Brd Groupe Societe Generale Sa (romania) · BVB:BRD

Brd Groupe Societe Generale Sa (romania) — BRD - Groupe Société Générale — FY2012 Earnings Presentation

24 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 13, 2013

  1. Slide 1: BRD Bank Results 2012

    BRD BANK RESULTS 2012 13 FEBRUARY 2013

  2. Slide 2: Disclaimer

    DISCLAIMER The Bank’s balance sheet and profit and loss account for the period ended December 31, 2012 were examined by the Board of Directors on 12 February 2013. The financial information presented both for the year ended December 31, 2012 and comparative periods have been prepared in accordance w

  3. Slide 3: Content

    CONTENT CHAPTER 01_INTRODUCTION CHAPTER 02_MACROECONOMIC AND BANKING ENVIRONMENT CHAPTER 03_2012 03 2012 BANK RESULTS CHAPTER 04_STRATEGIC ORIENTATIONS BANK RESULTS 2012 13 FEBRUARY 2013 | P.3

  4. Slide 4: Sound business model, net result affected by the cost of risk

    SOUND BUSINESS MODEL NET RESULT AFFECTED BY THE COST OF RISK 2012 net result ƒ Deterioration of cost of risk, leading to a loss of 332 RONm affected by the cost of risk ƒ Adverse economic environment ƒ Strong network and customer base Sound business model ƒ Enhanced operational efficiency, reduced o

  5. Slide 5: Key figures

    KEY FIGURES 2012 2011 Ch vs 2011 Net banking income (RONm) 2,912 3,103 -6.1% Operating expenses (RONm) (1,353) (1,386) -2.4% 2.4% Financial results Cost of risk (RONm) (1,938) (1,199) 61.6% Net result (RONm) (332) 469 Own funds (RONm) 4,397 4,937 -10.9% Capital adequacy RWA (RONbn) 29.9 31.2 -4.1% C

  6. Slide 6: Macroeconomic and Banking Environment

    CHAPTER 02 MACROECONOMIC AND BANKING ENVIRONMENT BANK RESULTS 2012 13 FEBRUARY 2013 | P.6

  7. Slide 7: Economic growth at a standstill

    ECONOMIC GROWTH AT A STANDSTILL GDP EVOLUTION ƒThe recovery of the Romanian economy has stopped in 2.2% 2012, with latest forecasts indicating a growth of 0.2% only; 0.2% ƒDeteriorated confidence affected consumption, p , feeble 2009 2010 2011 2012 external demand held back exports, and agricultural

  8. Slide 8: Banking market: dynamic growth of household deposits, sluggish credit activity

    BANKING MARKET: DYNAMIC GROWTH OF HOUSEHOLD DEPOSITS, SLUGGISH CREDIT ACTIVITY yoy DEPOSITS (RONbn) variation (*) () ƒ Deposits increased by 4.2% compared with 2011; 203 214 +4.2% 193 ƒ This growth was driven by individuals’ deposits 90 89 +0.5% (+7.0%). Households, facing a challenging economic 88

  9. Slide 9: Bank Results 2012

    CHAPTER 03 BANK RESULTS 2012 BANK RESULTS 2012 13 FEBRUARY 2013 | P.9

  10. Slide 10: Increased cross-selling levels, to the benefit of our clients

    INCREASED CROSS-SELLING LEVELS, TO THE BENEFIT OF OUR CLIENTS NUMBER OF ACTIVE CUSTOMERS (X 1000) 2,425 2,373 ƒ Strong customer base despite a slightly decreasing CORPORATES 144 141 2,321 135 trend in the number of active clients; INDIVIDUALS 2,281 2,232 2,186 2010 2011 2012 ƒ Focus on improving our

  11. Slide 11: Credit activity supported by housing loans and financing of large corporates

    CREDIT ACTIVITY SUPPORTED BY HOUSING LOANS AND FINANCING OF LARGE CORPORATES ƒ Loans to individuals grew by 2.4% over the last 12 months, influenced by: GROSS LOANS (outstanding amounts, RON bn) yoy variation (*) ¾ a robust production of housing loans mainly 34.8 33.5 +2.5% fuelled by “Prima Prima C

  12. Slide 12: Dynamic growth of individual deposits

    DYNAMIC GROWTH OF INDIVIDUAL DEPOSITS yoy DEPOSITS (outstanding amounts, amounts RON bn) variation (*) () ƒ Robust growth of individual deposits, with BRD 31.7 +4.1% 29.9 30.2 catching up the market pace; 9.7 -8.1% CORPORATES 10.6 10.5 ƒ Particularly sustained increase in fx-denominated RON deposits

  13. Slide 13: C/I well below 50%, net result negatively impacted by the cost of risk

    C/I WELL BELOW 50% NET RESULT NEGATIVELY IMPACTED BY THE COST OF RISK Variation RON m 2010 2011 2012 12/11 Net banking income 3,408 3,103 2,912 -6.1% Operating expenses (1,371) (1,386) (1,353) -2.4% Gross operating income 2,036 1,716 1,559 -9.2% Net cost of risk (832) (1,199) (1,938) 61.6% Operating

  14. Slide 14: Net banking income affected by net interest margin decline

    NET BANKING INCOME AFFECTED BY NET INTEREST MARGIN DECLINE ƒ 12 months net interest margin negatively NET BANKING INCOME (RONm) yoy impacted by: variation 3,408 ¾ structural decrease in consumer loans 3,103 , portfolio’s yield; 2,912 -6.1% ¾ structure effect (higher weight of housing Net interest lo

  15. Slide 15: Reduced cost base, C/I well below 50%

    REDUCED COST BASE, C/I WELL BELOW 50% OPERATING EXPENSES (RON m) ƒ Tight and efficient cost control, leading to a 2.4% reduction in operational expenses compared to 1,371 1,386 1,353 2011; Other ƒ 5.0% 5 0% reduction d ti off staff t ff expenses as a result lt of: f OPEX 709 717 717 ¾ headcount comp

  16. Slide 16: Net cost of risk and assets quality

    NET COST OF RISK AND ASSETS QUALITY Variation 2010 2011 2012 ƒ The deteriorated macroeconomic environment 12/11 negatively impacted the evolution of non NPL ratio 13.0% 16.7% 21.3% +4.6 pts performing loans ((“NPL”) NPL ) ratio; CoR (RON m) 832 1,199 1,938 61.6% ƒ On individuals’ segment, NPL ratio

  17. Slide 17: An improved loans/deposits ratio, a higher degree of financial autonomy

    AN IMPROVED LOANS/DEPOSITS RATIO, A HIGHER DEGREE OF FINANCIAL AUTONOMY NET LOANS/DEPOSITS RATIO ƒ Significant improvement in the L/D ratio to 98.7% at 2012 end (-4.9 pts vs 2011 end); 106.0% -2.4 pts 103.6% -4.9 pts 98.7% ƒ Preparing P i regulatory l t changes h (B (Basell 3) b by ffocusing i on st

  18. Slide 18: A strong capital base

    A STRONG CAPITAL BASE 2011 2012 Capital adequacy ratio 14.9% 13.9% Tier 1 ratio 14.9% 13.9% O funds Own f d (RON m)) 4,937 4 397 4,397 RWA (RON m) 31,215 29,943 ƒ Still benefiting from a well-built capital base, despite the 2012 negative result; ƒ Capital adequacy ratio well above the minimum requir

  19. Slide 19: Strategic Orientations

    CHAPTER 04 STRATEGIC ORIENTATIONS BANK RESULTS 2012 13 FEBRUARY 2013 | P.19

  20. Slide 20: Strengthen risk functional line and risk procedures and policies

    STRENGTHEN RISK FUNCTIONAL LINE AND RISK , AS WELL AS PROCEDURES AND POLICIES • Reinforcement of risk culture; CULTURE & GOVERNANCE • Improved governance with tighter controls by the Risk department. • Better knowledge of the client’s situation through deeper analysis and controls. CREDIT CONDITIONS

  21. Slide 21: Continue to invest selectively in our commercial development

    CONTINUE TO INVEST SELECTIVELY IN OUR COMMERCIAL DEVELOPMENT • Keep on developing and providing useful, innovative services to meet the needs of our customers, leading to an improvement in cross selling levels and an increase in market shares (+ 1 to 2 pts on a 3 years’ horizon); INDIVIDUALS • Reinf

  22. Slide 22: Reinforcement of operational efficiency by simplifying, pooling, industrialising

    REINFORCEMENT OF OPERATIONAL EFFICIENCY BY SIMPLIFYING, POOLING, INDUSTRIALISING • Continue the back-office centralization and extend the activities PROCESSES & rendered; OPERATIONS • Improve the efficiency of back-office processes; • Centralize the support functions for an enhanced efficiency; • Pr

  23. Slide 23: Appendix

    APPENDIX BANK RESULTS 2012 13 FEBRUARY 2013 | P.23

  24. Slide 24: Market shares

    MARKET SHARES Loans market shares Deposits market shares 16.3% 15.7% 15.7% 17.8% 14.9% 16.7% 14.3% 14.6% 16.7% 14.2% 15.7% 13.1% 13.3% 14.9% 14.7% 14.1% 13.5% 13.3% LOANS Individuals Corporates DEPOSITS Individuals Corporates 2010 2011 2012 2010 2011 2012 Loans by products market shares 16.5% 16.5%

BRD - Groupe Société Générale — FY2012 Earnings Presentation on 6ix