Erste Bank Polska Sa

Good morning. My name is Agnieszka Doryska. I'm responsible for investor relations at Santander One Poland. I'd like to welcome you to the presentation of our financial results after the third quarter of 2024. Today's presentation will be delivered by our CEO, Michal Gajewski, Maciej Reliwa, CFO, and Wojciech Skalski, Head of Accounting and Financial Control Division. However, before we start, let me remind you that you can ask questions via the link online and you can also send questions directly to my email address. And now let me give the floor to the CEO. Thank you, Agnieszka. Good morning once again. Welcome back. at the presentation of our financial results. However, let me start with a short comment on our aid addressed to customers affected by the flood in the south of Poland. As I have always highlighted, we treat our mission of helping our customers in important matters seriously. That is why we launched support to customers as one of the first banks both in the form of sectoral moratoria and requests to the borrower's support fund, which, let me tell you as a reminder, is financed by banks. We are also ready to launch non-standard solutions tailored to situations of individual businesses. We also donated 1.5 million zlots on the equipment needed for recovery from flood, including one million slots from the bank and half a million from donations. This has been our second charity campaign this quarter, and we have also donated over 1.5 million slots to support pediatric oncology centers, including one million as a donation from the bank. We can see that the scale of losses caused by the flood among our customers is lower than we initially assumed. And we received 75 requests for moratorium from individual customers, three requests from business customers, and 56 requests under the borrower support fund. So the impact on the provisions Related to that will be minor. Going back to our performance, briefly speaking, after three quarters, we generated the gross profit of 5.8 billion. And in quarter three alone, the gross profit was 2.6 billion slots. At the same time, the tax burden after three quarters was 2.3 billion slots. And the regulatory costs amounted to 284 million slots. So in total, it's over $2.6 billion. And if you look at our gross profit, the version equals to our performance in quarter three. So let's move on to slide seven. In this slide, you can see the general operational data The number of digital customers has been growing. Currently, we have 4.5 million digital customers in the group, including 3.5 million mobile banking customers. The number of digital customers in the bank grew by almost 7% year-on-year, and mobile banking customers by 12%. Customer deposits grew by 4%. And the gross loans portfolio year-on-year grew by 8% to nearly 200 billion zlots, 198 to be exact. After it grew by 5%, customer funds totaled 241 billion zlots, growing by 6% year-on-year. Slide 8 refers to key financial results. So after three quarters, the net profit was 4.3 billion zlots. And in quarter three alone, the net profit was $1,939,000,000. Net interest income after three quarters was $10,249,000,000, and increased by 6% year-on-year. Excluding the impact of the payment holidays, the pace of growth was 7%. In quarter three alone, the net interest income was $3.6 billion, and it grew by 5% versus the same period a year ago. The net free income was $2,184,000,000, lots and group by 9% year on year. In Q3, it was $727,000,000 and was higher by 9% when compared to the same period of 2023. Total income was $12.7 billion, lots and group by 7% year on year. You can see our capital position. which remains high. Return on equity for the group is 20.5%. We can boast excellent liquidity with the LCR at 206%. Slides 10 to 12 show general information about individual segments and new products for our customers. So maybe let's go to slide 13. which includes selected business data. So let's start with the retail. We have 4.7 million accounts for individual customers, up by 5% year on year. In quarter three, we opened 125,000 personal accounts in Polish slaughter, which is a good pace of growth when compared to quarter two. So the growth was 13%. During three quarters, we sold mortgage loans worth $9.3 billion, and in quarter three alone, we sold mortgage loans worth $2.2 billion. Ninety-five percent of the portfolio was based on an adjustable fixed rate, so the total share of loans with adjustable fixed rate for five years in the entire portfolio PLN mortgage loan portfolio grew to nearly 40%, 39.5% to be exact. In Q3, granted cash loans were 3 billion zlots, up by 2.5% versus the previous quarter and 27% more than in Q3 2023.

So we can see that we are growing steadily.

Also, when it comes to our remote channels, net investment fund sales was 1.5 billion lots, and retail assets of Santander TFI at the end of quarter two were 22.7 billion lots. Our market share increased to 10.8%. In the SME segment, we have also excellent performance. We opened 18.3 thousand business accounts in quarter three, much more than quarter two. And by 18% more than in quarter three, 2023. And this year we have opened over 50,000 accounts for SMEs already. When it comes to loans, two SMEs, the total amount of loans was 1.3 billion zlot. After three quarters, the total amount of loans granted is 4 billion zlot, so the sales in this segment is very good. Also, when it comes to leasing products, 3.1 billion zlot, up by 11% year-on-year. In business and corporate banking, thanks to development of our digital solutions, the number of our mobile customers grew and we have a very good growth when it comes to credit income up by 7% year on year and very good FX income growing by 13%. In corporate and business banking, we have a double-digit, very strong growth in the M&A segment. And income from capital market services also grew, trade finance as well. We recorded a growth of 26% year-on-year. So that's a very good quarter for our CIB segment. So now the balance sheet, growth, loans, slide 15. At the consolidated level, 8% growth year-on-year and 2% growth quarter-on-quarter.