1 / 28

FINANCIAL RESULTS AFTER 1Q 2008

FINANCIAL RESULTS AFTER 1Q 2008. RECORD HIGH NET PROFIT, FINALIZING INGEGRATION. Warsaw, 8 May 2008. FINANCIAL RESULTS AFTER 1Q 2008. 1Q 200 8. 1Q 200 7. Change. 1 138 22.8. +22.8% +0.4p.p. 927 22.4. Net income (PLN m il. ) ROE (%).

naeva
Download Presentation

FINANCIAL RESULTS AFTER 1Q 2008

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FINANCIAL RESULTS AFTER 1Q 2008 RECORD HIGH NET PROFIT, FINALIZING INGEGRATION Warsaw, 8 May 2008

  2. FINANCIAL RESULTS AFTER 1Q 2008 1Q 2008 1Q 2007 Change 1 138 22.8 +22.8% +0.4p.p. 927 22.4 Net income (PLN mil.) ROE (%) Stopka prezentacji 2007 results restated for comparable purpose

  3. AGENDA • MACROECONOMIC ENVIRONMENT • Q1 2008 FINANCIAL PERFORMANCE • INTEGRATION UPDATE Stopka prezentacji

  4. POLISH ECONOMY TRENDS GDP(%Y/Y) INVESTMENTS (% Y/Y) CONSUMPTION (% Y/Y) • Stable growth driven mainly by investments • Still reasonable export growth • Consumption boom is still ahead of the economy Stopka prezentacji

  5. POLISH ECONOMY TRENDS • CPI growth expected to pick in mid 2008, allowing for finishingtightening cycle at 6-6,25% level Stopka prezentacji

  6. BANKING SECTOR TRENDS DYNAMIC OF HOUSEHOLDS AND CORPORATE DEPOSITS IN THE POLISH BANKING SECTOR (% Y/Y) DYNAMIC OF HOUSEHOLDS AND CORPORATE LENDING IN THE POLISH BANKING SECTOR (% Y/Y) TOTAL SECTOR LENDING (%Y/Y) TOTAL SECTOR DEPOSITS (%Y/Y) Source: NBP Stopka prezentacji

  7. POLISH ECONOMY PRESENTS ATTRACTIVE MIX OF GROWTH AND RESILIENCE Stopka prezentacji

  8. RELATIVELY LOW SHARE OF EXPORT, SLIGHTLY EXPOSURE TO US ECONOMY MAIN DIRECTIONS OF EXPORT EXPORT/GDP US about 2% • Share of export to US at around 2%, limiting direct impact of US slowdown • Export to GDP at 41%, one of the lowest in CEE Stopka prezentacji

  9. AGENDA • MACROECONOMIC ENVIRONMENT • Q1 2008 FINANCIAL PERFORMANCE • INTEGRATION UPDATE Stopka prezentacji

  10. +22.8% +48.4% ROE (%) +15.9% +51.5% +0,4 p.p. NET INCOME AND OPERATING INCOME NET INCOME (PLN mil.) OPERATING INCOME (PLN mil.) • Net income up +22.8%y/y • Net income adjusted for one-off transactions kept at a very good level of Q1 07, despite adversecapital market conditions • Profitabilityimproved further with ROE at 22.8% 2007 results restated for comparable purpose 1Q07 includes ca 144 mil.net gain on sale of CUPTE 1Q 08 includes ca 350 mil. net gain on sale of investment banking part of CDM Stopka prezentacji

  11. OPERATING EXPENSES (PLN mil.) TOTAL REVENUES (PLN mil.) - 2.7 p.p. COST / INCOME RATIO (%) +10.7% +3.6% +18.0% -11.6% REVENUES AND COSTS • Revenues up by 10.7% y/y, atsimilar level as Q1 07 onadjusted basis • Cost/income ratiobelow 40% 2007 results restated for comparable purpose 1Q07 includes ca 178mil. revenues on sale of CUPTE 1Q 08 includes ca 435 mil. revenues on sale of investment banking part of CDM Stopka prezentacji

  12. +10.7% +18.0% % ch 1Q 08/4Q 07 % ch 1Q 08/1Q 07 2 115 1 983 2341 +280.4% +50.0% -8.6% -13.8% -1.9% +12.4% STRUCTURE OF REVENUES REVENUES (PLN mil.) • Growing of NII allowed offsetting pressure on fees, impacted by adverse capital market conditions 2007 results restated for comparable purpose 1Q07 includes ca 178mil. revenues on sale of CUPTE 1Q 08 includes ca 435 mil. revenues on sale of investment banking part of CDM Stopka prezentacji

  13. NET INTEREST INCOME (PLN mil.) +12.4% -1.9% NET INTEREST INCOME AND NET INTEREST MARGIN NET INTEREST MARGIN • NII up by 12.4%y/y, driven byimproved net interest margin 2007 results restated for comparable purpose Stopka prezentacji

  14. -7.4% CUSTOMER SAVINGS CUSTOMERS SAVINGS (PLN mil.) 117 208 108 480 -9.3% -19.2% +3.8% 67 201 63 139 -6.0% - savings of retail customers • Retail deposits up 4,2% YTD,capturing redemptions from mutual funds • Corporate deposits reflecting negative market dynamic • Zloty strengthening in Q1 affected savings by ca. 1bl. PLN Stopka prezentacji * total PPIM mutual funds

  15. MUTUAL FUNDS MUTUAL FUNDS – VOLUMES (PLN mil.) 1Q 2008 MUTUAL FUNDS ASSETS STRUCTURE MARKET SHARE STRUCTURE OF MF SOLD BY PEKAO • Decrease in assets under management, caused by adverse capital markets conditions • Market share stabilized, confirming leading position Stopka prezentacji

  16. CUSTOMERS LOANS* (PLN mil.) +1.2% 73 832 74 698 +1.5% +0.5% LENDING • Customers loans up 1.2% YTD • Selective growth in corporate volumes, reflecting focus on return on risk weighted assets • Policy of zloty denominated mortgages maintained Stopka prezentacji * Nominal value

  17. -13.8% -8.6% FEE AND COMMISSION INCOME FEE AND COMMISSION INCOME (PLN mil.) 708 669 611 % ch 1Q 08/4Q 07 % ch 1Q 08/1Q 07 -37.6% -38.1% -8.6% +1.3% -8.7% +6.1% +12.8% -7.3% • Fee income coming from mutual funds and brokerage activityimpacted by adverse market conditions 2007 results restated for comparable purpose Stopka prezentacji

  18. +3.6% -11.6% COSTS COSTS (PLN mil.) % ch 1Q 08/4Q 07 % ch 1Q 08/1Q 07 897 1051 929 -5.2% +3.5% -20.1% +4.1% -5.4% +3.4% • Total costs growth at 3.6%, below inflation 2007 results restated for comparable purpose Stopka prezentacji

  19. 7.8% 7.4% -2.7% +1.5% ASSET QUALITY NPL RATIO COST OF RISK PROVISION COVERAGE RATIO • Further improvement of assets quality thanks toeffective risk management and positivemacroeconomic scenario • Further increase in coverage ratio to 87.1% Stopka prezentacji

  20. AGENDA • MACROECONOMIC ENVIRONMENT • Q1 2008 FINANCIAL PERFORMANCE • INTEGRATION UPDATE Stopka prezentacji

  21. 13 MIGRATION • 198 of branches migrated (70%) • 80% of retail customers migrated • 100% of corporate customers migrated • Migration process in line with timetable, will finish by the end of May Stopka prezentacji

  22. 0,72 START OF OPERATIONAL INTEGRATION DID NOT CHANGE LOW CUSTOMER CHURN OBSERVED SO FAR Very limited customer churn Churn of customer accounts % 0.77 0.76 0.72 Before spin-off announcement(1) After spin-off announcement(2) After Day One(3) (1)Monthly average of period April 2005 – March 2006 (2)Monthly average of period April 2006 – November 2007 (3)Monthly average of period December 2007 – March 2008 Stopka prezentacji

  23. 13 NEW PEKAO IS ENTERING SECOND PHASE, EXPLOITING POTENTIAL OF JOINT ORGANIZATION Phase II action plan following IT migration, finalization of 3 years strategic plan • Enhancement of current account offering to increase acquisition in attractive segments • Competitive savings products to enhance further Bank’s proposition • Expansion of retail on-line presence • Stepping-up SME distribution model – establishing new business centers and dedicated corners in selected branches and new dedicated internet platform for SMEs Stopka prezentacji

  24. 13 SUMMARY • Record high net profit crossed 1.1 bl PLN with ROE 22.8% • Migration in the last phase with 80% of customers already on Pekao IT platform, allowingfocus on business development • Three years plan preparation progressing, confirming focus on 3 dimensions; growth, customers and employees satisfaction Stopka prezentacji

  25. APPENDIX Stopka prezentacji

  26. POLISH ECONOMY TRENDS (3) UNEMPLOYMENT (%) VS. WAGES (gr. y/y) Source: Central Statistical Office Stopka prezentacji

  27. BANKING SECTOR - MORTGAGE MORTGAGE / GDP MORTGAGE FX/TOTAL Source: NBP Stopka prezentacji

  28. BANKING SECTOR TRENDS DYNAMIC OF HOUSEHOLDS DEPOSITS IN THE POLISH BANKING SECTOR (% YTD) DYNAMIC OF HOUSEHOLDS LENDING IN THE POLISH BANKING SECTOR (% YTD) DYNAMIC OF CORPORATE DEPOSITS IN THE POLISH BANKING SECTOR (% YTD) DYNAMIC OF CORPORATE LENDING IN THE POLISH BANKING SECTOR (% YTD) Source: NBP Stopka prezentacji

More Related