1. finance
2. bank
3. bank account

EFFICIENT IMPLEMENTATION OF QUALITATIVE CHANGES
FINANCIAL RESULTS
for the 1st quarter of 2015
PRESENTATION OF FINANCIAL RESULTS
FOR INVESTORS AND ANALYSTS
May 14th, 2015
GETIN NOBLE BANK
Agenda
1. Summary and Key Business Highlights
2. Key Financials
3. Appendix
2
GETIN NOBLE BANK
Q1 2015 - highlights
1
PLN 139 m of net profit in the 1st quarter 2015 (profit attributable to equity holders of the parent company of PLN 129 m).
2
Sharp fall in cost of funding according to our projection presented in march1.
~37 bps of deposit cost (rate) despite market turbulences due to CHF appreciation.
3
Strong liquidity position (L/D 86,9%) and capital ratios above obligatory levels (CAR2 13,0% i CET12 9,7%).
4
Robust growth in loan sales in Q1 2015 by more than 6% q/q.
The balance of cash loans increased by nearly 20% in the last 12 months
partially compensating decline in interest revenues resulting from lombard
rate cuts.
5
We are the market leader in leasing in Poland. Getin Leasing #1 in the lease of
vehicles. Increase of 25% y/y.
Strong leading position in car loans + over 50% market share.
6
We are the market leader in the sale of non-performing loans. Nearly PLN 0.5
bn of NPLs sold in Q1 2015. Next transaction in progress.
7
8
Loss of control in Getin Leasing
- impact on P&L (PLN m)
impact on P&L
consolidated
stand-alone
gross
net
131
106
Negative impact of CHF appreciation
on Bank’s net profit in Q1 2015
High cost regime maintained. Stable costs over last 12 months after excluding
BFG and KNF3 costs.
C/I ratio below 40% in Q1 2015, excl. BFG and KNF costs.
Changes in the impairment methodology related to the recommendations of
the Financial Supervision Authority - additional category of loans with soft
evidence of impairment created (np. no contact with borrower or lower
borrower’s income).
133
108
PLN ~62 m
of which PLN ~13 m
recurrent negative
impact in the next
quarters
1 projection
of lowering interest expenses on deposits portfolio at the Bank indicato in the presentation of results for 2014
including full profit for 2014; reported capital ratios as of the end of March 2014: CAR 12.8% and CET1 9.5%.
3 BFG (Banking Guarantee Fund), KNF (Polish Supervision Authority)
2 pro-forma,
3
GETIN NOBLE BANK
We are on-track with our plan of financing cost decrease
Despite market turmoils related to CHF appreciation
WE IMPLEMENT THE PLAN1…
Cost of funding decrease in the coming 6 months (bps) 2
The interest rate on the deposit portfolio in GNB (%)
PROJECTION 1
RESULT
3,20
-37bp
317
3,10
280
-6
- 12
3,00
- 13
- 10
-5
2,90
stopping the process of lowering
financing costs as a result of
turbulence in the foreign
exchange market
2,80
Sep'15
Aug'15
Jul'15
Jun'15
May'15
12 May'15
Dec'14
2,70
2,60
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
1 projection
2
of lowering interest expenses on deposits portfolio at the Bank indicato in the presentation of results for 2014
decline in the cost of financing with PLN deposits assuming a constant level of balance, the current maturity of the deposit base and competitive conditions unchanged
4
GETIN NOBLE BANK
Record low cost of funding. Great potential.
GNB highly efficient in reducing the cost of funding1
GNB’S Retail Deposit Rates vs NBP reference rates
7,00
6,0%
6,0%
-20 bp during the quarter,
despite the difficulties
resulting from the
appreciation of the CHF
5,4%
5,0%
5,4%
4,7%
4,5%
4,6%
4,2%
YTD
3,8%
QTD
3,6%
3,6%
3,6%
3,6%
3,5%
3,5%
3,5%
6,00
further decrease
of GNB’s headline
rate by -20 bps
5,00
4,00
3,00
3,3%
2,00
3,5%
3,3%
1,00
NBP rate
GNB 3M rate
the next attack for a
decrease in cost of funding
Mar-15
May-15
Jan-15
Nov-14
Jul-14
Sep-14
Mar-14
May-14
Jan-14
Nov-13
Jul-13
Sep-13
Mar-13
May-13
Jan-13
Nov-12
Jul-12
Sep-12
Mar-12
May-12
Jan-12
0,00
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
Portfolio balance (PLN bn) 2
+18.3%
48,6
Mar'12
1 Interest
49,0
49,7
50,2
49,9
Jun'12
Sep'12
Dec'12
Mar'13
expense / average interest bearing liabilities
2
53,0
51,5
54,4
54,4
53,3
53,8
57,5
52,1
Jun'13
Sep'13
Dec'13
Mar'14
Jun'14
Sep'14
Dec'14
Mar'14
For 2012 figures for merged banks Getin Noble Bank and Get Bank
5
GETIN NOBLE BANK
GNB as a leader in reducing the cost of funding
3,3%
Cost of funding1 as of the end of 2014 and y/y change
in Q1 2015
3,54%
average
(excl. GNB)
2,24%
2,03%
1,70%
1,39%
2,65%
1,79%
2,07%
1,77%
1,34%
1,54%
0,97%
1,65%
Bank 1
Bank 2
Bank 3
Bank 4
Bank 5
Bank 6
Bank 7
Bank 8
Bank 9
Bank 10
Bank 11
Bank 12
1,76%
-0,23%
-0,33%
-0,41%
-0,53%
-0,50%
-0,49%
-0,48%
-0,63%
-0,76%
-0,75%
-0,73%
-0,83%
-0,94%
1 Interest
expense / average interest bearing liabilities; based on banks’ financial reports for 2014
6
GETIN NOBLE BANK
Consequently one of the highest growth dynamics in ROR
[current account] acquisition
Current accounts¹
Bank
y/y change (Dec-14)
%
(’000)
17.0%
+330
16.3%
+67
12.3%
+102
9.6%
+258
7.5%
+159
5.4%
+342
5.2%
+77
3.6%
+102
3.6%
+10
2.3%
+82
2.1%
+13
0%
-0.5%
-1
-0.8%
-12
-2.2%
-18
-3.5%
-37
-11.5%
-39
168% increase (y/y) in sales of ROR with regular salary transfer in
Bank’s branches!
Continuation of the strategy of building a relationship bank based on current accounts –
The Main Bank of the Client.
New starting from 1st January – strong and unique offer of 4% with KO (saving
account) till the end of 2016 for Clients with regular salary transfer to current account
(at least 1 000 PLN) and with at least 300 PLN card transactions volume.
Balance on new ROR opened in Q1 2015 26% higher than on ROR opened in Q4 2014
168% increase (y/y) in sales of ROR with regular salary transfer in Bank’s branches
„My Bank” Benefits Package Development
Consistently high relative current account
addition in the Polish banking sector
Source: prnews.pl
1 Excluding Bank BOŚ due to lack of comparability (BOŚ since 2013 presents current accounts together with savings accounts); Alior Bank together with T-Mobile Usługi Finansowe; mBank together with Orange Finanse;
PKO BP together with Nordea Bank
7
GETIN NOBLE BANK
We activate current accounts.
Increasing Clients’ activity.
Number of transactions
Number of cards
[’000]
[’000]
2.1x
850
4 834
3.2x
405
1 488
2013-03
2014-03
2015-03
2013-03
2014-03
2015-03
Avg. number of transactions
Transactions volume
[’000 000]
676
1.5x
2.3x
5,69
3,67
294
2013-03
2014-03
2015-03
2013-03
2014-03
2015-03
8
GETIN NOBLE BANK
A consistent decrease in the balance and the share of foreign
currency loans
Swiss Franc loans balance
(CHF bn)
Negative impact of CHF appreciation
on Bank’s Q1 results
FX loans share
in total loans
-1,6
-23 pp
67%
5,2
3,6
30%
increased reserves level
PLN ~40 m
deposit campaign costs
PLN ~3 m
no interest costs reduction
in Jan’15
PLN ~18 m
additional liquidity costs
PLN ~10 m
FX income decrease
PLN ~ 6 m
recurent
items
٧
٧
PLN ~77 m (gross)
Dec-08
Mar-15
Dec-08
Mar-15
No asset quality deterioration resulting from CHF appreciation
PLN ~62 m (net)
CIRS CHF portfolio balance and trx margin
4,50
1/3 of CHF loan portfolio has been already repaid since the end of 2008
4,00
With a strong liquidity and adequate capital position Bank is well
prepared for scenarios such as the events of January 15th
3,50
4,15
Balance
100
Marża
90
3,75
80
3,45
3,00
3,10
2,50
70
We benefit from historically low basis swap rates.
2,00
60
Forward starting trx done for transactions maturing in 2015.
1,50
Lengthening tenors on CIRS transactions (~5Y vs 3Y in 2012)
1,00
New CIRS CHFPLN transactions in portfolio in 2015 with average margin of
ca. 15 bps.
50
CHF ~8 m
less interest expenses
in 2015
0,50
40
0,00
30
2012
2013
2014
2015
9
GETIN NOBLE BANK
Strong growth in cash loans
Accelerating growth in the loan balance and record sales – the effect of changes
implemented in 2014
Cash loan balance1
and quarterly sale level (PLN bn)
SALES
Q1’14
Q2’14
Q3’14
Q4’14
Q1’15
0.54
0.59
0.61
0.62
0.63
Efficiently built portfolio of short
term, fast-rotating loans
+ PLN 0.6 bn / +20%
3,42
3,73
3,54
3,25
3,00
Robust growth in balance due to
significant changes in the sales
process and internal procedures
as well as increasing sales
3,11
High profitability and decreasing
cost of risk
Dec-13
1
Mar-14
Jun-14
excluding instalment loans, credit cards and other retail loans
Sep-14
Dec-14
Mar-15
10
GETIN NOBLE BANK
We are changing the structure of commission income
Dynamic growth of Customers’ assets
Mutual funds – average monthly sales and AuM (PLN m)
66%
AuM
80
540
PLN m
570
74
70
66
62
…in secure money market and
bond funds
34%
470
51%
60
15%
370
50
Bond
Other
270
40
30
20
Money Market
170
17
70
10
90%
…from Noble Funds TFI and
Open Finance TFI
-30
-
Jun'14
Q3'14
Q4'14
sales
Q1'15
AuM
11
GETIN NOBLE BANK
High cost regime maintained
Stable base of a recurrent costs
Costs (PLN m)1
456%
36.5%
45.6%
33.2%
46.8%
49.6%
44.0%
41.0%
C/I ratio
39.9%
45.7%
(quarterly)
224
213
210
Q1 2014
stand-alone
Q2 2014
2
190
190
Q3 2014
costs
1
206
203
194
190
costs excl. BFG and KNF
Q4 2014
191
+0.5%
+0.5%
y/y change
+7.1%
+8.8%
y/y change
q/q change
q/q change
Q1 2015
2
excluding BFG (Banking Guarantee Fund) and KNF (Polish Supervision Authority) costs
12
GETIN NOBLE BANK
GNB Group – market leader in vehicle financing in Poland
Vehicle leasing (in PLN m)
Company
Total Assets Leasing (in PLN m)
2014
4M 2015
(sales)
(sales)
Company
2014
4M 2015
(sales)
(sales)
1.
Getin Leasing
2,299
1,003
1.
EFL
3,676
1,225
2.
EFL
2,545
833
2.
Getin Leasing
2,612
1,119
3.
Raiffeisen Leasing
2,080
777
3.
Raiffeisen Leasing
2,703
1,011
4.
mLeasing
1,673
664
4.
mLeasing
2,680
964
5.
PKO Leasing
1,690
515
5.
PKO Leasing
2,487
867
After 4 months 2015 Getin Leasing
strengthened its leading position in
vehicle leasing in Poland.
Thereby Getin Leasing took also the
second position in total assets leasing
in Poland.
13
GETIN NOBLE BANK
Leading position of Getin Leasing in vehicle financing
in Poland …
1 out of every 9
…vehicles registered in Poland by
leasing & car fleet companies was a
vehicle registered by Getin Group
Vehicles registration (CEPIK)
+2 p.p.
Company
2014
4M 2015
(no of vehicles)
(no of vehicles)
1.
Getin Leasing+Fleet
20,672
8,731
2.
EFL
16,895
5,453
3.
Raiffeisen Leasing
15,340
5,477
4.
mLeasing
12,009
4,205
5.
Volkswagen Leasing
10,929
3,955
Share of Getin Leasing+Fleet in vehicles registrations*
(*) share in number of vehicles registered by leasing &
car fleet companies – data according to CEPIK.
11,9%
9,9%
2014
4M 2015
GETIN NOBLE BANK
…and in strategic car brands – partnerships
Getin Leasing market share in leasing/rent 2013-2015
-3 p.p.
25,6%
Getin Leasing market share in leasing/rent 2013-2015
+9,5 p.p.
+0,1 p.p.
+10,6 p.p.
22,6%
25,8%
22,7%
16,3%
5,7%
2013
2014
4M 2015
Shares measured according to number of vehicles registered by the leasing & car fleet companies – data according to CEPIK.
2013
2014
4M 2015
GETIN NOBLE BANK
Getin Leasing maintains the best growth dynamic of leased
vehicles among large competitors
VEHICLE LEASING
Growth rate + 5 biggest
competitors
2014/2013
% change
4M 2015/4M 2014
% change
1.
52.5%
28.1%
2-times higher
2.
27.1%
13.9%
growth rate than of
the nearest
competitor
3.
21.0%
-2.9%
4.
18.5%
-5.2%
5.
17.7%
0.7%
2014
2015
large growth „grille” efect
stable market
GL position
after 4M 2015
GL position
in 2014
GL position
in 2013
1
22
33
GL position
in 2011
and 2012
55
GL position
in 2010
GL position
in 2009
11
11
16
16
source: ZPL, data for 2014, car financing with leasing
16
GETIN NOBLE BANK
Getin Noble Bank is a market leader in the sale of NPL
Nominal value of NPLs sold (in PLN m)
PLN 5.5 bn
The gross value of capital and other receivables purchased
from the Bank by domestic and foreign companies1
A positive impact of all the completed
transactions on the Bank’s income
statement. Our level of reserves is adequate
and higher than the fair value of those
assets on the market in all categories
1 832
446
418
186
165
2011
2012
2013
2014
1Q2015
Getin Noble Bank reports a further reduction in write-downs and an improvement of the capital adequacy ratios as it completes the
transactions of the disposal of non-performing loans (NPLs) with a nominal value of nearly PLN 0.5 billion in Q1 2015. Bank’s ambition is to
sale NPL portfolios of total value higher than sold in 2014.
The transactions covered portfolios of retail and car loans.
Significant shortening of NPL portfolio duration.
1
since January 2011
17
GETIN NOBLE BANK
Agenda
1. Summary and Key Business Highlights
2. Key Financials
3. Appendix
18
GETIN NOBLE BANK
Key Financial Ratios – QTD comparison
Successful execution of Getin Up Strategy
Q1 2015; change vs Q4 2014
PLN m
Loan balance (incl. leasing)
49,932.6
+2.9%
ROE
Deposit balance
57,471.1
+6.7%
C/I 1
Balance sheet total
72,759.2
+5.7%
5,208.2
+1.9%
271.2
-16.0%
94.9
-7.9%
Result on risk provisions
-128.4
-31.9%
Costs
-250.6
+11.0%
Profit before tax
127.6
x3.7
Net profit
128.6
x8.9
Equity
10.9%
excl. BFG and KNF
costs3 39,9%
+3.3 p.p.
46.8%
-3.5 p.p.
CAR
12.8%
-0.3 p.p.
CET1
9.5%
-0.2 p.p.
(attributable to equity holders of the parent company)
Net interest income
Net fee and commission income
(attributable to equity holders of the parent company)
Loans / deposits
86.9%
-3.2 p.p.
Cost of risk 1,2
0.9%
-0.4 p.p.
# Clients [m]
2.4
~0%
‚cleaning’ inactive
accounts base
1
Stand-alone GNB
on provision for NIL and other accounts receivable to average loans volume
3 BFG (Banking Guarantee Fund), KNF (Polish Supervision Authority)
2 Result
19
GETIN NOBLE BANK
Balance Sheet Overview
Favorable change in assets’ structure
Split-up of customer loans (Mar-15)
By Type (in PLNbn)
Assets
Liabilities
Customer loans
Financial instruments available for sale
Amounts due to banks (inlc. CB)
Other assets
80 000
80 000
70 000
70 000
60 000
60 000
50 000
50 000
40 000
40 000
30 000
30 000
20 000
20 000
10 000
c
0
2011
2012
2013
+2.5p.p.
+0.6p.p.
5,6%
18,5%
8,3%
Car loans
Retail loans
PLN 49.9 bn
Mortgage loans
SME and public sector
loans (incl. leasing)
-2.1p.p.
67,6%
change vs Q1 2014
10 000
2014 1Q2015
Assets (PLNm)
-1.0p.p.
Other liabilities
Equity
Liabilities to banks
Debt securities
Customer deposits
Split-up of customer deposits (Mar-15)
0
2011
2012
2013
2014 1Q2015
2011
2012
2013
2014
1Q2015
5.736
4.542
42.078
1.866
54.222
5.012
7.200
43.833
2.440
58.485
4.010
8.758
47.952
2.897
63.617
5.285
11.405
48.532
3.609
68.831
7.219
11.911
49.933
3.697
72.759
579
812
47.217
3.900
795
1.966
50.185
4.356
3.140
3.158
51.486
4.775
4.822
3.755
53.847
5.111
4.107
3.530
57.471
5.208
1.714
54.222
1.183
58.485
1.058
63.617
1.296
68.831
2.442
72.759
2,7%
Amounts due to banks (inlc. CB)
Financial instruments available for sale
Customer loans
Other assets
Total assets
Liabilities (PLNm)
Liabilities to banks
Debt securities
Customer deposits
Equity
15,2%
Retail term
Retail current
2,5%
3,0%
Corporate current
PLN 57.5 bn
15,2%
Public sector current
9,7%
Corporate term
66,9%
Public sector term
(attributable to equity holders of the parent company)
Other liabilities
Total
20
GETIN NOBLE BANK
Funding & Capital – Capital Stability
Strong liquidity position and capital ratios above obligatory levels
Capital Adequacy Ratio1
Loans / deposits
+0.5p.p.
+0.2p.p.
13,0%
12,8%
12,5%
9,5%
9,5%
Mar-14 3
Mar-15
CAR
9,7%
Including full profit for 2014
91,1%
Mar-15 (pro-forma)
90,1%
89,8%
88,9%
one of the lowest ratios
in the banking sector
Additional liquidity enables to
effectively reduce the cost of funding
Mar-14
Jun-14
Sep-14
Dec-14
86,9%
Mar-15
CET1
One of the Bank’s strategic goals is to build a secure asset and liability structure in terms of foreign currencies and liquidity (liabilities with longer
maturities, increased financing stability, alternative forms of improving liquidity by raising funds on the market).
PLN 2.1 billion of the issued subordinated debt as at the end of March 2015.
GNB is a market leader in NPL sales in Poland. Total value of the NPL sold in 1st quarter 2015 totalled nearly PLN 0.5 bn.
1
Consolidated
IBNR allowances
3 CAR as at the end of March 2014 calculated according to legal regulations binding until the end of 2013
2 Without
21
GETIN NOBLE BANK
Asset Quality – Impaired loans
Changes in the impairment methodology related to the recommendations of the Financial
Supervision Authority - additional category of loans with soft evidence of impairment created
Impaired loans portfolio splited into impairment evidence categories (PLN m)
A significant part of the
loans recognized in Q1 2015
in accordance with the
revised methodology, as of
impaired loans are loans
regularly serviced by
Customers
9 000
60 000
52 752
8 000
53 057
53 380
53 150
52 748
53 714
48 669
share in total
loan portfolio
50 000
7 000
12.8%
12.6%
11.5%
6 000
11.7%
10.8%
10.4%
40 000
10.4%
9.4%
5 000
8.9%
3.4%
30 000
Repayment of
mortgage loans1
4 000
1
Dec-2014
3 000
20 000 50.3%
-
3.7%
3.4%
3.4%
2 000
1 000
2
Mar-2015
1.3%
Dec-2012
1
>90 DPD
1.4%
Dec-2013
2
Mar-2014
3
'hard' premises
6.6%
Coverage Ratio
2.5%
2.5%
>90 DPD
10 000
1.5%
Jun-2014
4
Sep-2014
5
'soft' premises
Dec-2014
6
Mar-2015
7
loan portfolio balance
45.8%
-
'hard' premises
'soft' premises
PLN 1.8 bn… loans
regularly serviced included in
impaired balance in result of
KNF recommendations
implementation
examples
No contact with borrower
Lower borrowers’ income
Scoring deterioration
1
90 DPD after 4 months from loan disbursement
22
GETIN NOBLE BANK
Balance Sheet – Loans Sales Mix
Sale Structure Change; Shorter-Term, Faster-Amortizing Loans, Higher Lending Margins
Sales structure1
Sales of loans – quarterly (in PLNm)
avg. month-to-month sale (in PLNm)
Q1'15
2.45
Q4'14
car loans
+ leasing (net)
2.19
Q3'14
retail
2.78
Q2'14
SME & corporates
+14%
3.28
Q1'14
mortgage
-41%
3.61
Q4'13
3.17
Q3'13
2.75
Q2'13
retail loans
2.84
Q1'13
2.83
Q4'12
2.53
Q3'12
car loans + leasing
(netto)
corporate loans
OTHER LOANS
2.67
Q2'12
1Q2015
2.97
Q1'12
2.68
Q4'11
3.46
Q3'11
3.67
Q2'11
3.72
Q1'11
-98%
-88%
+62%
-63%
+69%
+59%
-48%
+18%
801
622
818
854
Q1’15/Q1’14
-21%
594
505
322
230
73
13
MORTGAGE LOANS
2011
2012
2013
2014
Portfolio balance (in PLNbn)2
42,1
43,3
41,9 43,3
43,8 45,0
46,9
q/q dynamic
2.60
Q1’15/Q4’14
+6%
48,4
47,4 48,0
48,8
48,6 48,5
49,9
total
quarterly
sales
+9%
+1%
mortgage loans
-
500
1 000
1 500
2 000
2 500
Focus on the sale of products with shorter amortization periods and higher spreads, such as
cash, cars, SMEs loans and leases, according to the Strategy .
Lending level adopted to Clients’ repayments resulting in lack of pressure for additional
financing and support of NII increase.
1
2
Consolidated figures
2011 figures for merged banks Getin Noble Bank and Get Bank
23
GETIN NOBLE BANK
Asset Quality – Credit Risk
Noticeable Results of Measures Aimed at Improving Asset Quality
Impairment charges and loans balance (in PLNm) 4
41 880
41 136
49 933
48 581
48 414
47 367
44 987
43 296
Cost of credit risk (%) 1
30.03.2015
31.12.2014
change
0.6%
0.9%
-0.28 p.p.
-1.7%
1.3%
-2.99 p.p.
1.5%
1.1%
0.33 p.p.
Retail loans
-0.8%
3.6%
-4.44 p.p.
Loans total
0.9%
1.3%
-0.43 p.p.
Corporate loans2
Car loans
35 466
Mortgage loans
365
PLN ~40 m one-off ini Q1
related to CHF appreciation
319
290
248
235
246
268
214
224
198
143
132
152
157
189
163
128
Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15
impairment charges
Loan portfolio balance
Additional impairments
•
•
•
Implementation of AQR/KNF recommendations completed.
Additional impairments related to CHF appreciation in Q1: PLN ~40 m.
Positive result on NPL sale trx completed in Q1 compensated
additional impairment charges (AQR/KNF, CHF appreciation)
•
The quality of the Bank’s new loan portfolio consequently maintained
within the limits of its „risk appetite” policy.
•
Nearly PLN 0.5 bn of NPL sold in Q1 2015.
Average monthly impairment charges (in PLN K) 3,4
2011
1Q'2011 2Q'2011
2012
3Q'2011 4Q'2011
1Q'2012 2Q'2012
2013
3Q'2012 4Q'2012
1Q'2013 2Q'2013
2014
2015
3Q'2013 4Q'2013 1Q’2014 2Q’2014 3Q’2014 4Q’2014 1Q’2015
TOTAL LOANS
76.3
103.9
115.7
95.1
80.4
79.8
87.6
69.4
63.5
46.7
41.5
46.2
49.6
51.3
71.3
56.3
39.5
Car loans
20.8
18.4
12.4
8.1
5.6
5.9
9.7
9.9
13.2
3.6
11.5
8.4
1.6
8.2
7.8
-0.2
-4.5
Mortgage loans
34.9
66.8
86.4
77.2
72.4
67.1
52.7
38.3
26.1
18.5
5.3
9.0
26.7
25.4
43.7
33.2
43.0
Retail loans
15.4
12.7
10.3
6.9
2.4
3.6
22.8
17.6
18.9
17.9
21.0
19.6
15.9
13.5
11.4
18.6
-3.2
Corporate loans & other
5.3
5.9
6.6
2.8
4.8
3.2
2.4
3.6
5.3
6.7
3.7
9.2
5.4
4.3
8.4
4.7
4.2
1
2
Result on provision for NIL and other accounts receivable to average loans volume; stand-alone GNB
Including leasing and others
3
Stand-alone GNB
Q1 2012 and Q2 2012 figures for the merged banks of Getin Noble Bank and Get Bank; data since Q4 2012
restated according to changes in bancassurance fees booking methodology
25
4
GETIN NOBLE BANK
Asset Quality – Credit Risk
Bank efficiently adjusts procedures of evaluation and acceptance to market
conditions and Clients’ situation
Retail loans
Car loans
Portion of 30 DPD in repayment of the third instalment (%)
Portion of 30 DPD in repayment of the third instalment (%)
6,6%
3,5%
3,1%
2,6%
2,3%
2,1%
1,9%
1,3%
1,3%
1,8%
1,2%
0,9%
01'09 05'09 09'09 01'10 05'10 09'10 01'11 05'11 09'11 01'12 05'12 09'12 01'13 05'13 09'13 01'14 05'14 09'14
0,7%
0,6%
0,8%
0,6%
0,5%
0,2%
0,2%
01'09 05'09 09'09 01'10 05'10 09'10 01'11 05'11 09'11 01'12 05'12 09'12 01'13 05'13 09'13 01'14 05'14 09'14
Mortgage loans
Loan default rates: 90+ after 6 and 12 months from loan disbursement for loans
disbursed in the different quarters starting from 2008
6,0%
5,0%
4,0%
3,0%
2,0%
1,0%
6M
12M
2Q'14
1Q'14
4Q'13
3Q'13
2Q'13
1Q'13
4Q'12
3Q'12
2Q'12
1Q'12
4Q'11
3Q'11
2Q'11
1Q'11
4Q'10
3Q'10
2Q'10
1Q'10
4Q'09
3Q'09
2Q'09
1Q'09
4Q'08
3Q'08
2Q'08
1Q'08
0,0%
25
GETIN NOBLE BANK
Agenda
1. Summary and Key Business Highlights
2. Key Financials
3. Appendix
26
GETIN NOBLE BANK
Appendix 1 – Key Financial Data
PLN m
31.03.2015
31.12.2014
31.03.2014
31.03.2015/
31.03.2015/
31.12.2014
31.03.2014
Equity
(attributable to equity holders of the parent company)
5,208.2
5,110.9
4,917.4
+1.9%
+5.9%
Sub debt
2,085.7
2,092.4
2,001.2
-0.3%
+4.2%
Balance sheet total
72,759.2
68,830.7
67,500.9
+5.7%
+7.8%
Loans balance (incl. leasing)
49,932.6
48,532.5
48,413.6
+2.9%
+3.1%
Deposits balance
57,471.1
53,846.8
54,445.5
+6.7%
+5.6%
1Q’15/
1Q’15/
PLN m
1Q 2015
4Q 2014
1Q 2014
4Q’14
1Q’14
271.2
322.8
363.7
-16.0%
(25.4%)
94.9
103.1
121.7
-8.0%
(22.0%)
(250.6)
(225.8)
(234.1)
+11.0%
+7.0%
Net profit
(attributable to equity holders of the parent company)
128.6
14.4
130.1
8.9x
(1.2%)
C /I1,2
46.8%
43.3%
45.6%
+3.5 p.p.
+1.2 p.p.
ROE
10.9%
7.6%
11.1%
+3.3 p.p.
(0.25 p.p.)
NIM1
1.6%
2.2%
2.3%
(0.6 p.p.)
(0.7 p.p.)
CAR3
12.8%
13.1%
12.5%
(0.3 p.p.)
+0.3 p.p.
Net interest income
Net fee and commission income
Administration costs
1
YTD data
Stand-alone GNB
3 As at December 31th 2013 CAR calculated according to legal regulations binding until the end of 2013
2
27
GETIN NOBLE BANK
Appendix 2 – Swiss Franc mortgage loans
No asset quality deterioration resulting from CHF appreciation, however with negative
impact on Q1 2015 results.
Facts…
CHF loans portfolio in GNB
CHFPLN exchange rate at the end of Q1 2015 (3.91) was by 10% higher than the one from
before the CHF appreciation in January (3.54 at the end of Dec’14).
CHF 3.6 bn loans balance as of the end of
March 2015.
After taking into account a negative CHF LIBOR reference rates , increase of the value of
customer credit instalments denominated in Polish zloty was minimal and following faster
repayment of loan principals.
Below 30% share in total loans.
More than half of GNB CHF loans with margin >2 p.p., i.e. significantly higher than market
average.
CHF loan portfolio concentrated in the regions with the lowest level of unemployment.
The estimated DtI ratio for GNB Customers (at the end of January 2015) with mortgage loans
in CHF showed that for 70% of Clients this indicator is below 30%.
Cheap financing in Swiss Frank, with 5Y
tenor currently
Stable and comfortable liquidity position
of the Bank provides high resistance to
this type of market turbulences (L/D
<90%).
The Bank increased reserve coverage of CHF exposures in 1Q'15 by PLN 40 m.
Measures taken by the Bank to mitigate effects of the CHF appreciation on Clients’ situation
A temporary reduction in the spread rate on CHF by more than half.
Including the negative level of the LIBOR reference rate for the calculation of credit instalments on the assumption that the interest rate of the
loan may not be less than zero.
A detailed review and modification of existing procedures carried out in order to adapt them to the current market situation and the expectations
of Regulators.
„Pomoc CHF” Program [„CHF Support” Program], including:
simplified procedure for the suspension of repayment of principal instalment for three months (with no charges for annex, without extending the loan period, without
verification of the value of loan collateral),
a new process of changing the collateral and they financed with the loan (to allow customers to change the apartment, which serves as a collateral for mortgage loan, to
the other one, without early repayment required),
Free-of-charge conversion of the loan into PLN using average NBP CHFPLN rate from the day of conversion.
28
GETIN NOBLE BANK
More about Getin Noble Bank
MORE INFO ABOUT GETIN NOBLE BANK
INVESTOR RELATIONS WEBSITE
www.gnb.pl
MORE INFO ABOUT GETIN NOBLE BANK AND GETIN UP STRATEGY
http://en.gnb.pl/prezentacje
CONTACT DETAILS
e-mail address: inwestorzy@gnb.pl
29
GETIN NOBLE BANK
DISCLAIMER
This presentation (“Presentation”) has been prepared by Getin Noble Bank S.A. (the “Company”) for informational purposes only and may not, in any event, be considered or interpreted as an
offer and/or a recommendation to enter into any transaction. In particular, it may not be considered or interpreted as an offer to acquire any securities or as an offer, invitation or incentive to
make any acquisition offer, to make any investment or carry out any transaction involving such securities, nor may it be considered or interpreted as a recommendation to enter into any
transaction, particularly any transaction involving the Company’s securities.
You are cautioned against using this presentation as the basis for making a decision to purchase or sell securities.
You are deemed to have represented and agreed that you and any customers you represent are either (a) qualified institutional buyers (within the meaning of Regulation 144A under the U.S.
Securities Act), or (b) not a U.S. person and are outside of the United States and not acting for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities
Act).
Although information contained in this Presentation is based on generally available sources that the Company believes to be reliable, the Company cannot guarantee that this information is full
and complete. The Company takes no responsibility for the consequences of any decisions based on any information contained in this Presentation. The information contained in this
Presentation has never been subject to independent verification and may at any time be subject to change or modification.
This Presentation contains forward-looking statements. Such forward looking statements are only predictions and are not guarantees of future performance. Any such forward-looking
statements are subject to risks, uncertainties and factors relating to the operations and business of the Company that may cause the actual results of the Company to be materially different
from any future results expressed or implied in such forward-looking statements.
The Company is not required to publicly disclose any possible modification or change to any information, data or statement contained in this Presentation if the Company changes its strategy
or intentions or if any unforeseen events or circumstances occur that affect the Company’s strategy and/or intentions.
No information contained in this Presentation may, by any means, by considered or interpreted as a forecast or any express or implied representation or warranty whatsoever made by the
Company or any person acting on behalf of the Company. In addition, neither the Company nor any person acting on its behalf shall be liable, in any way whatsoever, for any loss or damage
that may be caused as a result of negligence or otherwise in connection with the use of this Presentation or any information contained in it, or for any damage that might otherwise arise in
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The publication by the Company of the data contained in this Presentation is not a breach of the regulations applicable to companies whose shares are traded on a regulated market,
particularly on a regulated market of the Warsaw Stock Exchange (Giełda Papierów Wartościowych w Warszawie S.A.). The information provided in this Presentation has already been
disclosed in current or periodic reports published by the Company or constitutes an addition to those reports, and its publication does not require the Company to fulfill the obligation to provide
information as imposed on the Company as a public company.
This Presentation does not purport to be complete. Please note that the only reliable source of information on the Company is the current and periodic reports published by the Company in
performing its information obligations, available on the Company’s web site at www.gnb.pl.
The Presentation is Confidential and should be treated as such and may not be copied or given to any other person, nor may the information contained therein be disclosed to any other
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30