Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q2 2017 Earnings Presentation
24 slides from Banca Transilvania SA's earnings presentation, Aug 10, 2017
Slide 1: Q2 2017 financial results
BANCA TRANSILVANIA Q2 2017 financial results August 10th 2017
Slide 2: Disclaimer
Disclaimer The information contained in the present document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of this information or opinions contained her
Slide 3: Agenda
Agenda 1 Banking Sector Dynamics 2 H1 2017 Highlights 3 Performance in H1 2017 4 Overview of Business Lines 5 BT Financial Group a Financial Statements 2
Slide 4: Bank assets drawing near the RON 400bn benchmark
Bank assets drawing near the RON 400bn benchmark Bank assets increasing at an Overall loan quality continues accelerating pace to improve total bank net assets source: NBR 394 394 NPL ratio, % source: NBR 11% 39 0 20.2% 9% 380 377 378 38 0 370 7% 6.4% 16.2% 37 0 15.7% 364 363 361 5.1% 13.5% 13.5% 36
Slide 5: Housing loans remain the key driver; corporate loans turn positive
Housing loans – remain the key driver of credit activity Corporate loans – move to a positive YoY dynamic Credit activity picking up as corporate loans Loans in LCY continue to expand, now dynamic turns positive for the first time amounting to over 60% of total loans since 2013 loans non-government
Slide 6: The real economy: unsustainable quantitative growth, lower quality
The real economy unsustainable quantitative growth, lower quality Pro-cyclical fiscal and income policies, Deterioration of the delays in terms of structural reforms macroeconomic equilibria GDP, private consumption and fixed GDP and the twin deficits source: IMF, NBR, BT forecasts investments (%, Y
Slide 7: The financial economy
The financial economy accelerating inflation and political tensions leading to higher financial stability risk perception Inflation back to the levels seen EUR/RON (monthly average) at before the New Fiscal Act record high level in June CPI (YoY) source: Statistics Office (NIS) EUR/RON (monthly avg.
Slide 8: Banca Transilvania's business development and financial performance in H1 2017
Banca Transilvania’s business development and financial performance in H1 2017 7 Banking sector dynamics H1 2017 highlights Performance in H1 2017 Overview of business lines BT Financial Group
Slide 9: H1 2017 highlights
H1 2017 highlights H1 2017 H1 2016 ∆ Operating income RONmn 1,262.7 1,415.2 -10.8% Operating expenses RONmn (622.7) (551.7) 12.9% profitability Gross profit before provisions RONmn 640.0 863.5 -25.9% Net income RONmn 496.1 458.3 8.2% Cost of risk, net (%) 0.37% 2.30% -83.7% NIM 3.22% 3.40% -0.2 pp N
Slide 10: Business performance H1 2017 at a glance
Business performance H1 2017 at a glance Total assets at RON 53.2 bn Enhanced ALM for higher efficiency Capital adequacy ratio at Strong capital base, supporting organic and non 19.95% organic growth Net fees and commissions at Driven by increased number of operations and RON 273.9 mn +12.7% Y/Y add
Slide 11: Trends in income structure
Trends in income structure H1 2016 +3.3% H1 2017 858 97 +12.9% 127 623 552 789 +12.7% 731 274 243 27.4% 103 81 Net interest income Net fee and Net trading income Operating expenses commission income VBRO loans adjustments 10 Banking sector dynamics H1 2017 highlights Performance in H1 2017 Overview
Slide 12: Loan structure
Loan structure Loans to households, RONbn Loans to companies, RONbn 15.8 15.0 15.1 14.3 0.0 0.1 3.2 4.0 6.9 7.6 11.1 11.0 8.1 8.1 Dec’16 Jun’17 Dec’16 Jun’17 Other Housing Consumption SMEs Large corporates 74% 26% 80% 20% RON FX RON FX *SMEs identified according to internal classification rules 11 B
Slide 13: Deposit structure
Deposit structure Deposits from households, RONbn Deposits from companies, RONbn 28.0 15.5 15.5 26.4 7.9 9.6 5.4 6.2 18.4 18.5 10.1 9.3 Dec’16 Jun’17 Dec’16 Jun’17 Current accounts Deposits SMEs Large corporates 57% 43% 72% 28% RON FX RON FX *SMEs identified according to internal classification rule
Slide 14: NPL ratio at 4.09%
NPL ratio at 4.09% Banca Transilvania continued to provide a sound coverage ratio for its PAR 90 portfolio 127% 122% 119% 120% 117% 108% 46% 45% 40% 43% 43% 33% 75% 77% 81% 79% 77% 74% 2012 2013 2014 2015 2016 H1 2017 NPL coverage with mortgage collaterals NPL coverage with provisions *For Financial
Slide 15: Retail banking
Retail banking retail loan portfolio reached RON 15.77bn as of Jun’17 34,000 non-card retail loans disbursed in 15.8 15.1 H1 2017 13.6 Market share for retail loans at December 3.3 2016 -14.25% Internet banking users: over 900,000 7.5 6.8 6.3 Mobile banking users: over 300,000 10.3 Nearly
Slide 16: SME banking
SME banking SME loan portfolio at RON 4bn and 229,100 active clients 4.0 Banca Transilvania continued its specific focus on the SME business sector, offering almost 7,900 new loans in H1 2017 3.2 3.1 2.6 0.3 BT launched a new platform to support the 2.5 2.5 small and micro companies BT continu
Slide 17: Corporate banking
Corporate banking corporate loan portfolio above RON 11bn 11.0 11.1 11.0 The reorganizational process was 0.9 concluded, including client new 9.9 10.0 segmentation & deeper sectorial 8.7 specialization BT was present with lending facilities especially in the industrial manufacturing and agribusi
Slide 18: Banca Transilvania Financial Group
Banca Transilvania Financial Group as of 30.06.2017* Total assets: RON 53.2 bn Total assets: RON 83 mn Total assets: RON 145 mn Total assets: RON 170 mn Total assets: RON 661 mn Total assets: RON 106 mn AuM: RON 3,772 mn *Total assets for subsidiaries are presented under RAS rules 17 Banking sector
Slide 19: H1 2017 highlights – consolidated figures
H1 2017 highlights – consolidated figures H1 2017 H1 2016 ∆ Operating income RONmn 1,350.8 1,479.0 -8.7% Operating expenses RONmn (686.1) (596.0) 15.1% profitability Gross profit before provisions RONmn 664.7 883.0 -24.7% Net income RONmn 512.7 481.1 6.6% EPS RON 0.1187 0.1316 -9.8% Cost of risk, ne
Slide 20: Annex I: income statement H1 2017 – individual figures
annex I income statement H1 2017 – individual figures IFRS individual, RONmn H1 2017 H1 2016 ∆ Net interest income 886.3 857.7 3.3% Net fee and commission income 273.9 242.9 12.7% Net trading income 102.8 80.7 27.4% Other net income (0.2) 233.9 -100.1% Operating income 1,262.7 1,415.2 -10.8% Personn
Slide 21: Annex II: balance sheet June 2017 – individual figures
annex II balance sheet June 2017 – individual figures IFRS individual, RONmn Jun 2017 Dec 2016 ∆ Cash & cash equivalents 4,546.0 5,293.6 -14.1% Placements with banks 3,723.9 2,524.9 47.5% Loans to customers, net 28,741.7 27,210.0 5.6% T-bills & securities 15,024.3 15,402.1 -2.5% Fixed assets 501.3 4
Slide 22: Annex III: income statement H1 2017 – consolidated figures
annex III income statement H1 2017 – consolidated figures IFRS consolidated, RONmn H1 2017 H1 2016 ∆ Net interest income 923.0 881.8 4.7% Net fee and commission income 295.0 258.5 14.1% Net trading income 120.3 79.7 50.9% Other net income 12.5 258.9 -95.2% Operating income 1,350.8 1,479.0 -8.7% Pers
Slide 23: Annex IV: balance sheet June 2017 – consolidated figures
annex IV balance sheet June 2017 – consolidated figures IFRS consolidated, RONmn Jun 2017 Dec 2016 ∆ Cash & cash equivalents 4,546.1 5,293.7 -14.1% Placements with banks 3,784.5 2,563.8 47.6% Loans to customers, net 28,723.4 27,234.0 5.5% T-bills & securities 15,005.6 15,399.7 -2.6% Fixed assets 728
Slide 24: Banca Transilvania HQ
Banca Transilvania HQ 8, G. Baritiu Street, Cluj-Napoca 400027, Romania + 40 264 407 150 + 40 264 407 179 /FAX investor.relations@btrl.ro www.bancatransilvania.ro/en/investor-relations www.bancatransilvania.ro www.bt24.ro facebook.com/BancaTransilvania twitter.com/b_Transilvania # linkedin.com/compa