Kredyt Bank Group - Bank Zachodni WBK

Kredyt Bank Group
Financial results
for 2Q 2008
Warsaw, August 7, 2008
1
• Highlights
• Analysis of results, Group
• Business lines, Bank
• Appendix
2
Key features for 2Q 2008
•
Further growth of the core activity. Gross Operating Income, earned in the 2Q’08,
was higher by 13,3% in relation to the 2Q’07.
•
Increase of KB’s market share in the mortgage lending. KB’s sale of mortgage
loans amounted to PLN 1.7 in the 2Q’08, allowing to mantain one of the top
positions on the Polish mortgage loans market in terms of sales.
•
Mortgage loan portfolio boosted by 80% in comparison with 1H’07.
•
Consumer loan portfolio increased by 56% in comparison with 1H’07.
z
21 new outlets launched under the network expansion plan within the period I VI’08 (83 branches operational since the start of the project; KB network included
391 outlets as of the end of 1H’08).
3
Financial highlights 2Q 2008
2Q’08
1Q’08
2Q’07
Δ 08/07
%
Loans (gross, PLN bln)
20,1
19,0
14,5
+38,7%
Deposits (PLN bln)
19,3
18,6
17,1
+12,8%
FTE (ths)
7,0
6,9
6,4
+8,6%
Branch network
391
389
362
+8,0%
4
Financial highlights 2Q 2008 – P&L
1Q’08
2Q’07
Δ 08/07
%
322,9
314,0
293,7
+9,9%
+16,6%
384,6
372,7
339,4
+13,3%
-535,8
+18,1%
-287,7
-248,1
-238,1
+20,8%
144,8
-20,3%
69,8
75,0
99,9
-30,1%
1H’08
Δ y/y
%
Net fee and commission
income (PLN mln)
636,9
+14,6%
Gross operating income (PLN mln)
757,4
General administrative
expenses (PLN mln)
Net profit (PLN mln)
2Q’08
5
Financial highlights 2Q 2008 - indicators
Δ 08/07
pp
1H’08
1Q’08
1H’07
Cost/Income 1
70,7%
66,6%
69,9%
+0,8pp
ROE 1
15,9%
17,2%
17,2%
-1,3pp
Loans/Deposits
99,7%
97,8%
78,8%
+20,9pp
Loans/External funding 2
83,6%
81,1%
73,2%
+10,4pp
9,8%
9,5%
11,3%
-1.5pp
CAR 3
1
Cost/Income and ROE - ytd
funding = customer deposits + interbank funding (loans)
3 CAR for 2008 calculated according to Basel II
2 External
6
Balance sheet breakdown
ASSETS
LIABILITIES & FUNDS
in PLN m
+25% y/y
in PLN m
30 189
+25% y/y
1 021
717
+4%
Other
24 166
24 166
987
895
19 288
Customers
13 517
30 189
-20%
2 186
Other
Equity
19 339
Customers
3 746
Interbank (borrowed
loans)
+3%
2 116
+43%
+13%
17 148
Securities
Interbank
Cash
5 697
5 496
+4%
3 611
-22%
2 818
1 320
555
+146%
1 365
2 687
2Q'08
2Q'07
2Q'07
+184%
+56%
4 201
Interbank deposits
+ Repo
2Q'08
7
Profit and Loss breakdown
Gross operating income
1H’08
Δ y/y
%
2Q’
08
2Q’
07
Δ
mln
Δ
%
Gross operating income
757
+17%
385
339
46
+13%
Total costs
-536
+18%
-288
-238
50
+21%
Operating profit
221
+12%
97
101
-4
- 4%
Net impairment charges for
financial assets, other
assets and provisions
Share of profits of associates
in PLN m
+13%
385
339
6
39
-33
34*
-9
+26
-35
86
-1
0
0
0
Profit before tax
187
-19%
88
128
-40
- 31%
Income tax
-43
-13%
-18
-28
-10
- 35%
Net profit
145
-20%
70
100
-30
- 30%
the 1H 2008 net impairment was positive and amounted to PLN +34 mln
+41%
-15%
+20%
55
73
250
Other
Trading
NFC
NII
208
2Q’07
*in
+4%
7
2Q’08
8
• Highlights
• Analysis of results, Group
• Business lines, Bank
• Appendix
9
Volumes
Customer receivables1
in PLN m
19 030
14 509
Corporate
6 994
Households
7 515
2Q’07
8 284
10 746
20 123
+39% y/y
8 073
+15% y/y
12 050
+60% y/y
2Q’07
1Q’08
2Q’08
Total Loans
3,6%
3,9%
3,9%
Households Loans
3,4%
3,9%
4,1%
Corporate Loans
3,7%
3,8%
3,5%
2Q’08
1Q’08
Customer liabilities1
KB market share - loans2
+6%
KB market share - deposits2
+4%
in PLN m
17 148
Corporate
7 267
Households
1Receivables
18 586
7 493
9 881
11 093
2Q’07
1Q’08
gross, end of period, consolidated
19 339
+13% y/y
7 978
+10% y/y
11 361
+15% y/y
2Q’07
1Q’08
2Q’08
Total deposits
3,8%
3,6%
3,7%
Households deposits
3,9%
3,7%
3,7%
Corporate deposits
3,6%
3,6%
3,7%
2Q’08
2NBP
segmentation – residents only, bank statutory
10
Volumes – assets under management
Mutual funds volume change* (PLN m)
Market
-6%
-11%
3 318
3 249
3 131
-4%
2Q’07
*Volume
1Q’08
of investment funds and insurance capital funds collected through KB network
-31%
2Q’08
11
Net interest, fees and commissions
NII
F&C
in PLN m
in PLN m
-4%
-15%
+21% y/y
493
+20%y/y
+3%
243
+3%
86
407
2Q’07
250
149
71
73
1Q’08
2Q’08
1H’07 1H’08
F&C (income structure)
208
1H’08
1H’07
9,8%
10,7%
34,1%
37,3%
22,8%
1Q’08
2Q’08
1H’07 1H’08
18,7%
Distribution of mutuals
and insurances
Payment and handling
transactions for
customers
10,8%
11,5%
2Q’07
144
Payment cards
and ATMs
Loans
33,6%
10,8%
Other
12
Operating expenses
Operating expenses
Quarterly
Total
238
25
Depreciation
90
248
Cumulatively
288
+21% y/y
26
+2% y/y
122
+36% y/y
Total
454
Depreciation
50
NHR
168
24
93
FTE
in PLN m
536
+18% y/y
50
+0% y/y
216
+28% y/y
6 854
123
2Q’07
6 994 +8,6% y/y
6 444
NHR
HR
+2,1%
131
1Q’08
139
2Q’08
+14% y/y
HR
236
270
1H’07 1H’08
+14% y/y
2Q’07 1Q’08 2Q’08
13
Loan quality
Impaired loans/gross loans*,
coverage ratio
69,1%
70,7%
Impaired loans - volume
in PLN m
+9,6pp y/y
61,1%
-5% y/y
1 536
10,6%
2Q’07
6,1%
5,5%
1Q’08
2Q’08
* On customer’s portfolio basis, w/o banks
1 167
1 110
1Q’08
2Q’08
-28% y/y
-5,1pp y/y
2Q’07
14
• Highlights
• Analysis of results, Group
• Business lines, Bank
• Appendix
15
Retail banking performance
Number of clients
930
2Q’07
Customer business per client
in ths
962
985
Quarterly in PLN ths
25,5
1Q’08
2Q’08
22,9
1Q’08
2Q’07
2Q’08
Retail loans* in PLN m , Margin
4,5%
25,8
3,6%
Retail deposits* in PLN m , Margin
1,8%
3,6%
1,8%
1,8%
13 547
12 155
+12% y/y
12 828
10 827
+61% y/y
12 143
7 561
2Q’07
1Q’08
2Q’08
* Data according to the Bank’s current internal segmentation.
2Q’07
1Q’08
2Q’08
16
Retail banking – mortgage loans
Mortgage loans – portfolio, margin
KB market share
in PLN m
1,5%
1,4%
1,3%
+15%
7 643
6 669
2Q’07
1Q’08
2Q’08
Total mortgage loans
4,4%
5,2%
5,6%
PLN
5,7%
5,8%
5,6%
FX
3,5%
4,7%
5,5%
+80% y/y
Mortgage loans – quarterly sale
4 392
4 247
11 756 number
3 448
7 484
FX
5 835
1 991
3 221
PLN
3 251
In PLN m
1 691
1 248
924
2 256
2Q’07
1Q’07
2Q’08
2Q’07
1Q’08
2Q’08
17
Retail banking - products
Saving accounts - volume
Credit cards - quantity
+27% y/y
+105% y/y
324
in PLN m
5 672
264
180
5 512
129
4 483
158
Żagiel
KB
2Q’07
in ths
1Q’08
788
135
+1058% y/y
144
115
2Q’08
1Q’08
2Q’07
2Q’08
Bancassurance – gross premium
written (quarterly)
in PLN m
43
Loans granted by Żagiel – portfolio* in PLN m
Quarterly sale
813
649
+69% y/y
481
+14%
1 848
2 108
+56% y/y
1 347
181
68
2Q’07
1Q’08
2Q’08
2Q’07
1Q’08
* consolidated figures
2Q’08
18
Corporate banking performance
Customer business per client
Number of clients
Quarterly in PLN mln
3 891
3 863
3,4
3 678
2Q’07
3,1
1Q’08
Corporate loans*
1,5%
2Q’07
2Q’08
1,3%
1,5%
1,3%
8 143
1Q’08
Corporate deposits*
in PLN m
8 412
+13% y/y
1,3%
5 671
2Q’08
in PLN m
1,4%
5 706
+18% y/y
4 846
7 175
2Q’07
3,5
1Q’08
2Q’08
* Data according to the Bank’s internal segmentation.
2Q’07
1Q’08
2Q’08
19
• Highlights
• Analysis of results, Group
• Business lines, Bank
• Appendix
20
Balance sheet
ASSETS
(PLN mln)
LIABILITIES
Δ
mln
2Q’08
2Q’07
Cash and balances with
Central Bank
1 365
555
810
+146%
Amounts due from
banks and financial
assets at fair value
2 818
3 611
-793
Loans to customers
19 288
13 517
5 697
Investments in securities
Tangible and intangible
fixed assets
Other assets
Total Assets
ch. %
(PLN mln)
Amounts due to banks
2Q’08
2Q’07
Δ
mln
ch. %
7 947
3 464
4 483
+129%
-22%
Amounts due to customers 19 339
17 148
2 191
+13%
5 771
+43%
Repo transactions
0
543
-543
5 496
201
+4%
Total equity including
current net profit
2 186
2 116
70
+3%
718
682
36
+5%
Subordinated liabilities
209
414
-205
-49%
303
305
-2
0%
Other liabilities
508
481
27
+6%
30 189
24 166
6 023
+25%
30 189
24 166
Total Equity and
Liabilities
6 023
-
+25%
21
Income statement
(PLN mln)
2Q’08
Net interest income
2Q’07
Δ mln
ch. %
250
208
42
+20%
Net fee and commission income
73
86
-13
-15%
Dividend, net trading income, profit (loss) from
investment activities
55
39
16
+41%
7
7
0
0%
Gross operating income
385
339
46
+13%
Total costs
288
238
50
+21%
Operating profit
97
101
-4
-4%
Net impairment charges for financial assets,
other assets and provisions
-9
26
-35
-
0
0
0
0%
88
128
-40
-31%
Income tax
-18
-28
10
-36%
Net profit
70
100
-30
-30%
Other operating income and expenses
Share of profits of associates
Profit before tax
22
Contact information
Investor Relations Office
E-mail: [email protected]
Surf to www.kredytbank.pl for the latest update.
•
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any security issued by the KB Group.
•
KB believes that this presentation is reliable, although some information is condensed and therefore incomplete.
•
This presentation contains forward-looking statements with respect to the strategy, earnings and capital trends of KB,
involving numerous assumptions and uncertainties. The risk exists that these statements may not be fulfilled and that future
developments differ materially. Moreover, KB does not undertake any obligation to update the presentation in line with new
developments.
•
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risks involved.
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