FINANCIAL RESULTS 3Q 2016 - Bank Pekao · PDF file10 97 94 Net fees and commissions Other...

FINANCIAL RESULTS 3Q 2016

Warsaw, 10.11.2016

Solid results towards full year plan delivery

1

Disclaimer

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(consolidated text in Journal of Laws of 2003 , No. 153, item 1503, as amended) and the Act dated on June 30, 2000 on Industrial Property Law (consolidated text

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2

▪ Net profit after nine months of PLN 1 785m, in line with 2016 plan,

▪ NII growing by 5.3% yoy thanks to volumes and further improvement of NIM to 2.81% in Q3,

▪ Continuation of asset mix improvement with key retail lending confirming double digit pace,

▪ Operational efficiency and effective risk management confirmed.

9M16 highlights

3

Net profit

610

521

3Q 15 3Q 16

-14.7%

- dynamic excluding impact of new banking tax; PLN 322m for 9M 2016

9M 15 9M 16

1 854 1 785

+13.6%

PLNm

-3.8%+5.1%

▪ Nine months net profit at PLN 1 785m, -3.8% yoy (excluding banking tax +13.6% yoy) withQ3 at PLN 521m.

▪ ROE at 10.2% with Core Tier I at 18.1%.

4

900962

3Q 15 3Q 16

+6.8%

Gross operating profit

2 8703 168

9M 15 9M 16

+10.4%

PLNm

▪ Double digit growth in nine months operating profit +10.4% yoy, supported by good Q3performance.

5

Operating incomePLNm

1 6071 555

153 148

3Q 15 3Q 16

+2.7%

1 709 1 755

4 7284 608

683 858

9M 15 9M 16

+5.6%

5 2915 586

Core operating income Other

+3.3% +2.6%

▪ Nine months core operating income up by +2.6% yoy thanks to contribution of Q3 results(+3.3% yoy).

▪ Total operating income after 9 months at PLN 5 586m, +5.6% yoy.

6

1 1171 048

3Q 15 3Q 16

Net interest income (PLNm)

Net interest income and net interest margin

3 106 3 269

9M 15 9M 16

+6.7%

+5.3%

2,73% 2,73%2,75%

2,80% 2,81%

3Q 15 4Q 15 1Q 16 2Q 16 3Q 16

Net interest margin

▪ Nine months NII at PLN 3 269m, +5.3% yoy, driven by customer volumes.▪ Continuation of NIM improvement to 2.81% in Q3 thanks to cost of deposits and retail

lending.

7

25 565

44 84544 034 44 296

24 52825 995

Sep 15 Jun 16 Sep 16

50 31045 516

48 972

6 912 6 5146 764


Key corporate loans

Loans

+1.8%

+1.2%

Key retail loans Other retail loans

+10.5%

Other corporate loans(*)

+2.7%

(*) excl. BSB and reverse repo transactions

Retail loans (PLNm) Corporate loans (PLNm)

▪ Solid growth in key retail lending +10.5% yoy and +2.7% qoq.▪ Key corporate lending +1.8% yoy and +1.2% qoq while preserving margin target

8

New key retail lending

2 0581 668

1 8651 849

3Q 15 3Q 16

New loans volumes (mln PLN)

3 5183 923

PLN Mortgage Loans Consumer Loans

▪ PLN 3.9bn in new retail loans in the third quarter driven by record level of consumer loansand continuously solid PLN mortgages origination.

+12%

Sep 15 Sep 16

PLN mortgage stock market share

18.1%

17.7%

9

60 58267 630

60 101


Savings

-10.4%

+0.8%

Retail deposits MF

+11.5%

67 590

60 639

68 174

16 936 16 75116 140


-0.9%

(*) excl. SBB and repo transactions

Retail savings (PLNm) Corporate deposits (*) (PLNm)

▪ Double-digit growth in retail deposits +11.5% yoy.▪ Corporate deposits dynamic reflecting tactical approach in safe liquidity management.

10

97 94

Net fees and commissions

LendingOther Cards Capital Markets

PLNm

▪ Nine months banking fees and commission up 0.1% yoy with lending and card fees offsettingpressure on other fees.

▪ Capital markets down by 14.4% affected by industry-wide pressure, gradually improving q/qdynamic in comparison with previous quarters.

-3.8%

306 262

-14.4%

183

127

101

172

124

100

3Q 15 3Q 16

411 396

-3.4%

549

371

275

528

389

279

9M 15 9M 16

1 195 1 196

+0.1%

11

485 470

242 239

82 85

3Q 15 3Q 16

Operating costs

808

Non-personel costsPersonnel costs Depreciation

Cost

PLNm

794

1 437 1 414

738 748

247 257

9M 15 9M 16

2 421 2 418

-0.1%-1.8%

877 980

BFG+ banking tax

Cost incl. BFG, banking tax

68 186

2 627 2 937

206 518

▪ Nine months operating costs PLN at 2 418m, -0.1% yoy, C/I at 43.3%.▪ Regulatory charges at PLN 518m.

12

3Q 15 2Q 16 3Q 16

8 093

118 638117 517112 260

8 030 8 105

Sep 15 Jun16 Sep 16

Assets quality

Provision coverage ratio

PerformingNPL NPL ratio


74.2%

Note: Performing loans excl. BSB and reverse repo transactions

Loans (PLNm)

▪ Cost of risk at 48 bp.▪ NPL ratio at 6.4%, coverage ratio at 74.3%.

70.8%

Cost of risk

0.49% 0.47% 0.48%

74.3%

6.7% 6.4% 6.4%

13

Conclusions

� 9 months net profit of PLN 1 785m, +13.6% on comparable bases, on a track to 2016 plan delivery,

� Strong commercial development driven by double digit key retail volumes and progressing NIM improvement,

� Operational and risks costs under control, improving further bank efficiency,

� Solid performance, healthy and effective business model based on sustainable revenues, improving our market position and reinforcing our track record in value creation.

14

AGENDA

▪ Appendix

15

Polish economy outlook 2016

Note: Internal macroeconomic scenario

2015 2016F

GDP, % y/y 3.9 2.7

Consumption, % y/y 3.2 3.6

Investments, % y/y 6.1 -4.9

Unemployment, % eop 9.8 8.5

CPI, % avg -0.9 -0.7

3M Wibor, % avg 1.72 1.70

Reference rate, % eop 1.50 1.50

Exchange rate EUR, eop 4.26 4.30

Exchange rate USD, eop 3.90 3.94

Public sector balance, % GDP -2.6 -2.8

16

Polish banking sector outlook 2016

(1) all non-mortgage retail loans

(2) Internal scenario

(3) deposits + assets in mutual funds dedicated to retail cliens

(4) assets in mutual funds dedicated to retail clients

2015 2016F(2)

Loans, % y/y 6.8 3,1

Retail, % y/y 6.6 3,7

Mortgage loans PLN 10.4 6,8

Consumer loans(1) 6.8 5,8

Corporate, % y/y 8.1 5,9

SME loans 7,0 4,0

Savings (3)

, % y/y 7,6 6,9

Deposits, % y/y 7.4 7,6

Retail, % y/y 9.4 9,9

Corporate, % y/y 10.3 8,7

Mutual Funds (4)

, % y/y 8,9 0,0

17

Polish economy trendsKey parameters (1)

TRADE BALANCE ACCOUNT (bln EUR)

GDP (% YoY) FIXED INVESTMENTS (% YoY)

PRIVATE CONSUMPTION (% YoY)

Source: Central Statistical Office; March 2007 – September 2016

7,7

1,9

0,90,1 0

0,51,8

2,63,3 3,3 3,3 3,3

3,63,1

3,44,3

3 3,12,8

5,3

54,84,94,8

4

3,6

1,5

2,1

4,2

1,92,7

5,5

7,36,9 6,9

4,93,7

2,33,3

-4

-2

0

2

4

6

8

1Q 0

72Q

07

3Q 0

74Q

07

1Q 0

82Q

08

3Q 0

84Q

08

1Q 0

92Q

09

3Q 0

94Q

09

1Q 1

02Q

10

3Q 1

04Q

101Q

112Q

11

3Q 1

14Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q13

2Q13

3Q 1

34Q

13

1Q 1

42Q

14

3Q 1

44Q

14

1Q 1

52Q

15

3Q 1

54Q

15

1Q 1

62Q

16

3Q 1

6

GDP Pr Consumption contribution

Net export contribution Investment contribution

9,66,7

-0,1

-3,2

-4,9-

2,5

-3,5

-0,20,3

12,0

9,69,79,711

,85,8

4,44,4-1

,8-4

,9-6

,0

10,4

7,8

5,4

0,12,5

24,0

0,7

-9,3

-2,9

-4,7

-0,7

5,3

0,0

5,0

15,9

22,6

19,2

13,014

,5

1Q 0

72Q

07

3Q 0

74Q

07

1Q 0

82Q

08

3Q 0

84Q

08

1Q 0

92Q

09

3Q 0

94Q

09

1Q 1

02Q

10

3Q 1

04Q

10

1Q 1

12Q

11

3Q 1

14Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q 1

32Q

13

3Q 1

34Q

13

1Q 1

42Q

14

3Q 1

44Q

14

1Q 1

52Q

15

3Q 1

54Q

15

1Q 1

62Q

16

3Q 1

6

2,4

2,1

0,8

0,2

0 0,2

-0,5

0,7

0,7

2,3

2,9

2,3 2,

83,1

3,1

3,1

3 3,2 3,33

,8

66,4

5,96,3

4,9

6

3,2

5,8

42,

63,

6

1,7

2,7

8,2

3,1

2,6

3,7

3,6

3,3

1Q 0

72Q

07

3Q 0

74Q

07

1Q 0

82Q

08

3Q 0

84Q

08

1Q 0

92Q

09

3Q 0

94Q

09

1Q 1

02Q

10

3Q 1

04Q

10

1Q 1

12Q

11

3Q 1

14Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q 1

32Q

13

3Q 1

34Q

13

1Q 1

42Q

14

3Q 1

44Q

14

1Q 1

52Q

15

3Q 1

54Q

15

1Q 1

62Q

16

3Q 1

6

-3,4-

2,8-2

,2-1

,2-1

,9-1

,10,50,3

-0,1

-0,8 -0

,4-1

,21,6

0,3-0

,71,01,0

1,4-0

,7

-3,3

-4,1

-2,5

-3,1

-3,5-3

,3

-2,3-2

,0

-2,1-1

,6

-6,5

-5,2

-4,1-3

,8-4

,6-5

,9

1Q 0

72Q

07

3Q 0

74Q

07

1Q 0

82Q

08

3Q 0

84Q

08

1Q 0

92Q

09

3Q 0

94Q

09

1Q 1

02Q

10

3Q 1

04Q

101Q

112Q

11

3Q 1

14Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q 1

32Q

13

3Q 1

34Q

13

1Q 1

42Q

14

3Q 1

44Q

14

1Q 1

52Q

15

3Q 1

54Q

15

1Q 1

62Q

16

3Q 1

6

18

4 800,00

4 900,00

5 000,00

5 100,00

5 200,00

5 300,00

5 400,00

5 500,00

5 600,00

5 700,00

5 800,00

1Q 0

72Q

07

3Q 0

74Q

07

1Q 0

82Q

08

3Q 0

84Q

08

1Q 0

92Q

09

3Q 0

94Q

09

1Q 1

02Q

10

3Q 1

04Q

101Q

11

2Q 1

13Q

11

4Q 1

11Q

12

2Q 1

23Q

12

4Q 1

21Q

13

2Q 1

33Q

13

4Q 1

31Q

14

2Q 1

43Q

14

4Q 1

41Q

15

2Q 1

53Q

15

4Q 1

51Q

16

2Q 1

63Q

16


UNEMPLOYMENT (%)

CORPORATE EMPLOYMENT (ths. eop)

RETAIL SALES (real terms, % YoY)

AVERAGE CORPORATE WAGES (% YoY)

5,47,8

8,99,81

0,111

,812,0

11,0

7,86,3

3,53,43,6

2,73,8

3,34,34,3

5,25,3

4,6

2,02,23

,03,04,14,1

3,53,43,9

3,13,63,43

,74,4

4,2

2,32,6

5,43,8

4Q 0

61Q

07

2Q 0

73Q

07

4Q 0

71Q

08

2Q 0

83Q

08

4Q 0

81Q

09

2Q 0

93Q

09

4Q 0

91Q

10

2Q 1

03Q

10

4Q10

1Q 1

12Q

11

3Q 1

14Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q 1

32Q

13

3Q 1

34Q

13

1Q 1

42Q

14

3Q 1

44Q

14

1Q 1

52Q

15

3Q 1

54Q

15

1Q 1

62Q

16

3Q 1

6

Avg. Corporate Wages CPI

6,98,4

2,71,9-2

,00,01

,53,94,2

5,55,12,6

3,74,2

3,52,84,84,4

5,75,97,1

8,8

6,0

2,97,3

17,4

1,10,3

3,6

1,01,0

4,8 4,7

8,4

12,114

,012

,816

,111

,8

1Q 0

72Q

07

3Q 0

74Q

07

1Q 0

82Q

08

3Q 0

84Q

08

1Q 0

92Q

09

3Q 0

94Q

09

1Q 1

02Q

10

3Q 1

04Q

101Q

11

2Q 1

13Q

11

4Q 1

11Q

12

2Q 1

23Q

12

4Q 1

21Q

13

2Q 1

33Q

13

4Q 1

31Q

14

2Q 1

43Q

14

4Q 1

41Q

15

2Q 1

53Q

15

4Q 1

51Q

16

2Q 1

63Q

16

12,5

13,3

12,312,4

13,4

14,3

13,2

13,01

3,413,5

12,0

11,411,5

10,2

9,79,79,9

8,78,3

9,4

10,9

11,6

12,3

11,2

8,9

12,1

9,511

,110

,610,9

13,0

11,7

14,3

12,4

11,5

13,3

11,9

11,8

11,5

1Q 0

72Q

07

3Q 0

74Q

07

1Q 0

82Q

08

3Q 0

84Q

08

1Q 0

92Q

09

3Q 0

94Q

09

1Q 1

02Q

10

3Q 1

04Q

101Q

11

2Q 1

13Q

11

4Q 1

11Q

12

2Q 1

23Q

12

4Q 1

21Q

13

2Q 1

33Q

13

4Q 1

31Q

14

2Q 1

43Q

14

4Q 1

41Q

15

2Q 1

53Q

15

4Q 1

51Q

16

2Q 1

63Q

16

Source: Central Statistical Office; March 2007 – September 2016

19

2,0 2,

4

3,5

4,1

3,2

2,2

2,9

3,8 4,

1

4,1

-1,5

-0,8

-0,8

-0,9

-0,7

-0,7

-0,5

-0,9

3,7

4,6

4,6

2,23,

0

1,1

4,74,

3

4,0

3,9

2,9

1,3

0,5

0,7

0,6

0,3

-0,3

3,6

3,3

4,2

1,92,32,

72,72,7

2,7

2,73,

44,

14,

95,

14,9

5,0

4,8

4,7

4,2

4,0

3,8

3,94,1

4,34,

24,

4

5,9

6,6

6,7

6,2

5,7

5,1

4,7

4,2

1,7

1,7

1,7

1,7

1,7

1,7

1Q 0

7

2Q 0

7

3Q 0

7

4Q 0

7

1Q 0

8

2Q 0

8

3Q 0

8

4Q 0

8

1Q 0

9

2Q 0

93Q

09

4Q 0

9

1Q 1

0

2Q 1

0

3Q 1

0

4Q10

1Q 1

1

2Q 1

1

3Q 1

1

4Q 1

1

1Q 1

2

2Q 1

2

3Q 1

2

4Q 1

2

1Q 1

3

2Q 1

3

3Q 1

3

4Q 1

3

1Q 1

42Q

14

3Q 1

4

4Q 1

4

1Q 1

5

2Q 1

5

3Q 1

5

4Q 1

5

1Q 1

6

2Q 1

6

3Q 1

6

CPI

REF. RATE

3M WIBOR


EXCHANGE RATES

INFLATION, INTEREST RATES

Source: NBP

20

8

1413

26

3338

45

1214

1210

84

03 2 4 5 5 5 6 7 8

5 51 2

-4

3

14

2428

-40

19181515

3 2 2 0 2

9 8 75

6 4 7

588 9

79

65

-9

1

11

21

31

41

51

4Q 0

24Q

03

4Q 0

44Q

05

4Q 0

64Q

07

4Q 0

84Q

09

4Q 1

04Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q 1

32Q

13

3Q 1

34Q

13

1Q 1

42Q

14

3Q 1

44Q

14

1Q 1

52Q

15

3Q 1

54Q

15

1Q 1

62Q

16

3Q 1

6

Households

Corporate

Banking sector trendsKey parameters - yoy (4)

HOUSEHOLDS AND CORPORATE LENDING (% YoY) HOUSEHOLDS AND CORPORATE DEPOSITS (% YoY)

TOTAL SECTOR LENDING (% YoY) TOTAL SECTOR DEPOSITS (% YoY)

Source: NBP; December 2002 – September 2016

-2 -21

91011

26

10

14121313

89

8 6 6 5 6 79 8 9

1110

2

17

4

101012

8

2 2

-8

-1

57

107

5

11 111210

95

15

9 10 9

2425 26

14

9

12

7

-9

-4

1

6

11

16

21

26

31

4Q 0

24Q

03

4Q 0

44Q

05

4Q 0

64Q

07

4Q 0

84Q

09

4Q 1

04Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q 1

32Q

13

3Q 1

34Q

13

1Q 1

42Q

14

3Q 1

44Q

14

1Q 1

52Q

15

3Q 1

54Q

15

1Q 1

62Q

16

3Q 1

6

Households

Corporate

4 57 8 8 7

5 453

13

23

30

36

8 9

1413

119 9

2 4 4 45 5

-30369

121518212427303336

4Q 0

24Q

03

4Q 0

44Q

05

4Q 0

64Q

07

4Q 0

84Q

09

4Q 1

04Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q 1

32Q

13

3Q 1

34Q

13

1Q 1

42Q

14

3Q 1

44Q

14

1Q 1

52Q

15

3Q 1

54Q

15

1Q 1

62Q

16

3Q 1

65

8 8 8 8 9 911

9

667 675

1212

99

15

3-

1010

21

15

13

8

4

-4

2

7

12

17

22

4Q 0

24Q

03

4Q 0

44Q

05

4Q 0

64 Q

07

4Q 0

84Q

09

4Q 1

04Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q 1

32Q

13

3Q 1

34Q

13

1Q 1

42 Q

14

3Q 1

44Q

14

1Q 1

52Q

15

3Q 1

54Q

15

1 Q 1

62Q

16

3Q 1

6

21

-5%

0%

5%

10%

15%

20%

25%

30%

35%

I II III IV V VI VII VIII IX X XI XII

2007 2008 2009 20102011 2012 2013 20142015 2016

Banking sector trendsKey parameters - YTD (5)

HOUSEHOLDS LENDING (% YTD) HOUSEHOLDS DEPOSITS (% YTD)

CORPORATE DEPOSITS (% YTD)CORPORATE LENDING (% YTD)

Source: NBP; January 2007 – September 2016

-5%0%5%

10%15%20%

25%30%35%40%45%50%

XII' I II III IV V VI VII VIII IX X XI XII

2007 2008 20092010 2011 20122013 2014 20152016

-5%

0%

5%

10%

15%

20%

25%

30%

35%


2007 2008 20092010 2011 20122013 2014 20152016

-13%

-8%

-3%

2%

7%

12%

17%


2007 2008 2009 20102011 2012 2013 20142015 2016

22

Banking sector trendsNon-performing loans (6)

11,3

%11

,1%

7,4%

7,3%

7,2%

11,4

%

11,5

%12,5

%

12,4

%

12,7

%

12,7

%

11,2

% 12,3

%

12,7

%

13,1

%

12,2

% 13,2

%

12,3

%

12,6

%13,4

%14,1%

12,4

%

9,9%

7,6%8,

2%8,8%9,

3%

9,0%9,

4%8,

4%9,1%9,

8%

9,7%

7,6%7,7%

8,7%

9,7%

9,6%

7,5%

6,6%

Mar

09

Sep

09

Mar

10

Sep

10

Mar

11

Sep

11

Mar

12

Sep

12

Mar

13

Sep

13

Mar

14

Sep

14

Dec

14

Mar

15

Jun

15

Sep

15

Dec

15

May

16

Jun

16

Sep

16

SME Corporate

CORPORATE NPL RATIO

Source: NBP

HOUSEHOLDS NPL RATIO

1,2%1,3%1,4%1,5%1,5%1,6%1,8%

1,9%2,0%2,1%2,2%2,3%2,5%2,6%2,7%2,8% 3,0%

3,0%3,1%

3,1%3,2%

3,2%

3,1%3,4%3,4%

3,3%

2,9%2,9%

2,9%

2,9%

9,1%1

0,0%11,3%

13,1%

14,8%15

,8%16,9%17

,2%18,0%

17,8%18

,2%

18,2%

17,8%

17,9%

17,3

%

16,1%

15,6%

14,7%

14,4

%14

,2%13

,9%12

,8%13

,0%12

,3%12

,2%12

,3%12

,4%12

,2%12

,3%

2,9%

17,3%17

,8%

Mar

09

Sep

09

Mar

10

Sep

10

Mar

11

Sep

11

Mar

12

Sep

12

Mar

13

Sep

13

Mar

14

Sep

14

Mar

15

Sep

15

Mar

16

Sep

16

Mortgage Cash

4,5%4

,9%

6,0%

6,6%6,7%7

,2%

7,2%7,

4%7,

2%7,3%

7,2%7,

5%7,

3%7,5%

7,4%7,5%

7,2%

7,1%

7,0%

7,0%

6,9%

6,5%6,

8%6,

6%6,

5%6,

2%6,3%

6,2%

6,2%

7,1%

Mar

09

Jun

09D

ec 0

9M

ar 1

0Ju

n 10

Sep

10

Dec

10

Mar

11

Jun

11S

ep 1

1D

ec 1

1M

ar 1

2Ju

n 12

Sep

12

Dec

12

Mar

13

Jun

13S

ep 1

3D

ec 1

3M

ar 1

4Ju

n 14

Sep

14

Dec

14

Mar

15

Jun

15S

ep 1

5D

ec 1

5M

ar 1

6Ju

n 16

Sep

16

Total retail

11,5

%11

,5%

10,7

%11

,2%

11,3

%10

,9%

10,6%

9,8%

9,7%

9,6%

9,4%

11,4

%

8,4%

9,6%

11,5

%11

,2%12

,2%

12,4

%11

,5%12

,2%

10,9

%10

,7%

10,5%

10,1

%

10,4

%11,1%11,3

%11

,7%

11,8

%11

,8%

Mar

09

Jun

09S

ep 0

9D

ec 0

9M

ar 1

0Ju

n 10

Sep

10

Dec

10

Mar

11

Jun

11S

ep 1

1D

ec 1

1M

ar 1

2Ju

n 12

Sep

12

Dec

12

Mar

13

Jun

13S

ep 1

3D

ec 1

3M

ar 1

4Ju

n 14

Sep

14

Dec

14

Mar

15

Jun

15S

ep 1

5D

ec 1

5M

ar 1

6Ju

n 16

Sep

16

Total corporate

23

▪ Selected data

24

Consolidated balance sheet

(*) Including loans and advances from customers and receivables from finance leases

mln PLN Sep 15 Jun 16 Sep 16Q/Q

%

Y/Y

%

Cash and amounts due from Central Bank 3 590 5 892 3 996 -32% 11%

Loans and advances to banks 3 761 4 351 3 289 -24% -13%

Loans and advances to customers* 123 668 120 247 121 308 1% -2%

Investment securities 28 198 26 613 27 340 3% -3%

Assets held for sale 37 50 48 -3% 30%

Intangible assets 634 599 585 -2% -8%

Tangible fixed assets 1 468 1 409 1 398 -1% -5%

TOTAL ASSETS 170 792 166 012 163 253 -1,7% -4,4%

Amounts due to the Central Bank 1 6 6 0% 566%

Amounts due to other banks 7 865 4 981 5 500 10% -30%

Financial liabilities held for trading 330 786 499 -37% 51%

Amounts due to customers 128 601 126 894 126 965 0% -1%

Debt securities issued 3 628 2 085 1 626 -22% -55%

Total liabilities 147 929 143 812 140 513 -2,3% -5,0%

Total Shareholders' equity 22 862 22 200 22 739 2,4% -0,5%

25

Consolidated income statement

(4) Operating cost excluding guarantee funds charges (3) Net profit attributable to equity holders of the Bank

(2) Costs excl. guarantee funds charges (1) NII and dividends and other income from equity investments

(5) ROE assuming TCR at 10%(6) NIM calculated based on average daily working assets(7) Loans excluding repo and buy-sell-back transactions, deposits includes only clients liabilities and debt issue excluding reverse repo transactions and sell–buy-back

mln PLN 3Q 15 2Q 16 3Q 16 Q/Q% Y/Y% 9M 2015 9M 2016 Y/Y %

Net interest income (1)

1 059 1 108 1 127 1,7% 6,4% 3 161 3 315 4,9%

Net fee and commission 508 505 490 -3,0% -3,5% 1 502 1 458 -2,9%

Operating income 1 709 2 013 1 755 -12,8% 2,7% 5 291 5 586 5,6%

Operating costs (2) -808 -812 -794 -2,3% -1,8% -2 421 -2 418 -0,1%

OPERATING PROFIT 900 1 201 962 -19,9% 6,8% 2 870 3 168 10,4%

Provisions -130 -131 -134 2,1% 2,9% -397 -394 -0,7%

Guarantee funds charges -68 -64 -66 2,6% -3,8% -206 -197 -4,4%

Banking tax -120 -121 0,4% #DZIEL/0! #ARG! -322 #ARG!

PROFIT BEFORE INCOME TAX 760 884 638 -27,8% -16,0% 2 299 2 250 -2,1%

Income tax -149 -193 -117 -39,2% -21,3% -444 -466 4,9%

GROUP NET INCOME (3) 610 691 521 -24,6% -14,7% 1 854 1 785 -3,8%

Cost/Income Ratio (%) (4) 47,3% 40,3% 45,2% 4,9 2,1 - 45,8% 43,3% 2,5 -

Cost of Risk (%) 0,49% 0,47% 0,48% 0,0 0,0 - 0,50% 0,47% 0,0 -

ROE (%) 10,8% 11,7% 9,3% 2,4 - 1,5 - 10,4% 10,2% 0,2 -

ROE normalised (%) (5) 17,0% 18,4% 14,7% 3,7 - 2,3 - 15,8% 16,0% 0,2

ROA (%) 1,5% 1,7% 1,3% 0,4 - 0,2 - 1,5% 1,5% -

TCR (%) - Basel 3 17,7% 18,1% 18,1% - 0,4 17,7% 18,1% 0,4

NIM (%) (6) 2,73% 2,80% 2,81% 0,0 0,1 2,79% 2,78% 0,0 -

L/D (%) (7) 89,7% 93,6% 94,6% 1,0 4,9 89,7% 94,6% 4,9

26

Selected data

(***) Pożyczka Ekspresowa (Express Loan)

(*) Number of accounts including pre-paid card accounts (**) Retail clients’ accounts

(*****) Pioneer Pekao Investment Management S.A.(******) Including: Dom Maklerski Pekao (Dom Maklerski), subsidiaryCentralny Dom Maklerski Pekao S.A. (CDM), and associated entity Dom Inwestycyjny Xelion Sp. z o.o. (Xelion)

(****) Credit Union (SKOK) Kopernik included since Dec 2014

Bank Sep 15 Dec 15 Mar 16 Jun 16 Sep 16Q/Q

%

Y/Y

%

Outlets 992 975 959 947 942 -0,5% -5,0%

ATM's 1 767 1 759 1 750 1 754 1 754 0,0% -0,7%

Employees 16 501 16 387 16 403 16 258 16 100 -1,0% -2,4%

No of PLN current accounts (ths)* 5 279 5 314 5 338 5 377 5 435 1,1% 2,9%

No of mortgage loan accounts (ths)** 303 310 314 319 324 1,5% 6,9%

No of clients holding a consumer loan accounts (ths)*** 575 576 573 574 574 0,0% -0,2%

Number of individuals with an access to electronic banking Pekao24 (ths) 2 857 2 899 2 955 3 019 3 089 2,3% 8,1%

Number of individuals with an access to mobile banking (ths) 889 1 015 1 117 1 243 1 367 10,0% 53,8%

Number of business clients (SME) with an access to electronic banking systems (ths) 245 248 250 252 255 1,4% 3,9%

Group Sep 15 Dec 15 Mar 16 Jun 16 Sep 16Q/Q

%

Y/Y

%

Employees**** 18 471 18 327 18 315 18 150 17 994 -0,9% -2,6%

Outlets**** 992 975 959 947 942 -0,5% -5,0%

ATM's**** 1 767 1 759 1 750 1 754 1 754 0,0% -0,7%

Number of MF accounts (ths)***** 870 850 826 810 799 -1,4% -8,2%

Number of Brokerage accounts (ths)****** 351 346 346 345 343 -0,6% -2,1%

27

Activity by segments

(1) Total net interest income, dividends and other income from equity investments

(2) Operating cost excluding guarantee funds charges

9M 15 9M 16Y/Y

%9M 15 9M 16

Y/Y

%9M 15 9M 16

Y/Y

%9M 15 9M 16

Y/Y

%9M 15 9M 16

Y/Y

%

Net interest income (1) 1 709 1 792 5% 18 34 85% 1 199 1 225 2% 235 264 13% 3 161 3 315 5%

Non-interest income 1 155 1 131 -2% 25 23 -8% 824 688 -16% 126 428 240% 2 130 2 270 7%

Operating income 2 864 2 924 2% 43 57 32% 2 023 1 913 -5% 361 693 92% 5 291 5 586 6%

Operating costs (2) -1 899 -1 921 1% -38 -39 3% -471 -458 -3% -12,5 0,0 -100% -2 421 -2 418 0%

OPERATING PROFIT 965 1 003 4% 5 18 248% 1 551 1 455 -6% 348 692 99% 2 870 3 168 10%

Net write-downs/provision -143 -215 51% 0 0 -255% -270 -194 -28% 15 14 -7% -397 -394 -1%

Guarantee funds charges -77 -74 -3% -1 0 -21% -128 -116 -10% 0 -6 -206 -197 -4%

Banking tax 0 0 0 0 0 0 0 -322 0 -322

PROFIT BEFORE INCOME TAX 745 713 -4% 3,8 17,6 361% 1 150 1 145 0% 400 375 -6% 2 299 2 250 -2,1%

mln PLN

Retail Banking Private BankingCorporate&Investment

Banking

Assets&Liabilities

Management & OthersGroup

28

The structure of the Group net profit

(**) Group net profit attributable to equity holders of the Bank (reported)

NOTE: Data as reported

(*) Entities in liquidation, sold or indirect ownership not presented

mln PLN cumulative

Group's share in

capital % 9M 15 9M 16Y/Y

Y/Y %

Bank Pekao S.A. Banking - Poland 1 917,7 1 825,1 -93 -4,8%

Entities - consolidated under full method 165,3 88,2 #ARG! -47%

of which: (*)

Pekao Leasing Sp. z o.o. Leasing 100% 37,1 27,4 -9,70 -26%

Centralny Dom Maklerski Pekao S.A. Brokerage 100% 33,4 18,2 -15,20 -46%

Pekao Bank Hipoteczny S.A. Mortgage Bank 100% 6,6 6,2 -0,40 -6%

Pekao Pioneer PTE S.A. Pension Fund 65% 2,1 0,9 -1,20 -57%

Pekao Faktoring Sp. z o.o. Factoring 100% 6,5 6,6 0,10 2%

Pekao Investment Banking S.A. Brokerage 100% 9,8 20,2 0,00 106%

Centrum Bankowości Bezpośredniej Sp. z o.o. Call Centre 100% 1,4 1,8 0,40 29%

Pekao Financial Services Sp. z o.o. Servicing MF/PF 100% 6,2 5,9 -0,30 -5%

Centrum Kart S.A. Cards 100% 0,7 0,4 -0,30 -43%

Pekao Fundusz Kapitałowy Sp. z o.o. Business consulting 100% 0,1 0,3 0,20 200%

Pekao Property S.A. Real estate development 100% 0,0 -0,2 -0,20 #######

FPB "MEDIA" Sp. z o.o. Real estate development 100% 0,2 0,1 0,10 -50%

Entities - valued under the equity method 41,5 29,6 -12 -29%

Pioneer Pekao Investment Management S.A. Mutual Funds 49% 34,7 28,1 -6,60 -19%

Krajowa Izba Rozliczeniowa S.A. Clearing Services 5,70% 5,5 0,0 -5,50 -100%

Dom Inwestycyjny Xelion Sp. z o.o. Financial Advisory 50% 1,3 1,5 0,20 15%

Exclusions and consolidation adjustments -270,4 -158,3 112 -41%

Group Net Profit (**) 1 854,1 1 784,6 -70 -3,7%

29

Customers’ financing

(***) Total customers’ financing includes Loans and advances at nominal value , Securities issued by non monetary entities , reverse repo transactions and buy-sell-back

(*) Including debt securities eligible for rediscounting at Central Bank, net investments in financial leases to customers(**) Securities issued by non monetary entities including local governments

mln PLN Sep 15 Jun 16 Sep 16Q/Q

%

Y/Y

%

Loans* 108 850 112 525 113 798 1,1% 4,5%

retail 52 428 55 737 56 824 2% 8%

corporate 56 422 56 788 56 974 0% 1%

Non quoted securities 11 213 12 623 12 566 -0,5% 12,1%

Other 550 612 643 5% 17%

Nominal value adjustment 228 291 319 10% 40%

Impairment losses -5 729 -5 954 -6 020 1% 5%

Net loans and advances 123 663 120 246 121 306 1% -2%

Securities issues by non monetary

entities**928 879 870 -1,0% -6,2%

Reverse repo and buy-sell-back

transactions 8 551 149 0 -100,0% -100,0%

TOTAL CUSTOMERS’ FINANCING*** 129 541 126 176 127 234 1% -2%

30

Loans exposure - sectors

Note: Based on the annual Group data including current exposure and commitment

SECTOR DESCRIPTION* 31.12.2013 31.12.2014 31.12.2015 30.09.2016

Wholesale and retail trade; repair of motor vehicles and motorcycles 12,9% 14,2% 15,2% 15,1%

Public administration and defence; compulsory social security 13,0% 11,9% 10,9% 10,5%

Real estate activities 12,6% 10,4% 10,5% 11,9%

Electricity, gas, steam and air conditioning supply 8,8% 9,0% 8,6% 7,8%

Finanace and Insurance activity 5,9% 9,6% 7,8% 4,1%

Transportation and storage 6,3% 6,8% 7,2% 6,7%

Construction 5,8% 5,1% 6,3% 6,8%

Mining and quarrying 3,0% 3,9% 4,4% 3,1%

Manufacture of metals, metal products and machinery 3,8% 3,8% 4,0% 4,8%

Manufacture of beverages and food products 3,4% 3,1% 3,8% 4,4%

Manufacture of chemicals, pharmaceuticals and refined petroleum

products3,8% 2,8% 2,9% 4,5%

Information and communication 4,3% 5,0% 2,7% 2,5%

Manufacture of rubber, plastic and non-metalic products 2,3% 1,9% 2,1% 2,2%

Other manufacturing 5,4% 4,5% 5,2% 5,5%

Other sectors 8,7% 8,0% 8,4% 10,1%

Total 100% 100% 100% 100%

31

Key lending productsStock

36 808 37 955 38 72939 538 40 523

Sep 15 Dec 15 Mar 16 Jun 16 Sep 16

9 7879 4349 0098 9518 708

Sep 15 Dec 15 Mar 16 Jun 16 Sep 16

PLN mortgage loans volumes (mln PLN) Consumer loans volumes (mln PLN)

+2.5%

+10.1% +12.4%

+3.7%

32

Mutual funds

Mutual funds – volumes (mln PLN )

Mutual funds - assets structure (PPIM SA)

Market share (%)

PPIM SA

Third party funds distributed by the Group

Note: Market share – funds distributed by Pekao Group, compared with the market of retail investment funds available for individuals

16 590 15 812 16 425

5 403 5 364 5 512


17,1%17,3%17,9%


72%

15%13%

Equity fundsBalance funds

Money and bonds funds

+3.6%

-0.3%

21 993 21 176 21 937

33

Ratings of Bank Pekao S.A.

FITCH RATINGS PEKAO POLAND

Long-term rating (IDR) A- A-

Short-term rating F2 F2

Viabil ity rating a- -

Support rating 2 -

Outlook Stable Stable

S&P GLOBAL RATINGS* PEKAO POLAND

Long-term rating BBB+ BBB+

Short-term rating A-2 A-2

Stand-alone bbb+ -

Outlook Negative Negative

MOODY'S INVESTORS SERVICE LTDPEKAO

(unsolicited rating)POLAND

Long-term foreign-currency deposit rating A2 A2

Short-term deposit rating Prime-1 Prime-1

BCA baa1 -

Outlook Stable/ Negative** Negative

* On April 28, 2016, the name Standard & Poor's Ratings Services was changed to S&P Global Ratings.

** Outlook Stable on ratings of liabilities in domestic currency / Negative on ratings of liabilities in foreign currencies.

Bank Pekao S.A. has the highest viability rating assigned by Fitch Ratings, the highest Stand-Alone Credit Profile rating assigned by S&P Global Ratings, and the highest Baseline Credit Assessment as well as long- and short-term counterparty risk ratings assigned by Moody’s Investors Service.

On 9th of November 2016 Fitch Ratings reviewed and affirmed Bank Pekao S.A. ratings at unchanged levels. At the same time Fitch placed Bank’s Support rating on Rating Watch Negative.

34

Investor relations team’s contact and calendar

Dariusz ChoryłoExecutive Directorph.: +48 22 524 55 27 e-mail: [email protected]

Dorota Faszczewska-Wardph.: +48 22 524 55 30e-mail: [email protected]

Iwona Milewskaph.: +48 22 524 55 28 e-mail: [email protected]

Krzysztof Szlichci ńskiph.: +48 22 524 55 29 e-mail: [email protected]

Visit us at: www.pekao.com.plBlackout Period – two weeks period before publication of financial statements. During this period we do not organise meetings with investors and analysts

Q&A related to the presentation:

CONTACT DETAILS FINANCIAL CALENDAR

9 February 2016

26 April 2016

10 May 2016

20 July 2016

3 August 2016

27 October 2016

10 November 2016

Annual Report 2015 and Webcasting

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FINANCIAL RESULTS 3Q 2016 - Bank Pekao · PDF file10 97 94 Net fees and commissions Other...

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