2Q 21 Financial results
Dynamic growth on the wave of economic recovery
Warsaw, August 4th, 2021
0 Dynamic growth on the wave of economic recovery
Our consistent policy translated into earnings above pre-COVID levels despite low interest rates environment. Recurring RoE in 2Q’21 at 9%
We return to dividend distributions as one of the few Polish banks in line with our strategy. The highest dividend in the sector with 75% pay-out ratio
Strong acceleration of our business activity fuelled by growing credit demand in all strategic segments and good economic situation
We maintained our credit risk and operational cost under control. Cost of risk stabilised at pre-COVID levels. We had 2nd lowest sensitivity of fully loaded T1 in EU stress test
1 AGENDA
Key achievements Macro & Financial results Appendix
2 Key achievements Macro & Financial results Appendix Dynamic growth on the wave of economic recovery
Net profit generation Key levers of financial performance in 2Q’21 PLN m +3% Profitability: Net profit above pre-COVID levels despite low interest Net profit +56% rates environment. Recurring RoE at 9% powered by strong Pre-COVID business performance
824 850 Business performance: Strong growth visible in new sales of key 546 products. Significant improvement in F&C income
Risk management: Decline of credit provisions thanks to good asset quality supported by macroeconomic rebound
1H 19 1H 20 1H 21
Value for investors Diversified business model with a strong balance sheet and good position to capture market growth. Ongoing focus on efficiency and digital transformation.
3 Key achievements Macro & Financial results Appendix We return to share our profits with shareholders paying the highest dividend in the sector as one of the few Polish banks
Share of dividend paid by Pekao in total dividends paid by Already in 2021 . Pekao returns to a consistent policy of paying the sector % dividends. 75% of the net profit for 2020 (PLN 3,21 per share) will be paid to shareholders
Payout ratio 75% . Pekao will distribute the highest dividend in the sector from 2020 profit as one of the few Polish banks 1 ~70% Dividend per 3,21 share (in PLN) . Share of dividend paid by Pekao in total dividends paid by the sector in 2021 will be ~50% close to 70%, much higher than its share in sector assets 3.3% Dividend yield . We will continue our dividend policy in the coming years. In line with our strategy, we will allocate 50-75% of our profits to dividends 2017-2019 2021 Share in sector assets 11% Note: sector includes TOP10 banks 1 Assuming dividend payouts from 2020 net profit: 75% for Pekao, 30% for Santander BP, 100% for Bank Handlowy 4 Key achievements Macro & Financial results Appendix We are the second most resilient bank in Europe in EBA stress test
EBA stress test results Länförsäkringar Bank AB (publ) Bank Polska Kasa Opieki SA Bankinter, S.A. SBAB Bank AB – group 1 Powszechna Kasa Oszczednosci Bank Polski SA . Resilience in stress test Swedbank — group Pekao is the second most resilient DNB Bank Group Banco Santander S.A. bank to stress factors among 50 Volkswagen Bank Belfius Banque SA Pekao Caixa Geral de Depósitos, SA European banks 0,98% Banco Bilbao Vizcaya Argentaria S.A. OTP Bank Nyrt. KBC Group NV Sector Skandinaviska Enskilda Banken — group 4,78% Nordea Bank Abp average Erste Group Bank AG 1 Banco Comercial Portuguęs, SA . Resilience almost 5 times higher Svenska Handelsbanken — group ABN AMRO Bank N.V. BNP Paribas than the average of the banks ING Groep N.V. Raiffeisen Bank International AG participating in the stress tests Intesa Sanpaolo S.p.A. average Mediobanca - Banca di Credito Finanziario S.p.A. DZ BANK AG Deutsche Zentral-Genossenschaftsbank COMMERZBANK Aktiengesellschaft Confédération Nationale du Crédit Mutuel Bank of Ireland Group plc Banco de Sabadell S.A. Société générale S.A. . In the baseline scenario T1 fully Groupe BPCE Landesbank Hessen-Thüringen Girozentrale loaded in 2023 is 17.7% with a 3- Bayerische Landesbank UniCredit S.p.A. OP Osuuskunta year profit of PLN 5.0 billion; in the Deutsche Bank AG Banco BPM S.p.A. shock scenario T1 fully loaded in 1 Nykredit Realkredit 1 Groupe Crédit Agricole Jyske Bank 2023 is 15.4% with a 3-year profit Landesbank Baden-Württemberg HSBC Continental Europe Danske Bank of PLN 2.2 billion, significantly 2 AIB Group plc 2 Coöperatieve Rabobank U.A. above regulatory minimum 3 3 Nederlandse Waterschapsbank N.V. La Banque Postale BNG Bank N.V. Banca Monte dei Paschi di Siena S.p.A. 2021 2018 0,0% 2,0% 4,0% 6,0% 8,0% 10,0%12,0% 1 Resilience measured as the difference of CET1 fully loaded between the starting point (current figures 2020) and the stress scenario (2023) 5 Key achievements Macro & Financial results Appendix We are focused on our 2021-2024 strategy based on 4 pillars
. Maintaining high pace of growth . Taking advantage of the economic in digital channels supported by rebound in all strategic segments PeoPay development and remaining an important partner of our corporate clients Customer Growth Target: 3.2 m Active mobile Target: ROE ~10% banking customers
. ESG strategy announced in 2Q’21 . Further improvement of business effectiveness fostered by . Responsibility & resistance operational and digital confirmed by EBA stress test transformation . Consistent and sustainable results Responsibility Efficiency
Target: CoR 50-60 bps Target: C/I 42%
6 Key achievements Macro & Financial results Appendix We have taken advantage of the economic rebound in all strategic segments Growth
New sales of mortgage loans New sales of cash loans SME loan sales PLN bn PLN bn PLN bn
+46% +22% +31%
3.1
1.4 2.1 1.2 0.9 1.1
1Q 21 2Q 21 1Q 21 2Q 21 1Q 21 2Q 21
7 Key achievements Macro & Financial results Appendix We further improve our business effectiveness fostered by operational Efficiency and digital transformation
Number of branches Total assets/FTE Cost/Income1 # PLN m %
-18% +27% -2 pp
812 47% 785 43% 45% 669
2Q 19 2Q 20 2Q 21 2Q 19 2Q 20 2Q 21 2Q 19 2Q 20 2Q 21
1 Inc. BGF
8 Key achievements Macro & Financial results Appendix We maintain high pace of growth in digital channels Customer
Active mobile banking customers Digitisation rate PEX digital sales of total m % %
+19% +4 pp +3 pp
54% 50% 55% 2.2 52% 1.8
1H 20 1H 21 Start of the Strategy August'21 1H 20 1H 21
9 Key achievements Macro & Financial results Appendix PeoPay application as the main contact and sales channel with extensive Customer functionalities to be further developed
PeoPay 3.0 - All in one app PeoPay 4.0 – Next Generation (coming soon)
Wide scope of banking functionality (sales & self-service) Evolution of user experience and GUI
Innovative: multicurrency, virtual card, personalisation Technical revolution – in-house made only The widest offer of mobile payments: Widgets and more personalization Redesigned and simplified functions Extended offer of VAS with external partners: With even more functionalities : Insurances eID& Open banking acc. . Investments & brokerage module biometrics aggregation (incl. quotations and trading)
Transport . Subscription control & new payment management tool
. Self-service zone focused on post-sale
Poland TOP3 . Public Transport & Parking Best-in-class account on „SELFIE” World TOP30
10 Key achievements Macro & Financial results Appendix We remain an important partner of our corporate and SME clients Customer
2Q’21 (vs 2Q’20)
ESG
+11% MID loans portfolio EUR 500 m PLN 3.2 bn 7Y Eurobonds IPO & Post IPO Green bonds Facilities Global Coordinator, The best sub-custodian „Banking Star” in Joint Lead Manager & Co-Bookrunner bank in Poland for the 9th Stability category by top Joint Bookrunner time in the last decade Polish daily DGP +22% SME loans portfolio
EUR 600 m PLN 886 m
7Y Eurobonds Term & Revolving Credit MID Factoring Facilities Agreement +39% portfolio The Best Bank 2021 in J.P. Morgan’s Elite Quality Joint Bookrunner Lender Gazeta Bankowa ranking Recognition Award for the highest quality of interbank operations
11 Key achievements Macro & Financial results Appendix We ensure higher and more stable profitability compared to the sector. Responsibility Responsible approach to balance sheet origination keeps CoR under control
Quarterly RoE vs sector1 Cost of risk % bps
15%
120 . Over the past quarters, Pekao 10% Pekao average 6.9% 100 profitability has clearly exceeded sector one. Moreover, the bank's 5% sector average 80 profits are more stable than in the 3.9% Polish banking sector 0% 60 Historical through the
40 cycle CoR . Cost of risk has stabilized at a pre-
2Q 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 -5% 1Q 19 COVID level. Significantly safe level of 20 provisions maintained with COVID-19 -10% and CHF buffers built throughout 2020 0 Pekao Sector
-15%
1Q 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21
Underlying CoR COVID-19 & CHF portfolio related provisions
1 Own calculations for the sector for 1Q’19-1Q’21 based on PFSA data, for 2Q’21 based on consensus estimates for TOP8 banks
12 Key achievements Macro & Financial results Appendix We are on track to implement our 2021-2024 strategy
Bank Pekao strategic 2Q 21 goals by 2024
On track to reach our ROE 9% targets ~ 10%
C/I 45% 42%
Active mobile banking customers 2.2 m 3.2 m
ESG strategy published in 2Q’21
75% dividend payout from 2020 net profit
Note:: RoE in 2Q’21 with linearly adjusted BGF; C/I including BGF charges
13 Key achievements Macro & Financial results Appendix
14 Key achievements Macro & Financial results Appendix Economy at full speed, vaccinations will likely blunt the fourth wave
Economy already outgrew pre-pandemic peak First dose vaccinations by age group Card spending on certain services Economic activity as % of Feb `20 level % of population Normalized to 2020 daily average
industry construction retail restaurants hotels 80% 110% 6 70% 105% 60% 5 100% 95% 50% 4 90% 40% 3 85% 30% 2 80% 20% 1 75% 10% 70% 0% 0
80+ 70-79 60-69 50-59 25-49 18-24
Jul-20 Jul-21
Jan-18 Jan-19 Jan-20 Jan-21 Jan-20 Jan-21
Sep-18 Sep-19 Sep-20 Sep-20
Nov-20
Mar-20 Mar-21
May-18 May-19 May-20 May-21 May-20 May-21
. The economy is basically fully reopened and consumer spending on services is very likely above last year’s level . We are monitoring current battlegrounds (places with significant Delta variant surge despite high % of vaccinated population). So far indications are that links between infections and hospitalizations as well as infections and mobility have been severely weakened . Wave IV in Poland is our baseline scenario, but we do not expect any significant economic impact from it, hence macro view is unchanged
Source: Pekao S.A., ECDC, Statistics Poland 15 Key achievements Macro & Financial results Appendix Macro environment for banks set to remain very favourable
Nominal GDP will exceed the pre-pandemic trend Interest rates set to rise in 2022 Very stimulative policy mix ahead PLN bn
Nominal GDP - historical data NBP reference rate . Excess savings: legacy of pandemic-era Trend Pekao forecast Pekao forecast support programmes Market pricing 3,5 1,75% . EU funds: regular ones and RRF 3 1,50% . Changes in the tax & transfer system: boost 1,25% to consumption from new transfers and 2,5 lower tax burden on ~2/3 taxpayers 1,00% (including low earners) 2 0,75% . Public investment financed from local 0,50% 1,5 sources: part of the „Polish New Deal” 0,25% package – local government investment and 1 0,00% strategic investment
. Minimum wage hikes: +7% gross, +15% net
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2020 2021 2022 2023 . The 2021-2023 period will be marked by above-average growth (upwards of 5% each year). More importantly, . Accommodative monetary policy: even if nominal GDP will grow at a very fast clip, breaking above the trend. This is vastly different to challenges the hikes occur at the pace the market is euro area is facing pricing, real rates are set to remain . Unsustainable debt trajectory is unlikely even if substantial monetary tightening is delivered. Strong nominal extremely low income growth will also lift bank earnings
Source: Statistics Poland, Refinitiv, NBP, Pekao Research
16 Key achievements Macro & Financial results Appendix Double-digit net profit growth
Net profit generation PLN m +56% +68% +146% 2Q’21 shows growth of net profit thanks to: 850 . visible rebound in customer 605 activity and sales . solid F&C improvement 546 . diligent risk management and 359 stable CoR 246 . Nominal RoE in 2Q’21 at 9.5% (8.8% with linearly adjusted BGF) and C/I (incl. nominal BGF) at 45.4% 1H 20 1H 21 2Q 20 1Q 21 2Q 21
XX Reported dynamics
Value for investors Recurring RoE in 2Q’21 at 8.8%1 with strong capital position (T1 of 16.2%)
1 RoE in 2Q’21 with linearly adjusted BGF 17 Key achievements Macro & Financial results Appendix Significant improvement in operating income
Gross operating profit Operating income PLN m PLN m -5.2% -0.1% +0.9% +5.3%
+24.8% 4 098 4 133 +6.6%
2 266 2 150 1 194 1 193 2 026 2 000 2 132 956
1H 20 1H 21 2Q 20 1Q 21 2Q 21 1 1H 20 1H 21 2Q 20 1Q 21 2Q 21 Operating costs PLN m XX Reported dynamics +8.3% +12.9%
-10.0% HR redundancy provisions 1 831 1 983 1 044 832 120 939 . Growth of gross operating profit q/q thanks to operating income 924 acceleration
1H 20 1H 21 2Q 20 1Q 21 2Q 21 1 Excl. BGF charges 18 Key achievements Macro & Financial results Appendix Quarterly stabilisation of NIM
Net interest income Net interest margin evolution PLN m % -4.3% -1.9% quarterly
2 794 2 673 +0.4% 2.29% +2bps -2bps 2.29%
1 366 1 334 1 339 0bps
1H 20 1H 21 2Q 20 1Q 21 2Q 21 1Q 21 Commercial Ex-Idea Bank 2Q 21 activity & other PPA effects Net interest margin annual % -45bps -32bps 2.61% 2.15% +8bps +2bps +4bps 2.29% 2.74% 2.61% 2.29% 2.29% 2.29% +14bps
Commercial Liquidity Ex-Idea Bank 2Q 20 4Q 20 2Q 21 1H 20 1H 21 2Q 20 1Q 21 2Q 21 activity excess effect
19 Key achievements Macro & Financial results Appendix Retail growth driven by continuation of good trends in mortgage origination. Double-digit growth in strategic segments (MID & SME)
Retail loan volumes1 Corporate loan volumes2 PLN m PLN m +3% +10% -1% . -2.1% -1.1% +7% y/y growth in total lending. +1.4% Positive dynamics excluding impact of ex-Idea Bank consolidation 89 950 79 820 80 927 88 050 78 435 79 870 10 212 9 185 . Retail growth fuelled by 6% y/y expansion of PLN mortgage book, stabilisation of consumer loan portfolio 72 075 73 688 74 936 71 159 71 557 71 101 . Solid +13% y/y growth of combined MID & SME segments (enterprise 6 359 6 132 5 991 8 711 8 181 7 764 loan book) allowed for increase in market share in corporate book Jun 20 Mar 21 Jun 21 Jun 20 Mar 21 Jun 21
Corporates (Core corporate) Key retail loans (PLN mortgage, consumer loans) XX Reported dynamics Other corporate loans (Public sector) Other retail loans XX Dynamics excluding ex-Idea Bank portfolio Ex-Idea Bank portfolio 1 Gross loans 2 Gross loans, Corporate and Enterprise segments including leasing and factoring, excl. BSB and reverse repo transactions. Ex-Idea Bank portfolio includes micro lending categorized as retail lending. For illustrative purposes, entire portfolio presented under corporate lending. 20 Key achievements Macro & Financial results Appendix Strong growth of retail deposit base
Customer retail savings Corporate deposits and own issues1 PLN m PLN m +14% +10% -6% -8%
-0.3% -3.0%
115 587 115 207 90 579 87 345 5 677 4 190 84 734 . Total deposit base grew by 14% y/y 101 318 1 361 1 373 (+9% y/y excluding impact of ex-Idea Bank deposits)
109 909 111 017 . 90 579 85 984 83 360 Further recovery of mutual funds AUM q/q 17 389 20 804 21 422 +23%
Jun 20 Mar 21 Jun 21 Jun 20 Mar 21 Jun 21
Retail deposits Ex-Idea Bank deposits XX Reported dynamics
Mutual funds (Pekao TFI) XX Dynamics excluding ex-Idea Bank deposits
1 Corporate and Enterprise segments, excl. SBB and repo transactions 21 Key achievements Macro & Financial results Appendix Strong growth of fee and commission income
Net fee and commission income PLN m +9.0% +18.5%
1 289 +9.2% 1 182
386 673 326 616 568 199 187 250 265 159 . Strong growth of F&C driven by loan 139 origination, cards fees, FX commercial 116 125 fees and bank account and other fees 239 256 124 120 113 132 137 64 66 56 262 230 114 115 146
1H 20 1H 21 2Q 20 1Q 21 2Q 21
Loans Cards Asset management & brokerage FX commercial fees Bank account and other fees
22 Key achievements Macro & Financial results Appendix Cost dynamics impacted by ex-Idea Bank portfolio consolidation and restructuring costs
Operating costs (quarterly basis)1 PLN m
294 232 43 203 29
+8.3% +12.9% . 2Q’21 costs dynamics impacted by ex-Idea Bank consolidation & one-off 1 983 -10.0% 1 831 integration costs (impacting 2Q- 120 135 1 044 4Q’21). Integration expected to be finalized in 2021 804 120 939 709 832 397 407 342 . Excluding ex-Idea Bank impact, 988 1 059 comparable cost dynamics below 489 527 532 inflation
1H 20 1H 21 2Q 20 1Q 21 2Q 21
1 BGF regulatory charges Non-personnel, D&A costs XX Reported dynamics HR redundancy & branch closure costs Personnel costs2
1 Excl. BGF charges, incl. PFSA; Starting from 2019 due to IFRS 16 part of non-personnel classified as amortisation 2 Excl. pre tax negative impact of HR redundancy provisions 23 Key achievements Macro & Financial results Appendix Robust capital, funding and liquidity position
Tier 1 capital ratio Total capital adequacy ratio % %
+6.8pp +6.9pp 18.0% 18.5% 18.1% 16.0% 16.6% 16.2% . 11.3% Significant capital buffer over minimum 9.3% capital regulatory threshold Min. Min. Jun 20 Mar 21 Jun 21 Jun 20 Mar 21 Jun 21 requirements requirements . Distribution of 75% of net profit for 2020 2021 2021 in the form of dividend, in line with the LCR and NSFR Loans/Deposits1 Bank’s strategy % 347% % 79% 81% 82% 329% 251% 239% 224% . Liquidity ratios (LCR and NSFR) at very 276% strong levels, stable in 2Q’21
142% 143% 141% 149% 149% 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 Jun 20 Dec 20 Jun 21 LCR Reported LCR (inc. temporary deposit inflow) NSFR 1 Loans including debt securities eligible for rediscounting at Central Bank, net investments in financial leases to customers, non-quoted securities and excluding reverse repo transactions Deposits include amounts due to customers, debt securities issued and subordinated liabilities 24 Key achievements Macro & Financial results Appendix Stabilization of cost of risk at pre-COVID levels due to a strong economic recovery
Cost of risk NPL ratio and NPL coverage ratio bps % NPL ratio NPL coverage: Stage 3 NPL coverage: Stage 1-2
125bps 118bps Pekao (excl. Idea) Pekao total . CoR returned to pre-COVID levels 83% 85% 76% 77% 16% 19% 83bps 16% 17% . Stable coverage & NPL ratios 70bps 65bps (technically impacted by ex-Idea Bank portfolio) 46bps 41bps 45bps 67% 67% 60% 60%
5.4% 5.8% 5.5% 5.9%
3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 2Q 20 1Q 21 2Q 21
25 Key achievements Macro & Financial results Appendix Dynamic growth on the wave of economic recovery
Our consistent policy translated into earnings above pre-COVID levels despite low interest rates environment. Recurring RoE in 2Q’21 at 9%
We return to dividend distributions as one of the few Polish banks in line with our strategy. The highest dividend in the sector with 75% pay-out ratio
Strong acceleration of our business activity fuelled by growing credit demand in all strategic segments and good economic situation
We maintained our credit risk and operational cost under control. Cost of risk stabilised at pre-COVID levels. We had 2nd lowest sensitivity of fully loaded T1 in EU stress test
26 Key achievements Macro & Financial results Appendix
27 Key achievements Macro & Financial results Appendix All our businesses contributed to 1H 21 performance
1H 21 (vs 1H 20)
Retail banking Enterprise banking Corporate banking
Clients actively using Lending fees in Large MID+SME loans portfolio +19% mobile banking +13% +23% Corporate segment
Record-high mortgage SME loans sales Custody services +26% loans sales +77% +19%
New SME loans secured Corporate factoring >55% PEX digital sales of total >72% by guarantees +37% income
Note: Enterprise Banking segment consists of former MID and SME segments
28 Key achievements Macro & Financial results Appendix Retail banking: Mortgage lending - strong market position with focus on assets profitability
PLN mortgage volume growth Market share development in New sales of mortgage loans PLN m total mortgage PLN m % . Record sales of mortgage loans in June (> PLN 1.1 bn) and +6% +52% quarterly record in 18% 13.3% 2Q’21 (> PLN 3.1 bn) 16% 3 128 61 809 63 026 14% 59 473 . New product offer with 12% 2 058 2 144 periodically fixed 10% interest rate 8% 6% . Retail pooling 4% transactions in 2% cooperation with Pekao 0% Bank Hipoteczny Jun 20 Mar 21 Jun 21 Dec 17 Dec 18 Dec 19 Dec 20 Jun 21 2Q 20 1Q 21 2Q 21
29 Key achievements Macro & Financial results Appendix Retail banking: Cash lending – focus on consolidation and electronic channels
Cash loan volume growth Market share development New sales of cash loans1 PLN m % PLN m . 56% of total sales of
Sales in branches Sales in electronic channels cash loans in electronic channels
10% Sales in 7.3% electronic 60% 54% 56% 9% channels2 . Launching of an 8% electronic process of 1 150 self-consolidation of 12 602 7% 11 879 11 910 liabilities from other 6% 946 432 banks „on Click” 5% 307 4% 580 . 3% Record sales of 263 consolidation loans - 2% 718 638 acquired over 250 1% 317 million liabilities from 0% other banks Jun 20 Mar 21 Jun 21 Dec 17 Dec 18 Dec 19 Dec 20 Jun 21 2Q 20 1Q 21 2Q 21
1 Net sales – solely new money 2 Share in number 30 Key achievements Macro & Financial results Appendix Retail banking: Growth in customer acquisition and investment products
Current accounts: gross sales Mutual funds AUM1 Investment products: net ths ths sales2 PLN bn . Assets covered of investment services in investment advisory +16% +23% x3 reached PLN 3.7 billion
. Private Banking of Bank 1.2 96 94 Pekao received the 81 highest score of five 0.8 20 804 21 422 stars in the Forbes 17 389 private banking rating 0.3
2Q 20 1Q 21 2Q 21 Jun 20 Mar 21 Jun 21 2Q 20 1Q 21 2Q 21
1 Mutual funds managed by Pekao TFI 2 Net sales of total investment products of Retail individual and Private customers 31 Key achievements Macro & Financial results Appendix Retail banking: Bancassurance and Assurbanking
Client insurance CPI cash loan Client insurance CPI mortgage Assurbanking: New customer penetration penetration acquisition1 . Travel insurance – % % # implementation of first standalone product available in electronic and mobile banking +6 p.p. +8 p.p. +46%
96% 97% . New package of services 90% for personal account - 37% 37% COMFORT package, 31% which contains assistance services
. Pilot of new distribution channel – PZU exclusive agents 2Q 20 1Q 21 2Q 21 2Q 20 1Q 21 2Q 21 2Q 20 1Q 21 2Q 21
1 Clients acquired by Pekao thanks to cooperation with PZU 32 Key achievements Macro & Financial results Appendix Enterprise Banking: Focus on growth of loan portfolio secured by guarantees. The highest new sales of SME loans +77% y/y
SME loan sales Loan volumes Clients acquisition PLN m PLN m ths . +77% y/y growth of SME
Loans Leasing and Factoring MID Enterprises SME loan sales . Launching sales of accounts opened “on +146% +13% +70% selfie” 1 381 . Easier access to leasing 25 055 25 784 and more favourable 22 754 1 052 454 financing conditions 5 746 6 065 4 985 thanks to BGK 429 guarantees 561 . Possibility of setting up a 19 720 business while 285 927 17 769 19 309 624 submitting the 276 application for opening an account 2Q 20 1Q 21 2Q 21 Jun 20 Mar 21 Jun 21 2Q 20 1Q 21 2Q 21
33 Key achievements Macro & Financial results Appendix Our business profile is overweighted into less-cyclical segments with sound long-term growth potential
Prudent approach to credit origination Over 80% of loan portfolio concentrated in more defensive segments and risk management through cycles Estimated Pekao loan portfolio structure Product / % in market • Well diversified loan portfolio in terms of crisis resiliency segment portfolio share
More Public sector &FI 7% >30% Significant share of large corporates (of cyclical which large proportion in strategic sectors) and public sector 18% Mortgage loans 39% 17% Low exposure to more cyclical segments Large corporate 15% 23% (SME, micro, CL and CRE at 18% of total) MID 12% 13% Marginal share of CHF mortgages (<2%) CRE 5% 9% originated mostly in 2003-2006 period 82% SME 4% 7% >90% of sales in consumer loans to own client base Less Consumer loans 7% 8% cyclical Resilient structure of CRE segment with solid Micro enterprises 2% 4% collateral and relatively low share of shopping malls Note: gross loans, corporate and SME including leasing and factoring, excl. BSB and reverse repo transactions Market share for Mortgage loans in PLN currency. Data as of June 30,2021 34 Key achievements Macro & Financial results Appendix Taking active role in supporting clients with liquidity measures in light of COVID-19 outbreak
Liquidity package established in sector Pekao’s response # of clients at peak volume of new (% of portfolio) applications Banking sector and statutory payment Retail: 6% moratoria Micro & SME: 4% Corporate: 4% 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 Government guarantee program new SME loans with Liquidity Guarantee usage of de minimis and guarantees PLN 100 bn1 Fund liquidity guarantees2 75% 79% 76% 73% 63% 47% European guarantee programs for Limit of PLN 15bn PLN 7.5bn
SMEs and Micro (COSME & EASI) 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 split of usage value of subsidies # of clients granted 31% PFR sponsored „anti-crisis MID, SME 44% shield” PLN 100 bn in subsidies & Micro: ~32 ths PLN 7.4bn 25% market share 13% Micro SME Corporate
Note: data as of June 30, 2021; bank’s balance- and off-balance sheet exposures (excl. subsidaries) 1 2 BGK de minimis & liquidity guarantee fund Balance and off-balance sheet exposure with de minimis and Liquidity Guarantees Fund guarantees granted until 30 June 2021 35 Key achievements Macro & Financial results Appendix 2021 Outlook: Impressive post-pandemic recovery
Economic outlook Banking sector outlook 20182019 2020F 2018 . After 2020 recession, 2021 should bring a solid post-pandemic recovery 2019 20202019F(2 2022021F(2) 2019 20202019F2022021F(2) ) GDP % 4.7 (2.7) 5.5 Loans, % y/y 4.9 0.7 2.7 . Decline in activity in 1Q21 shallower Private consumption, % y/y 4.0 (3.0) 6.0 Retail, % y/y 5.9 3.0 4.2 than feared amid surprising rebound of fixed investment Investment, % y/y 6.1 (9.6) 6.9 Mortgage loans PLN 12.3 10.2 9.7
5.2 6.2 5.8 1 5.1 (3.2) 2.3 Unemployment, % eop Consumer loans . Roll-out of vaccines and containment CPI, % avg 2.3 3.6 4.0 Enterprises, % y/y 2.1 (4.9) (0.2) measures lifting boosted economic activity in 2Q21. Broad-based recovery 3M Wibor, % eop 1.71 0.21 0.21 Savings3, % y/y 9.2 13.2 5.6 to be continued in the second half of 2021. Reference rate, % eop 1.50 0.10 0.10 Deposits, % y/y 8.6 14.4 5.8
Exchange rate EUR, eop 4.26 4.45 4.50 Retail, % y/y 9.3 10.6 8.0 . Loans’ pace to recover further in case Exchange rate USD, eop 3.80 3.90 3.77 Enterprises, % y/y 10.0 19.0 2.4 of consumer credit and enterprises (most affected). Slower growth of Mutual Funds4, % y/y Public sector balance, % GDP (0.7) (7.0) (4.4) 16.3 0.5 3.5 deposits after strong inflows in 2020 (base effect)
Pekao Research forecasts as of July 2021 1 All non-housing loans 2 Internal macroeconomic scenario, fixed exchange rates 3 Deposits + retail customers assets in investment funds units 4 Retail customers assets in investment funds units 36 Key achievements Macro & Financial results Appendix Macroeconomic backdrop: Fourth wave unlikely to prevent robust recovery
GDP composition PMI Index % y/y pts 12 60
8 55 4 50 0 -4 45 -8 40 -12
35
1Q 1Q 15 3Q 15 1Q 16 3Q 16 1Q 17 3Q 17 1Q 18 3Q 18 1Q 19 1Q 20 3Q 20 1Q 21 3Q 3Q 19
3Q 21 3Q e 21 30 Private consumption Public consumption 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Investment Net exports Change in inventories GDP (% y/y) . In 2Q’21 continued impressive growth in manufacturing accompanied by re-opening of services sector % y/y 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21e 3Q 21 e GDP 5.4% 4,6% 3.7% 2.0% -8.3% -1.7% -2.7% -0.9% 11.0% 4.8% . Fourth wave looming on the horizon but pressure on healthcare and Investments 7.3% 3.3% 5.2% 1.7% -9.8% -8.2% -15.4% 1.3% 6.5% 7.5% hence epidemic restrictions to be less severe than before Private 4.2% 4.3% 3.7% 1.2% -10.8% 0.4% -3.2% 0.6% 13.3% 3.8% . Strong economic recovery to be continued in the second half of 2021 consumption
Source: Statistics Poland, Pekao Research forecasts 37 Key achievements Macro & Financial results Appendix Macroeconomic backdrop: Labour market protected by Financial Shield
Labour market Wages (corporate sector)
6,6 14 10 7 6,4 12 8 6 6,2 5 . Public aid (Financial Shield) 10 6 6,0 cushioned the impact of recession 8 4 5,8 4 on the labour market 6 3 5,6 2 2 5,4 4 . Labour hoarding amid reduction in 0 1 5,2 2 working hours instead of lay-offs (2) 0 5,0 0
. Labour market conditions to improve
1Q 1Q 15 3Q 15 1Q 16 3Q 16 1Q 17 3Q 17 1Q 18 3Q 18 1Q 19 3Q 19 1Q 20 3Q 20 1Q 21
3Q 3Q 21e
3Q 3Q 15 1Q 16 3Q 16 1Q 17 3Q 17 1Q 18 3Q 18 1Q 19 3Q 19 1Q 20 3Q 20 1Q 21 1Q 1Q 15 further as economic recovery 3Q 3Q 21e Wages ('000 PLN, avg, RHS) Employment (mn, eop, LHS) CPI (%yoy, LHS) continues in the second half of 2021 Unemployment rate (%, eop, RHS) Wages (% yoy, LHS)
2015 2016 2017 2018 2019 2020 2021e 2015 2016 2017 2018 2019 2020 2021e . Unemployment rate at the end of Employment 2021 projected at 5.8% 5.63 5.80 6.06 6.23 6.40 6.33 6.41 Wages (%yoy) 3.5% 3.8% 5.9% 7.1% 6.6% 4.8% 7.2% (mn, eop) Unemployment 9.7% 8.2% 6.6% 5.8% 5.2% 6.2% 5.8% CPI (%, avg.) -0.9% -0.6% 2.0% 1.6% 2.3% 3.4% 4.0% rate (%, eop) Source: GUS, Pekao Research 38 Key achievements Macro & Financial results Appendix Macroeconomic backdrop: Interest rates to stay unchanged despite elevated inflation
Inflation, interest rates Government bond yields 4 6
4 3 2 Base rate Apr 2021: 0.10% 2 0
-2 1
3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 1Q15 0
3M WIBOR (%, eop) CPI (% yoy) NBP base rate (%)
1Q 1Q 15 3Q 15 1Q 16 3Q 16 1Q 17 3Q 17 1Q 18 3Q 18 1Q 19 3Q 19 1Q 20 3Q 20 1Q 21 2Y 5Y 10Y Exchange rates 5,0 . The NBP reference interest rate at 0.10%, the lombard rate at 0.50% 4,5 and the deposit rate at 0.00% after a series of rapid rate cuts in March 4,0 3,5 – May 2020 3,0 . CPI to remain elevated and run above the NBP rate later this year amid 2,5
administered prices increases, dearer fuels and weaker PLN
3Q 3Q 15 1Q 16 3Q 16 1Q 17 3Q 17 1Q 18 3Q 18 1Q 19 3Q 19 1Q 20 3Q 20 1Q 21 1Q 1Q 15 . Interest rates will likely to remain near zero at least until 2022, as the EUR/PLN USD/PLN CHF/PLN MPC will focus on supporting economic recovery
Source: NBP, GUS, Refinitiv, Pekao Research 39 Key achievements Macro & Financial results Appendix Macroeconomic backdrop: Ongoing recovery in case of retail loans, but corporate segment still lagging
Loans and advances to households and Deposits of households and institutional clients institutional clients PLN bn PLN bn . Retail loans: housing market remains resilient and even accelerated in the first half of 2021. New sales of PLN mortgages
616 638 reached record-high levels in 2Q’21; 538 524 530 529 577 520 volumes growth remains at ~10% y/y. 485 473 437 456 441 First signs of recovery also in case of 408 391 411 361 348 consumer loans (+0.2% y/y after May)
1 032 1 054 1 053 . Corporate loans: slowest path to recovery 774 797 800 805 934 639 672 683 731 747 778 854 599 623 682 (ongoing uncertainty, own funds accumulation), pace currently at -5.2% y/y (including revolving credit -12% y/y 2014 2015 2016 2017 2018 2019 2020 1Q21 V'21 2014 2015 2016 2017 2018 2019 2020 1Q21 V'21 and loans for investments -1% y/y after
Households1 Corporate2 Households1 Corporate2 May 2021) . Deposits: „normalization” of growth pace % y/y 2015 2016 2017 2018 2019 2020 1Q21 V’21 % y/y 2015 2016 2017 2018 2019 2020 1Q21 V’21 due to base effect (strong inflow of funds Households 6.6 5.2 1.8 6.9 5.9 3.0 1.1 2.4 Households 9.4 9.5 4.1 9.8 9.3 10.6 9.7 6.6 in the first months of pandemic, Corporate 7.0 4.5 6.2 7.3 3.4 -2.6 -5.7 -3.4 Corporate 3.8 8.5 4.9 7.4 7.2 22.0 18.7 5.6 especially from anti-crisis shields)
1 Households and non-profit institutions serving households 2 Enterprises, non-bank financial institutions & public sector Source: NBP 40 Key achievements Macro & Financial results Appendix Macroeconomic backdrop: Hopes for further rebound in most affected loans segments, deposits’ pace to continue normalization (base effect)
Banks loans and receivables to households1 Household deposits1 % Ytd % Ytd 8% 12% 10% 6% 8% 4% 6% 2% 4% 2% 0% 0% -2% -2% XII' I II III IV V VI VII VIII IX X XI XII XII' I II III IV V VI VII VIII IX X XI XII
Bank loans and receivables to institutional clients2 Institutional client deposits2 2018 % Ytd % Ytd 2019 2020 8% 36% 2021 6% 30% 24% 4% 18% 2% 12% 0% 6% -2% 0% -4% -6% XII' I II III IV V VI VII VIII IX X XI XII XII' I II III IV V VI VII VIII IX X XI XII
1 Households and non-profit institutions serving households 2Enterprises, non-bank financial institutions & public sector Source: NBP 41 Key achievements Macro & Financial results Appendix Consolidated balance sheet
PLNm Jun 20 Mar 21 Jun 21 Q/Q% Y/Y%
Cash and amounts due from Central Bank 7 363 7 711 7 607 (1,3%) 3,3%
Loans and advances to banks 8 110 2 753 2 209 (19,7%) (72,8%)
Loans and advances to customers1 152 441 164 177 163 175 (0,6%) 7,0%
Investment securities2 54 145 60 612 58 258 (3,9%) 7,6%
Intangible assets 1 747 2 046 2 115 3,4% 21,0%
Tangible fixed assets 1 939 1 917 1 860 (2,9%) (4,1%)
TOTAL ASSETS 235 304 247 192 243 093 -1,7% 3,3%
Amounts due to the Central Bank 0 0 0 - -
Amounts due to other banks 7 720 8 225 7 834 (4,8%) 1,5%
Financial liabilities held for trading 302 442 545 23,4% 80,2%
Amounts due to customers 184 549 195 668 192 462 (1,6%) 4,3%
Debt securities issued 5 038 4 916 5 114 4,0% 1,5%
Subordinated liabilities 2 760 2 770 2 758 (0,5%) (0,1%)
Other 10 256 9 867 8 816 (10,7%) (14,0%)
Total liabilities 210 625 221 888 217 528 -2,0% 3,3%
Total Shareholders' equity 24 679 25 304 25 565 1,0% 3,6%
1 Including loans and advances from customers, receivables from finance leases and non-treasury debt securities 2 Excluding non-treasury debt securities 42 Key achievements Macro & Financial results Appendix Consolidated income statement
PLNm 2Q 20 1Q 21 2Q 21 Q/Q% Y/Y% 1H 20 1H 21 Y/Y%
Net interest income1 1 366 1 334 1 339 0,4% (1,9%) 2 794 2 673 (4,3%)
Net fee and commission 568 616 673 9,2% 18,5% 1 182 1 289 9,0%
Operating income 2 026 2 000 2 132 6,6% 5,3% 4 098 4 133 0,9%
Operating costs2 (832) (1 044) (939) (10,0%) 12,9% (1 831) (1 983) 8,3%
Personnel cost (489) (647) (532) (17,6%) 8,8% (1 108) (1 179) 6,5%
Non-personnel cost & depreciation (342) (397) (407) 2,4% 18,8% (724) (804) 11,1%
OPERATING PROFIT 1 194 956 1 193 24,8% (0,1%) 2 266 2 150 (5,2%)
Provisions3 (474) (176) (192) 9,0% (59,5%) (805) (368) (54,3%)
Guarantee funds charges (43) (203) (29) (85,8%) (33,0%) (294) (232) (21,0%)
Banking tax (170) (175) (178) 1,3% 4,6% (326) (353) 8,2%
PROFIT BEFORE INCOME TAX 507 402 795 98,0% 56,7% 841 1 197 42,2%
Income tax (148) (155) (190) 22,0% 28,2% (294) (345) 17,2%
GROUP NET INCOME 4 359 246 605 146,0% 68,4% 547 851 55,7%
1 NII excl. dividends and other income from equity investments. In 2018, in line with MSSF9, the bank reclassified some credit commissions and fees to net interest income 2 Costs excl. guarantee funds charges and regulator and inl. FSA 3 In 2018 the bank changed methodology of presenting revenues from NPL sale in P&L statement reclassifying from net other income/expenses to provision4 Net profit attributable to equity holders of the Bank Note: Data as reported 43 Key achievements Macro & Financial results Appendix Key performance indicators
PLNm 2Q 20 1Q 21 2Q 21 Q/Q net Y/Y net 1H 20 1H 21 Y/Y net
ROE (%) 5,9% 3,9% 9,5% 5,65 3,60 4,6% 6,7% 2,13
ROE recurring1 5,0% 5,9% 8,8% 2,95 3,78 5,4% 7,3% 1,93
ROA (%) 0,6% 0,4% 1,0% 0,58 0,38 0,5% 0,7% 0,19
NIM (%) 2,61% 2,29% 2,29% -0,01 -0,32 2,74% 2,29% -0,45
L/D (%) 79,6% 80,9% 81,6% 0,70 2,00 79,6% 81,6% 2,00
Cost/Income Ratio (%) 41,1% 52,2% 44,0% -8,14 3,00 44,7% 48,0% 3,30
Cost/Income Ratio inc. BGF (%) 43,2% 62,4% 45,4% -16,95 2,22 51,9% 53,6% 1,75
Cost of Risk (%) 1,18% 0,41% 0,45% 0,04 -0,73 1,01% 0,43% -0,58
TCR 18,0% 18,5% 18,1% -0,40 0,10 18,0% 18,1% 0,10
Tier 1 16,0% 16,6% 16,2% -0,40 0,20 16,0% 16,2% 0,20
1 Linearly adjusted BGF charges 44 Key achievements Macro & Financial results Appendix Selected data
Bank Jun 20 Mar 21 Jun 21 Q/Q% Y/Y%
Outlets 785 717 669 (6,7%) (14,8%)
ATM's 1 644 1 580 1 549 (2,0%) (5,8%)
Employees 13 630 13 730 13 389 (2,5%) (1,8%)
No of PLN current accounts (ths)* 6 370 6 595 6 675 1,2% 4,8%
No of mortgage loan accounts (ths)** 399 403 404 0,3% 1,4%
No of clients holding a consumer loan accounts (ths)*** 702 666 623 (6,4%) (11,3%)
Number of individuals acitive users electronic banking Pekao24 (ths) 2 374 2 567 2 630 2,5% 10,8%
Number of individuals with an access to mobile banking (ths)**** 3 521 3 682 3 764 2,2% 6,9%
Group Jun 20 Mar 21 Jun 21 Q/Q% Y/Y%
Employees 15 730 15 904 15 540 (2,3%) (1,2%)
Number of MF accounts (ths) 645 679 730 7,5% 13,2%
Number of Brokerage accounts (ths) 259 196 187 (4,7%) (27,8%)
(*) Number of accounts including pre-paid card accounts (**) Retail clients’ accounts (***) Pożyczka Ekspresowa (Express Loan) (****) Including individuals and micro companies 45 Key achievements Macro & Financial results Appendix Activity by segments Bank Pekao Group level – incl. subsidiaries
Corporate&Investment Assets&Liabilities Retail Banking Private Banking Enterprise Banking Group Banking Management & Others PLNm
1H 20 1H 21 Y/Y 1H 20 1H 21 Y/Y 1H 20 1H 21 Y/Y 1H 20 1H 21 Y/Y 1H 20 1H 21 Y/Y 1H 20 1H 21 Y/Y % % % % % %
Net interest income 1 154 1 099 (4,8%) 16 15 (5,6%) 505 397 (21,3%) 167 142 (14,7%) 953 1 020 7,1% 2 794 2 673 (4,3%)
Non-interest income 557 551 (1,1%) 75 92 23,5% 289 472 63,5% 291 329 12,9% 92 16 (83,1%) 1 304 1 460 11,9%
Operating income 1 711 1 650 (3,6%) 90 107 18,4% 793 869 9,5% 458 471 2,8% 1 045 1 036 (0,9%) 4 098 4 133 0,9%
Operating costs 1 (1 140) (1 161) 1,9% (55) (63) 15,3% (198) (208) 5,1% (214) (236) 10,3% (224) (314) 39,9% (1 831) (1 983) 8,3%
OPERATING PROFIT 571 489 (14,5%) 35 44 23,1% 595 661 11,0% 244 235 (3,7%) 821 722 (12,1%) 2 266 2 150 (5,2%)
Net write-downs/provision (253) (159) (37,3%) 0 1 5 636,4% (300) (96) (68,0%) (252) (84) (66,6%) 0 (30) X (805) (368) (54,3%)
Guarantee funds charges (145) (145) 0,1% (0) (0) 3,0% (93) (86) (7,0%) (33) (34) 5,1% (23) 34 (244,2%) (294) (232) (21,0%)
Banking tax (326) (353) 8,2% (326) (353) 8,2%
PROFIT BEFORE INCOME TAX 173 185 6,6% 35 44 25,1% 202 478 136,8% (40) 116 (389,4%) 471 373 (20,8%) 841 1 197 42,2%
1 Operating costs excluding guarantee funds charges Note: Data for Pekao Group. Income statement consistent with presentation version 46 Key achievements Macro & Financial results Appendix Group net profit structure
Group's share in PLNm cumulative capital % 6M 2020 6M 2021 Y/Y%
Bank Pekao S.A. Banking - Poland 493 724 47,0% Entities - consolidated under full method 21 58 178,5% of which: Pekao Leasing Sp. z o.o. Leasing 100% (9,7) 21,2 Pekao Bank Hipoteczny S.A. Mortgage Bank 100% 0,4 0,5 Pekao PTE S.A. in liquidation1 Pension Fund - 0,1 - Pekao Faktoring Sp. z o.o. Factoring 100% 6,2 8,9 Pekao Investment Banking S.A. Brokerage 100% (0,6) 1,8 Pekao Direct Sp. z o.o. Call Centre 100% 2,1 0,1 Pekao Financial Services Sp. z o.o. Servicing MF/PF 66,5% 0,9 1,8 Centrum Kart S.A. Cards 100% (0,8) 1,7 Pekao Fundusz Kapitałowy Sp. z o.o. in liquidation Business consulting 100% 0,0 (0,1) Pekao Property S.A. in liquidation Real estate development 100% (0,1) (0,1) FPB "MEDIA" Sp. z o.o. in bankruptcy - indirect Real estate development 100% 0,0 0,0 Dom Inwestycyjny Xelion Sp. z o.o.2 Financial Advisory 100% 0,0 0,5 Pekao Investment Management S.A. Mutual Funds 100% 22,4 21,9 Entities valued under the equity method - associates 21 58 178,5% Krajowy Integrator Płatności S.A.3 Financial intermediary 38,3% Exclusions and consolidation adjustments (154) (178) 15,3%
Group Net Profit 359 605 68,4%
1 The liquidation process of Pekao Powszechne Towarzystwo Emerytalne S.A. in liquidation has been completed. On November 19, 2020, the Company was removed from the National Court Register. 2 In December 2020, the Bank signed a preliminary agreement to sell 100% of shares in Dom Inwestycyjny Xelion Sp. z o.o. 3 On March 31, 2021, the purchase transaction was completed, as a result of which the Bank became the owner of shares representing 38.33% of the capital and entitling to 38.33% votes at the General Meeting of Krajowy Integrator Płatności S.A. based in 47 Poznań, the operator of the Tpay.com system. Key achievements Macro & Financial results Appendix Breakdown of customer financing
PLNm Jun 20 Mar 21 Jun 21 Q/Q% Y/Y%
Loans* 148 370 160 164 159 226 (0,6%) 7,3%
retail 78 435 79 820 80 927 1,4% 3,2%
corporate 69 935 80 344 78 299 (2,5%) 12,0%
Non-treasury debt securities 9 935 9 605 9 750 1,5% (1,9%)
Other 1 222 1 994 1 888 (5,3%) 54,5%
Impairment losses (7 086) (7 587) (7 690) 1,4% 8,5%
Net loans and advances 152 441 164 177 163 175 (0,6%) 7,0%
TOTAL CUSTOMERS’ FINANCING** 158 305 169 770 168 977 (0,5%) 6,7%
(*) Including debt securities eligible for rediscounting at Central Bank, net investments in financial leases to customers (**) Total customers’ financing includes loans and advances at nominal value 48 Key achievements Macro & Financial results Appendix Mutual Funds distributed by the Group
Mutual funds - volumes Pekao Investment Management S.A. PLN m %
Third party funds Pekao Investment Management Equity funds Balance funds Money and bonds funds distributed by the Group S.A. (PPIM before)
+26.1% +3.0% 10%
27 979 27 164 13% 22 182 7 020 7 263 5 157 +21.7% 20 143 20 716 17 025 76%
Jun 20 Mar 21 Jun 21
49 Key achievements Macro & Financial results Appendix Ratings of Bank Pekao S.A.
30.06.2021 PEKAO POLAND
Long-term rating (IDR) BBB+ A-
FITCH Short-term rating F2 F2 RATINGS Viability rating bbb+ -
Support rating 5 - Outlook Negative Stable
PEKAO POLAND ESG RATINGS
Long-term rating BBB+ A- Institution ESG Rating S&P GLOBAL MSCI A RATINGS Short-term rating A-2 A-2 FTSE Russell 3.1 Stand-alone bbb+ - Sustainanalytics Medium risk Outlook Stable Stable Member of Bloomberg Gender Equality and WIG-ESG indices PEKAO POLAND
MOODY'S Long-term foreign-currency deposit rating A2 A2 INVESTORS SERVICE LTD Short-term deposit rating Prime-1 Prime-1 (unsolicited rating) BCA baa2 -
Outlook Stable Stable
50 Key achievements Macro & Financial results Appendix Shareholders: Diversified shareholder base
Shareholding structure Listing and valuation
. The second largest bank in terms of assets (PLN 243 bn) and third largest bank 7% in Poland in terms of market capitalization (PLN 24 bn) 4% 20% . Since 24th September 2018, Pekao is a member of STOXX Europe 600 Index and 9% FTSE Developed Equity Index . Member of several local and global indices: WIG Banki, WIG 20, WIG 30, WIG 44% ESG, MSCI Emerging Markets, FTSE4Good, Bloomberg Gender-Equality Index 13% 13% . Reliable dividend payer: almost PLN 20 bn dividend paid out over last decade . P/BV’20: 0.9x, P/E’20: 21.6x3 5% 67% 5% TSR Performance vs. sector3 (%) 4% 9% 160 PZU S.A. PFR S.A. Aviva OFE NN OFE 140 Poland Europe US UK Other 120 -29% Other OFE1 TFI2 Other ISIN: PLPEKAO00016 100 Bloomberg: PEO PW 80 -30% Reuters: PEO.WA PZU Group is the largest financial group in CEE 60 40 ~350 bn PLN of assets under management. More than 22 million 20 clients in 5 countries 0
The Polish Development Fund (PFR) is a group of financial and
Jun-18 Jun-19 Jun-20 Jun-21
Sep-18 Sep-19 Sep-20
Dec-17 Dec-18 Dec-19 Dec-20
Mar-19 Mar-20 Mar-21 advisory institutions supporting companies, local governments Mar-18 and individuals Pekao Euro Stoxx 600 Banks 1 Source: Polish Pension Funds annual reports dated 30th of June 2021 2 Source : Analizy online, as of 31st of December 2020 3 Bloomberg as of 26th of July 2021 51 Key achievements Macro & Financial results Appendix Management Board of Bank Pekao S.A.
LESZEK SKIBA President of the Management Board
JAROSŁAW FUCHS MARCIN GADOMSKI TOMASZ KUBIAK JERZY KWIECIŃSKI Vice President of the Management Board Vice President of the Management Board supervising Vice President of the Management Board Vice President of the Management Board supervising the Private Banking and Investment the Risk Management Division supervising the Financial Division supervising the Corporate Banking and Products Division MIB Division
PAWEŁ STRĄCZYŃSKI BŁAŻEJ SZCZECKI WOJCIECH WEROCHOWSKI MAGDALENA ZMITROWICZ Vice President of the Management Board Vice President of the Management Board supervising Vice President of the Management Board Vice President of the Management Board Banking Operations and IT Division supervising the Retail Banking Division supervising the Banking Enterprise Division 52 Key achievements Macro & Financial results Appendix Investor Relations Team: Contact and calendar
CONTACT DETAILS FINANCIAL CALENDAR
Q&A related to the presentation: 25 February 2021 Annual Report 2020 and Webcasting
Wioletta Reimer Director of IR Office ph.: +48 22 524 55 27 6 May 2021 First Quarter Report e-mail: [email protected] and Webcasting Iwona Milewska ph.: +48 22 524 55 28 e-mail: [email protected] 4 August 2021 Semi-annual Report Michał Handzlik and Webcasting ph.: +48 22 524 55 30 e-mail: [email protected]
4 November 2021 Third Quarter Report and Webcasting
53 Disclaimer
This presentation (the ”Presentation”) has been prepared by Bank Polska Kasa Opieki Spółka Akcyjna (“Bank”) for the clients, shareholders and financial analysts. The Presentation should not be treated as an offer or invitation to purchase any securities or financial instruments or as advice or recommendation in respect to such securities or financial instruments.
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