5: Key balance sheet items and other relevant indicators
KEY BALANCE SHEET ITEMS AND OTHER RELEVANT INDICATORS Change Change PLN mln Sep.17 June 17 Sep.16 Q/Q Y/Y Active customers (ths) 1 596 1 557 39 1 451 145 inc. on-line and mobile 1 101 1 060 41 940 161 Customer Funds 65 632 65 436 0,3% 61 543 6,6% Customer Funds of individuals 49 035 48 862 0,4% 45 4
Slide 6: Market leader in quality
MARKET LEADER IN QUALITY… In the 16th edition of „Newsweek Friendly Bank 2017” ranking (*) Bank Millennium achieved once again the highest positon 1st place in the „Traditional Banking” category 1st place in the „Mobile Banking” category 2nd place in the „Internet Bank” category For 7 years on podiu
Slide 7: ... and on the forefront of innovations
… AND ON THE FOREFRONT OF INNOVATIONS Bank distinguished at one of the most prestigious international competitions awarding innovative companies from the world of finance PRIZE WINNER “Breakthrough Collaboration in Financial Services” for innovative solutions in providing access to e-administration
Slide 8: Main financial highlights of 3Q 2017
MAIN FINANCIAL HIGHLIGHTS OF 3Q 2017 Continued improvement of profitability; very high capital ratios after full IRB on mortgage loans Continued gradual High quarterly Net profit of PLN 187.5 million (+8% vs. 2Q’17; +35% vs.3Q’16). improvement of profitability 1-3Q Net profit reached PLN 502 million
Slide 9: Profitability and cost efficiency
PROFITABILITY AND COST EFFICIENCY Core income solid yearly growth outperformed modest cost growth, which allowed Cost to Income to come down to 46% Net profit (PLN million) Operating income * (PLN million) +13.3% without one-offs *** 11.4% ROE 9.3% -1.2% Incl. Visa +31.8% without one-offs *** +13.2%
Slide 10: Interest and commission income
INTEREST AND COMMISSION INCOME Double-digit yearly growth of Net Interest and Commission Income kept Net Interest Income * (PLN million) Interest on loans and deposit (PLN million) +12.1% 1 288 4,09% 4,20% 4,08% 4,05% 4,03% 4,09% 4,18% 1 149 Interest of Loans +3.9% 2,56% 2,61% Interest of Deposits 4
Slide 11: Asset quality and capital
ASSET QUALITY AND CAPITAL Excellent Capital Adequacy after revoking of KNF floor; strong Asset Quality and Liquidity. Impaired Loans P&L impairment provisions (PLN million) 12,1% 12,3% 12,5% 11,5% 11,8% 45 54 COST OF RISK * +20.6% Total loans 192,4 Mortgage 159,5 5,5% Other retail 2,5 67,8 5,0% +10.
Slide 12: Presentation of results in 3Q 2017
PRESENTATION OF RESULTS IN 3Q 2017 > Financial performance > Business development > Appendixes
Slide 13: Main business highlights in 3Q 2017
MAIN BUSINESS HIGHLIGHTS IN 3Q 2017 Continued strong performance in lending and current account volumes Retail business Strategic goal of over 300k active customers net growth in 3 years delivered Retail customer funds grew 7.8% yearly despite deceleration of deposits to 4.9% y/y 19% yearly growth o
Slide 14: Use of electronic channels
USE OF ELECTRONIC CHANNELS High share of electronic channels in product sales volume 1101k (+17% y/y) 652k (+42% y/y) Retail clients active in mobile and online banking Retail clients actively using mobile app and mobile Millenet 44% 37% 39% 99% 89% of all new term of all cash loans of all overdraft
Slide 15: New solutions in Millenet and mobile application
NEW SOLUTIONS IN MILLENET AND MOBILE APPLICATION Innovation, convenience and simplicity for customers is the key to build long term relationships through electronic channels Travel insurance in Mobile contactless Family 500+ application mobile app & Millenet payments: Visa mobile card for new benefi
Slide 16: Loans and deposits
LOANS AND DEPOSITS Solid growth of lending continued; part of retail deposits transferred to non-deposit savings Loan Portfolio of the Group (net) (PLN million) Customer Deposits (PLN million) +11.7% without FX mortgage +4.4% +11.6% +3.3% +8.6% +4.9% -0.5% 46 391 47 316 47 593 54 298 56 988 56 679 1
Slide 17: Retail business – deposits and accounts
RETAIL BUSINESS – DEPOSITS AND ACCOUNTS 1.6 million active customers – over 300k net growth during last 3 years Retail Customer Funds (PLN million) Active retail clients (in thousand) 7,8% +145 23,6% +313 ths 18,8% +39 since 3Q14 48 862 49 035 +34 45 472 8 448 +31 8 954 7 245 +41 15 446 15 003 17 12
Slide 18: Retail business – loans
RETAIL BUSINESS – LOANS High level of PLN mortgage and cash loans sale; faster amortisation of FX mortgage portfolio Retail loans (gross) (PLN million) Cash loans new sales (PLN million) 10% -2.8% 14% -12% 1 779 1 729 33 610 33 399 33 408 6 145 6 564 6 761 Consumer loans +4.8% 9 529 10 294 10 856 PL
Slide 19: Companies business – deposits and loans
COMPANIES BUSINESS – DEPOSITS AND LOANS Acceleration of loans growth and current accounts to over 10% yearly Companies deposits (PLN million) Loans to companies (gross) (PLN million) +11% +3.3% +15% -1.7% +10% +11.9% +10% 16 574 16 597 +2.1% 16 071 15 370 15 690 14 174 2 142 2 092 10 200 9 967 10 02
Slide 20: Companies business – transactions and financing
COMPANIES BUSINESS – TRANSACTIONS AND FINANCING Record sale in factoring and leasing Leasing – new sales (PLN million) Factoring – turnover (PLN million) +13% +13% 2 196 1 940 12 282 10 886 690 755 751 4 222 4 303 3 757 1-3Q 16 1Q 17 2Q 17 3Q 17 1-3Q 17 1-3Q 16 1Q 17 2Q 17 3Q 17 1-3Q 17 Comments Num
Slide 21: Presentation of results in 3Q 2017
PRESENTATION OF RESULTS IN 3Q 2017 > Financial performance > Business development > Appendixes
Slide 22: Macroeconomic overview
MACROECONOMIC OVERVIEW Interest rates evolution (%) FX rates evolution Q-o-Q (bp) 0 0 0 Q-o-Q 2.0% -2.7% -1.5% Y-o-Y (bp) 0 2 2 Y-o-Y -0.1% -5.5% -5,3% GDP growth & unemployment (%) Inflation (%) Investments & Consumption (% y/y) 22 Source: NBP, GUS, Bank Millennium forecasts
Slide 23: Macroeconomic overview
MACROECONOMIC OVERVIEW Loans to households (PLN billion, % y/y) Households’ deposits (PLN billion, % y/y) Loans to companies (PLN billion, % y/y) Companies’ deposits (PLN billion, % y/y) 23 Source: NBP
Slide 24: Bank Millennium share performance
BANK MILLENNIUM SHARE PERFORMANCE Market cap/liquidity (PLN million) Bank Millennium share performance vs. main indices (as on 30.09.2017) Change Change Market ratios 30.09.2017 30.12.2016* (%) 30.09.2016 (%) Avg. daily turnover Market Cap. 8,9 YTD Yearly 5,7 5,5 The Bank’s share price 7,01 5,19 35,
Slide 25: Most important awards and recognitions
MOST IMPORTANT AWARDS AND RECOGNITIONS In 2017 Bank Millennium received several awards and recognitions Quadruple podium 1st place in the „Personal account” 2nd place in „Mortgage loans” Reliable Employer 2016 Service Quality Star For best employers in terms of Bank Millennium was honoured with 3rd
Slide 26: Synthetic P&L account
SYNTHETIC P&L ACCOUNT (PLN million) Change Change Pro-forma 1-3Q’16 1-3Q’17 Y/Y 3Q’16 2Q’17 3Q’17 Q/Q Net interest income* 1 149,1 1 287,7 12,1% 393,2 429,9 446,6 3,9% Net commission income 424,3 494,2 16,5% 150,2 162,5 165,5 1,9% Other non-interest income ** 317,5 87,1 -72,6% 27,6 40,0 45,5 13,8% O
Slide 27: Balance sheet
BALANCE SHEET (PLN million) ASSETS 30/09/2016 30/06/2017 30/09/2017 Change y/y Cash and balances with the Central Bank 2 366 2 172 3 672 55,2% Loans and advances to banks 1 369 518 356 -74,0% Loans and advances to customers 46 391 47 316 47 593 2,6% Amounts due from reverse repo trans. 86 65 305 253
Slide 28: Investor Relations contact
Investor Relations contact: Artur Kulesza Katarzyna Stawinoga Head of Investor Relations Tel: +48 22 598 1110 e-mail: [email protected] Tel: +48 22 598 1115 e-mail: [email protected] Marek Miśków Tel: +48 22 598 1116 e-mail: [email protected] 28 www.ban