mbank hipoteczny covered bonds presentation...pln 30 m to pln 500 m k3 –annual sales below 30 m...
TRANSCRIPT
Bank Hipoteczny
Mortgage Covered Bonds Investor Presentation
Proven track record and prospects for future growth
| 2
Investment Highlights
mBANK GROUP & mBANK HIPOTECZNY
mBank Group – 4th largest banking group in Poland (in terms of assets), 69% owned by Commerzbank AG. Well capitalized & liquid
universal bank, recognized domestically and internationally as a mobile-banking icon
mBank Hipoteczny - longest (20 years) track record of covered bond issuance in the Polish capital market with the equivalent of ca.
EUR 1.7bln of covered bonds already outstanding placed on local and international market
Mortgage covered bonds - rated „A” by Fitch Ratings: 1 notch above the Polish sovereign rating & 3 notches above the issuer rating
Well diversified mixed cover pool of residential and commercial real estate with natural currency hedge
The covered bonds will offer a pick-up against Polish EUR Government curve as well as Western European covered bond issuers
The covered bonds from International Programme are expected to feature: ECB eligibility, Level 2A classification for LCR purposes,
and English language documentation
POLISH ECONOMY & REAL ESTATE MARKET
Poland – one of EU’s most resilient economies with profitable, well-capitalized and attractive banking sector
Growing, high standard real estate market with attractive prospects for lending growth
Strong covered bond legal framework: updated in 2016 with the objective of implementing best in class market practices for the
benefit of covered bonds investors
Growing covered bond market, offering European investors diversification and access to attractive exposures
| 3
Agenda
mBank Group
mBank Hipoteczny
o mBank Group overview and key performance
o mBank Hipoteczny role in mBank Group Strategy
o Financial results and asset and liability structure
Covered bondso mBank Hipoteczny issuances track record and Polish Covered Bond Market
o Mortgage Covered Bond Programme
Cover Poolo Credit risk and other statistics
o Distribution by real estate type, currency, interest rate and geographical
Polish Economyo Polish economy fundamentals
o Banking sector stability
Real estate marketo Stable and growing residential market in Poland
o Commercial real estate and activity of residential developers
Legislation o Legal consideration of Polish Covered Bonds
Key product lines as of 2018
mBank Group in a snapshot
General description
Poland’s 4th largest universal banking group in terms of total
assets and 5th by customer net loans and deposits as of the end
of 2018
Well-capitalised, liquid bank with a strong funding profile
Among Poland’s most efficient banking platform built on the
principles of organic growth
A well balanced business mix with leadership positions in both
retail and corporate banking segments attracting continued
inflows of new clients
Credit-rated by Fitch (BBB/F2) and Standard & Poor’s (BBB+/A-2)
Listed on the Warsaw Stock Exchange since 1992 a member of
WIG-20 blue chip index since its inception in 1994; 69.3%
owned by Commerzbank
Corporates andFinancial Markets
Fully fledged offering:
Corporate banking
Transactional banking
Investment banking
Brokerage
Leasing
Factoring
23.7 thou. clients
Retail Banking
A wide range of modern
financial services for
mass market, affluent
and private banking
clients as well as entrepreneurs
5,685 thou. clients
PolandCzech Republicand Slovakia
Source: mBanks’ consolidated financial statements as of 31.12.2018.
Key financial mBank Group data (PLN milion)
2015 2016 2017 2018
Total Assets 123,523 133,744 131,424 145,750
Net loans 78,434 81,763 84,476 94,723
Deposits 81,141 91,418 91,496 102,009
Equity 12,275 13,051 14,292 15,216
Total income 4,093 4,295 4,454 50,059
Net profit 1,301 1,219 1,092 1,316
Cost/Income ratio 50.1% 45.7% 45.9% 42.8%
Cost of risk 0.54% 0.46% 0.61% 0.78%
Return on Equity (ROE)
11.8% 10.1% 8.3% 9.5%
Tier 1 ratio 14.3% 17.3% 18.3% 17.5%
Total Capital Ratio 17.3% 20.3% 21.0% 20.7%
NPL ratio 5.7% 5.4% 5.2% 4.8%
NPL coverage ratio 58.9% 57.1% 59.2% 62.8%
| 4mGroup
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Market shares as of 2018
6.4%
Retail loansof the sector
Retail Deposits
6.6%
Corporate Loans
6.5%
Corporate Deposits
9.0%
| 5
Efficiency3
Mobility2
Empathy1
Offer the best customer
experience i.e. give clients what
they need just in time they need
Make banking easy
Focused customer acquisition
oriented on development of active
client base, incl. mBank’s aspiration
to acquire 1/3 of the young entering
the banking market
Broaden the sources of
information about the client
to target our offer more precisely
Be the point of reference in terms
of mobile banking
Offer the best (most convenient,
hassle-free, intuitive and engaging)
mobile application on the banking
market
Enhance ‘mobile first’ distribution
approach within the multichannel
model
Minimize the functionality gap
between mobile and internet
Expand base of active mobile app
users and sales via mobile channel
Grow while keeping the FTE base
at current level
Increase average revenues per
client every year
Enhance assets profitability
through an active management of
balance sheet structure
Strengthen funding independence
through rising volume of covered
bonds and clients transactional
deposits
Simplify, streamline, automate and
digitalise all processes to be a
paperless bank
New mission emphasizes focus on being close to clients and taking advantageof the mobile revolution
„To help. Not to annoy. To delight… Anywhere.”
Specific business actions will be based on three strategy pillars
Highlights of mBank Group’s 2016-2020 strategy
mGroupCoveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
2013
Favourable demographics of customer base:
ca. 50% of retail clients are under the age of 35 and are expected to reach their highest personal income levels in the future,
mBank's mortgage clients predominantly live in urban areas and large cities of more than 100 thou. residents
mBank Group’s unique story of successful organic growthBrief history
Founding of Bank Rozwoju Eksportu (Export Development
Bank) as a joint-stock company
in 1986 the bank has served some of Poland’s largest
companies involved in foreign trade on export markets.
2012
Bank starts operations in the retail banking segment,
launching, in just 100 days, mBank – the first Internet
Bank in Poland
Bank launches its second retail arm, MultiBank bank aimed
at servicing demanding and affluent clients
Foreign expansion of bank’s retail operations, first outlets in the Czech Republic and Slovakia
2007
2017
2000
2001
Number of retail customers (thousand)
Corporate loans: PLN 44.2 BCorporate deposits: PLN 35.3 B[as of 2018]
Retail loans: PLN 52.9 BRetail deposits: PLN 65.9 B[as of 2018]
Number of corporate customers
673762
820 869905
924
4,1824,1283,789
4,229
3,556
2013 20162014 2015
4,437
2017
4,761
2018
4,5514,947 5,051
5,3425,685
+6%
K1 – annual salesover PLN 500 Mand non-banking financial institutions
K2 – annual salesPLN 30 M to PLN 500 M
K3 – annual salesbelow 30 M
Corporate customers split:
2013
1,838
20,940
10,805
5,144
2014
1,9832,193
5,748
11,831
2015
7,5201,255 6,067
12,750
16,333
2016
5,022
2,093
7,088
12,867
23,706
2017
13,993
2018
17,78719,562
22,048
10,056
2,123
+8%
mBank CZSK
Poland
mGroupCoveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation | 6
Source: mBanks’ consolidated financial statements.
The announcement of “One Bank” Strategy for 2012-2016;the establishment of Euro Medium Term Note Programme (EMTN)
Launch of New mBank transactional platform; rebranding of the Group under mBank name
The announcement of new mBank Group’s strategy (“mobile Bank”) for 2016-2020
2016Establishment of mAccelerator – a fund aimed to invest in FinTech start-ups
RHEINHYP-BRE Bank Hipoteczny SA setup (later mBank
Hipoteczny) as a joint venture of BRE Bank S.A. and
RHEINHYP Rheinische Hypothekenbank AG.
1999
1986
Loan Loss Provisions & Cost of Risk (PLN M) Net profit attributable to owners of mBank & Return on Equity (PLN M)
Total costs & C/I ratio(PLN M)
Total income & Net Interest Margin(PLN M)
mBank Group’s historical performance
NII NFC Trading and other
mGroupCoveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation | 7
Gradual uptrend of loan yield thanks to rising share of higher-margin products. Significant reduction of deposit costs, conversion of term deposits into current accounts
Cost/Income ratio at 42.9% underpinned by optimal banking platform.Continued investments in future growth, mainly in IT and security areas.Higher contribution to the Bank Guarantee Fund
Personnel Material and other BFG
one-off regulatory costsCAGR CAGR
808 844 855 877 903 952
812 856 866 925 960
20152013
19458
136
2014
7111151
2016
180
2017
1801,678
1,031
2018
1,7712,051 1,963 2,043 2,164
+5%+6%
835 902 897906
992976685
2,226
4,295
2013
4,454
2,833
613
2,491
547
2014
4,093
2,511
2015
556
2016
326
3,136
2017
3,496
587
2018
3,674
5,059
3,939
+7%+14%
2.6%2.2% 2.3% 2.1% 2.3% 2.5% 42.8%45.7% 44.9% 50.1% 45.7% 45.9%
+6%+14%
CAGR
478 516421 365
508694
20152013 201820172014 2016
+8%+37%
2015
1,206 1,301
2013
1,287 1,219
2014 2016
1,092
2017
1,316
2018
+2%+21%CAGR
13.1% 13.1% 11.8% 10.1% 8.3%0.70% 0.72% 0.54% 0.46% 0.61% 0.78% 9.5%
+21%+37%
Equity & Total Capital Ratio(PLN M)
Total Assets (PLN B)
mBank Group’s balance sheet development
| 8mGroupCoveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
CAGR
CAGR
CAGR
Total Gross Loans (PLN B)
Total Deposits(PLN B)
Individual clients Corporate clients Public sector
CAGR
Individual clients Corporate clients Public sector and other
20162015
123.5104.3
20142013
118.0133.7 131.4
2017
145.8
2018
+7%+11%
70.6
32.82.8
41.6
1.5
29.5
3.0
38.3
2013
1.7
33.4
46.3 48.148.9
2018
34.2
97.8
2016
1.3
37.9
87.4
2017
77.40.6
44.2
52.9
2014
81.4 84.6
2015
+7%+12%
10,256
2013
11,073
2014
12,275 13,051
20162015
14,292
2017
15,216
2018
+8% +6%
0.90.7
2013
32.2
53.5
26.8
2014
1.2
34.2
102.0
39.3
0.6
34.4
46.1
2015
34.6
55.7
2017
0.7
35.3
65.9
2018
0.5
2016
61.772.4
81.191.4 91.5
37.4
+11% +11%
19.38% 14.66% 17.25% 20.29% 20.99% 20.71%
+6%
+11%+12%
EquityAmounts due to other banks
Amounts due to customers Other
Debt securities in issue
Amounts due from banks
Investment securitiesLoans and advances to customers
Trading securities Other
Derivative financial instruments
Structure of Assets(PLN B)
Structure of Liabilities (PLN B)
Balance Sheet Analysis: Assets & Liabilities
| 9mGroupCoveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
70%
2%
12%
11%
5%
1.2
1.5
10.4
1.2
12/17
32.1
140.0
8.2
33.5
2.6
84.5
1.7
31.6
1.1
3.8
3.2
145.8
85.7
03/18
1.1
8.6
33.4
3.4
89.6
3.8
06/18
94.7
13.2
34.1
1.0
91.3
4.5
09/18
12.9
1.0
2.6
12/18
131.4 133.6
146.7
14.3
5.9
4.5
6.2
14.3
5.1
12/17
14.5
03/18
14.5
14.4
12/18
3.9
94.3
6.3
16.8
97.891.5
06/18
6.5
09/18
102.4
14.8
102.0
18.019.1
7.5
15.2
3.1
131.4 133.6140.0
146.7 145.8
4.6
65%
1%
23%
9%
1%1%
(PLN B)
2014
109%
2016
190%
2015 2017 2018
149%
109%
144%
114%118%
199%
114%
165%
Basel III requirement ≥100%
2.68%
2015
17.47%
2.42%
requirementas of 06/18
14.29%
2.97%
2.96%
12.24%
2014
17.32%
2016
18.31%
2017
3.22%
20.29%
2018
13.97%
14.66%
17.25%
20.99% 20.69%
16.88%
Net Stable Funding Ratio (NSFR) Liquidity Coverage Ratio (LCR)
CET 1 capital ratio Tier 2 Total risk exposure amountXX.X
65.3166.5 69.4
1 Due to the adjustment of the application of the regulatory floor to the requirements of article 500 CRR and the extensions of the AIRB approach;Note: On 04.10.2016 the Polish FSA identified mBank as an other systemically important institution and imposed on the bank an additional buffer at 0.5% of total risk exposure amount.
mBank Group’s Total Capital Ratio mBank’s NSFR and LCR (mBank S.A. solo)
Key regulatory ratios: capitalisation and liquidity
68.0
| 10
76.2
mGroupCoveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
| 11
mBank Hipoteczny overview and role in Group strategy
ImmediateParent100%
UltimateParent69,37%
Corporate structure
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyResidentialCRE market
Legislation
mBank Hipoteczny is a specialised credit institution (mortgage bank) authorised to issue covered Bonds under Polish law.
mBank Hipoteczny has been issuing covered bonds since 2000, when it was the first bank to introduce mortgage covered bondsto the post-war Polish capital market, restoring their importance and place after 50 years of absence.
Outstanding publicly traded covered bonds issued by the Bank as of the end of 2018 are PLN 7.2 bn, represent 34% marketshare in the covered bond market in Poland.
Cost efficiency3
Scale of assets2
Covered Bonds1
Providing long term funding for mBank
Group by issue Covered Bonds to
• Diversify of the funding sources
• Improve long-term liquidity in the
Group – adaption to the NSFR
requirements
Development of retail mortgages
portfolio and CRE loans in close
cooperation with mBank, i.e. assuming
that origination will be executed by
mBank’s sales forces both in the retail
(since Q2 2017) and commercial real
estate (since 2019) area.
The Bank’s strategy assumes that the
foundation of its operations will be to
obtain long-term in the most cost-
effective business model possible.
The Bank is leveraging synergies
related to IT systems and processes
within the Group
The mBH strategic objectives for 2019–2022 are the following:
mBank Hipoteczny assets origination – retail mortgages
| 12mBank Hipoteczny
Coveredbonds
Cover PoolPolish
EconomyResidentialCRE market
Legislation
Borrowers
Pooling model
Transfer of existing residential mortgage loan portfolio from mBank for its refinancing with mortgage Covered Bonds. Basedon framework agreement on acquiring portfolios of mortgage loans, introduced in 2014 as pioneer transaction of themortgage transfer on the Polish market.
Transfer is based on comprehensive model of cooperation between mBH and mBank:
Mortgage loanSale of loans
portfolio
Purchase price(pooling facility)
Cash Flows
Mortgage loans origination
After pooling: after-sale services, maintaining
customer relationship– no changes from the customer perspective.
Mortgage collateral
Mortgage collateral re-registration
Pooled loans portfolio
Cash Flows
The target level of the newly originated portfolio of residential assets at mBank S.A. meeting the pooling criteria is to amount to
over 90%. The inclusion of both primary and secondary market transactions in the transfer process with its cyclical nature is
aimed at a systematic increase in the value of the mortgage loan portfolio of mBH. The process of transferring mortgage loans
assumes transfer of assets to mBH on regular basis.
Covered Bonds
investors
Refinance by covered bonds
mBank Hipoteczny - commercial real estate
| 13
Financed projects by type (as of EOY 2018)
Source: mBank Hipoteczny financial statements. Data as of 2018
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyResidentialCRE market
Legislation
Characteristics of funded projects
o Duration of the loan for commercial real estate is up to 20 years,
o Commercial loans denominated in EUR and PLN,
o 25% of the total investment cost is the minimum own funds ofthe borrower,
o Security features required by the Bank includes:
• mortgage entered in the first place in the Land and MortgageRegister maintained for the financed real property
• special purpose vehicle’s a specially created structurededicated to the specific project - scope of its operation islimited to activities related to its ownership andmanagement.
• assignment of rights from insurance against fire and otherperils for real estate which is the subject of credit or theregistered pledge on those rights,
Total 4.75 bn PLN
Acquiring assets financing commercial real estate (CRE) properties, being a significant cover pool pillar, is of strategic importancefor mBank Hipoteczny. Since 2019, CRE loans assets will be originated through the use of sales services of mBank.
mBank Hipoteczny acquires viacommercial pooling and syndicate modelloans for refinancing existing, completedCRE properties. Those loans are directlyeligible for cover pool.
The target model assumes a scenario ofmBank Hipoteczny participating insyndicate organised by mBank or bypurchasing loan assets from mBank -commercial pooling.
All decisions on the bank’s creditexposure will be made by mBH, basedon its independent credit risk analysis.mBH will no longer grant loans todevelopers, which will reduce risk profileby elimination of construction risk.
Risk ManagementCover pool eligibilityOrigination
1,2%
3,1%
3,6%
5,1%
6,1%
9,3%
35,4%
36,1%
Other
Hotel
Housing development
Mixed use property
Warehouse/Logistic centre
Commercial premises
Offices
Shopping centre
| 14
mBank Hipoteczny NPL by business lines (%)
mBank Hipoteczny quality of the loan portfolio
mBank Hipoteczny Cost of Risk LLP by business lines (bps)
mBank Hipoteczny NPL ratio significantly below the market level– EOY 2018
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
3.72%3.42%3.72%
2.48%
Polish Banks mBank Group mBank Hipoteczny
3.59%
4.80%
6.80%
2.60%
0.31%
-3.21 pp
-2.17pp
Total NPL Ratio (non-fin) Mortgage NPL Ratio
Total NPL Ratio
(non-fin)
47 39 26Total Cost of
Risk LLP202.99%
Characteristics of the portfolio eligible for pooling
o Financing the purchase of real estate,
o LtV (loan to mortgage lending value) at the transfer date
does not exceed 100%,
o First rank joint contractual ordinary mortgage on all property
pledged as collateral,
o Property located in Poland,
o The remaining term of the loan over 3 years,
o Suitable internal rating,
o PLN denominated loans,
o No delays and defaults.
3.59%
5559
49
3842
4 4 4 2 4
2014 2015 2016 2017 2018
CRE
ML
19
2014 2015 2016 2017 2018
7,36%
8,76%
0,00% 0,02% 0,08%
7,18%
6,23%
0,15%
7,62%
0,31%
CRE
ML
mBank Hipoteczny key financials
| 15
in PLN M 2015 2016 2017 2018
NII - Net Interest Income 110.8 130.1 156.0 176.3
NFC - Net Fee & Commission Income 6.5 1.5 -5,7 -2.5
Total income1) 114.1 134.1 146.9 171.7
Total costs2) (62.6) (65.7) (67.5) (63.6)
Cost/Income Ratio 54.82% 48.96% 45.99% 36.78%
LLP - Loan Loss Provisions (24.8) (21.6) (20.2) (16.71)
Operating result 26.8 46.9 59.2 88.3
Taxes on the balance sheet - (16.7) (24.4) (27.6)
Profit before income tax 26.8 30.2 34.7 60.7
Net profit 18.8 23.4 27.8 41.2
Net Interest Margin (NIM) 1.55% 1.37% 1.36% 1.44%
TCR 13.81% 14.54% 15.79% 16.25%
Cost of Risk LLP 0.39% 0.26% 0.20% 0.19%
ROE - Return on Equity (gross) 3.91% 3.62% 3.46% 5.85%
ROA - Return on Assets (gross) 0.37% 0.31% 0.30% 0.49%
Summary of Key Financials: Profit and Loss Accounts
1) total income (defined as net interest income + net fee and commission income + net trading income + other operating income - other operating expenses)2) total cost (overhead costs + amortisation and depreciation)
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Increasing NII
Operating costs at lower levels vs 2018
Cost efficiency(decreasing C/I ratio)
Net profits keep growingdespite financialinstitutions tax
Resilient asset quality
Return on Equity improved
| 16
Development of Total Income (PLN M)
Net Interest Income
Net Fee and Commission Income
Trading and Other Income
Development of Revenues and Costs
2015
-0.4
6.5
2017
2.4
110.8
1.5
130.1
2016
156.0
116.9134.1
146.9
2018
178.0
179.3
+16.0%
Cost of Risk(bps)
Loan Loss Provisions (PLN M) & Cost of Risk Net Profit (PLN M) & Return on Equity (ROE) gross
3.9%39
20182015 2016
20.2
2017
24.821.6
16.7
41.2
2015 2016
18.8
2017 2018
23.427.8
+30.0%
ROE26
NIM (bps)155 137
3.6%
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
136
Development of Total Costs (PLN M)
Cost/Income ratio
Staff-related costs
Material Costs
Depreciation & Amortization
Other
54.8% 48.9%
63.6
19.6
2017
9.4 7.9
32.4
4.7
2015
34.3
3.8
22.7
3.2
2016
8.1
34.0
23.3
3.2
66.0
30.4
68.1 68.6
7.0
2018
22.4
-1.2%
3.46%
45.9%
20
144
19 5.85%
Core income (NII+NFC+Trading+Other ops) rising twice as fast as the balance sheet size.
Lowering operating costs (lower FTE count 2018 vs 2017
36.8%
| 17
Structure of Assets (PLN M) Structure of Liabilities (PLN M)
Equity
Amounts due to other banks
Amounts due to customers
Other
Debt securities in issue
Amounts due from banks
Other
Loans and advances to customers
Derivative financial instruments
Investment securities
Asset/Liability growth
56
8
7,392(88%)
205
2015
43
19
1,134
12,386
58
10,767(88%)9,412
(88%)
16
2016
41
1,277(10%)49
2017
749
2751,069(9%)
2018
37
10,931(88%)
16
32
8,419
10,649
12,168
45
+13.7%
2016
2,960
1,056
225
7,043(58%)
4,165
266
234
904
6,153(58%)
36
782
12,168
2015
4
10,649
3,830(31%)
2017
2402471,086
7,870(64%)
3
3,180(26%)
2018
8,419
12,386
3,317(31%)
Total Gross Loans (PLN M)Balance sheet value (carrying value)
863
3,8003,7333,429 3,1633,706
584
361 4,375(46%)
20182015
4,714(50%)
2,601(35%)
4,705(44%)
322
4,430(60%)
2016
201
5,860(54%)
2017
143
6,195(57%)
4,592(42%)
7,392
9,412
10,767 10,931
-2%
+3%
Equity (PLN M)
Housing loans to individual clients
Public-sector loans
782
904
1,056
2015 2016 2017 2018
1,086
Corporate loans
TCR (%)13.8% 14.5%
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
15.8% 16.2% >12.875%
2018 EOY
| 18
Asset/Liability structure
66(1%)
75
6,178(50%)
1,069(9%)
2018
4,748(39%)
37118(1%)
Other assets
Securities
Public sector loans
Derivatives
Mortgage loans
CRE/RRE loans
Amounts due from banks
12,291
490(4%)
Mortgage CB (public+ private offer)
1,060(8%)
3,353(26%)
247
7,551(59%)
2018
3
Other liabilities and provisions
Amounts due to other banks
Amounts due to customers
Notes
Total Equity
12,705
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Well diversified and stable balance sheet
PLN74%
EUR26%
PLN69%
EUR30%
USD0%
Fixed4%
Float96%
Structure of Liabilities (PLN M)Structure of Assets (PLN M)
Fixed22%
Float67%
Zero11%
| 19
3,927
0
768
6,116
2015
150
7,748
0
80
80
330
5,268
2016
0501
80
6,463
2017
0300
7,118
2018
4,157
7,044
+23.1%
Long-term notes
Short-term notes
Public CB
Mortgage CB (public+ private offer)
Debt financial instruments by type (nominal value, PLN M) Debt financial instruments by currency (carrying value, PLN M)
Maturity of debt financial instruments by type (nominal value, PLN M)
Data as of: 2018Based on EUR/PLN NBP rate
4,083
2,915
1,242
2015 20182017
4,916
2,033
7,748
2016
2,1283,099
4,648
4,157
6,116
7,044
EUR
PLN
30%
70%
Debt securities issued
20232022
555
2019 2020 2021 2024 2025 2026 2029
80
516
215
344
650
1.000
215
1.450
310
1.337
206 185
580
10750
PLN - Mortgage Covered Bonds
EUR - Mortgage Covered Bonds
PLN - notes
14.2%
1.3%
84.5%
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
CAGR
Covered Bond Market in Poland
| 20
Polish Covered Bond Market by issuer– public issuancesoutstanding (PLN bn)
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
7.51(36%)
1.18(6%)
mBank Hipoteczny
Pekao Bank Hipoteczny
12.16(58%)
PKO Bank Hipoteczny
Total21.02bn PLN
Data based on NBP fx rate as of 31.12.2018. Data source: Financial statements of Pekao Bank Hipoteczny, PKO Bank Hipoteczny and mBank Hipoteczny
Increasing share of EUR Polish Covered Bond issuess
0
10
20
30
40
50
60
70
01/10 01/12 01/14 01/16 01/18 01/20
%EUR
58%
%
Outstanding Polish mortgage covered bonds currency split
mBH
4.05(56%) 0.86
12.39(59%)
8.79(41%)
Total Market
8.94(70%)
3.13(44%)
30%(3.89)
PKO BH
0.33(28%)
Pekao BH
EUR
PLN
21.18
7.1712.82
1.18
• Starting from 2012 mBH is active in the primary market’s
EUR debt segment which is reflected in the currency
structure of its issues,
• Issuer of 15-year mortgage covered bonds which are one
of the longest maturity instruments issued by Polish
commercial enterprises in history,
• mBH issued first PLN fixed rate Covered Bonds,
• mBH issued biggest 1 bn PLN Covered Bond on Polish
capital markets.
• First assimilation of Covered Bonds on Polish capital market
| 21
mBank Hipoteczny – issuer track record
Crucial milestones in mBank Hipoteczny issuance history
3,429 3,1633,706
PLN bn
mBH outstanding covered bonds
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
EBRD invests in 3 series in USD
– 15 USD2 series in EUR
– 20 EUR M
EIB invests in2 series in PLN – 300 PLN M
15Y-Covered Bonds longest maturityin Polish market
history
02/05-2014
First fixed-rate Covered Bond in PLN
in Polish market history
28-04-2016
1 bn PLNbiggest
Covered Bonds issue in Polish market history
11-10-2017
300 m EURinaugural
issue of Covered Bonds under International Programme
26-04-2018
First issue of Mortgage Covered
Bond in Poland(after 1945)
28-06-2000
CeTO /
First listed Covered Bond in Poland
22-04-2003
First issue of Public Sector Covered Bonds
27-07-2007
Introduction of pooling model
First tranche01-09-2014
-
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2000 2001 2002 2002 2003 2004 2004 2005 2006 2006 2007 2008 2008 2009 2010 2010 2011 2012 2012 2013 2014 2014 2015 2016 2016 2017 2018
mBH Total Assets
| 22
Amount Currency Issue date Maturity date Tenor (yr) Coupon
200.0 M PLN 2015-02-20 2022-04-28 7.2 WIBOR 6M + 78bps
20.0 M EUR 2015-02-25 2022-02-25 7.0 Fixed (1.135%) MS7+5bps
250.0 M PLN 2015-04-15 2023-10-16 8.5 WIBOR 6M + 87bps
11.0 M EUR 2015-04-24 2025-04-24 10.0 Fixed (1.285%) MS+85bps
50.0 M EUR 2015-06-24 2020-06-24 5.0 EURIBOR 3M + 69bps
500.0 M PLN 2015-09-17 2020-09-10 5.0 WIBOR 3M + 110bps
255.0 M PLN 2015-12-02 2021-09-20 5.8 WIBOR 3M + 115bps
300.0 M PLN 2016-03-09 2021-03-09 5.0 WIBOR 3M + 120bps
50.0 M EUR 2016-03-23 2021-06-21 5.2 EURIBOR 3M + 87bps
50.0 M PLN 2016-04-28 2020-04-28 4.0 Fixed (2.91%)
100.0 M PLN 2016-05-11 2020-04-28 4.0 Fixed (2.91%)
13.0 M EUR 2016-09-28 2026-09-20 10.0 Fixed (1.18%) MS+90bps
35.0 M EUR 2016-10-26 2026-09-20 9.9 Fixed (1.183%) MS+80bps
24.9 M EUR 2017-02-01 2024-02-01 7.0 Fixed (0.94%) MS+46bps
500.0 M PLN 2017-09-29 2022-09-10 5.0 WIBOR3M + 75bps
1,000.0 M PLN 2017-10-11 2023-09-15 5.9 WIBOR3M + 82bps
100.0 M EUR 2017-10-30 2022-06-22 4.6 Fixed (0.612%) MS+40bps
300.0 M EUR 2018-04-26 2025-03-05 6.9 Fixed (1,073%) MS+42bps
300.0 M PLN 2018-06-22 2024-06-10 6.0 WIBOR3M + 58bps
10.0 M PLN 2018-10-11 2024-06-10 5.7 WIBOR3M + 58bps
100.0 M PLN 2019-02-22 2028-12-20 9.8 WIBOR3M + 80bps
Private placement 2016: EUR 70m and PLN 400m; 2017 PLN 300m + 400m PLN
Summary of Mortgage Covered Bonds public issued in 2015-2019. Data as of 28th February 2019.
Issuance activity - details
Covered Bonds Issuance – mBH is a frequent issuer on EUR and PLN market (PLN M)
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
151283
Q3 2013
127
Q2 2018
108
1,424
300
Q2 2014
128
Q2 2013
502
80
Q1 2018
83
Q4 2013
210
Q4 2015
Q1 2014
Q3 2017
Q4 2016
Q3 2014
500294
Q4 2014
Q1 2015
Q2 2015
500
Q3 2016
Q3 2015
255
Q4 2017
Q1 2016
513
150
Q2 2016
Q2 2017
56
400
Q1 2017
300
400
500
1,570
issued covered bonds
• The recent confirmation of the withholdingtax treatment for covered bonds in Polandhas enabled mBank Hipoteczny to accessthe EUR-denominated covered market insyndicated format for the first time,
• Books opened with guidance of ms+high 40sarea,
• Strong order book momentum enabled theIssuer to revise the guidance to ms+45bpsarea (+/- 3bps) two hours later,
• Final pricing was at ms+42bps,
• The final orderbook was characterized by agranularity of 60 investors ordering overEUR 800mn resulting in a 2.7xoversubscribed book,
• The pricing implies a small new issuepremium in the high single digit area whichresults from the theoretical fair valuederived from the outstanding bonds of theirclosest comparables,
• The transaction provides a natural hedge formBank Hipoteczny mortgage portfolio whichis partially denominated in EUR.
Switzerland
15%
Germany
Austria
Others
Nordics
France/BeNeLux
60%
9%
6%
5%
5%
Allocation by Region
Allocation by Investor Type
26%
Others
Banks
Asset Manager
Insurance / Pension Funds
16%
Govt/Agencies
50%
7%
1%
Terms and Conditions
Security TypeMortgage Covered Bond, backed by Polish PLN and EUR-denominated mortgage loans
Issue TypeFixed Rate, Soft Bullet / Conditional Pass-Through Covered Bonds
Rating A / Positive Outlook (Fitch Ratings)
Size EUR 300mn
Price & Launch 19th April 2018
Settlement 26th April 2018
Maturity 5th March 2025
Tenor Short 7 years
Re-offer Spread MS +42bps
Coupon 1.073% Fixed, Annual, Act/Act ICMA
Law Polish Law
Listing Luxembourg Stock Exchange
Denomination EUR 100k
ISIN XS1812878889
BookrunnersCommerzbank (B&D), Erste Group, J.P. Morgan, LBBW, SG CIB
Final order bookAbove EUR 800mn (excluding JLM interest)
Oversubscription 2.7x
Number of accounts 60
mBank Hipoteczny successfully priced its inaugural covered bond sub-benchmark transaction with a EUR 300mn size (no grow). The deal was wellprepared with an expedited three day pan-European roadshow in Frankfurt,Munich/Stuttgart, Vienna/Zurich, Amsterdam, Paris, London andCopenhagen/Helsinki.
Main Highlights
EUR 300mn short 7Y Covered Bond
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation | 23
PLN Covered Bonds issues 2017/2018
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation | 24
Series HPA31 HPA32 HPA33 + HPA34
Security Type Mortgage Covered Bond, backed by Polish PLN and EUR-denominated mortgage loans
Issue Type FRN/ Soft Bullet / Conditional Pass-Through Covered Bonds
Rating A / Positive Outlook (Fitch Ratings)
Size PLN 500 mn PLN 1 000 mn PLN 300 mn + PLN 10 mn
Issue date 29th September 2017 11th October 2017 22nd June 2018 + 11st October 2018
Maturity 10th September 2022 15th September 2023 10th June 2024
Tenor 5 years 6 years 6 years
Spread WIBOR3M +75bps WIBOR3M +82bpb WIBOR3M +58bps
Initial yield 2.48% 2.55% 2.28%
ISIN PLRHNHP00573 PLRHNHP00581 PLRHNHP00607
Law Polish Law
Listing Warsaw Stock Exchange & Bondspot
Bookrunner mBank S.A. mBank S.A., Erste Group Bank AG.
Region Allocation
Poland - 100% Poland – 100%Poland – 83%; Czech Republic – 8%
Germany – 7%; Austria – 2%
Allocation by Investor Type
Banks
Insurance / Pension Funds
Asset Manager
55%
43%
2%
60%
Banks
Insurance / Pension Funds
Asset Manager 13%
27%
HPA32 – was the biggest Covered Bonds issue in Polish market history.HPA33 - Bookrunners were mBank S.A. and Erste Group Bank AG. Final orderbook was characterized by a granularity of 23 investorsordering over PLN 577m resulting in a 1.9x oversubscribed book.This is not only the tightest PLN mortgage covered floater that mBank Hipoteczny issued but also marks another step for the Polishcovered market on the way to an extremely cheap source of funding for the banking sector.HPA34 - mBank Hipoteczny combined a newly issued series HPA34 with the June issue of HPA33 already quoted on the Warsaw StockExchange. In this way, mBH obtained a security with a total nominal value of PLN 310m.
Banks
11%Insurance /
Pension Funds
Asset Manager
17%
72%
Mortgage covered bonds
All issues
Mortgage CBs 7,170
PLN-denominated
4,045
EUR-denominated
3,125
WA Time to maturity 4.6 years
PLN-denominated
4.0 years
EUR-denominated
4.9 years
| 25
Distribution by interest rate (all issues)
Distribution by currency (all issues)
5,000
3,000
0
2,000
6,000
1,000
4,000
7,000
8,000
2019
516555
80
1,000
2021
1,450
2023
215
2025
310
2024
1,337
2026 2029
770
2020
650
295
1,516
206
344
417
EOY H12018
994
107
2022
215
185
7,171EUR PLN
Mortgage covered bonds maturity profile broken down by currency (all issues PLN m)
Outstanding Mortgage Covered Bonds
mBH
3,126(44%)
4,045(56%)
EUR
PLN
7,171
Fixed
mBH
4,540(63%)
7,171
Float2,631(37%)
Data as of 2018 M PLN
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
| 26mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
mBank Hipoteczny Domestic Covered Bonds Programme
Mortgage Covered Bond Programme by mBank Hipoteczny
Law Polish Law
Prospectus date 26th August 2016
Size PLN 15.0 bn (or the equivalent of this amount in EUR or USD)
Manner of offering Public Offering
Instruments Mortgage covered bonds („Hipoteczne listy zastawne”)
Form Dematerialised bearer securities
Depository KDPW, Poland
Secondary trading Regulated market operated by GPW / BondSpot (Catalyst market)
Required rating International investment-grade rating
Maturity Not less than 1 year
Interest rate Fixed, floating
Minimum value of a single series PLN 10.0 m (or the equivalent of this amount in USD or EUR)
Mandatory overcollateralisation Yes – 10%
DocumentsBase Prospectus
Appendixes to the Base Prospectus
Covered bonds issued by mBank Hipoteczny based on domestic Programme:
Fulfil the criteria of UCITS Directive & criteria of Article 129 (7) of the Capital Requirements Regulation (CRR)
Eligible as collateral for lombard facility, intraday credit and repo operation with Polish central bank (only PLN-denominated CBs)
All mortgage covered bonds (PLN and EUR-denominated) are listed on the Catalyst market
Soft bullet / conditional pass-through -maturity of the covered bonds obligations extended automatically by 12 months and if asset coverage or liquidity test were negative, pass through -in hypothetical case of mortgage bank’s insolvency
Mandatory liquidity reserve covering at least 6 months of interest due on the covered bonds outstanding
| 27
Mortgage Covered Bond Programme by mBank Hipoteczny
Covered Bond RecognitionThe Mortgage Covered Bonds shall comply with (i) the requirements of Article 52(4) of the UCITS Directive, (ii) Art. 129 of the CRR and (iii) the Polish Covered Bond legislation.
Law & JurisdictionT&C`s: Polish Law and Polish Courts, English language legally bindingProgramme Agreement, Paying Agency Agreement: English Law and English Courts, English language legally binding
Prospectus date 6th July 2017 as supplemented on 10 August 2017 and 9 April 2018
Size EUR 3.0 bn
Form New Global Note - ECB repo eligible / Classical Global Note
Base Prospectus approval Authority Commission de Surveillance du Secteur Financier, Luxembourg (CSSF)
Clearing System Clearstream Luxemburg
Listing Luxembourg Stock Exchange
Expected Covered Bonds Rating Fitch Ratings Ltd – „A” outlook - positive
Maturity Up to 30 years
Interest rate Fixed, floating
Currency Multi currency
Minimum value of a single series EUR 100,000 or its equivalent in other currencies
Involved Parties
Issuer mBank Hipoteczny
Arranger: Commerzbank Aktiengesellschaft
Issuer`s Counsel Hogan Lovells LLP as to Polish and English law
Dealers Counsel: White & Case LLP as to Polish and English law
Fiscal and Paying Agent: Deutsche Bank Aktiengesellschaft
Luxembourg Listing Agent: Deutsche Bank Luxembourg S.A.
Appointed Dealers Commerzbank Aktiengesellschaft, Erste Group Bank AG, J.P. Morgan, Landesbank Baden-Württemberg, Société Générale.
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
marketLegislation
mBank Hipoteczny International Covered Bonds Programme
PolandLong Term
Country ceiling
mBankBBB/-/BBB+
Stable/-/ Negative
mBank Hipoteczny
BBB/-/-Stable/-/-
CommerzbankBBB+/A1
/A-Stable / Stable/ Negative
MortgageCovered Bonds
A/-/-Stable/-/-
Pekao SABBB+/BBB+/A2
Stable/ Stable/ Stable
Pekao BHBBB+/-/-
Stable
Mortgage Covered Bonds
A-/-/-Negative/ - /-
PKO Bank Hipoteczny
-/Baa1/-- /Stable / -
PKO Bank Polski-/A2/-
- / Stable / -
MortgageCovered Bonds
-/Aa3/-
Fitch … BBB BBB+ A- A A+ AA- AA …
Moody’s … Baa2 Baa1 A3 A2 A1 Aa3 Aa2 …
S&P … BBB BBB+ A- A A+ AA- AA …
Fitch / Moody’s / S&P Ratings as of 31.03.2019 relation to sovereign rating relation to issuer rating
| 28
+3
+4
+3
+1
+1
+1
Covered Bonds rating among Polish issuers
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Source: Rating Agencies press releases
Mortgage Cover Pool – highlights
| 29
0% - NPL
56% of residential mortgageswith WA LTV of 78%
PLN
EU
R3 137 3 126
6 305
4 045
2 319
Cover Pool vs Covered Bonds EUR are balance sheet hedged
Number of residential mortgage 20,628
Number of commercial loans 309
Average loan size residential 0.26 M PLN
Average loan size commercial 13.22 M PLN
Top 10 largest exposure 9,85%
Rate type 100% Floating rate
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Strong overcollateralisation
Natural currency hedge for EUR and PLN Covered Bonds issues
v
Fitch Rating „A”
EOY 2018
v
mBH disclosures are compliant with the ECBC Covered Bond Label Convention - Harmonised Transparency Template (HTT) and are being published via: http://mhipoteczny.pl/en/investor-relations/
The best market transparency standards
Well diversified mixed high-quality cover pool
44% of commercial loanswith WA LTV of 68%
Cover poolreceivables + substitute assets
9,469 M PLN
Covered bondsoutstanding all issues
7,170 M PLN
OvercollateralisationActual, non-committed.
32.05%Regulatory minimum at 10%
100% Poland located
| 30
Increasing share of residential mortgages in cover pool CRE/REE by the type of property
9%
8%
37%
40%
Werehouses
3%
Commercial real estate
Offices
Shopping malls
Retail
Hotels
Other3%
Mortgage Cover Pool – currency and mortgage type split
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
2
0
6
5
3
9
10
1
4
7
8
12/14
22%
06/15
34%
66%45%
12/15
40%
49%
12/16
60%
06/16
44%
56%
06/17
55%
45%
12/17
55%
95%
Residentialmortgages
CRE/RRE44%
06/18
78%
51%
12/18
56%
Share of EUR, USD and PLN-denominated loans in cover pool
7
9
0
3
5
1
10
2
4
6
8
66%
53%44%
12/18
67%
45%
12/15
56%
PLN
06/16
43% 42%
62%
34%38%
06/17
33%
12/17
33%
57%
06/18
EUR
USD67%
06/15 12/16
54%
12/14
31%
65%
Since 2014 the currency structure of the loan portfolio inmortgage cover pool was subject to changes resulting from asystematic growth of the portfolio of retail loans granted onlyin PLN.
In comparison with the end of Dec 2014, the share of loans inPLN increased by 31 percentage points and, as at 27th ofMarch 2018, accounted for 65% of the cover pool.
Amount of loans denominated in USD continue to phase out.
Historically mBH never granted loans denominated inCHF. Hence, there is no CHF-denominated loans in coverpool.
bn P
LN
bn P
LN
| 31
Mortgage Cover Pool - by loans value
Value Residencial mortgages Commercial loans Total
(in PLN m) Value % share in cover pool Value % share in cover pool Value % share in cover pool
≤ 0.25 1,605.84 32% 0,88 0% 1,606.72 18%
0.25 - 0.5 2,352.60 47% 3,50 0% 2,356.10 26%
0.5 - 1.0 888.45 18% 17,17 0% 905.62 10%
1.0 - 5.0 136.03 3% 280,94 7% 416.97 5%
5.0 - 10.0 - - 316,52 8% 316.52 3%
10.0 - 15.0 - - 355,66 9% 355.66 4%
15.0 - 20.0 - - 479,62 12% 479.62 5%
20.0 - 30.0 - - 437,36 11% 437.36 5%
30.0 - 40.0 - - 579,69 14% 579.69 6%
40.0 - 50.0 - - 263,44 6% 263.44 3%
> 50.0 - - 1,406.98 34% 1,406.98 15%
TOTAL 4 983 100% 4,141.75 100% 9,124.69 100%
1,200
1,600
0
200
1,400
400
1,000
600
1,800
2,000
2,400
800
2,200
30.0 - 40.00.25 - 0.5
136
28117
40.0 - 50.0
1,606
0
3171
5.0 - 10.0≤ 0.25
4
2,353
0.5 - 1.0
888
1.0 - 5.0
00356
10.0 - 15.0
0
480
15.0 - 20.0
0
437
20.0 - 30.0
0
580 0
> 50.0
263
1,407
Residencial mortgages
Commercial loans
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Data as of H1 2018
Mortgage Cover Pool – residential ML regional distribution
| 32
Geographical distribution negatively correlated with unemployment– strong client base portfolio
Łódzkie
Zachodnio-pomorskie
Pomorskie
Warmińsko-mazurskie
Podlaskie
Mazowieckie
Lubelskie
Świętokrzyskie
Podkarpackie
Małopolskie
Śląskie
Opolskie
Dolnośląskie
Wielkopolskie
Kujawsko-pomorskie
Lubuskie
7.2%39,6%
3.9%
8.5%
1.1%
4.0%
10.5%
2,6%
4.1%
2.0%
10.7%
0.7%
0.8%
3.3%
0.7%
0.5%
% of mBH’s Mortgage Cover Pool – 2018 H1
> 20%10.0 – 19.9%5.0 – 9.9%1.0 – 4.9%< 1%
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Unemployment rate – 2018 H1 Data Source: GUS -Central Statistical Office
> 10%8.0 – 10.0%6.0 – 7.9%4.0 – 5.9%< 4%
Łódzkie
Zachodnio-pomorskie
Pomorskie
Warmińsko-mazurskie
Podlaskie
Warsaw
Lubelskie
Świętokrzyskie
Podkarpackie
Małopolskie
Śląskie
Opolskie
Dolnośląskie
Wielkopolskie
Kujawsko-pomorskie
Lubuskie
3.3%
2.6%
7.4%
4.9%
10.0%
4.5%
4.8%
8.9%
6.2%
7.9%
5.2%
6.1%
5.8%
7.8%
8.7%
8.1%
Mazowieckieexcl. Warsaw
9.8%
Supportive demographic profile of mBank’s retail client base
Distribution of Polish banks by attractiveness of customer base in terms of age and education
Source: mBank based on declarative answers from the syndicate survey Zoom Finance 4Q’16 by TNS, n=8.6k customers.
40%
20%
10%
30%
0%
70%65%60%55%50%45%35%30%10% 20% 25%15% 40%5%
Poland
average
% of customers with
higher education
Highest share of the Young (<30 years old)
% of customers under 30
years old
Poland
average
mBank’s clients are expected to reach their highest personal income
levels in the future
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
- other Banks
| 33
| 34
Łódzkie3.1%
Zachodnio-pomorskie
1.4%
Pomorskie6.8% Warmińsko-
mazurskie0.7%
Podlaskie0.2%
Mazowieckie30.4%
Lubelskie1.3%
Świętokrzyskie1.5%
Podkarpackie4.1%Małopolskie
14.6%
Śląskie7.1%
Opolskie1.7%
Dolnośląskie19.0%
Wielkopolskie7.8%
Kujawsko-pomorskie
0.2%
Lubuskie0.2%
% of CRE/RRE regional distribution in Mortgage Cover Pool – 2018 H1
> 20%10.0 – 19.9%5.0 – 9.9%1.0 – 4.9%< 1%
Mortgage Cover Pool – CRE/RRE regional distribution
Geographical CRE/RRE regional distribution vs existing office stock by the cities – positive correlation
ŁódzkieŁódź
0,5 mln m2
PomorskieTricity
0,7 mln m2
MazowieckieWarszawa5,3 mln m2
MałopolskieKraków
1,1 mln m2
ŚląskieKatowice
0,5 mln m2
DolnośląskieWrocław
0,9 mln m2
WielkopolskiePoznań
0,5 mln m2
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Total office stock - EOY2017; Data source: Knight Frank
> 2 mln m2
1 mln m2 – 2 mln m2
0,5 mln m2 – 1 mln m2
< 0,5 mln m2
no available data
Poland – one of EU’s most resilient economies
Strengths Contributions to GDP growth
Source: Central Statistical Office of Poland, Eurostat.
2017 Nominal GDP share
Romania
EU-28
Czech Republic
Hungary
4.2%
Slovakia
Poland
Bulgaria
6.7%
4.1%
4.6%
3.4%
4.0%
3.7%3.8%
3.2%
3.8%
4.5%
2.3%2.6%
3.6%
Real GDP growth
Poland
Slovakia
Bulgaria
Romania
CzechRepublic
Hungary
GDP index (Q1 2008=100)
2018-2018(average)
2017
Poland – one of the fastest growing economies in the CEE region
The largest economy in the CEE with almost 50% of region’s
gross domestic product1
Track record of steady growth despite prolonged turmoil on
the international financial markets
Growth supported by expansionary policy-mix, solid influx of
EU funds, high cost competitiveness and key location within
the huge EU market
The most liquid financial market in the region
Economic rebound began in 2013 and it’s set to continue in
the coming quarters; Poland should continue to outperform
most of its peers
90
95
100
105
110
115
120
125
130
Q1/08 Q2/09 Q3/10 Q4/11 Q1/13 Q2/14 Q3/15 Q4/16
Poland Hungary Czech RepublicSlovakia Bulgaria Romania
| 35mBank
HipotecznyCovered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
42.2
%
11.2%
17.4
%
7.7%
4.6%
17.0%
mBank’sforecast
3.13.33.43.33.8
3.33.64.6
3.13.42.82.8
4.64.2
5.45.05.35.15.14.73.83.73.53.6
-3-2-101234567
Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19
Investment Net exports Consumption
Inventories GDP YoY (%)
| 36
Stable growth within the forecast horizon
1
2
2
3
3
4
4
5
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
Wibor 3M NBP base rate 10-year yield
1.731.50
3.34
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
Key Polish interest rates
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Labour market is in its best shape ever Record-high consumer sentiment is supporting consumption
Polish unemployment rate is at its lowest since early 1990s and among the lowest in Europe. This has had a transformative effect on consumer senti-mentand perception of economic security and prospects.
Consumption is the key engine of economic growth right now. A dynamic of 5% is underpinned by record-high sentiment, strong wage growth and stable inflation.
Source: GUS, NBPSource: GUS, NBP
-20
-15
-10
-5
0
5
10
-2%
0%
2%
4%
6%
8%
10%
Q3/05 Q4/06 Q1/08 Q2/09 Q3/10 Q4/11 Q1/13 Q2/14 Q3/15 Q4/16 Q1/18
Household consumption YoY (LA)Expected changes in financial situation of households (-2Q, RA)
5%
8%
11%
14%
17%
20%
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Registered unemployment rate (seasonally adjusted)
Source: GUS
Inflation set to oscillate within the NBP’s target band due to various base effects in food and rising energy prices. There is an uptrend in core inflation. The MPC will stay put for another year at least.
-2%
-1%
0%
1%
2%
3%
2014 2015 2016 2017 2018
Repo rate CPI inflation Core inflation
Repo rate forecast CPI forecast Core CPI forecast
Inflation set to move sideways, but core inflation will be growing
Sound fundamentals for the banking business
Relatively strong labour market
4.2%
Poland Czech Republic
4.4%
EU-28Hungary
2.3%
Euro area
7.3%
8.7%
Unemployment rate – 31.12.2017
| 37mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Capitalisation and Funding – the Polish banking sector
TCR & Tier 1 ratio Loan-to-deposit ratio
2017
97.7%
2016
98.9%
2015
102.2%
2014
102.2%
Tier 1 ratio
Tier 2
20172016
17,3%
18.6%17.7%
14.7%
13.4%
2014
15.0%
2015
16.1%
16.3%
Source: Bloomberg Source: Bloomberg
With EM assets under significant stress (idiosyncratic problems of some countries like Turkey and Argentina, trade war fears, higher US dollar and commodity prices, perception of slowing global economy), spreads widened in recent months.
The PLN weakened in Q2/18 due to EM outflows, stronger USD and the persistently dovish MPC. Also, it provides a relief for exporters whose margins came under pressure in 2017.
PLN weakened considerably in H1/18Interest rate disparities (v. Germany, in basis points) are up
200
220
240
260
280
300
320
Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18
2Y 5Y 10Y
3,20
3,40
3,60
3,80
4,00
4,20
4,40
4,60
Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18
EUR/PLN USD/PLN CHF/PLN
4.60
4.40
4.20
4.00
3.80
3.60
3.40
3.20
Stable and growing residential market in Poland
| 38
Source: Deloitte Property Index report published in July 2017
index, 2015=100;
Residential units price on
primary and secondary market
in Poland remains stable
trough the years.
Low volatility of house price
dynamics driven by strong
demand and supply offers
significant potential for further
growth.
Data Source: Eurostat
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
372
434 450 464487
516
Czech Republic
POLAND HungaryUkraine EU-28 France
+115
Mortgage penetration in Poland remains low while home ownership rates are among the highest in Europe
Distribution of population by tenure status in selected countries (data for 2017, in %)
Source: Eurostat
House price dynamics in the CEE – very low volatility in Poland
Dwellings per 1 000 citizens
80
90
100
110
120
130
140
10Q1 10Q3 11Q1 11Q3 12Q1 12Q3 13Q1 13Q3 14Q1 14Q3 15Q1 15Q3 16Q1 16Q3 17Q1 17Q3 18Q1
Euro area - EA19 Czech Republic HungaryPoland Romania
-8
-6
-4
-2
0
2
4
6
8
10
Poland Euro area CzechRepublic
Hungary Romania
%
Quartile 1-3 Median
96
73 6958
4831
14
3
1615
2223
45
38
111 16 21
30 24
48
0
20
40
60
80
100
Romania POLAND Hungary CzechRepublic
Spain Austria Denmark
%
Owner
Rental
Mortgageloan
Energy efficiency – Polish real estate market
Several EU legislative instruments promote improvement ofenergy performance of buildings and boost ecologicalawareness among investors, as well as, the residents,especially lower consumption of energy.
The Construction Law of Poland defines the meaning of Energyperformance certificate according to amount of energy inkWh/m2/year that different type of buildings demand.
EP index defines the maximum annual consumption of non-renewable primary energy for HVAC, lighting and waterheating.For refurbished buildings the limit is higher 15% compared tonew buildings.
120
95
70
105
85
65
Obligatory from 1 January 2014 Obligatory from 1 January 2017 Obligatory from 1 January 2021
Energy performance index for heating and ventilation and
DHW heating in kWh/m2/year in residential buildings
single-family multi-family
465
141
5 43
Numbers of green building certifications in Poland
BREEAM LEED HQE WELL DGNB
Green building certification became leading trend on European realestate market. Exactly the same phenomenon is easy to observeon Polish market.
Certified buildings attract strong interest among tenants andpotential acquirers.
Up to now on Polish real estate market there are 618 greencertificates in majority granted by BREEAM and LEED.Worldwide certification trend is strong advantage of offices, with66,7% granted certificates in Poland.So we are pleased that mBank Hipoteczny’s headquarter iscertified by BREEAM.
| 39
Legal framework
Certification
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
| 40
Data Source for the slide: Cushman&Wakefield Report
Commercial Real Estate – investment volume
Poland - CEE leader in CRE investment (40%). The volume of transactions
concluded in 2017 on the commercial real property market amounted to approx.
EUR 5.1 bn and the result was higher with that recorded in 2016 (EUR 4.6 bn).
The share of the commercial real estate market is approx. 42% for market
retail, approx. 29% for offices market and approx. 22% for warehouse.
H1 2018 is record-high volume of transactions.
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
400
1250
1900
1200 1200
200650
1300950
1300
1800
1296
18401500
900
700
1 550
2 400
1 050
500
300
900
1 000
1 150
1 350 500
2 228
1 978
2 150
1 900
100
150
225
200
150
50
180
200 450
600
700
486
600 1100
340
10
20
225
40
50
117
20
100 200
150
100
41
182
380
38
0
1000
2000
3000
4000
5000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018
Office Retail Warehouse Others
Investment volume in Poland by sector m EUR
40%
27%
14%
4%
8%
7%Poland
Czech
Hungary
Slovakia
Romania
Bulgaria
Poland - CEE leader in CRE investment volumes (%)
Commercial Real Estate – Offices
2,90% 3,00%3,25%
3,50% 3,50% 3,50% 3,60% 3,75%
4,25%
4,75%
Offices - Prime Yield
0
2
4
6
8
10
12
14
16
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Average rate Vacancy rate
Source: JLL H1 2018
60%
10%
9%
7%
5%5%4%
Warszawa
Kraków
Łódź
Katowice
Trójmiasto
Wrocław
Poznań
Office resources by region (%)
0
2 000
4 000
6 000
8 000
10 000
12 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H12018
0
100
200
300
400
500
600
700
800
900
1000
Office resources (thous. m2)
Annual supply Forecast Total surface resources
• In Poland prime yield is the highest in Europe (4,75%).• In Poland, the average rate per m2/EUR of office space is constantly
growing, despite the high supply, the vacancy rate is dropping.
Average price (EUR/m2) and Vacancy rate (%)
Source: CBRE; H1 2018
Source: Colliers, CBRE
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
Source: Colliers, JLL
| 41
Commercial Real Estate – Retail
0
100
200
300
400
500
600
700
800
900
200620072008200920102011201220132014201520162017 H12018
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
Retail resources (thous. m2)
Annual supply Forecast Total surface resources
75%
16%
7%2%
shopping center
retail park
commercial warehouses
outlet center
Source: Cushman & Wakefield, H1 2018
905 863
620558 582 555
306 262208
142
490 450 444 420
258 229
• In Poland prime yield is the highest in Europe – 4,90% • We hace stable and growing retail commercial market in Poland
mostly are shopping 75%, retail park is 16%. Commercial warehouses and outlet center are less popular
Source: CBRE, Colliers H1 2018
Average density per 1,000 inhabitants
Source: Colliers, JLL
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation | 42
The structure of commercial space in Poland
2,00%
2,70% 2,75% 2,75% 2,90%3,15% 3,25% 3,30%
3,50%
4,90%
Source: JLL H1 2018
Retail - Prime Yield
Commercial Real Estate – Warehouses
3,50%
4,25% 4,25%4,50%
4,75%5,00%
5,40%5,70% 5,75%
6,50%
Source: JLL Q2 2018
25%
18%
13%
13%
11%
5%
3%2%2%
8% Warsaw - Around
Gorny Slask
Poznan
Central Poland
Wroclaw
Warsaw - City
Tricity
Cracow
Rzeszow
Others
• In Poland prime yield is the highest in Europe (6,50%)• Warehouse resources are constantly groving. Structure of warehouses
by regions over 50% for Warsaw - Around, Gorny Slask and Poznan.• Vacancy ratio on low level differentiate by regian
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
0
500
1000
1500
2000
2500
3000
3500
Warehouse resources (thous.m2) Vacancy rate (%)
Source: Axi Immo, H1 2018 r.
| 43
Werehouses resources by region (%)
Source: Colliers, JLL
Warehouses - Prime Yield
0
500
1000
1500
2000
2500
2006200720082009201020112012201320142015201620172018H1
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
Warehouse resources (thous. m2)
Total surface resources Forecast Annual supply
Warehouse space resources and vacancy rate
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
Positive changes in Polish Covered Bonds Law
| 44
Fundamental changes in 2016 revision of the Act on Covered Bonds and Mortgage Banks- in line with the best market practices and with recommendations of the European Central Bank (ECB) and credit rating agencies
Improvements:
Increase of credibility and safety of covered bonds
• soft bullet / pass-through - maturity of the covered bonds obligations extended automatically by 12 months and if asset coverage or liquidity test were negative - pass through - in case of mortgage bank’s insolvency (details on the next slide)
• mandatory liquidity reserve covering at least 6 months of interest due on the covered bonds outstanding
• minimum legal overcollateralization requirement (OC) – 10%
Extension of covered bond supply
• increase refinancing limit for mortgage covered bonds forresidential mortgage loans to 80% from 60%
Extension of demand for covered bonds
• introduce investment limit for Pension Funds 5% of portfolio per issuer of covered bonds
• income from interest or discounts on the covered bonds earned by foreign investors is exempt from withholding tax (WHT)
Regulatory status - Compliance with:
Covered Bonds Programme
Domestic International
CRR art 129
UCITS 52 (4)
BRRD
Credit quality step 2 2
LCR Delegated Act (HQLA)
ECB Repo
Expected category III
NBP Repo
CBPP / LTRO
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Legal framework for Polish Covered Bonds Mortgage Bank
The Act on Covered Bonds and Mortgage Banks (Ustawa o listach zastawnych i bankach hipotecznych) of August 29, 1997 as amended
The Bankruptcy Law (Prawo upadłościowe) of February 28, 2003, Bankruptcy proceedings for mortgage banks, Article 442–450a
Specialised bank (mortgage bank) with the supervision of Polish Financial Supervision Authority (KNF)
Mortgage bank is a joint stock company with a legal personality (not a branch) with several licences e.a.: banking licence and a consent to start operating activity, both granted by the KNF
A covered bond issuer may issue mortgage or public covered bond Specific license for each covered bond type is required before the issuer may start
to issue covered bonds
Covered Bonds repayment in case of issuer bankruptcy
| 45
*details on the next slides
Coverage test*passed
Liquidity test*passed
Coverage testpassed
Liquidity testfailed
Coverage testfailed
Coverage and liquidity tests performs initially 3 months after insolvency and subsequently every 3 months -liquidity test and 6 months - coverage test
issuer bankruptcy
event
Soft bullet Pass through
or
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Covered bonds repaid according to terms and conditions of the covered bonds, with 12 M maturity extension
2/3 majority covered bondholders may adopt a resolution to sell the separate bankruptcy asset pool to another bank.
Extended to longest dated cover asset maturity plus 3Y, distinct rules for pro-rata repayment before extended maturity date (fixed to floating)
2/3 majority covered bondholders may adopt a resolution to • disapply maturity extension or• sell cover assets to another bank or non-bank
Maturity of outstanding covered bonds
Additionally for 12 M horizon:
• Interest under receivables in the cover pool for the next 12 months
• Obligations towards holders (principal + interest) that became due but were
not paid before the date of hypothetical insolvency
Obligatory cover pool tests
| 46
Coverage Test
Verifies at the day of test whether the value of the assets in the cover pool allows for outstanding covered bonds claims.
Liquidity Test
Verifies at the day of test whether the value of the assets in the cover pool allows for outstanding covered bonds claims even in extended
maturity in case of issuer insolvency. Separately for 6M and 12M horizon
Core assetsSubstitute
assetsLiquidity buffer
Hedging instruments
Outstanding covered bonds
(principal)
Due and unpaidinterestfrom CB
Cost of liquidating asset pool in case of insolvency
1
Test calculated also under stressed conditions:• +/- 20% FX rate or highest year change in
previous 12 M Tests performed min. once a 6M
Cover pool
CB claims
Test calculated also under stressed conditions:• +/- 20% FX rate or highest year change in
previous 12 M • +/- 400bps shift of interest rate curvesTests performed min. once a 3M
Substitute assets
Liquidity buffer
Net cash flows from hedging
instrumentsin timehorizon
Interest payable in
timehorizon
Principal amount that fall in time
horizon
Cost of liquidating
asset pool in case of
insolvency in time horizon
0
Cover pool CB claims
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Polish Covered Bonds Law vs German Pfandbriefe Law
| 47
PolandHipoteczne Listy Zastawne (HLZ)
GermanyMortgages Pfandbriefe (Hypfe)
Special Covered Bonds Law YES YES
Special bank principle YES NO
Mortgage Valuation concept Mortgage lending value Mortgage lending value
Loan to Value (LtV) cap 100% NO
Mortgage value refinancing limit (consider as OC)
Residential: 80%Commercial: 60%
60% of mortgagelending value
Geographical scope for mortgage assets
PL EEA, CH, US, CA, JP, AU, NZ, SG
Repayment structure Soft–bullet and CPT Hard Bullet
Legal framework for bankruptcySpecific legal framework superseding the
general insolvency lawSpecific legal framework superseding the
general insolvency law
Bankruptcy remotenessPreferential claim by law
Specific cover pool administrationPreferential claim by law
Specific cover pool administration
Recourse upon cover pool default Yes, pari passu with unsecured creditors Yes, pari passu with unsecured creditors
Minimum Mandatory Overcollateralization
10% 2%
CRR, UCITS compliant YES YES
Source: European Covered Bond Council
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
| 48
DisclaimerIMPORTANT: The following applies to this document, the oral presentation of the information in this presentation by mBank Hipoteczny S.A. (the “Bank”) or any person
on behalf of the Bank, and any Q&A session that follows the oral presentation (collectively, the “Presentation”). In accessing the Presentation, you agree to be bound by
the following terms and conditions.
The Presentation and its contents are strictly confidential and are intended for use by the recipient for information purposes only and may not be reproduced,
redistributed, published or passed on to any other person, directly or indirectly, in whole or in part, for any purpose. This document may not be removed from the
premises. If this document has been received in error it must be returned immediately to the Bank. The Presentation is not directed to, or intended for distribution to or
use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be
contrary to law or regulation or which would require any registration or licensing within such jurisdiction. The Presentation is not for publication, release or distribution in
the United States, the United Kingdom, Australia, Canada or Japan.
This document and its contents may not be viewed by persons within the United States or “U.S. Persons” (as defined in Regulation S under the Securities Act of 1933, as
amended (the “Securities Act”)). The covered bonds referred to herein (the “Securities”) have not been registered under the Securities Act or the laws of any state or
other jurisdiction of the United States and the Securities may not be offered or sold in the United States or to or for the account or benefit of U.S. persons unless so
registered, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. The Bank
does not intend to register any portion of the offering of the Securities in the United States or to conduct a public offering of the Securities in the United States. By
accessing the Presentation, you represent that you are a non-U.S. person that is outside the United States.
The Presentation is made to and directed solely at: (i) persons outside the United Kingdom, (ii) persons with professional experience in matters relating to investments
falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”), (iii) high net worth entities, and
other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order and (iv) persons to whom an invitation or inducement to
engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities of
the Bank or any member of its group may otherwise lawfully be communicated or caused to be communicated (all such persons in (i)-(iv) above being “Relevant
Persons”). Any investment activity to which the Presentation relates will only be available to and will only be engaged with Relevant Persons. Any person who is not a
Relevant Person should not act or rely on the Presentation. By accessing the Presentation, you represent that you are a Relevant Person.
The Presentation does not constitute or form part of, and should not be construed as an offer to sell or the solicitation or invitation of an offer to subscribe for or
purchase the Securities in any jurisdiction or an inducement to enter into investment activity, and nothing contained therein shall form the basis of or be relied on in
connection with any contract or commitment whatsoever, nor does it constitute a recommendation regarding the Securities. The Presentation is an advertisement, does
not constitute an offering document or listing particulars in compliance with the regulations or rules of any stock exchange and does not comprise a prospectus for the
purposes of EU Directive 2003/71/EC (as amended) (the “Prospectus Directive”). Prospective investors are required to make their own independent investigations and
appraisals of the business and financial condition of the Bank and the nature of the Securities before taking any investment decision with respect to the Securities. Full
information on the Bank and definitive terms of the offer of the Securities is only available on the basis of the combination of the of Base Prospectus dated 6 July 2017,
as supplemented on 10 August 2017 and 9 April 2018 (the “Base Prospectus”) and the final terms in relation to the relevant offering (the “Final Terms”) which will be
published on the Luxembourg Stock Exchange website (www.bourse.lu) and on the website of the Bank (www.mhipoteczny.pl). This Presentation may contain
information different from the Base Prospectus and the Final Terms. Therefore, the Presentation is qualified in its entirety by the information in the Base Prospectus and
the Final Terms for the proposed transaction on which your investment decision must be based. No part of this Presentation, nor the fact of its distribution, should form
the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.
| 49
DisclaimerThe Presentation has been prepared by the Bank. Any dealer acting in connection with the offering of the Securities (the “Dealer”) is acting exclusively for the Bank and no one
else, and will not be responsible for providing advice in connection with the Presentation to any other party. Subject to applicable law, none of the Bank or the Dealer accepts any
responsibility whatsoever and makes no representation or warranty, express or implied, for the contents of the Presentation, including its accuracy, completeness or verification or
for any other statement made or purported to be made in connection with the Bank, the Presentation or the Securities and nothing in this document or at this presentation shall be
relied upon as a promise or representation in this respect, whether as to the past or the future. The Bank and the Dealer accordingly disclaim all and any liability (including any
liability for damages for misrepresentation under the UK Misrepresentation Act 1967) whatsoever, whether arising in tort, contract or otherwise (save as referred above) which any
of them might otherwise have in respect of the Presentation or any such statement.
This Presentation contains certain statistical and market information relating to the banking sector in Poland, including information on the market share of certain banks and the
Bank. Unless attributed exclusively to another source, such market information has been calculated based on data provided by third party sources identified herein and includes
estimates, assessments, adjustments and judgments that are based on the Bank’s experience and familiarity with the sector in which the Bank operates. Because such market
information has been prepared in part based upon estimates, assessments, adjustments and judgments and not verified by an independent third party, such market information is,
unless otherwise attributed to a third party source, to a certain degree subjective. While it is believed that such estimates, assessments, adjustments and judgments are
reasonable and that the market information prepared is appropriately reflective of the sector and the markets in which the Bank operates, there is no assurance that such
estimates, assessments and judgments are the most appropriate for making determinations relating to market information or that market information prepared by other sources
will not differ materially from the market information included herein.
The Presentation contains forward-looking statements. All statements other than statements of historical fact included in the Presentation are forward-looking statements. Any
historical information is not indicative of future performance. Forward-looking statements give the Bank’s current expectations and projections relating to its financial condition,
results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including
words such as “target,” “believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words
and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the
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No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the
Presentation or the opinions contained therein or the assumptions on which such opinions are based. The Presentation has not been independently verified (including review and
verification of any rating agency, government entity, regulatory body or listing authority) and will not be updated. The Presentation, including but not limited to forward-looking
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to disseminate any updates or revisions to the Presentation, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to
the Presentation that may result from any change in the Bank’s expectations, any change in events, conditions or circumstances on which these forward-looking statements are
based, or other events or circumstances arising after the date of this document. Market data used in the Presentation not attributed to a specific source are estimates of the Bank
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This Presentation does not purport to identify all of the risks (direct or indirect) and information which may be associated with any decision relevant in respect of an offering of the
Securities. Nothing in this Presentation should be construed as legal, tax, regulatory, accounting or investment advice.
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Contact details
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mBank Hipoteczny S.A.ul. Armii Ludowej 2600-609 Warszawa
Frank Bock Direct dial: +48 22 829 01 16
Vice-President of the Management Board, mBank e-mail: [email protected]
Chairman of Supervisory Board, mBank Hipoteczny
Piotr Cyburt Direct dial: +48 22 579 74 02
President of the Management Board, mBank Hipoteczny e-mail: [email protected]
Karol Prażmo Direct dial: +48 22 829 17 12
Head of mBank Group Treasury e-mail: [email protected]
Krzysztof Dubejko Direct dial: +48 22 579 74 97
Board Member, Head of Financial Markets mBH e-mail: [email protected]
Wojciech Zdunkiewicz Direct dial: +48 22 579 75 90
Head of mBH Treasury e-mail: [email protected]