Kredyt Bank Group - Bank Zachodni WBK

Kredyt Bank Group
Financial Results
for 3Q 2010
Investor Relations Office
Warsaw, November 9, 2010
1
• Highlights
• Analysis of results, Group
• Business lines, Bank
• Appendix
2
Key massages – increase of income from banking
activity and equity allocation optimisation
9 Net profit after three quarters of 2010 (cumulatively) equal to PLN 129 mln vs PLN 14 mln
in the same period of 2009. Net profit in 3Q 2010 at the level of PLN 56 mln vs PLN 14
mln in 2Q 2010.
9 Operating profit (before provisions) after three quarters of 2010 (YTD) equal to PLN 533
mln vs PLN 446 mln in the same period of 2009 (improvement by 19,5%). Operating profit
(before provisions) in 3rd quarter of 2010 equal to PLN 197 mln vs PLN 161 mln in 2nd
quarter of 2010 (improvement by 22,4%).
9 Cost/Income ratio at the level of 56,3% after three quarters of 2010 (YTD) vs 63,1% in
September 2009 (YTD) – improvement by 6,8 pp. C/I in 3Q 2010 was equal to 54,4% in
comparison with 58,5% in 2Q 2010 (improvement by 4,1 pp.).
9 CAR equal to 12,3% in 3Q 2010 vs 11,4% in 3Q 2009. The improvement was related
among others to the decrease of corporate loan portfolio by 16% which took place during
the last 12 month. Simultaneously segment revenues realised in 3Q 2010 were at the level
of 3Q 2009 (PLN 107,6 mln zł vs 107,5 mln zł).
3
Operating profit (before provisions)
402
in PLN mln
197
Operating profit
(before provisions)
72
4Q’06
182
120
94
101
99
8
27
32
20
1Q’07
2Q’07
3Q’07
4Q’07
125
1Q’08
2Q’08
-24
-9
-3
Net impairment
127
97
3Q’08
-37
4Q’08
137
137
1Q’09
2Q’09
*
w/o sale of Żagiel’s shares (PLN 268,3 mln)
161
134*
3Q’09
4Q’09
-89
-38
-184
The highest operating profit
within last 4 years
176
172
1Q’10
-98
-156
2Q’10
3Q’10
-141
-122
-374
4
• Highlights
• Analysis of results, Group
• Business lines, Bank
• Appendix
5
Financial highlights - indicators
3Q’10
2Q’10
3Q’09
2010-2009
pp / %
54,4%
58,5%
58,8%
-4,4pp
5,5%
3,9%
3,2%
2,3pp
103,9%
105,1%
120,9%
-17,0pp
Loans/Deposits (adjusted) 1
70,4%
68,0%
78,5%
-8,1pp
CAR
12,3%
12,1%
11,4%
+0,9pp
Cost/Income (quarterly)
ROE (cumulatively)
Loans/Deposits
FTE (ths)
4,8
4,9
6,2
-21,9%
Branch network - KB
383
384
407
-5,7%
1 Net
customer loans excluding FX customer loans financed by KBC Group / customer deposits
6
Balance sheet breakdown
ASSETS
LIABILITIES & FUNDS
in PLN mln
+11% y/y
Other
38 755
in PLN mln
43 095
921
+11% y/y
38 755
-8%
996
241
2 579
+74%
43 095
420
Other
Equity
2 816
+9%
Customers
26 755
+1%
Customers
26 573
Securities
7 659
Interbank + Repo
Cash
2 633
894
3Q’09
1 Funding
21 985
+30%
9 968
+65%
4 337
+25%
1 114
3Q’10
+17%
9 893
-10%
4 057
+27%
3Q’09
from KBC Group = loans and interbank deposits from KBC Group entities (FX and PLN)
25 758
8 932
5 169
3Q’10
Funding from
KBC Group 1
Liabilities due
to banks
+ Repo
7
Volumes
Customer loans1
in PLN mln
27 803
Corporate
Households
8 337
19 466
3Q’09
28 690
28 539
+2,6% y/y
7 283
7 068
-15,2% y/y
21 407
21 471
+10,3% y/y
2Q’10
3Q’10
25 652
21 985
8 976
Corporate
Warta Gwarancja
7 340
799
936
15 877
Households
1Loans,
25 758
2Q’10
3Q’10
Total loans
4,1%
3,8%
3,8%
Household loans
4,8%
4,7%
4,6%
Corporate loans
3,1%
2,5%
2,4%
9 525
KB market share - deposits2
+17,2% y/y
+29,8% y/y
2Q’10
liabilities gross, end of period, consolidated
3Q’09
2Q’10
3Q’10
Total deposits
3,5%
3,7%
3,6%
Household deposits3
3,8%
3,9%
3,8%
Corporate deposits
2,9%
3,3%
3,4%
697
15 536
+10,8% y/y
13 709
3Q’09
3Q’09
0%
Customer liabilities1
in PLN mln
KB market share - loans2
0%
3Q’10
2 NBP
3
segmentation – residents only, bank statutory
combined with insurance linked deposit Warta Gwarancja
8
Financial highlights 3Q’10 – P&L
Δ y/y
mln
Δ y/y
%
3Q’10
3Q’09
NII + NFC (PLN mln)
1 071,5
1 014,8
+56,6
+5,6%
Gross operating income (PLN mln)
1 219,8
1 210,2
+9,6
+0,8%
-686,7
-764,0
-77,3
-10,1%
533,1
446,2
+86,9
+19,5%
-360,5
-429,7
-69,2
-16,1%
128,8
14,4
+114,4
793,4%
General administrative expenses (PLN mln)
Operating profit (PLN mln)
Net impairment and provisions (PLN mln)
Net profit (PLN mln)
9
Net interest, net fees and commissions
NII
NFC
in PLN mln
+5,6%
+5,6%
in PLN mln
+2,4%
+11,5%
831
+4,8%
787
82
76
3Q’09
2Q’10
241
228
84
+4,8%
284
271
3Q’10
13,4%
3Q’10
3Q’09 3Q’10
cumul. cumul.
Payment and handling
transactions for
customers
3Q’10
10,2%
2Q’10
3Q’10
cumul.
F&C (income structure)
271
3Q’09
3Q’09
3Q’09
cumul.
Distribution of mutuals
and insurances
9,6%
40,1%
10,8%
37,3%
Loans
21,6%
25,6%
10,7%
Payment cards and
ATMs (net)
Other
20,7%
10
General administrative expenses
General administrative expenses
FTEs
in PLN mln
cumulatively
+3,4%
Total
245
Depreciation
28
NHR
HR
107
110
3Q’09
227
235
26
25
100
101
105
105
2Q’10 3Q’10
Total
764
Depreciation
86
-4,3% y/y
-13,1% y/y
NHR
-10,1% y/y
687
76
-11,3% y/y
302
-10,2% y/y
336
-1,8% y/y
-4,5% y/y
Total 6 233
Other
89
Żagiel
HR
341
308
3Q’09 3Q’10
cumul. cumul.
-9,7% y/y
KB
1 112
5 032
3Q’09
0%
4 851
4 836
89
90
4 762
4 746
2Q’10
3Q’10
-22,4% y/y
+1,1% y/y
-5,7% y/y
11
Loans quality
Impaired loans/gross loans1,
coverage ratio
59,4%
61,1%
62,6%
Impaired loans - volume
in PLN m
+2,2%
+3,2 pp y/y
2 697
9,4%
9,6%
1
+2,9 pp y/y
1 860
6,7%
3Q’09
2 757 +48,2% y/y
2Q’10
3Q’10
On customers’ portfolio basis, banks excluded
3Q’09
2Q’10
3Q’10
12
Net Impairment – breakdown by segments
Net impairment – breakdown
by segments
Net impairment
quarterly, in PLN mln
-24,2
-14,0%
3Q’09
2Q’10
mln PLN
-44,2
Corporate
+19,4
3Q’10
-106,5
Consumer
Finance
-44,8
-21,0
-22,3% y/y
-24,8
-121,6
Retail
-47,0
-119,4
-141,4
3Q’09
-156,4
Other
-0,9
-5,4
-0,5
2Q’10
3Q’10
13
• Highlights
• Analysis of results, Group
• Business lines, Bank
• Appendix
14
Retail sales activity - deposit, investment,
insurance products
9Continuation of deposits collection strategy and its conversion to investment funds. Gross sales of investment
products reached the amount equal to more than PLN 1 700 mln without significant effect on the size of
deposit base. High sales through inter alia wide range of KBC TFI products (4,8% shares in the assets under
management market):
two subscriptions of Closed Investment Funds KBC TFI (auto-call design): KBC Kupon Jumper FIZ i KBC
Poland Jumper 3 FIZ, which brought almost 200 mln PLN of assets;
z offer of 3 Closed Funds Global Partners: PL KBC Booster 1, PL KBC Kupon3, PL KBC Kupon 4;
z since the beginning of the year the sales of Open Investment Funds amounted to almost PLN 650 mln
(mainly funds based on debt and money markets).
z
9The market share of KBC TFI S.A. in the market of capital protected investment funds (assets under
management) as at the end of 3Q 2010 amounted to 56,2%.
9Investment insurance Profit Plan is a sales hit – totally since the beginning of the year the sales exceeded PLN
430 mln, with over PLN 220 mln was reached in the third quarter of 2010.
9Within third quarter 3 subscriptions of structured deposits based on EUR/PLN exchange rate for the affluent and
Private Banking customers were lunched. The amount of PLN 150 mln was collected. Since the beginning of the
year within the framework of 8 subscriptions, the amount equal to more than PLN 430 mln was gained. 131
structured deposits were lunched on the market in 2010. The share of KB in the number of products was equal to
7%. According to our estimations the market share of KB as far as the volume of sales is concerned was
equal to 23%.
15
Retail sales activity - loans
9Mortgage loan
• in July the sale within the framework of spring market campaign was ended:
• the campaign goal was fulfilled in 15% (PLN 1,1 bln)
• in July KB was ranked fourth on the market as far as the new sale was
concerned with the share of 9%;
• 235% sales growth in 3Q 2010 in comparison with 3Q 2009
9Cash loan
• more than 6.500 of loans, with a total value equal to PLN 80,7 mm granted to
the existing clients within the framework of promotional campaign, which took
place in September, titled: Invest in yourself and the education of your family”;
• the number of loans with insurance was increased within the said promotional
campaign
9Increase of the sale of the overdraft in the 3 quarters of 2010 by 56% in comparison
to the same period last year (in case of the volumes sold, the increase is equal to
63%).
16
Retail sales activities support – current
account and related products
9
From September 6 the pilot phase of new
current accounts offer, called „PROFILE” is
running in selected units of the Bank, the offer
will be available across the network from
November 2010:
•
35% of customers, bought „higher”
account in comparison with the current
account owned previously
•
up to 23% of customers bought
additional product (overdraft, credit card
or debit card),
•
important tool to customers loyalty
increase since the beginning of relation
(increase of the average number of
products per customer).
9
Fee and commission income of the Bank will
aim to increase the stable part, based on
periodic fees
17
Enterprise banking
•
Cycle of 50 local conferences „Capital and safety of your
company - possibilities, threads, opportunities”
CO-ORGANISERS: Kredyt Bank i WARTA
conferences PARTNERS: GPW, KIG, KRD i KIBR
•
•
•
•
Best partner in
business 2010
panel discussion with invited guests and experts,
average number of participants about 40
very good evaluation by the participants of the conference
patronage of local authorities and close cooperation with
regional chambers and business associations
Fulfilled:
Olsztyn, Łomża, Bielsko-Biała, Częstochowa,
Łódź, Zamość, Wałbrzych, Zielona Góra.
Planned:
another 10 conferences this year and 33 in 2011
18
Retail banking performance
Number of clients1
Customer business per client1
in ths
Quarterly in PLN ths
1 091
1 095
1 051
3Q’09
27,8
2Q’10
3Q’09
3Q’10
Retail loans1 in PLN mln , Margin
3,6%
3,1%
1,0%
2,8%
13 828
936
1,0%
0,7%
15 900
799
20 294
18 343
3Q’10
2Q’10
Retail deposits1 in PLN mln , Margin
+10,6% y/y
20 194
30,3
30,2
15 101
+11,2% y/y
-3,3% q/q
15 378
697
14 681
12 892
3Q’09
1
2Q’10
3Q’10
3Q’09
Warta
Gwarancja
Deposits
2w’10
3Q’10
retail segment customers, data according to internal segmentation, after resegmentation performed in the 1Q’10, loan portfolio includes Zagiel
brokerage channel
19
Retail banking - mortgage loans
Mortgage loans – portfolio, margin
KB market share
in PLN mln
1,1%
0%
15 457
3Q’09
2Q’10
3Q’10
Total mortgage loans
6,5%
6,2%
6,1%
PLN
5,7%
5,4%
5,5%
FX
6,9%
6,6%
6,5%
1,1%
1,1%
15 471
+13,3% y/y
13 649
Mortgage loans – quarterly sale
10 557
FX
10 190
+6,4% y/y
9 574
4,5
1,7
PLN
4 075
4 900
5 281
3Q’09
2Q’10
3Q’10
+29,6% y/y
945
3,4
717
307
3Q’09
number
(ths)
in PLN mln
2Q’10
3Q’10
20
Retail banking - products
Saving accounts - volume
Credit cards - quantity
in PLN mln
cards in use, in ths.
+19,7% y/y
244
-2,9% q/q
9 421
Żagiel
97
KB
147
9 151
7 647
3Q'09
216
64
152
2Q’10
210
57
-14% y/y
153
3Q’10
Loans granted by Żagiel – portfolio
3Q'09
2Q’10
3Q’10
2 668
cards
+28,1% y/y
1 824
216
cash 1 076
2Q’10
3Q’10
2 444
215
910
instalment 1 376
3Q'09
+8,8% y/y
342
in PLN mln
1 423
in PLN mln
398
366
Cash loans & credit cards
– bank’s network
1 757
Quarterly sale
3Q'09
1
2 457
-7,9% y/y
216
880
1 319
1 361
2Q’10
3Q’10
portfolio by products split – estimation based on MIS
21
Enterprise banking performance
Number of clients
18 604
3Q’09
19 158
2Q’10
Customer business per client
19 567
quarterly in PLN mln
3Q’10
Corporate loans1 in PLN mln, Margin
2,2%
1,6%
0,925
0,930
0,903
3Q’09
2Q’10
3Q’10
Corporate deposits1 in PLN mln, Margin
1,5%
1,9%
1,2%
9 507
9 624
8 366
1,1%
10 146 +20,6% y/y
8 414
8 010
-15,8% y/y
3Q’09
1
2Q’10
3Q’10
3Q’09
2Q’10
Data according to the Bank’s current internal segmentation, after resegmentation performed in the 1Q’10.
3Q’10
22
• Highlights
• Analysis of results, Group
• Business lines, Bank
• Appendix
23
Gross operating income breakdown
(cumulatively)
in PLN mln
+1% y/y
1 220
1 210
61
-36%
134
-19%
228
Other
109
241
+6%
3Q’10
3Q’09
39
Net financial
operations
2,9
5,0
NFC
7,8
11,5
19,9
18,4
65,1
787
3Q’09
cumul.
+6%
831
69,4
NII
3Q’10
cumul.
24
Financial highlights – P&L (quarterly)
3Q
2010
2Q
2010
1Q
2010
4Q
2009
3Q
2009
NII + NFC (PLN mln)
367,7
346,8
357,0
350,5
352,8
Gross operating income* (PLN mln)
431,5
387,8
400,4
662,0
417,0
General administrative expenses (PLN mln)
234,7
227,0
224,9
260,1
245,4
Operating profit* (PLN mln)
196,8
160,8
175,6
401,9
171,6
-121,6
-141,4
-97,6
-373,5
-156,4
55,5
13,8
59,6
20,1
10,4
Net impairment and provisions (PLN mln)
Net profit (PLN mln)
* Gross operating income excluding the revenues from the sale of Żagiel amounted to PLN 393,5 mln in the 4Q’09 while
operating profit amounted to PLN 133,6 mln.
25
General administrative expenses - details
3Q’10
2Q’10
3Q’09
Δ y/y
mln
HR costs:
105,2
101,5
110,2
-5,0
-4,5%
Operating expenses including inter alia:
104,8
100,2
106,8
-2,0
-1,8%
Costs of buildings’ rental
21,6
20,3
26,0
-4,4
-16,9%
IT & telecommunication costs
20,5
18,2
19,0
-1,5
-7,9%
Advisory costs
6,2
4,9
4,3
-1,9
-46,2%
Postal charges
7,2
7,9
7,2
0,0
+0,7%
Costs of buildings’ maintenance and repairs
5,1
4,8
5,6
-0,5
-9,3%
24,7
25,4
28,4
-3,7
-13,1%
PLN mln
Depreciation:
Δ y/y
%
26
Balance sheet
ASSETS
(PLN mio)
LIABILITIES
Δ
mln
Δ
%
11 783
12 440
-657
-5%
Amounts due to
customers
25 758
21 985
3 773
17%
Repo transactions
1 452
695
757
109%
30%
Total equity including
current net profit
2 816
2 579
237
9%
-105
-15%
Subordinated liabilities
866
814
52
6%
305
31
10%
420
242
178
74%
38 755
4 340
11%
43 095
38 755
4 340
11%
223
892
401%
Amounts due from
banks and financial
assets at fair value
4 337
2 411
1 926
80%
Loans to customers
26 755
26 573
182
1%
9 968
7 659
2 309
Tangible and intangible
fixed assets
584
690
Other assets
336
43 095
Total Assets
Δ
%
Amounts due to banks
1 114
Investments in securities
Δ
mln
3Q’09
3Q’09
Cash and balances with
Central Bank
(PLN mio)
3Q’10
3Q’10
Other liabilities
Total Equity and
Liabilities
27
Income statement
Quarterly (PLN m)
3Q’10
3Q’09
Δ%
Δ mln
284
271
13
5%
Net fee and commission income
84
82
2
2%
Dividend, net trading income, profit (loss) from
investment activities
48
42
5
12%
Other operating income and expenses
16
22
-6
-26%
432
417
15
3%
-235
-245
11
-4%
197
171
25
15%
-122
-156
-112
-
1
1
0
-
76
16
60
375%
Income tax
-21
-6
-15
264%
Net profit
56
10
45
436%
Net interest income
Gross operating income
Total costs
Operating profit
Net impairment charges for financial assets,
other assets and provisions
Share of profits of associates
Profit before tax
28
Contact information
Investor Relations Office
E-mail: [email protected]
Surf the net: www.kredytbank.pl for the latest update.
•
This presentation is provided for informational purposes only. It does not constitute an offer to sell or the solicitation to buy
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.
•
By reading this presentation, each investor is deemed to represent that it possesses sufficient expertise to understand the
risks involved.
29