Bank Handlowy w Warszawie S.A. after 2Q ‘06 expansion and ... · Retail cards Pre-paid cards...
Transcript of Bank Handlowy w Warszawie S.A. after 2Q ‘06 expansion and ... · Retail cards Pre-paid cards...
Bank Bank HandlowyHandlowy w w WarszawieWarszawie S.A. after 2Q ‘06 S.A. after 2Q ‘06
-- expansion and better resultsexpansion and better results
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Strong mid year results
139
180
236
107
0
100
200
300
400
1H05 1H06
MM PLN3438%318
Source: Bank’s Financial Disclosures
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Increase in capital return and efficiency
7,8%343318Net income, MM PLN
10,7%444401Gross income, MM PLN
(8,3%)1,0601,155Operating Income, MM PLN
14,8%67,3%
1,9%11,7%
1H06 ZmianaVariance
14,6%71,8%
1,6%9,1%
1H05
Capital Adequacy RatioCost / IncomeReturn on AssetsReturn on Equity
Source: Bank’s Financial Disclosures
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Achievements in 2 Q 2006
Transaction ServicesCapital markets and banking� 215 MM PLN issue of 20-year notes for European Investment Bank, the largest public non-State Treasury issuance in 1sth half of 2006� M&A advisory for Computerland in Emaxtakeover valued at 122 MM Euro� Sustainable leading position in commercial papers with 20% market share� Back on the market with SME offer – 200 new and active clients acquired
� New functionality of the mass payment „SpeedCollect” product – on-line data availability
� Promotion of international transfers with more attractive pricing - 20% product revenue increase
� EU advisory services launch
Trade financingTreasury
�Financing of two vessels for Norwegian fleet company�New functionalities to factoring products
�High growth in fx product sales, especially FX options� e-Trade electronic platform launch
Source: Bank’s Financial Disclosures, data in MM PLN
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„Profits rise in springtime” ... in 1 H 2006Consumer Bank
� Strong sales of investment products, the offer extended with 9 new equity subfunds denominated in Euro and USD
� New insurance products, i.a. SuperEmerytura(pension related product)
� Successful marketing of cash loan within credit card by phone
� Internet accounts increased security
� Attractive pricing of the Citibank overdraft product
�Free of charge internet cash transfer
� High cash loan sales supported with media campaign� Program implementation „Your acquaintance – CitiFinancial client”� Spring promotion of consolidation loan „Installment’s reduction Center”� Internet distribution channel promotion
Source: Bank’s Financial Disclosures
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Citibank payment cards - prestigious and innovative
Retail cards Pre-paid cards
Business cards
� Prepaid cards’ offer awarded by the„The Banker”� Innovative application – pre-paid cards for social aid funds and scholarships.
100
125
150
1H05 1H06
Number of pre-paid cards
28%
� 9% more business credit cards issued in 1H 06 v. 1 H 05
� 12% increase to 613 thousand retail credit cards�Strong sales of Citibank MasterCard FIFA 2006� Innovative cash loan within credit card by phone
At the end of 1 half 2006 the Bank issued 1,04 million payment cards
Źródło: Sprawozdania finansowe Banku
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Balance Sheet structure
5.3 5.01.7 2.45.2 5.9
17.3 18.2
3.43.1
31.12.05 30.06.06
3.8 3.7
5.9 5.3
7.2 8.1
6.5 7.4
9.610.1
12.05 30.06.06
Deposits - financial
Other Liabilities
Shareholders’ capital
Deposits – non-financial
Liabilities in trading portfolio5%
13%
(9%)
5%33,0 34,6
14%
5%33,0 34,6
(9%)
7%
8%
Assets Liabilities
31.
Available for sale
Loans - financial
Trading portfolio
Other assets
Loans – non- financial
Source: Bank’s Financial Disclosures, data in MMM PLN
8
28%72%
26%
74%
Corporates Individuals
Loans
0
2000
4000
6000
8000
31.12.05 30.06.060
2000
31.12.05 30.06.06
Retail loansCorporate clients loans
Non-financial sector laons
31.12.05 30.06.06
-0,5% 14%
9%
Market (w/o mortgage)
6%
Market
Source: Estimates, pro-forma data
9
0
4000
8000
12000
31.12.05 30.06.06
0
2000
4000
6000
31.12.05 31.03.06 30.06.06
27%73%
Corporates Individuals
26%
74%
DepositsNon-financial sectors deposits
31.12.05 30.06.06
8% 3%
8%
Market
17%
Market
7%
Non-Financial Corporate depositsIndividuals’ deposits
Source: Estimates, pro-forma data
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Results after 1st half 2006
PLN MM 1H06 1H05Wzr/(spad)
I/(D)Wzr/(spad)
I/(D)%
Net interest income 508.1 522.3 (14.2) (2.7%)Net fee and commission inco 302.4 283.7 18.7 6.6%Treasury 213.0 332.2 (119.2) (35.9%)Other operating revenue 38.8 15.2 23.6 155.1%
Recurring income 1,062.3 1,154.9 (92.6) (8.0%)Op. expenses and depr. (748.1) (767.1) (19.0) (2.5%)Income on fixed assets sale 117.3 (1.1) 118.4 n.m.Movements in provisions 9.6 17.0 (7.4) n.m.Share in subs' profits 2.7 (2.5) 5.1 n.m.EBIT 443.8 401.4 42.5 10.6%Corporate tax (100.8) (83.1) 17.7 21.2%
Net profit 343.1 318.2 24.8 7.8%
Source: Bank’s Financial Disclosures, data in MM PLN
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Treasury results
PLN MM 1H06 1H05 Wzr/(spad) I/(D) Wzr/(spad) I/(D)
%Trading portfolio income 5.9 15.1 (9.1) (60.6%)AFS portfolio income 33.2 112.3 (79.1) (70.5%)Foreign Exchange income 173.9 204.8 (30.9) (15.1%)Treasury 213.0 332.2 (119.2) (35.9%)
Debt instruments interest 196.0 197.7 (1.7) (0.9%)
Source: Bank’s Financial Disclosures, data in MM PLN
3.00%3.50%4.00%4.50%5.00%5.50%6.00%6.50%7.00%
1/1/
05
3/1/
05
5/1/
05
7/1/
05
9/1/
05
11/1
/05
1/1/
06
3/1/
06
5/1/
06
198 196
33
-7
112
83
-401060
110160210260310360
1H05 1H06
Coupons AFS Trading
debt instruments Yields on Treasuries
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Expansion but with cost discipline
366
284 283
338
6147
-60
40
140
240
340
440
540
640
740
1H05 1H06
CitiFinancial
GCB
CIB
32%
-1%
-8%
697 682-2%
� Corporate segment costs under control, partly offset by one-off expenses in 2nd Q06� Cost cutting effect in retail, even more clearly visible with 7% decrease 2Q06/1Q06� Branch network expansion in CitiFinancial
Source: Bank’s Financial Disclosures, data in MM PLN
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24%
73%
3%
Cost of Credit
-3000-100010003000500070009000
1100013000150001700019000
2005 1H06
Not at risk loans
At risk ofimpairment
Provisions
Loans portfolio quality
13%
Impairment split 1H06
13%IBNR
Portfolio approach
Individual Impairment loss
81%81%Provision coverage ratio
2005 1H06
� Stabilization of loans at risk of impairment share
Source: Bank’s Financial Disclosures, data pro-forma
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1 H 2006 ResultsCorporate and Investment Bank
244
170 161
311
194
221
-60
40
140
240
340
440
540
640
740
840
1H05 1H06
Result on activity,MM PLNMM PLN Wzr/(Spad)
I/(D)Wzr/(Spad)
I/(D)
1H06 1H05 %Results on activity 611 739 (128) -17%One-off events 104 - 104 Expenses and depreciation (386) (416) (29) -7%
Provisions 23 34 (11) n/mGross profit 352 358 (6) -2%
Assets, mm PLN 31,265 32,525 (1,260) -4%Liabilities, mm PLN 28,519 28,728 (209) -1%
Other operating income� Lower interest income driven by lower loan interest rates deepened by lower loan volume� Fee income increase offset by lack of sold HanZA TFI commissions�Increase in interest rates dampened debt valuation, yet market factor volatility increased client sales and trading
Result on financial oper.
Fee Result
Interest Result
Source: Bank’s Financial Disclosures, data in MM PLN
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Quarterly resultsCorporate and Investment Bank
2Q05 1Q06 2Q062Q06 / 2Q05
2Q06 / 1Q06
2Q06 / 2Q05
2Q06 / 1Q06
Interest income 129 102 120 (27) 18 (21%) 18%Fee income 80 79 79 (1) (0) (1%) (0%)Hanza/TFI*) 8Treasury income 174 133 29 (41) (104) (23%) (78%)Operating income 383 314 228 (69) (86) (18%) (27%)
Expenses (207) (190) (205) 18 (15) (9%) 8%*) Estimate
zmiana zmiana, %
Source: Bank’s Financial Disclosures, data in MM PLN
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1 H 2006 ResultsConsumer Bank
Result on activity,MM PLNMM PLN Wzr/(Spa
d) I/(D)Wzr/(Spad)
I/(D)
1H06 1H05 %Results on activity 363 364 (1) 0%One-off events 20 - 20 Expenses and depreciation (300) (304) (4) -1%
Provisions 3 (9) (12) -135%Gross profit 86 51 36 70%
Assets, mm PLN 2,623 2,306 317 14%Liabilities, mm PLN 5,985 6,435 (450) -7%
233
111 134
21 19
210
0
100
200
300
400
1H05 1H06
� Lower interest rates coupled with cards repricing� Increase in fee revenue on investment and insurance products� Recorded results of restructuring of branch network and employment
Result on financial oper.
Fee Result
Interest Result
Source: Bank’s Financial Disclosures, data in MM PLN
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Quarterly results
2Q05 1Q06 2Q062Q06 / 2Q05
2Q06 / 1Q06
2Q06 / 2Q05
2Q06 / 1Q06
Interest income 114 106 104 (8) (1) (7%) (1%)Fee income 59 63 71 4 9 6% 14%Operating income 173 168 176 (5) 7 (3%) 4%
Expenses (156) (155) (145) 1 10 (1%) (6%)
zmiana zmiana, %
Source: Bank’s Financial Disclosures, data in MM PLN
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1 H 2006 Results
45
3
8
76
0
25
50
75
100
1H05 1H06
Result on activity,MM PLN
MM PLN Wzr/(Spad) I/(D)
Wzr/(Spad) I/(D)
1H06 1H05 %Results on activity 84 48 36 75%Expenses and depreciation (62) (47) 15 31%
Provisions (17) (8) (9) 112%Gross profit 6 (7) 13 n.m.
Assets, mm PLN 742 440 302 69%Liabilities, mm PLN 125 107 17 16%
Fee Result�Further expansion of outlets’ network – 24 branches and 9 points of sale in 1 H 06 (v. 13 branches in 1 H 2005)
� 32% increase related to new branches opening expenses
Interest Result
Source: Bank’s Financial Disclosures, data in MM PLN
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Quarterly results
2Q05 1Q06 2Q062Q06 / 2Q05
2Q06 / 1Q06
2Q06 / 2Q05
2Q06 / 1Q06
Operating income 26 42 42 16 0 63% 0%Expenses (27) (27) (35) (1) (7) 3% 27%
zmiana zmiana, %
Source: Bank’s Financial Disclosures, data in MM PLN
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Notes exchange versus shareholder structure
75%
12%13%
COICIFAPozostali / Other
� 1,51 bp *) higher free-float at 2Q06, as compared to 1Q06 (1,8 MM shares or 138 MM PLN market cap)� Current total free-float 1,2 bln PLN
2,622,44Earnings per share
1H05 1H06
Kurs akcji BHW i obrotyBHW daily stock price and volumes
55
60
65
70
75
2005
Aug
2005
Sep20
05 O
ct20
05 N
ov20
05 D
ec20
06 Ja
n20
06 Feb
2006
Mar
2006
Apr
2006
May
2006
Jun
2006
Jul
2006
Aug
Stoc
k Pr
ice
(PLN
)
-10
10
30
50
70
90
110
130
150
Stoc
ks (t
hous
ands
)
Volume
BHW stock price
*) 2,53 % points out of 14,33% BHW shares available for exchange has been converted
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InvestorRelations
Sławomir S. Sikora,President of the Management Board
Lidia Jabłonowska-Luba, Management Board Member, CFO
Katarzyna Otko-Dąbrowska Investor Relations
citibank handlowyBank Handlowy w Warszawie S.A.Ul. Senatorska 1600-923 WarszawaPolskaTel. +48 (22) 657 72 [email protected]