FINANCIAL RESULTS 1H 2015 Core revenues supporting 2015 plan delivery

Transcription

1 FINANCIAL RESULTS 1H 2015 Core revenues supporting 2015 plan delivery Warsaw,

2 Disclaimer This presentation (the Presentation ) has been prepared by Bank Polska Kasa Opieki Spółka Akcyjna ( Bank ) for the clients, shareholders and financial analysts. This presentation should not be treated as an offer or invitation to purchase any securities or financial instruments or as an advice or recommendation in respect to such securities or financial instruments. The presented data are only general information and does not refer to the offered by the Bank products or services. In order to take advantage of the services and products of the Bank, one should be thoroughly familiar with the characteristics of the particular service or product, its rules, risk and legal and tax consequences of the use of particular service or product. The strategy presented in this presentation contains goals which are the ambition of the Management Board and do not constitute any financial results forecast. Rights for the Presentation as a whole are entitled to the Bank. Presentation is a subject to the protection provided by the law, in particular: the Act dated on February 4th, 1994 on Copyright and Related Rights (consolidated text in Journal. Laws of 2006, No. 90, item. 631, as amended); the Act dated on July 27th, 2001 on the Databases protection(journal of Laws No. 128, item. 1402, as amended); the Act dated on April 16, 1993 on Combating Unfair Competition (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 in Journal. Laws of 2003, No. 119, item as amended). This presentation may include forward looking statements, Bank s outlook for the future, future plans and strategies or anticipated events that are not historical facts. Since these statements are based on assumptions, expectations, projections and provisional data about future events, the content is inherently uncertain. Factors that could cause or contribute to differences in current expectations include, but are not limited to: (i) general economic conditions, among which the economic conditions of the business areas and the markets in which Bank and its subsidiaries operate, (ii) the performance of financial markets (iii) changes in laws or regulations and (iv) general competitive conditions locally, regionally, nationally and/or internationally. The Bank does not undertake to publish any updates, modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of the Bank, or should facts or events occur that affect the Bank s strategy or intentions, unless such reporting obligations arises under applicable laws and regulations. Bank, nor any of its representatives shall not be responsible for any loss or damage it may arise from the use of this Presentation or of any information contained herein or otherwise arising in connection to this Presentation. This presentation is not for the distribution, in or into countries where the public dissemination of the information contained herein may be restricted or prohibited by law. 1

3 First half and second quarter 2015 highlights Keeping on our quarterly path - net profit above 600 mln PLN, double digit loans growth y/y, decreasing costs excl. BGF -2.3% y/y and sound cost of risk at 50 b.p. Net profit after first half at 1.24 bl PLN, supporting 2015 profit guideline - one digit drop Resilient second quarter core revenues, +0.3% q/q, despite impact of lombard cap and lower interest rates Double digit growth of new retail lending q/q Low exposure toward CHF mortgages and above the market ROA results in lower sensitivity toward potential new regulatory risks 2

4 Net profit mln PLN -0.8% +2.9% % +8.1% Q 15 2Q 15 1H 14 Growth External 1H 15 factors First half net profit at mln PLN, -5.7% y/y, +8.1% excluding impact of external factors, thanks also to second quarter results ROE at 10.3% delivered with Core Tier I 17.8% 3 External factors = BGF, interchange and lombard rate impact - dynamic excluding external factors impact

5 Gross operating profit mln PLN -4.4% -1.7% % +6.6% Q 15 2Q 15 1H 14 Growth External 1H 15 factors First half operating profit at mln PLN, -1.3% y/y, +6.6% y/y excluding impact of external factors 4 External factors = interchange and lombard rate impact - dynamic excluding external factors impact

6 Operating income mln PLN -1.9% -0.4% % +2.6% % Q 15 2Q 15 Core operating income Other 1H 14 Growth Interchange Lombard 1H 15 rate First half operating income at mln PLN, -1.7% y/y, +2.6% excluding external factors Core revenues +0.3% q/q, resilient despite lower rates 5 - dynamic excluding external factors impact

7 Net interest income and net interest margin mln PLN -2.6% NIM -0.1pp ,9% 2,8% 1Q 15 2Q 15 1Q 15 2Q % 1.7% -9.3% -0.5pp ,3% 2,8% 1H 14 1H 15 1H 14 1H % 1.8% First half NII at mln PLN, -9.3% y/y, due to lombard rate and reference rate cuts NIM resilient in the second quarter 6-3M WIBOR avg

8 Volumes Loans (mln PLN) Deposits (mln PLN) +10.1% +2.6% +9.3% +2.9% Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Continuation of sound, double digit loans growth Deposits +9.3% y/y following good quarterly dynamic 7

9 Retail loans Total retail loans (mln PLN) Key retail loans (mln PLN) +12.0% +3.0% +11.1% +2.5% Jun 14 Sep 14 Dec 14 Mar 15 Jun Other loans (mln PLN) +5.8% +0.1% Jun 14 Sep 14 Dec 14 Mar 15 Jun Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Key retail loans +12% y/y firmly continuing on double digit growth path 8

10 New key retail lending mln PLN +7.5% +10.5% Q 15 2Q 15 1H 14 1 H15 Consumer loans PLN mortgage loans Double digit growth of new key retail lending in the quarter Progress in consumer loans growth strategy with +21% y/y after 6 months 9

11 Corporate loans Total corporate loans (mln PLN) +9.5% +2.6% Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Key areas Other Corporate loans keeping the pace with +9.5 % y/y growth, supported by good performance of key corporate loans +3.2% in the second quarter 10 Key areas: MID, SME, public sector, leasing, factoring, Agromania

12 Savings Retail savings (mln PLN) Corporate deposits (mln PLN) +8.2% +1.7% +10.2% +3.9% Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Retail deposits MF Retail deposits + 8.2% y/y, with +1.7% growth in second quarter Corporate deposits +10.2% y/y, well supported by quarterly performance 11

13 Pekao vs. Sector Retail loans (y/y%) 10,4% Corporate loans (y/y%) 10,9% 7,7% 7,6% Pekao Sector Pekao Sector Retail deposits (y/y%) Corporate deposits (y/y%) 8,5% 8,2% 7,0% 6,4% Pekao Sector Pekao Sector Above the market growth in loans and deposits Note: based on reporting data to NBP 12

14 Net fees and commissions mln PLN -4.4% +6.8% Q 15 2Q 15 1H 14 Capital Lending Custody Transfers Cards Other 1H 15 market Positive dynamic in second quarter, +6.8% q/q thanks to volume of cards transactions and capital markets First half net fees and commissions 4.4% y/y, reflecting interchange rate cut and continuation of migration to internet platform 13

15 Operating costs mln PLN Cost +1.2% % BGF Cost incl. BGF 1Q 15 2Q % 1H 14 1 H % Personnel costs Non-personel costs Depreciation Continuation of strong cost management with costs after 6 months excl. BGF 2.3% y/y 14

16 Assets quality Loans (mln PLN) 7.0% 6.9% 6.8% 6.8% 6.7% Cost of risk Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 NPL Performing NPL ratio 0.58% 0.54% 0.53% 0.53% 0.50% Provision coverage ratio 2Q 14 3Q 14 4Q 14 1Q 15 2Q % 68.7% 70.4% 69.8% 70.8% Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Cost of risk improved further to 50 bp NPL ratio down to 6.7% and provision coverage ratio increased to 70.8% 15

17 Assets banking tax impact Sensitivity of the net profit to 10bps on assets banking tax (%) 22,7% 15,3% 4,3% 4,9% 5,6% 6,1% 7,4% 7,6% 7,7% Bank 1 Pekao Bank 3 Bank 4 Bank 5 Bank 6 Bank 7 Bank 8 Bank 9 Note: Consolidated data based on financial statements at the end of December

18 Share of FX mortgage FX mortgage loans in total loans portfolio (%) 58,0% 40,3% 28,6% 29,9% 15,0% 19,9% 0,5% 2,2% 4,0% Bank 1 Bank 2 Pekao Bank 4 Bank 5 Bank 6 Bank 7 Bank 8 Bank 9 Note: Consolidated data based on financial statements and Polish Bank Association data, at the end of March

19 Pekao FX mortgages structure FX mortgage loans meeting government draft criteria LTV 3% 1% 8.6% 10% 42% <=50% 50%-80% 80%-100% 44% 100%-120% >=120% FX mortgages meeting government draft criteria (mln PLN) FX mortgages year of origination DTI LTV < % 0-10% 55% LTV % 10%-20% 20%-30% 12% 26% LTV > >2006 1% >30% 7% 18

20 Conclusions Second quarter net profit at 619 mln PLN, with core revenues reverting to positive quarterly dynamic, enabling first half net profit at 1.24 bl PLN, supporting single digit drop guideline for 2015 Continuation of sound, double digit loans dynamic Cost efficiency program and effective risk management keep supporting bank premium profitability Strategic positioning of the bank reduces our sensitivity toward potential new regulatory risks 19

21 AGENDA Appendix 20

22 Polish economy outlook MACROECONOMIC SCENARIO F 2016F GDP, % y/y 3,4 3,8 3,9 Consumption, % y/y 3,1 3,2 3,0 Investments, % y/y 9,2 8,1 10,0 Unemployment, % eop 11,5 10,6 10,0 CPI, % avg 0,0-0,6 1,7 3M WIBOR, % avg 2,06 1,8 2,3 Reference rate, % eop 2,00 1,5 2,0 Exchange rate EUR, eop 4,26 4,2 4,0 Exchange rate USD, eop 3,51 3,7 3,9 Public sector balance, % GDP -3,2-2,8-2,5 Note: Internal macroeconomic scenario 21

23 Polish banking sector outlook BANKING SYSTEM VOLUMES F** 2016F** LOANS, y/y % 6,5 7,2 6,5 Retail, y/y % 5,5 7,1*** 5,4 Mortgage 11,9 12,4 11,6 Consumer loans* 6,1 5,8 6,0 Corporate y/y % 7,4 7,5 7,8 SME loans 6,3 7,5 8,5 SAVINGS, y/y % 9,0 7,4 7,3 DEPOSITS, y/y % 8,7 7,2 7,3 Retail, y/y % 9,2 7,5 7,3 Corporate y/y % 9,0 7,1 7,4 Mutual funds, y/y % 10,6 8,5 7,5 22 * all non-mortgage retail loans **internal scenario *** including effect of stronger CHF on existing portfolio

24 23 Polish economy trends Key parameters (1) GDP (% YoY) FIXED INVESTMENTS (% YoY) 1,9 1,5 7,7 7,3 6,9 6,9 8 5,5 3,7 4,9 1,9 2,7 2,1 4,2 3,6 4 4,8 4,5 4,5 1,3 4,8 2,2 5,1 6 3,7 0,2 0,5 0,8 2,4 3 3,53,6 3,3 3,3 3,6 3, ,7 24 0,7 0,1 2,5 5,7 8,3 0,1-2,3 11,4 10 6,5-4,9-0,4-1,7 1,5 3 11,4 8,7 9,28,6 11, ,3 5,3-4,7-2,9 22,6 19,2 15,9 1314, Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q13 2Q13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q GDP Pr Consumption contribution Net export contribution Investment contribution TRADE BALANCE ACCOUNT (bln EUR) PRIVATE CONSUMPTION (% YoY) 8,2 6,3 6 6,4 2,2 1,9 5,9 6 5,8 4,9 4 2,6 3,6 3,2 1,7 2,7 2,6 3,1 3,53,5 0,2 3 2,1 2,1 1,4 0 0,4 0,6 1,4 2, ,2 3 3,13,1-3,2-4,0-3,8-5,2-5,8-4,4-6,3-1,5-2,0-1,8-2,2-3,0-3,4-2,3-3,9-3,1-3,2-2,6-2,0-1,0 0,8-1,6-0,8 0,5 0,1-0,4 0,0-0,8 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q Source: Central Statistical Office; March 2007 March 2015

25 24 Polish economy trends Key parameters (2) CORPORATE EMPLOYMENT (ths. eop) ,8 5,0 5, ,2 4,5 4,7 4, , ,9 2, ,6 1, , Q 06 2Q 07 4Q 07 2Q 08 4Q 08 2Q 09 4Q 09 2Q 10 4Q10F ,7-2,3-2,1-1,0 UNEMPLOYMENT (%) Source: Central Statistical Office; March 2007 March 2015 AVERAGE CORPORATE WAGES (% YoY) 5,5 7,8 9,0 10,1 10,1 11,7 12,3 7,2 6,3 3,7 3,93,8 10,4 2,8 3,8 2,0 4,3 4,1 5,0 6,1 3,0 5,3 4,6 2,7 2,8 2,12,9 3,33,3 4,2 4,1 3,3 3,4 4,0 3,1 RETAIL SALES (real terms, % YoY) 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 Avg. Corporate Wages CPI 17, ,8 16,1 12,1 11,8 1 4,8 1 8,4 3,6 4,7 1,1 0,3 2,9 7,3 6 8,8 7,1 6,98,4 2,7 1, ,5 3,9 4,25,55,1 2,6 3,74,4 3,5 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 12,3 11,6 11,2 10,9 14,3 11,1 10,610,9 12,1 11,7 11,5 13,0 12,4 11,9 11,8 13,3 12,5 13,3 13,4 14,3 12,3 12,4 11,5 13,2 13,013,4 13,5 12,0 10,3 11,5 11,7 9,4 8,9 9,5 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15

26 25 Polish economy trends Key parameters (3) EXCHANGE RATES INFLATION, INTEREST RATES 1Q 15 2Q 15 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10-1,5-1,1-0,7 2,0 2,4 3,3 3,6 3,5 3,2 3,5 3,7 3,5 3,5 4,1 4,2 4,5 4,8 5,0 5,8 2,2 3,5 2,9 3,5 3,8 4,5 4,6 4,1 4,5 4,5 4,6 4,1 1,5 1,72 2,2 2,0 3,7 3,0 3,8 4,7 4,0 4,3 3,5 3,5 5,0 6,0 6,0 4,5 4,0 4,8 0,5 1,3 1,1 2,9 2,8 2,5 3,3 3,9 4,3 4,8-0,3 0,3 0,6 0,7 2,5 2,5 2,5 2,5 1,5 2,0 4,2 3,9 4,2 4,4 4,3 4,1 4,7 5,9 5,1 5,7 6,6 6,2 6,7 4Q10 3,8 1Q 11 4,0 2Q 11 4,2 3Q 11 4,7 4Q 11 4,8 1Q 12 5,0 2Q 12 4,9 3Q 12 5,1 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2,7 2,7 3,4 4,1 4,9 1Q 14 2Q 14 3Q 14 4Q 14 2,7 2,7 2,7 2,1 1,9 2,3 Source: NBP CPI REF. RATE 3M WIBOR

27 26 Banking sector trends Key parameters - yoy (4) HOUSEHOLDS AND CORPORATE LENDING (% YoY) HOUSEHOLDS AND CORPORATE DEPOSITS (% YoY) Corporate Households Corporate Households Q 00 4Q 01 4Q 02 4Q 03 4Q 04 4Q 05 4Q 06 4Q 07 4Q 08 4Q 09 4Q 10 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 TOTAL SECTOR LENDING (% YoY) TOTAL SECTOR DEPOSITS (% YoY) Source: NBP; March 2001 June Q 01 3Q 01 1Q 02 3Q 02 1Q 03 3Q 03 1Q 04 3Q 04 1Q 05 3Q 05 1Q 06 3Q 06 1Q 07 3Q 07 1Q 08 3Q 08 1Q 09 3Q 09 1Q 10 3Q 10 1Q 11 3Q 11 1Q 12 3Q 12 1Q 13 3Q 13 1Q 14 3Q 14 1Q 15 1Q 01 3Q 01 1Q 02 3Q 02 1Q 03 3Q 03 1Q 04 3Q 04 1Q 05 3Q 05 1Q 06 3Q 06 1Q 07 3Q 07 1Q 08 3Q 08 1Q 09 3Q 09 1Q 10 3Q 10 1Q 11 3Q 11 1Q 12 3Q 12 1Q 13 3Q 13 1Q 14 3Q 14 1Q 15 4Q 00 4Q 01 4Q 02 4Q 03 4Q 04 4Q 05 4Q 06 4Q 07 4Q 08 4Q 09 4Q 10 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15

28 Banking sector trends Key parameters - YTD (5) HOUSEHOLDS LENDING (% YTD) HOUSEHOLDS DEPOSITS (% YTD) 50% 45% 40% 35% % 30% 25% % 25% 20% 15% 20% 15% 10% 10% 5% 0% 5% 0% -5% XII' I II III IV V VI VII VIII IX X XI XII -5% XII' I II III IV V VI VII VIII IX X XI XII CORPORATE LENDING (% YTD) CORPORATE DEPOSITS (% YTD) 35% 30% 25% 20% % 12% 7% % 2% 10% 5% 0% -3% -8% -5% I II III IV V VI VII VIII IX X XI XII -13% XII' I II III IV V VI VII VIII IX X XI XII Source: NBP; January 2007 June

29 17,2% 18,0% 17,8% 18,2% 17,8% 18,2% 17,8% 17,9% 17,3% 17,3% 16,1% 14,7% 15,6% 14,4% 14,2% 13,9% 12,8% 13,0% 12,7% 3,1% 3,2% 3,2% 3,1% 3,4% 3,3% 1,5% 1,6% 1,8% 1,9% 2,0% 2,1% 2,2% 2,3% 2,5% 2,6% 2,7% 2,8% 2,9% 3,0% 3,0% 3,1% 13,0% 12,7% 12,3% 12,7% 12,7% 12,6% 12,4% 13,9% 14,1% 14,3% 13,4% 12,9% 12,6% 12,5% 12,2% 12,2% 12,3% 13,0% 13,2% 13,3% 13,1% 9,4% 9,6% 8,8% 8,4% 9,0%9,3% 9,2% 9,7% 9,5% 8,7% 8,2% 7,7% 7,5% 7,6% 9,4% 9,7% 9,8% 9,8% 9,1% 9,6% 11,8% 9,9% 13,3% 11,2% 6,6% 8,1% 7,5% 9,2% 9,6% 9,9% Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 May 15 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep Banking sector trends Non-performing loans (6) HOUSEHOLDS NPL RATIO CORPORATE NPL RATIO Source: NBP SME Corporate 9,1% 10,0%11,3%13,1% 14,8% 15,8% 16,9% 1,2% 1,3% 1,4% 1,5% Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 May 15 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Mortgage Cash 6,5% 6,8% 6,6% 11,2% 11,3% 11,2% 8,4% 10,1% 9,6% 11,5% 11,2% 12,2% 12,4% 11,5% 10,9% 10,70% 10,50% 10,40% 11,30% 11,74% 11,81% 11,79% 11,47% 11,5% 11,4% 10,9% 10,7% 6,3% Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 May 15 3,5% 4,5% 4,9% 5,4%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% 7,1% 7,0% 7,0% 6,9% Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 May 15 Total retail Total corporate

30 29 Selected data

31 Consolidated income statement mln PLN 2Q 14 1Q 15 2Q 15 Q/Q% Y/Y% IH 2014 IH 2015 Y/Y % Net interest income (1) ,4% -10,3% ,1% Net fee and commission ,8% -2,5% ,4% Operating income ,9% -4,4% ,7% Operating costs (2) ,2% -2,3% ,3% OPERATING PROFIT ,4% -6,0% ,3% Provisions ,1% -8,8% ,9% Guarantee funds charges ,5% 99,3% ,1% PROFIT BEFORE INCOME TAX ,6% -9,7% ,6% Income tax ,7% -7,1% ,0% GROUP NET INCOME (3) ,8% -9,6% ,7% Cost/Income Ratio (%) (4) 44,8% 44,3% 45,7% 1,4 1,0 45,3% 45,0% - 0,3 Cost of Risk (%) 0,58% 0,53% 0,50% - 0,0-0,1 0,59% 0,51% - 0,1 ROE (%) 11,4% 10,3% 10,3% - - 1,1 11,1% 10,3% - 0,8 CAR (%)- Basel 3 18,1% 17,6% 17,8% 0,2-0,3 18,1% 17,8% - 0,3 NIM (%) 3,3% 2,9% 2,8% - 0,1-0,5 3,3% 2,8% - 0,5 L/D (%) 92,7% 93,7% 93,4% - 0,3 0,7 92,7% 93,4% 0,7 (1) NII and dividends and other income from equity investments 30 (2) Costs excl. guarantee funds charges (3) Net profit attributable to equity holders of the Bank (4) Operating cost excluding guarantee funds charges

32 Activity by segments mln PLN Retail Banking Private Banking Corporate&Investment Banking Assets&Liabilities Management & Others Group IH 14 IH 15 Y/Y % IH 14 IH 15 Y/Y % IH 14 IH 15 Y/Y % IH 14 IH 15 Y/Y % IH 14 IH 15 Y/Y % Net interest income (1) % % % % % Non-interest income % % % % % Operating income % % % % % Operating costs (2) % % % 0,4-3,7-1046% % OPERATING PROFIT % % % % % Net write-downs/provision % 0,1-0,7-577% % % % Guarantee funds charges % -0,3-0,4 51% % % PROFIT BEFORE INCOME TAX % 4,3 0,7-84% % % ,6% (1) Total net interest income, dividends and other income from equity investments 31 (2) Operating cost excluding guarantee funds charges

33 The structure of the Group net profit mln PLN cumulative Group's share in capital % IH 14 IH 15 Y/Y % Bank Pekao S.A. Banking - Poland 1 354, ,8-0,4% Entities - consolidated under full method 84,7 121,9 44% of which: (*) Pekao Leasing Sp. z o.o. Leasing 36% 35,5 18,8-47% Centralny Dom Maklerski Pekao S.A. Brokerage 100% 20,2 23,5 16% Pekao Bank Hipoteczny S.A. Mortgage Bank 100% 5,4 3,3-39% Pekao Pioneer PTE S.A. Pension Fund 65% 13,1 1,0-92% Pekao Faktoring Sp. z o.o. Factoring 100% 4,0 4,0 0% Pekao Investment Banking S.A. Brokerage 100% --- 5,5 Centrum Bankowości Bezpośredniej Sp. z o.o. Call Centre 100% 1,3 0,9-31% Pekao Financial Services Sp. z o.o. Servicing MF/PF 100% 3,6 4,1 14% Centrum Kart S.A. Cards 100% 0,9-0,3-133% Pekao Fundusz Kapitałowy Sp. z o.o. Business consulting 100% 0,1 0,1 0% Pekao Property S.A. Real estate development 100% -0,4-0,1 Entities - valued under the equity method 34,7 30,1-13% Pioneer Pekao Investment Management S.A. Mutual Funds 49% 28,9 23,7-18% Krajowa Izba Rozliczeniowa S.A. Clearing Services 34% 5,3 5,5 4% Dom Inwestycyjny Xelion Sp. z o.o. Financial Advisory 50% 0,5 0,9 80% Exclusions and consolidation adjustments -154,2-257,2 67% Group Net Profit (**) 1 319, ,6-5,7% 32 (*) Entities in liquidation, sold or indirect ownership not presented (**) Group net profit attributable to equity holders of the Bank (reported) NOTE: Data as reported

34 Consolidated income statement F&C breakdown mln PLN 2Q 14 1Q 15 2Q 15 Q/Q% Y/Y% IH 2014 IH 2015 Y/Y % Lending ,0% -2,6% ,8% Cards ,3% -9,0% ,7% Mutual Funds ,0% 12,2% ,4% Brokerage ,4% 101,4% ,9% Transactions and custody ,9% -0,3% ,5% Other ,2% -15,1% ,1% Net fee and commission ,8% -2,5% ,4% 33

35 Consolidated income statement Cost breakdown mln PLN 2Q 14 1Q 15 2Q 15 Q/Q% Y/Y% IH 2014 IH 2015 Y/Y % Payroll costs ,7% -0,8% ,3% Other administrative expenses (1) ,1% -6,6% ,9% Depreciation ,6% 2,4% ,1% Operating costs (1) ,2% -2,3% ,3% Guarantee funds charges ,5% 99,3% ,1% (1) Operating cost excluding guarantee funds charges 34

36 Consolidated balance sheet mln PLN June 14 Dec 14 Mar 15 Jun 15 Q/Q % Y/Y % YTD % Cash and amounts due from Central Bank % 32% -28% Loans and advances to banks % -25% -28% Loans and advances to customers* % 10% 5% Investment securities % 6% 11% Assets held for sale % 92% 69% Intangible assets % 7% 3% Tangible fixed assets % -4% -4% TOTAL ASSETS ,5% 8,9% 2,0% Amounts due to the Central Bank % -5% -6,69% Amounts due to other banks % 33% 66% Financial liabilities held for trading % -64% -86% Amounts due to customers % 9% 0% Debt securities issued % 11% 3% Total liabilities ,0% 10,8% 3,6% Total Shareholders' equity ,8% -2,1% -8,0% (*) Including loans and advances from customers and receivables from finance leases 35

37 Customers financing mln PLN June 14 Dec 14 Mar 15 Jun 15 Q/Q % Y/Y % YTD % Loans* ,2% 5,3% 2,5% retail % 11% 5% corporate % 0% 0% Non quoted securities ,8% 18,2% 7,5% Reverse repo transactions ,0% 116,0% 43,1% Other % 31% 48% Nominal value adjustment % 7% -4% Impairment losses % 10% 3% Net loans and advances % 10% 5% Securities issues by non monetary entities** ,2% 17,1% 8,9% TOTAL CUSTOMERS FINANCING*** % 10% 5% (*) Including debt securities eligible for rediscounting at Central Bank, net investments in financial leases to customers 36 (**) Securities issued by non monetary entities including local governments (***) Total customers financing includes Loans and advances at nominal value and Securities issued by non monetary entities

38 Selected data Bank June 14 Dec 14 Mar 15 Jun 15 Q/Q % Y/Y % YTD % Outlets ,9% 1,5% -2,0% ATM's ,5% -2,6% -2,0% Employees ,0% -1,5% -1,7% No of PLN current accounts (ths)* ,4% 2,3% 0,6% No of mortgage loan accounts (ths)** ,0% 7,2% 3,8% No of clients holding a consumer loan accounts (ths)*** ,9% -5,6% -2,7% Number of individuals with an access to electronic banking Pekao24 (ths) ,3% 9,3% 4,7% Number of individuals with an access to mobile banking (ths) ,0% 53,7% 22,4% Number of business clients (SME) with an access to electronic banking systems (ths) ,2% 3,1% 1,0% Group June 14 Dec 14 Mar 15 Jun 15 Q/Q % Y/Y % YTD % Employees**** ,7% -0,3% -0,7% Outlets**** ,9% 1,5% -2,0% ATM's**** ,5% -2,6% -2,0% Number of MF accounts (ths)***** ,2% -2,2% -1,5% Number of Brokerage accounts (ths)****** ,4% -2,4% -0,8% (*) Number of accounts including pre-paid card accounts 37 (**) Retail clients accounts (***) Pożyczka Ekspresowa (Express Loan) (****) Credit Union (SKOK) Kopernik included since Dec 2014 (****) 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)

39 Loans exposure - sectors SECTOR DESCRIPTION* Wholesale and retail trade; repair of motor vehicles and motorcycles 12,9% 14,2% Public administration and defence; compulsory social security 13,0% 11,9% Real estate activities 12,6% 10,4% Financial and insurance activities 5,9% 9,6% Electricity, gas, steam and air conditioning supply 8,8% 9,0% Transportation and storage 6,3% 6,8% Construction 5,8% 5,1% Information and communication 4,3% 5,0% Mining and quarrying 3,0% 3,9% Manufacture of metals, metal products and machinery 3,8% 3,8% Manufacture of beverages and food products 3,4% 3,1% Manufacture of chemicals, pharmaceuticals and refined petroleum products 3,8% 2,8% Manufacture of rubber, plastic and non-metalic products 2,3% 1,9% Other manufacturing 5,4% 4,5% Other sectors 8,7% 8,0% Total 100% 100% Note: Based on the annual Group data including current exposure and commitment 38

40 Mutual funds Mutual funds volumes (mln PLN ) +12.0% +0.1% Mutual funds - assets structure (PPIM SA) % 18% 65% Jun 14 Mar 15 Jun 15 Third party funds distributed by the Group PPIM SA Market share (%) 18,9% 18,4% 18,2% Eguity funds Balance funds Money and bonds funds Jun 14 Mar 15 Jun 15 Note: Market share funds distributed by Pekao Group, compared with the market of retail investment funds available for individuals 39

41 Key lending products Stock PLN mortgage loans volumes (mln PLN) Consumer loans volumes (mln PLN) +12.7% +9.2% +3.0% +2.9% Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 40

42 Ratings of Bank Pekao S.A. FITCH RATINGS BANK PEKAO S.A. POLAND Long-term rating (IDR) A- A- Short-term rating F2 F2 Viability rating a- Support rating 2 Outlook Stable Stable STANDARD AND POOR'S BANK PEKAO S.A. POLAND Long-term rating BBB+ A- Short-term rating A-2 A-2 Stand-alone bbb+ Outlook Negative* Positive MOODY'S INVESTORS SERVICE LTD BANK PEKAO S.A. (unsolicited rating) POLAND Long-term foreign-currency deposit rating A2 A2 Short-term deposit rating Prime-1 Prime-1 BCA baa1 Outlook Stable Stable/ Negative** 41 Notes: Bank Pekao S.A. s Viability rating at a- from Fitch Ratings, Stand-alone one at bbb+ from Standard and Poor s and BCA at baa1 from Moody s are the highest individual ratings assigned by these rating agencies to banks rated in Poland (*) On 30th of June 2015 Standard & Poor's confirmed Bank's ratings at unchanged levels and changed Outlook to negative. The negative Outlook indicates rating agency view of a one-in-three probability that implementation of EU Bank Recovery and Resolution "BRRD" in Poland could lead to an increased bail-in risk. (**) Stable for the economy and Negative for the banking sector in Poland

43 Investor relations team s contact and calendar CONTACT DETAILS Q&A related to the presentation: Dariusz Choryło Executive Director ph.: dariusz.chorylo@pekao.com.pl Wioletta Reimer Director of IR Office ph.: wioletta.reimer@pekao.com.pl 11 February April May July August 2015 FINANCIAL CALENDAR Annual Report 2014 and Webcasting Start of Blackout Period First Quarter Report and Webcasting Start of Blackout Period Semi-annual Report and Webcasting Dorota Faszczewska-Ward ph.: dorota.faszczewska-ward@pekao.com.pl Iwona Milewska ph.: iwona.milewska@pekao.com.pl Krzysztof Szlichciński ph.: krzysztof.szlichcinski@pekao.com.pl 27 October November 2015 Start of Blackout Period Third Quarter Report and Webcasting 42 Visit us at: Blackout Period two weeks period before publication of financial statements. During this period we do not organise meetings with investors and analysts