Erste Bank Polska Sa

So let us start. My name is Agnieszka Dobrzycka from Thunderbank Polska. I'd like to welcome you to the presentation of the financial results for the first half of 2021. Together with me, there is the CEO, Michał Gajewski, CFO, Maciej Roluga, and Wojciech Skalski from the financial accounting. As I have said, my name is Agnieszka Dobrzycka, and I am in charge of investor relations. CEO, over to you. Hello, ladies and gentlemen. This is Michal Gajewski. And today, this is yet another time when we're meeting here in this remote form. But I hope that starting from the next quarter, this is conditioned by the pandemic situation. I hope that we will make it. I'd like to start my presentation from saying that from the perspective of the bank's core business, the recent period of six months can be deemed as successful. The economic situation has been stabilizing, and we can already see some harbingers of the revival. Credit volumes still remain under pressure, especially in the corporate sector, but this will improve over time. We are hoping to see some improvement, and we're looking with optimism into the next quarter. Before we comment on the results, I would like to mention our charity fundraiser, We Will Double Your Impact. We run it together with our customers and employees. This time, we supported 16 children's psychiatry centers, to which we donated a total of 2 million blocks. You can get more details about this fundraiser on the slide number five. Now, let us go to the financial performance slide number nine. As a group, we provide services to over 7 million customers, out of which over 5.3 million customers in Santander Bank Polska. In total, together with SED, we have almost 3 million digital customers. Deposit portfolio went up by 4% year-on-year and stood at 173 billion slots. Gross loans flat at 148 billion slots. Assets are on the rise. Customer funds up by 7% year-on-year to the level of 192 billion slots. In terms of assets of the entire bank, this is the amount of 231.4 billion slots. Now, let us go to the slide number 12. I'm sorry, this is slide number 10. This is slide number 10. So, just like in the previous quarters, we had several events that influenced the underlying profit. And, of course, the details can be found in the presentation and the report. When we talk about the underlying profits, we take into account two important factors, and these are the BFG premiums as well as provisions for legal risks related to FX mortgages. At the end of June, attributable profits stood at 374 million slots, and in underlying terms, it went up by 8.7% year-on-year. In quarter two only, it stood at 223 million slots, which was 50% more than in the previous quarter. Net interest income stood at almost 2.8 billion slots, and it was lower year-on-year. And this drop came by low interest rates and low demand for credit. The income was over 2%. 1.2 billion slots and was 18% higher year-on-year, which is a solid result. Total income stood at almost 4.4 billion slots, 1.5% higher year-on-year. Return on equity was 3.8%. and 7.5% in underlying terms. We have a very strong capital position, much above their requirements, and our Tier 1 capital exceeded 19%, and TCR was about 21%. I'm going to reiterate that every quarter, I think, that the group has a substantial capital surplus. It is extremely large. So now, So as a group, it is almost 13 billion slots, and for the bank itself, it is almost 14 billion slots. And I think that there may be questions about the dividend payout, but let's not talk about it right now. We will take this potential question in the Q&A session. Now, let us go to this line number 12. And on this slide, you can see the activity of our customers broken down into specific segments. Each quarter, the number of users in remote channels is on the rise. This is 8% year-on-year, up both in retail and business segments.

The number of mobile users

and the retail is 18% up, 15% in SME, and 19% in Corvo. The number of transactions in mobile banking has been up over the recent months by 48%, and in terms of attribution to businesses by almost 60%. I think that this is not a major surprise because the customers are visibly using remote channels more and more eagerly.