prezentacja programu powerpoint€¦ · key product lines as of 2019 h1 mbank group in a snapshot...
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 „Aa3” by Moody’s Investors Service: 3 notches above the Polish sovereign rating & 5 notches above
the issuer rating.
Well diversified mixed cover pool of residential and commercial real estate.
The covered bonds will offer a pick-up against Polish EUR Government curve as well as Western European covered bond issuers and
regional peers.
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 2019 H1
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 2019 H1
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 and RESPECT
index; 69.33% owned by Commerzbank
Corporates andFinancial Markets
Fully fledged offering:
Corporate banking
Transactional banking
Investment banking
Brokerage
Leasing
Factoring
25,002 thou. clients
Retail Banking
A wide range of modern
financial services for
mass market, affluent
and private banking
clients as well as entrepreneurs
5,552 thou. clients
PolandCzech Republicand Slovakia
Key financial mBank Group data (PLN milion)
2015 2016 2017 2018 2019 H1
Total Assets 123,523 133,744 131,424 145,750 152,433
Net loans 78,434 81,763 84,476 94,723 100,422
Deposits 81,141 91,418 91,496 102,009 110,341
Equity 12,275 13,051 14,292 15,216 15,681
Total income 4,093 4,295 4,454 5,059 2,591
Net profit 1,301 1,219 1,092 1,316 496
Cost/Income ratio 50.1% 45.7% 45.9% 42.8% 48.4%
Cost of risk 0.54% 0.46% 0.61% 0.78% 0.90%
Return on Equity (ROE)
11.8% 10.1% 8.3% 9.5% 6.6%
Tier 1 ratio 14.3% 17.3% 18.3% 17.5% 16.7%
Total Capital Ratio 17.3% 20.3% 21.0% 20.7% 19.7%
NPL ratio 5.7% 5.4% 5.2% 4.8% 4.8%
NPL coverage ratio 58.9% 57.1% 59.2% 62.8% 61.3%
| 4mGroup
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Market shares as of 2019 H1
Corporate Loans
Retail loansof the sector
7.1%
Retail Deposits Corporate Deposits
6.7%
10.5%
6.5%
Source: IFRS Consolidated Financial Statements of mBank Group
| 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
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
2001
Number of retail customers (thou.)
Corporate loans: PLN 47.05 BCorporate deposits: PLN 38.13 B
Retail loans: PLN 56.05 BRetail deposits: PLN 70.24 B
Number of corporate customers (thou.)
820 869905
924938
2016
4,5414,128
2015
4,1824,761
2017
4,437
2018 2019 H1
4,947 5,0515,342
5,685 5,479
+3%
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:
2019 H1
5,748
1,983
6,067
2015
11,831
7,7772,123
12,750
2016
2,09319,562
7,088
12,867
2017
2,19322,048
7,520
13,993
2018
2,277
14,948
20,940
23,70625,002
+6%
mBank CZSK
Poland
mGroupCoveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation | 6
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
2016
Establishment 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
Launch of e-commerce services via mElements
2000
2018
Source: IFRS Consolidated Financial Statements of mBank Group
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 below 50% 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 costs
CAGR CAGR
855 877 903 952466 504
866 925 960
505 523
1,110
194
2015
13611
2016
1,963
2018
151 180
2017
1802,043
1,031
138
2018 H1
226
2019 H1
2,051 2,164
1,253
+2%
+13%
897906
992976685
2017
556
208
2.511
4.093
2.8331.928
2015 2016
326
3.136
587
3.496
2018
5.059
518409
1.671
2018 H1
455
2019 H1
4.4544.295
2.598 2.591
+7%
-0,3%
2.6%2.1% 2.3% 2.5% 42.8%50.1% 45.7% 45.9%
CAGR
421 365508
694
339 370
2015 2016 2018 H12017 2019 H12018
+18%
+9%
706496
2015
1.301
2016
1.219 1.092
2017
1.316
2018 2018 H1 2019 H1
+0,4%
-30%
CAGR
11.8% 10.1% 8.3%0.54% 0.46% 0.61% 0.78% 9.5%
2.6% 42.7%
0.99% 10.2%
2.7% 48.4%
0.90% 6.6%
Source: IFRS Consolidated Financial Statements of mBank Group
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
118.0
2014
133.7123.5
2015 2017
131.4
2016
145.8
2018
152.4
2019 H1
+5%+5%
33.4
2014
1.7
46.3
2015
1.5
48.9 52.9
2016
1.3
37.9
48.1
2017
32.8
0.6
44.2
2018
81.4
3.0
41.6
34.2
56.0
77.484.6 87.4
97.8
2019 H1
103.7
47.0
0.6
+6%+6%
11,073
2014 2016
12,275 13,051
2015
14,292
2017
15,216
2018 2019 H1
15,681
+7%+3%
39.365.9
32.2
0.7
0.935.3
2014
53.5
0.6
34.4
46.1
0.5
37.4
2016
1.2
34.6
55.7
2018
2.0
81.1 38.1
70.2
2019 H12015 2017
72.4
91.4 91.5102.0
110.3
+9%+8%
14.66% 17.25% 20.29% 20.99% 20.71% 19.70%
Source: IFRS Consolidated Financial Statements of mBank Group
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
72%
2%
11%
10%
5%
03/19
1.1
145.8150.8
12.9
06/1909/18
2.6
13.28.6
06/18
33.4
1.23.4
4.0
89.6
3.8
34.1
2.64.5
9.9
91.3
33.5
1.0
94.7
12/18
34.7
140.0146.7
97.7
3.5 1.0
152.4
3.1
100.4
2.5 1.1
34.3
11.0
1.0
19.1
97.8
3.1 3.0
102.0
12/18 06/19
6.3
14.5
16.8
4.6
06/18
6.5
14.8
102.4
3.9
09/18
18.4
15.2
18.0
146.7140.0
145.8
03/19
152.4150.8
2.5
107.6
15.3
6.9
110.3
16.6
15.7
6.97.5
66%
1%
22%
7%
1%2%
Source: IFRS Consolidated Financial Statements of mBank Group
(PLN B)
114%
2018
199%
201720162015
109%
120%
144%
114%
165%
2019 H1
118%
190%183%
Basel III requirement ≥100%
20.99%
17.32%
14.29% 14.60%
2015
2.96%
requirementas of 06/19
2.97%
2016
2.68%
18.31%
2017
3.22%
2019 H1
17.51%
17.47%
2018
17.25%
20.29%20.69%
19.66%
16.68%
2.98%
Net Stable Funding Ratio (NSFR) Liquidity Coverage Ratio (LCR)
CET 1 capital ratio Tier 2 Total risk exposure amount
65.3169.4
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
82.6
Source: IFRS Consolidated Financial Statements of mBank Group
| 11
mBank Hipoteczny overview and role in Group strategy
Immediate Parent100%
Ultimate Parent69,33%
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 bonds to thepost-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 2019 H1 are PLN 7.2 bn, represent 30% market share in thecovered 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
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 2019 H1)
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 andMortgage Register 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 4.84 bn PLN
mBank Hipoteczny acquires viacommercial pooling and syndicate modelloans for refinancing existing, completedCRE properties. Those loans are directlycover pool.
Origination model assumes of mBankHipoteczny participate in syndicatemodel commercial real estate loansorganised by mBank or by purchasingloan assets from mBank - commercialpooling model.
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 removal of construction phase risk.
Risk ManagementCover pool eligibilityOrigination
Warehouse Logistic centre
Hotel OtherShopping centres
Offices
4.2%
Housing development
8.9%
Commercial premises
0.8%
35.8%
Mixed use property
33.9%
6.4%5.5%
4.5%
Source: Management Board Report mBank Hipoteczny
| 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– 2019 H1
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
3.72%3.42%
Polish Banks
3.48%
mBank Group mBank Hipoteczny
0.22%
6.80%
2.40%
4.80%
2.30%
-3.32 pp
-2.18 pp
Total NPL Ratio (non-fin) Mortgage NPL Ratio
Total NPL Ratio
(non-fin)
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%
59
49
3842
15
4 4 2 41
20182015 2016 2017 2019 H1
CRE
ML
19
0,02%
7,36%
2015
7,18%
0,08% 0,15%
2016
0,22%
6,23%
2017
7,62%
0,31%
2018
7,95%
2019 H1
CRE
ML
133.48%
Source: Management Board Report mBank Hipoteczny
mBank Hipoteczny key financials
| 15
in PLN M 2015 2016 2017 2018 2018 H1 2019 H1
NII - Net Interest Income 110.8 130.1 156.0 176.3 84.8 91.7
NFC - Net Fee & Commission Income
6.5 1.5 (5,7) (2.5) (1.0) (3.4)
Total income1) 114.1 134.1 146.9 171.7 79.5 89.2
Total costs2) (62.6) (65.7) (67.5) (63.6) (33.3) (39.6)
Cost/Income Ratio 54.82% 48.96% 45.99% 36.78% 41.51% 43.83%
LLP - Loan Loss Provisions (24.8) (21.6) (20.2) (16.71) (8.56) (8.34)
Operating result 26.8 46.9 59.2 88.3 37.3 43.0
Taxes on the balance sheet - (16.7) (24.4) (27.6) (13.6) (16.1)
Profit before income tax 26.8 30.2 34.7 60.7 23.8 26.8
Net profit 18.8 23.4 27.8 41.2 16.6 17.2
Net Interest Margin (NIM) 1.55% 1.37% 1.36% 1.44% 1.38% 1.38%
TCR 13.81% 14.54% 15.79% 16.25% 15.22% 17.43%
Cost of Risk LLP 0.39% 0.26% 0.20% 0.19% 0.16% 0.13%
ROE - Return on Equity(gross)
3.91% 3.62% 3.46% 5.85% 4.62% 4.66%
ROA - Return on Assets (gross)
0.37% 0.31% 0.30% 0.49% 0.39% 0.41%
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
2019 H1 higher costsdue to one-off BFG
contribution impact off -13.3 m PLN
Net profits keep growingdespite financialinstitutions tax
Resilient asset quality
Return on Equity improved
Increased capitalisationdue to larger share of
residential low risk loans.
Source: IFRS Financial Statements of mBank Hipoteczny
| 16
Development of Total Income (PLN M)
Development of Revenues and Costs
84.8
2016
2.4134.1
2017
1.5
146.9
176.3156.0
130.1
2018 2018 H1
91.7
2019 H1
171.7
79.589.2
+13.1%
+12.1%
Cost of Risk(bps)
Loan Loss Provisions (PLN M) & Cost of Risk Net Profit (PLN M) & Return on Equity (ROE) gross
2016 2017
16.7
2018 2019 H12018 H1
21.620.2
8.6 8.3
-12.0%
-2.6%23.4
20172016 2018 2018 H1 2019 H1
27.8
41.2
16.6 17.2
+32.7%
+3.5%
ROE26
NIM (bps)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 –including BFG
48.9%
2016
23.3
7.9
34.3
3.4
22.7
3.2
8.1
34.0
3.2
39.6
6.0
2017
7.0
33.3
68.6
22.4
3.8
2018
14.8
10.71.7
2018 H1 2019 H1
14.9
13.0
8.3
68.163.6
30.4
-3.3%
+18.8%
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.
2019 H1 higher costs due to one-off BFG contribution impact off -13.3 m PLN
36.8% 43.8%138
13 4.66%
138 41.5%
4.62%16
Net Interest Income
Net Fee and Commission Income
Trading and Other Income
Source: IFRS Financial Statements of mBank Hipoteczny
| 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
Assets & Liabilities growth
1,134
2018
49
45
9,412(88%)
2019 H12016
561,0691,277
10,767(88%)
19
1,174(9%)
2017
275
4337
10,931(88%)
46
58
10,649
1616
262
12,102(89%)
1 19
12,168 12,386
13,603+8.5%
6,153(58%)
240
904
36
3,317(31%)
2016
7,996(59%)
234
1,056
7,043(58%)
4
3,830(31%)
2017
1,086
12,386
7,870(64%)
37
3,180(26%)
247
2018
2401,251
4,109(30%)
2019 H1
10,649
12,16813,603
Total Gross Loans (PLN M)Balance sheet value (carrying value)
863
3,8003,7333,429 3,1633,706
584
2017
10,931
4,705(44%)
322
4,375(46%)
4,714(50%)
2016
10,767
2018
201
5,860(54%)
143
6,195(57%)
4,592(42%)
135
7,262(60%)
4,705(39%)
2019 H1
9,412
12,102
+2%
-2%
Equity (PLN M)
Housing loans to individual clients
Public-sectorloans
904
1,086
2016
1,251
2017 2018 2019 H1
1,056
Corporate loans
TCR (%)
14.5%
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
15.8% 16.2%
>12.875%
Investment securities
Amounts due frombanksLoans and advances tocustomers
Other
Derivative financial instruments
17.4%
Source: IFRS Financial Statements of mBank Hipoteczny
| 18
CRE loans
46
19
1,174(9%)
135(1%)
4,705(35%)
7,262(53%)
262(2%)
2019 H1
Amounts due from banks
Securities
Derivatives
Public sector loans
Mortgage loans
Other assets
13,603
717(5%)
Covered Bonds7,279(54%)
4,109(30%)
240(2%)1,251(9%)
2019 H1
Notes
Amounts due to other banks
Other liabilities and provisions
Total Equity
13,603
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
PLN74%
EUR26%
PLN69%
EUR31%
Floating97%
Fixed3%
Structure of Liabilities (PLN M)Structure of Assets (PLN M)
Floating71%
Fixed20%
Zero9%
Well diversified and stable balance sheet
Source: Based on mBank Hipoteczny IFRS Financial Statement as of 2019 H1.
| 19
80
300
768
0
0
501
5,268
2016
7,171
80
6,439
2017
330
7,156
0
0
2018
7150
2019 H1
6,116
7,020
7,8017,871
+8.8%
Short-term notes
Long-term notes
Mortgage CB (public+ private offer)
Public CB
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)
4,6754,083
2,033
2016
3,1262,104
4,916
2017 2018
3,091
4,780
2019 H1
6,116
7,020
7,8717,801
EUR
PLN
30%
70%
Debt securities issued
1,322
100
202620212019
1,450
650
2029202320222020
310
2024 2025 2028
213 200
340 350
213
555 510
1,000
65 106204
100183
EUR - Mortgage Covered Bonds
PLN - Mortgage Covered Bonds
PLN - notes
9.1%
90.9%
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
CAGR
Source: IFRS Financial Statements of mBank Hipoteczny; EUR/PLN NBP rate
Covered Bond Market in Poland
| 20
Polish Covered Bond Market by issuer– public issuancesoutstanding (PLN bn)
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
7.16(29%)
mBank Hipoteczny
PKO Bank Hipoteczny
Pekao Bank Hipoteczny
1.17(5%)
15.95(66%)
Total24.28bn PLN
Data based on NBP fx rate as of 30.06.2019. Data source: Press releases / 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
2012 20162014 20182010 06/2019
63%%EUR
%
Outstanding Polish mortgage covered bonds currency split
Pekao BHmBH
15.27(63%)
4.07(57%)
9.01(37%)
3.09(43%)
Total Market
11.82(74%)
4.14(26%)
PKO BH
0.360.81
EUR
PLN
24.28
7.16
15.95
1.17
• 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 2019 H1.
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
H1 2012
H2 2012
582
H1 2013
798
80
H2 2014
43
H1 2016
340
H2 2013
215
H1 2014
H1 2015
968
100
663698
204
H2 2016
300400
H1 2017
106
400
1,925
H2 2017
1,576
H1 2018
10
H2 2018
H1 2019
H2 2015
issued covered bonds
Data as of: 2019 H1Based on EUR/PLN NBP rate
• 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
Mortgage covered bonds
All issues
Mortgage CBs 7,156
PLN-denominated
4,065
EUR-denominated
3,091
WA Time to maturity 4.2 years
PLN-denominated
3.4 years
EUR-denominated
5.0 years
| 24
Distribution by interest rate (all issues)
Distribution by currency (all issues)
7,000
5,000
3,000
8,000
2,000
4,000
0
1,000
6,000
2020
2131,510
1,000
2022
7,156
1,450416
510
2023 2029
106
768
310
2024
1,322
2025 2028
555
100
650
2019 H1 20262019 2021
213990
183
340
204
EUR PLN
Mortgage covered bonds maturity profile broken down by currency (all issues PLN m)
Outstanding Covered Bonds
3,091(43%)
4,065(57%)
EUR
mBH
PLN
7,156
2,603(36%)
7,156
4,553(64%)
mBH
Fixed
Float
Data as of 2019 H1 (PLN M)
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Data as of: 2019 H1Based on EUR/PLN NBP rate
| 25
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 11th July 2019 - Supplemented 5th September 2019
Size EUR 3.0 bn
Form New Global Note - ECB repo eligible
Base Prospectus approval Authority Commission de Surveillance du Secteur Financier, Luxembourg (CSSF)
Clearing System Clearstream Luxemburg
Listing Luxembourg Stock Exchange
Expected Covered Bonds Rating Moody’s Investors Service Ltd – „Aa3”
Maturity Up to 30 years
Interest rate Fixed, floating
Currency Multi currency
Denomination of Covered BondsMinimum denomination of each Covered Bond will exceed EUR 100,000 or its equivalent amount in other currency
Involved Parties
Issuer mBank Hipoteczny
Arranger: Commerzbank Aktiengesellschaft
Issuer`s Counsel Clifford Chance 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
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
marketLegislation
mBank Hipoteczny International Covered Bonds Programme
PolandLong Term
Country ceiling
mBankBBB/-/BBB+
Stable/-/ Negative
mBank HipotecznyBBB/Baa2/-
Stable/-/-
CommerzbankBBB+/A1
/A-Stable / Stable/ Negative
MortgageCovered Bonds
-/Aa3/-
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/-
ING Bank Hipoteczny
-/Baa1/-- /Stable / -
ING BankA/A2/-
Stable / Stable / -
MortgageCovered Bonds
-/Aa3/-provisional
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 02.09.2019 relation to sovereign rating relation to issuer rating
| 26
+5
+4
+3
+1
Covered Bonds rating among Polish issuers
mBankHipoteczny
Coveredbonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Source: Rating Agencies press releases
+3
+4
+3
Cover Pool – highlights
| 27
0% NPL
60% - Residential ML
PLN
EU
R
3 213 3 091
6 896
4 065
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Strong overcollateralisation
mBH strategy for the following years is to be EUR issuer. Covered by significant increase of residential PLN denominated mortgages. Which results in the necessity of hedge ccyrisk by covered bond swap.
v
Moody’s Rating „Aa3”
2019-08-29 – HTT report
v
mBH disclosures are compliant with the ECBC Covered Bond Label Convention - Harmonised Transparency Template (HTT) and are being published via: https://www.mhipoteczny.pl/en/investor-relations/cover-pool-information/
The best market transparency standards
Well diversified mixed high-quality cover pool
40% - CRE loans
Cover poolreceivables + substitute assets
10,521 M PLN
Covered bondsoutstanding all issues
7,252 M PLN
OvercollateralisationActual, non-committed.
45.0%Regulatory minimum at 10%
OC after the sub-
benchmark size issue
19.0 - 22.0%
Covered bond swap characteristics:
• Swap to be included into the cover pool,
• Swap surviving the issuer default,
• Swap counterparty meets all Moody’s criteria for Aa3 + 3 notches leeway rating.
100% Poland located properties
100% Floating rate type
WA LtMLV - 76.9% WA LtMLV - 68.3%
Number of loans 24,390 Number of loans 303
Average size 0.25 m PLN Average size 13.81 m PLN
| 28
Increasing share of residential mortgages in cover pool CRE/REE by the type of property
39%
37%
9%
5%4%
2%3% Other
Commercial real estate
Hotel/Tourism
Property developers
Warehouse/Logistic Centre
Retail
Office
Shopping malls
Cover Pool – currency and mortgage type split
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
0
3
10
6
5
2
8
7
1
11
9
4
06/19
57%
40%66%
12/1712/15 12/16
51%
44%
95%
43%
12/14
22%
06/18
78%
56%
06/15
Commercial Real Estate44%
34%
40%
60%
06/16
56%
49%
06/17
55%
45%
55%
45%
12/18
60%
08/19
Residential mortgages
Share of EUR, USD and PLN-denominated loans in cover pool
2
7
1
9
5
3
0
10
4
11
6
8
12/1612/15
43% 30%
06/19
31%
06/16 06/1712/14
PLN
34%67%
44%
54%
06/15
53%
68%
12/17
45%
08/19
56%57%
33%
66%
42%
62%
65% 67%
06/18
33%
12/18
32% EUR38%
USD
70%
Since 2014 the currency structure of the loan portfolio inmortgage cover pool was subject to changes resulting froma systematic growth of the portfolio of retail loans grantedonly in PLN.
mBH strategy for the following years is to be EUR issuercovered by significant increase of residential PLN denominated mortgages.
Historically mBH never granted loans denominated in CHF. Hence, there is no CHF-denominated loans in cover pool.
bn P
LN
bn P
LN
| 29
Cover Pool - by loans value
Value Residencial mortgages Commercial loans Total
(in PLN m) Value % share Value % share Value % share in cover pool
≤ 0.25 2,028.86 33% 0.81 0% 2,029.66 20%
0.25 - 0.5 3,009.65 48% 3.42 0% 3,013.07 29%
0.5 - 1.0 1,026.61 17% 17.31 0% 1,043.92 10%
1.0 - 5.0 128.90 2% 280.52 7% 409.42 4%
5.0 - 10.0 - - 320.50 8% 320.50 3%
10.0 - 15.0 - - 339.55 8% 339.55 3%
15.0 - 20.0 - - 422.91 10% 422.91 4%
20.0 - 30.0 - - 659.67 16% 659.67 6%
30.0 - 40.0 - - 574.72 14% 574.72 6%
40.0 - 50.0 - - 351.23 8% 351.23 3%
> 50.0 - - 1,214.95 29% 1,214.95 12%
TOTAL 6,194.0 100% 4,485.6 100% 10,379.60 100%
0
1,500
1,000
3,000
500
2,000
2,500
3,500
1
≤ 0.25
3,010
0.25 - 0.5
17
0.5 - 1.0
129423340320
5.0 - 10.0 10.0 - 15.0
3
15.0 - 20.0
660
> 50.020.0 - 30.0
575
30.0 - 40.0 40.0 - 50.0
1,215
281 351
1,027
2,029
1.0 - 5.0
Residencial mortgages
Commercial loans
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
PLN
m
Based on mBH HTT report - 2019-08-29
Cover Pool – residential ML regional distribution
| 30
Łódzkie
Zachodnio-pomorskie
Pomorskie
Warmińsko-mazurskie
Podlaskie
Mazowieckie
Lubelskie
Świętokrzyskie
Podkarpackie
Małopolskie
Śląskie
Opolskie
Dolnośląskie
Wielkopolskie
Kujawsko-pomorskie
Lubuskie
7.0%40.0%
3.50%
8.8%
1.1%
3.4%
10.1%
2.9%
3.6%
1.9%
11.2%
0.6%
0.5%
4.6%
0.6%
0.5%
% of mBH’s Mortgage Cover Pool – 2019-08-28
> 20%10.0 – 19.9%5.0 – 9.9%1.0 – 4.9%< 1%
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Mazowieckie
4.5%
Łódzkie
Zachodnio-pomorskie
Pomorskie
Warmińsko-mazurskie
Podlaskie
Lubelskie
Świętokrzyskie
Podkarpackie
Małopolskie
Śląskie
Opolskie
Dolnośląskie
Wielkopolskie
Kujawsko-pomorskie
Lubuskie
2.8%
6.6%
4.4%
8.8%
3.9%
4.2%
7.9%
5.6%
7.3%
4.7%
5.6%
5.1%
7.0%
7.9%
7.6%
Mazowieckie
4.5%
Unemployment rate – 2019 H1 Data Source: GUS - Central Statistical Office
> 10%8.0 – 10.0%6.0 – 7.9%4.0 – 5.9%< 4%
Geographical distribution negatively correlated with unemployment– strong client base portfolio
Based on mBH HTT report - 2019-08-29
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
| 31
| 32
% of CRE/RRE regional distribution in Mortgage Cover Pool – 2019-08-28
> 20%10.0 – 19.9%5.0 – 9.9%1.0 – 4.9%< 1%
Cover Pool – CRE/RRE regional distribution
Geographical CRE/RRE regional distribution vs existing office stock by the cities – positive correlation
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Total office stock - EOY2018; 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
ŁódzkieŁódź
0,5 m m2
PomorskieTricity
0.8 m m2
MazowieckieWarszawa5.5 m m2
MałopolskieKraków1.5 m2
ŚląskieKatowice0.5 m
m2
DolnośląskieWrocław
1.05 m m2
WielkopolskiePoznań
0.5 m m2
Łódzkie3.0%
Zachodnio-pomorskie
2.4%
Pomorskie5.5% Warmińsko-
mazurskie1.7%
Podlaskie0.4%
Mazowieckie28.9%
Lubelskie1.3%
Świętokrzyskie1.4%
Podkarpackie3.6%
Małopolskie18.3%
Śląskie6.4%
Opolskie1.3%
Dolnośląskie16.6%
Wielkopolskie5.6%
Kujawsko-pomorskie
3.%
Lubuskie0.1%
Based on mBH HTT report - 2019-08-29
| 33
Poland – one of EU’s most resilient economies
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Source: Eurostat
2018 Nominal GDP share
Czech Republic
Poland
Hungary
Slovakia
EU-28
3.8%
Romania
3.6%Bulgaria
5.1%3.3%
3.7%
4.8%
1.6%
3.0%
4.2%
4.0%
3.2%
2.9%2.8%
1.9%
Real GDP growth
Poland
Slovakia
Bulgaria
Romania
CzechRepublic
Hungary
GDP index (Q1 2008=100)
2018
2019-2020(average)
The largest economy in Central and Eastern Europe (CEE)
with more than 40% of the region’s gross domestic product1
Track record of steady growth despite prolonged turmoil
experienced by the international financial markets
Growth supported by expansionary policy-mix, solid influx
of EU funds under 2014-2020 framework, high cost
competitiveness and key location within the huge EU market
Economic expansion began in 2013 and GDP growth
continued to remain solid in the next quarters
Source: Central Statistical Office of Poland
1 Share of 2018 Nominal GDP of CEE region defined as: Bulgaria, Czech Republic, Hungary, Poland,Romania and Slovakia
3.1 3.3 3.4 3.33.8
3.3 3.6
4.6
3.1 3.42.8 2.8
4.64.2
5.45.0 5.3 5.1 5.1 4.9
-3
-2
-1
0
1
2
3
4
5
6
7
Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18
Investment Net exports Consumption
Inventories GDP YoY (%)
90
100
110
120
130
140
150
Q1/08 Q3/09 Q1/11 Q3/12 Q1/14 Q3/15 Q1/17 Q3/18
Poland Hungary Czech RepublicSlovakia Bulgaria Romania
42.0%
11.1%
17.5%
7.6%
4.7%
17.1%
Strengths Contributions to GDP growth
Poland – one of the fastest growing economies in the region
Sound fundamentals for the banking business
Relatively strong labour market
5.3%
Poland Euro area2018
3.3%
Czech Republic
Hungary
2.7%
EU-282018
7.3%
8.7%
Unemployment rate – 2019 H1
| 34mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Capitalisation and Funding – the Polish banking sector
TCR & Tier 1 ratio Loan-to-deposit ratio
2018
92.4%
2017
94.8%
2016
95.7%
2015
98.9%
Tier 1 ratio
Tier 2
20182017
17.2%
19.1%19.0%
16.3%
15.0%
2015
16.1%
2016
17.2%
17.7%
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
| 35
Stable growth within the forecast horizon
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Labour market is in its best shape ever Consumption is set to remain a key pillar of growth
Polish unemployment rate is at its lowest since early 1990s and among the lowest in Europe. This has had a transformative effect on consumer sentiment and perception of economic security and prospects.
Consumption will be further supported by the new fiscal package (personal tax cuts, social transfers including the extended child subsidy programme), whose impact is estimated at 0.5 p.p. in 2019 and 2020.
Source: GUS, NBPSource: GUS, NBP
5%
8%
11%
14%
17%
20%
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Registered unemployment rate (seasonally adjusted)
Source: Central Statistical Office of Poland Source: Bloomberg
Inflation rate (YoY) and the path of interest rates Key Polish interest rates
1,0
1,5
2,0
2,5
3,0
3,5
4,0
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
Wibor 3M NBP base rate 10-year yield
4.0
3.5
3.0
2.5
2.0
1.5
1.0
1.72
1.50
2.91
-2,0%
-1,5%
-1,0%
-0,5%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
Repo rate CPI inflation Core inflation
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
-0.5%
-1.0%
-1.5%
-2.0%
-25
-20
-15
-10
-5
0
5
10
-2%
0%
2%
4%
6%
8%
10%
Q1/05 Q3/06 Q1/08 Q3/09 Q1/11 Q3/12 Q1/14 Q3/15 Q1/17 Q3/18
Household consumption YoY (LA)
Expected changes in financial situation of households (RA, -2Q)
Asset quality trends in Poland
Comparison of NPL ratios for CEE countries – 2017
Source: Polish FSA
Mortgage NPL ratio evolution in Poland A conservative regulatory environment
Improving risk indicators in Poland – NPL ratios by sector
Recommendation S
Introduction of a limitation on LtV: to 90%, if part of the loan exceeding the 80% limit was insured or backed by high quality collateral, and to80% in other cases; a gradual reduction to the target levels in 2017
Recommended to retail customers repayment period no longer than 25 years for retail customers
Foreign-currency mortgage loans as a niche product offered only to borrowers earning permanent income in the loan currency
Recommendation T
Assessment of the client's standing based on certificates of income, external databases, e.g. the Credit Information Bureau (BIK)
Maximum Debt-to-Income ratio determined by the bank’s management board and approved by the supervisory board
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
Total Households Corporates
5.9%
6.8%
8.7%
Czech Republic
PolandBulgaria
10.2%
Slovenia Hungary Romania Slovakia
9.2%8.4%
6.6% 6.6%
3.7%2.8%
Source: ECB (Statistical Data Warehouse) Source: Polish FSA
Introductionof IFRS9
0,8%
1,2%
1,6%
2,0%
2,4%
2,8%
3,2%
3,6%
Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
Total Mortgages FX Mortgages
3.0%
2.5%
3.6%
3.2%
2.8%
2.4%
2.0%
1.6%
1.2%
0.8%
| 36mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal Estate
MarketLegislation
Stable and growing residential market in Poland
| 37
Source: Deloitte Property Index 2018
index, 2015=100;
Residential prices 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
376
452 462 465 476 489507 518
FrancePOLAND Czech Republic
DenmarkHungary Belgium EU 28 Germany
+113
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 2018, 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
150
10Q1 10Q3 11Q1 11Q3 12Q1 12Q3 13Q1 13Q3 14Q1 14Q3 15Q1 15Q3 16Q1 16Q3 17Q1 17Q3 18Q1 18Q3 19Q1
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
Residential market in Poland - stable demand
| 38mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
Average house price per square meter vs. average monthly wages by major Polish cities.
0,30
0,40
0,50
0,60
0,70
0,80
0,90
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
square
mete
rGdańsk CracowŁódź PoznańWarsaw WrocławAverage for Poland
Average house prices remain stable trough the years. Increase since 2013 was offset by significant increase of average wages. -Houses purchasing power almost doubled during last 10 years.
Average house price per square meter – primary market by major Polish cities.
4 000
4 500
5 000
5 500
6 000
6 500
7 000
7 500
8 000
8 500
9 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PLN
Gdańsk CracowŁódź PoznańWarsaw WrocławAverage for Poland
Source: GUS - Central Statistical Office; NBP
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.mBank Hipoteczny’s headquarter is certified by BREEAM(Excellent).
| 39
Legal framework
Certification
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
Source: Construction Law of Poland. Certification units webside.
| 40
Data Source for the slide: Cushman&Wakefield Report
Commercial Real Estate – investment volume
Poland - CEE leader in CRE investment (50%).
The volume of transactions concluded in 2018 on the commercial real property market
amounted to approx. EUR 5.23 bn and the result was higher with that in 2017 (EUR 5.1
bn).
The share of the commercial real estate market in H1 2019 is approx. 63% for offices
market, approx. 17% for market retail and approx. 15% for warehouse.
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
400
1250
1900
1200 1200
200650
1300950
13001800
12961840
1500
2750
1660700
1 550
2 400
1 050500
300
900
1 0001 150
1 350 500
2 228
1 9782 150
2 500
450
100
150
225
200
150
50
180
200 450
600700
486
600 1100
1840
384
10
20
225
40
50
117
20
100 200
150
100
41
182
380
120
150
0
1000
2000
3000
4000
5000
6000
7000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019
Office Retail Warehouse Others
Investment volume in Poland by sector m EUR
50%
31%
8%
5%6% Poland
Czech
Hungary
Slovakia
Romania
Poland - CEE leader in CRE investment volumes (%)
Commercial Real Estate – Offices
Source: JLL H1 2019
Office resources by region (%)
• 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: Cresa; H1 2019
Source: Cresa, H1 2019
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
Source: Cresa
| 41
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1
2019
0
400
800
1200
1600
Annual supply Total surface resources (right axis)
3,00% 2,75% 2,95%3,50%
3,00%3,50% 3,50% 3,50%
4,15%4,75%
9,75%
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
52%
13%
5%
5%
7%
10%
5%2%1%
Warsaw
Cracow
Łódź
Katowice
Trójmiasto
Wrocław
Poznań
Lublin
Szczecin
0%
2%
4%
6%
8%
10%
12%
14%
5
6
7
8
9
10
11
12
13
14
15
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1
2019
Average price [EUR/m2] Vacancy rate [%] (right axis)
Office resources (ths. square meters) Office prime yields
Commercial Real Estate – Retail
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 – 4,00% • We have stable and growing retail commercial market in Poland
mostly are shopping 72%, Commercial warehouses is 18%. Retail park and outlet center are less popular
Average density per 1,000 inhabitantsSource: Cresa
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation | 42
The structure of commercial space in Poland
Source: JLL H1 2019
Retail - Prime Yield
0
2000
4000
6000
8000
10000
12000
14000
16000
0
100
200
300
400
500
600
700
800
900
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1
2019
H2
2019Annual supply Forecast Total surface resources (right axis)
2,00%
2,70% 2,65% 2,75% 2,90%3,15%
3,50% 3,30%3,50%
4,00%
9,75%
72%
18%
8%
2%
shopping center
commercial
warehouses
retail park
outlet center
Source: Cresa 2019
Retail resources (ths. square meters)
Commercial Real Estate – Warehouses
Source: JLL Q2 2019
• In Poland prime yield is the highest in Europe (6,50%)• Warehouse resources are constantly growing. Structure of warehouses by
regions over 50% for Warsaw - Around, Gorny Slask and Poznan.• Vacancy ratio on low level differentiate by region.
Source: Cresa, H1 2019
| 43
Werehouses resources by region (%)Source: Colliers, JLL
Warehouses - Prime Yield
0
500
1000
1500
2000
2500
2006200720082009201020112012201320142015201620172018 H12019
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
Warehouse resources (thous. m2)
Annual supply Forecast Total surface resources (right axis)
Warehouse space resources and vacancy rate
mBankHipoteczny
Covered bonds
Cover PoolPolish
EconomyReal estate
marketLegislation
3,50% 3,90% 3,90% 4,20% 4,50% 4,75% 5,00% 5,30% 5,25%6,50%
11,75%
19%
17%
12%17%
12%
5%
4%4%3%
7%Warsaw - Around
Gorny Slask
Poznan
Central Poland
Wroclaw
Warsaw - City
Szczecin
Tricity
Cracow
Others
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
0
500
1 000
1 500
2 000
2 500
3 000
3 500
Warsaw- Around
GornySlask
Poznan CentralPoland
Wroclaw Warsaw- City
Szczecin Tricity Cracow Others
Warehouse resources (thous.m2) Vacancy rate (%)
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 6months - 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 for the
purposes of EU Directive 2003/71/EC (as amended or re-enacted) (the “Prospectus Directive”), 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 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 11 July 2019, as supplemented on 5 September 2019 (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, fairness 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
Bank’s control that could cause the Bank’s actual results, performance or achievements to be materially different from the expected results, performance or achievements
expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Bank’s present and future business
strategies and the environment in which it will operate in the future.
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
statements, applies only as of the date of this document and is not intended to give any assurances as to future results. The Bank expressly disclaims any obligation or undertaking
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
and have not been independently verified.
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.
The distribution of this Presentation in certain jurisdictions may be restricted by law and persons into whose possession this Presentation or any document or other information
referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities
laws of any such jurisdiction. This Presentation and any materials distributed in connection with this Presentation are not directed to, or intended for distribution to or use by, any
person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary
to law or regulation or which would require any registration or licensing within such jurisdiction. The Bank and the Dealer do not accept any liability to any person in relation to the
distribution or possession of this Presentation in or from any jurisdiction.
Contact details
| 50
mBank Hipoteczny S.A.al. 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]