Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q3 2019 Earnings Presentation
29 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Nov 7, 2019
Slide 1: BRD Group Results
BRD GROUP RESULTS 3rd quarter and 9 months 2019 | 07.11.2019
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended September 30, 2019 were examined by the Board of Directors on November 5, 2019. The financial information presented for the period ended September 30, 2019 and comparative periods has been prepared
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: 9M 2019: Net profit of RON 1,226 million
9M 2019: NET PROFIT OF RON 1 226 MILLION Revenues benefiting from growth in volumes and supporting NBI environment RON 2,446m +6.9% vs 9M 2018 Strong advance of average outstanding of corporate (+8.5% y/y) and retail loans (+3.8% y/y) Average outstanding of retail deposits, up by +4.6% y/y, with sti
Slide 5: Q3 2019: Combining revenue growth and costs control
Q3 2019: COMBINING REVENUE GROWTH AND COSTS CONTROL NBI (RON m) +12.3% +3.5% Higher volumes supported earnings 810 838 Net banking income driven up by volume growth, upward trend of net 721 fees and commissions led by increasing number of clients’ transactions Slight decrease in market interest rate
Slide 6: Macroeconomic and Banking Environment
2 MACROECONOMIC AND BANKING ENVIRONMENT
Slide 7: Still robust economic growth
STILL ROBUST ECONOMIC GROWTH GDP GROWTH Better-balanced economic growth in Q2 2019 7.0% In Q2 2019, real GDP growth moderated to +4.5%* y/y from +4.9%* y/y in the previous quarter Growth was still predominantly determined by private consumption 4.8% (+4.4 ppts contribution), but gross fixed capital
Slide 8: Continued loan and deposit growth
CONTINUED LOAN AND DEPOSIT GROWTH ROMANIAN BANKING SYSTEM LOANS (RON bn) Dynamic loan market Y/Y* Consumer loan growth softened compared to last year (+4.2%* y/y 279 +6.5% 260 263 at September 2019 end compared to the +6.9%* y/y growth at 2018 end) 128 130 137 +6.2% Housing loans’ outstanding grew a
Slide 9: Sound risk profile
SOUND RISK PROFILE ROMANIAN BANKING SYSTEM NPL RATIO Further improving risk profile 20.7% NPL ratio keeps trending downwards as a result of write off operations and sale of NPLs (whose effect, however, declined 13.6% versus previous years, after the introduction of a cap on fiscal 9.5% deductibility
Slide 10: 3rd Quarter and 9 Months 2019 BRD Group Results
3 3RD QUARTER AND 9 MONTHS 2019 BRD GROUP RESULTS
Slide 11: Moving towards a phygital business model
MOVING TOWARDS A PHYGITAL BUSINESS MODEL DIGITAL BANKING SOLUTIONS* Constant focus on innovation 951 970 989 Personal expenses dashboard in ContAll offers users insight on monthly spending habits (MyBRD Mobile) 798 Instant Top-Up option in MyBRD Mobile allows free interbank transfers 624 564 to
Slide 12: Private individuals and large corporate segments remained main loan growth drivers
PRIVATE INDIVIDUALS AND LARGE CORPORATE SEGMENTS REMAINED MAIN LOAN GROWTH DRIVERS Retail loan growth led by demand for both consumer and housing loans Unsecured consumer lending (+4.1%* y/y) and housing loans (+3.2%* y/y) both contributed to retail loan growth NET LOANS Focus on higher mass market
Slide 13: Very dynamic asset management activity
VERY DYNAMIC ASSET MANAGEMENT ACTIVITY DEPOSITS (outstanding amounts, RON bn) Y/Y* YTD* Large retail deposit franchise 43.6 45.2 43.9 +0.1% -3.5% Increasing retail deposits (+2.4%* y/y), with higher inflows in 14.7 15.4 14.2 -4.2% -8.4% individuals’ sight accounts (+27%* y/y) Corporates’ deposits co
Slide 14: Positive business momentum
POSITIVE BUSINESS MOMENTUM Consistent revenues generation NET BANKING INCOME (RON m) Net banking income, up by +3.5% y/y in Q3 2019 and up by +6.9% y/y in 9M 2019, reflecting strong commercial dynamics supported by benign economic conditions Y/Y 838 +3.5% 810 Rising net interest income Other income
Slide 15: Improved C/I ratio, excluding regulatory contribution
IMPROVED C/I RATIO, EXCLUDING REGULATORY CONTRIBUTION OPERATING EXPENSES (RON m) Costs’ dynamic influenced by rising staff expenses, Y/Y further IT investments, and well controlled overheads 366 382 +4.4% Staff expenses, +7.3% y/y in Q3 2019 and +6.9% y/y in 9M Staff expenses 196 210 +7.3% 2019 driv
Slide 16: Improved asset quality
IMPROVED ASSET QUALITY GROSS LOANS – September 30, 2019 breakdown by segment and currency (RON bn) Loan portfolio market mix 70.1% on individuals market segment 29.9% on legal entities market segment 21.8 20.9 Consolidation of RON lending Share of RON denominated loans at 67.4% (vs 65.5% as of Septe
Slide 17: Negative cost of risk
NEGATIVE COST OF RISK COST OF RISK EVOLUTION (RON m) Net cost of risk at -86 bps, driven mainly by: Exceptional items (i.e. insurance indemnities recognition, 509 1,883 2,083 finalizing several claim files) 409 Strong recovery performance 309 1,193 1,193 198 Partially offset by an increase in provis
Slide 18: Strong profitability, driven by robust commercial and operating performance
STRONG PROFITABILITY, DRIVEN BY ROBUST COMMERCIAL AND OPERATING PERFORMANCE AND FURTHER NCR WRITE-BACKS Improved operational performance GROSS OPERATING INCOME NET PROFIT GOI +2.7% y/y in Q3 2019 vs Q3 2018 (RON m) (RON m) GOI +6.4% y/y in 9M 2019 vs 9M 2019 (+9.2% y/y excl. contribution to FGDB&RF)
Slide 19: Solid capital position
SOLID CAPITAL POSITION Comfortable solvency ratio SOLVENCY RATIO CAR of 20.9% at September 2019 end Increase in own funds on a yearly basis explained by higher reserves from revaluation of debt instruments accounted at fair value through other comprehensive +150bp +147bp -130bp -15bp income and high
Slide 20: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 21: Conclusions
CONCLUSIONS Robust revenue generation, led by continued business growth on individuals and large corporate segments, in a supportive macroeconomic environment Very solid growth of BRD AM’s assets under management, reflecting BRD’s strategy to capture the potential of the alternative savings mark
Slide 22: Q&A Session
.) Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 23: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE - KEY FIGURES STOCK PRICE PERFORMANCE GLOSSARY – CLIENT SEGMENTATION
Slide 24: 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 Q3-2019 Q3-2018 Change 9M-2019 9M-2018 Change Net banking income 838 810 +3.5% 2,446 2,289 +6.9% Operating expenses (382) (366) +4.4% (1,186) (1,104) +7
Slide 25: 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; Loans and deposits RON bn Sep-18 Dec-18 Sep-19 vs. Sep-18 vs. Dec-18 (1) 30.0 30.4 31.2 +3.2% +2.1% Net loans including leasing (RON bn) Retail 21.7 21.7 22.4
Slide 26: BRD | Key Figures for Bank Only
BRD | KEY FIGURES FOR BANK ONLY RON m Q3-2019 Q3-2018 Change 9M-2019 9M-2018 Change Net banking income 825 766 +7.8% 2,391 2,204 +8.5% Financial results Operating expenses (358) (344) +4.0% (1,118) (1,041) +7.4% Gross operating income 468 422 +10.8% 1,273 1,163 +9.5% Net cost of risk 66 18 +3.8x 220
Slide 27: BRD | Stock Price Performance
BRD | STOCK PRICE PERFORMANCE Market capitalisation 4,000 EUR 2.1 bn 16.0 3,500 3,000 14.0 2,500 12.0 2,000 10.0 1,500 1,000 8.0 500 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 5 largest domestic companies
Slide 28: 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 29: 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 — Q3 2019 Earnings Presentation on 6ix