Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — H1 2023 Earnings Presentation
27 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Aug 4, 2023
Slide 1: BRD Group Results
BRD GROUP RESULTS 2nd quarter and 1st half 2023 | 04.08.2023
Slide 2: Disclaimer
DISCLAIMER The preliminary consolidated and separate financial position and income statement for the period ended June 30, 2023 were examined by the Board of Directors on August 2, 2023. The financial information presented for the period ended June 30, 2023 and comparative periods has been prepared
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Dynamic business performance, excellent financial results
DYNAMIC BUSINESS PERFORMANCE, EXCELLENT FINANCIAL RESULTS Further expanded lending activity Portfolio growth +8% y/y at June 2023 end Corporate business, key growth driver, with high contribution from both SMEs and large corporate customers Corporate loans +18% y/y at June 2023 end Consumer loans ke
Slide 5: Macroeconomic environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: Signs of economic slowdown
SIGNS OF ECONOMIC SLOWDOWN GDP GROWTH Decelerating economic growth EU GDP growth at 1.1% YoY in Q1 2023 Romanian economy slowed in a context of lagging global economic development (+2.4% YoY in Q1 2023 vs. +4.5% YoY in Q4 2022, gross series), with +7.0% YoY increase in households consumption and +10
Slide 7: Declining interbank rates within rich liquidity context
DECLINING INTERBANK RATES WITHIN RICH LIQUIDITY CONTEXT With inflation on the slide, NBR maintains its key rate level Following ten consecutive policy rate hikes amid larger and longer- INTEREST RATES lasting inflationary pressures, the market-expected 25 bps increase to 7% in January 2023 indicated
Slide 8: Diverse and extended programs in support of the economy
DIVERSE AND EXTENDED PROGRAMS IN SUPPORT OF THE ECONOMY National Recovery and Resilience Plan Main RRP objectives target green and digital transitions, while strengthening healthcare, education, social cohesion and inclusion Improving the institutional capacity to absorb European funds and respe
Slide 9: Solid banking sector, adequate prudential indicators
SOLID BANKING SECTOR, ADEQUATE PRUDENTIAL INDICATORS ROMANIAN BANKING SYSTEM Comfortable solvency and liquidity NPL AND NPL COVERAGE RATIOS Banking sector average Capital Adequacy Ratio at 21.7% at Mar 2023 66.1% 65.6% 66.2% 63.3% 58.5% 60.7% EU end, compared to 23.4% at 2022 end (vs.13.8% at 2007 e
Slide 10: 2nd quarter and 1st half 2023 BRD Group results
3 2ND QUARTER AND 1ST HALF 2023 BRD GROUP RESULTS
Slide 11: Digital transformation accelerating
DIGITAL TRANSFORMATION ACCELERATING FURTHER INCREASING DIGITAL ACTIVITY EXPANDED AND ENHANCED DIGITAL FUNCTIONALITIES 1.3m YouBRD users at June 2023 end, +45% y/y 11.1m nb of transactions via You BRD in H1 2023 Online lending page for loans and credit card Visualisation of BRD AM funds & capital mar
Slide 12: Lending growth supported by corporate dynamic and retail resilience
LENDING GROWTH SUPPORTED BY CORPORATE DYNAMIC AND RETAIL RESILIENCE Strong dynamic of corporate lending Loans to SME up by +29.1% vs June 2022 end active support for more than 1,500 customers under IMM NET LOANS Invest Plus program, with RON 1.6 billion new loans granted (end of period amounts, RO
Slide 13: Robust and diversified deposit base
ROBUST AND DIVERSIFIED DEPOSIT BASE Solid growth of deposits Higher inflows in term deposits from individuals and increased DEPOSITS RON denominated resources from large corporates, in a context of (end of period amounts, RON bn) YoY higher interest rates +8.9% Strong liquidity position +13.3% Net l
Slide 14: Net interest income and financial markets activity, engines of NBI growth
NET INTEREST INCOME AND FINANCIAL MARKETS ACTIVITY, ENGINES OF NBI GROWTH NET BANKING INCOME (RON m) NII maintained a strong growth momentum Y/Y +13.4% +18.3% y/y in H1 2023, +16.2% y/y in Q2 2023, building on a 1,861 favorable volume effect on both retail and corporate segments 1,642 172 +18.4% o
Slide 15: Opex dynamic influenced by labor market tightness and elevated inflation
OPEX DYNAMIC INFLUENCED BY LABOR MARKET TIGHTNESS AND ELEVATED INFLATION OPERATING EXPENSES (RON m) Y/Y Staff expenses, +11.2% y/y in H1 2023, +13.2% y/y in Q2 2023, 944 +10.7% driven by wage increases and other benefits adjustments (following 853 68 -1.6% new labour agreement signed in June 2022) C
Slide 16: Solid and resilient asset quality, marginal impact of NCR
SOLID AND RESILIENT ASSET QUALITY, MARGINAL IMPACT OF NCR NET COST OF RISK Q2 net cost of risk at -6 bps Q2 NCR in net release given sustained recoveries on default portfolio No observed credit quality deterioration on neither of Retail and Non Retail *Note: CoR (bps) in quarter is annualized NPL RA
Slide 17: Satisfactory capital position, MREL compliance ensured
SATISFACTORY CAPITAL POSITION, MREL COMPLIANCE ENSURED Solid high quality capital base SOLVENCY RATIO CAR of 22.4% at June 2023 end Regulatory own funds composed of Tier 1 and Tier 2 capital Tier 2 capital consists of EUR 250m subordinated loans +260bp -312bp +209bp -138bp -38bp The year on year var
Slide 18: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 19: Conclusions
CONCLUSIONS BRD registered a very good performance over H1 2023, despite a more challenging economic environment versus previous period Further expanding commercial activity Net loans outstanding strongly up, +8% y/y at June 2023 end, with corporate business as key driver Consumer loans moment
Slide 20: Q&A Session
.) Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 21: Appendix
6 APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES BRD STOCK PRICE PERFORMANCE FINANCIAL CALENDAR FOR 2023 GLOSSARY – CLIENT SEGMENTATION
Slide 22: BRD Group | Key figures
BRD GROUP | KEY FIGURES (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q2-2023 Q2-2022 Change H1-2023 H1-2022 Change Net banking income 926 832 +11.3% 1,861 1,642 +13.4% Operating expenses (436) (393) +10.9% (944) (853) +10
Slide 23: BRD Standalone | Key figures
BRD STANDALONE | KEY FIGURES (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q2-2023 Q2-2022 Change H1-2023 H1-2022 Change Net banking income 911 826 +10.2% 1,804 1,592 +13.4% Financial results Operating expenses (418) (369)
Slide 24: BRD | Stock price performance
BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation 8,000 22.0 EUR 1.9 bn 7,000 20.0 6,000 18.0 5,000 16.0 4,000 14.0 12.0 3,000 10.0 2,000 8.0 1,000 6.0 0 Volume ('000 shares, rhs) Price (RON, lhs) BRD is part of the main market indices on the Bucharest Stock Exchange BRD is in Top 6
Slide 25: Financial calendar for 2023
FINANCIAL CALENDAR FOR 2023 8th February: Preliminary 2022 financial results 27th April: General Shareholders Meeting for approving the 2022 annual financial results 12th May: Presentation of the 1st quarter 2023 financial results 3rd August: Presentation of the 2nd quarter and 1st half 2023 financi
Slide 26: Glossary – client segmentation
GLOSSARY – CLIENT SEGMENTATION The Retail category is comprised of the following customer segments: • Individuals – BRD provides individual customers with a range of banking products such as: savings and deposits taking, consumer and housing loans, overdrafts, credit card facilities, funds transfe
Slide 27: BRD Groupe Societe Generale - Investor Relations
BRD GROUPE SOCIETE GENERALE - INVESTOR RELATIONS +4 021 380 47 62 | investor@brd.ro; www.brd.ro
BRD Groupe Société Générale — H1 2023 Earnings Presentation on 6ix