Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — FY2021 Earnings Presentation
36 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 11, 2022
Slide 1: BRD Group Results 4th quarter and full year 2021
BRD GROUP RESULTS 4th quarter and full year 2021 | 11.02.2022
Slide 2: Disclaimer
DISCLAIMER The preliminary consolidated and separate financial position and income statement for the period ended December 31, 2021 were examined by the Board of Directors on February 9, 2022. The financial information presented for the period ended December 31, 2021 and comparative periods has been
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: 2021 Key Highlights
2021 KEY HIGHLIGHTS Very strong lending activity Double digit growth of overall loan portfolio Portfolio growth +11% end of year Very dynamic retail loan production, well above both 2019 & 2020 levels PI loan production +38% vs 2020 +17% vs 2019 Remarkable performance on corporate lending Corporate
Slide 5: Further Enhanced Customer Experience
FURTHER ENHANCED CUSTOMER EXPERIENCE YouBRD, CENTRAL PIECE IN THE SUCCESSUFUL DEVELOPMENT WIDENED DIGITAL OFFER OMNICHANNEL SETUP OF ALTERNATIVE SAVINGS YouBRD new app, Essential services for individual BRD Asset Management continuously upgraded in 2021 customers now available online 1st by number
Slide 6: Building a Greener Economy
BUILDING A GREENER ECONOMY Outstanding deals and premieres STRUCTURED BY BRD Most important green loan granted so far in Romania | Hidroelectrica – EUR 257m syndicated ESG loan | NEPI ROCKASTLE PLC – EUR 120m first sustainability-linked bond issued on the local capital market | AUTONOM Service
Slide 7: Awarded Excellence
AWARDED EXCELLENCE Acknowledged performance in banking, leasing and alternative savings Best ROA, Best ROE, awarded by Piata Financiara Best NPL dynamic, awarded by Piata Financiara Bank of the Year in Risk Management, awarded by Piata Financiara Best Bond Fund (BRD Obligatiuni), awarded by
Slide 8: Macroeconomic Environment
2 MACROECONOMIC ENVIRONMENT
Slide 9: Strong Recovery, High Inflation
STRONG RECOVERY, HIGH INFLATION GDP GROWTH 13.8% 13.8% GDP expected at +7% in 2021, after -3.9% contraction in 2020 8.2% 7.3% 2021 full year GDP estimated at +7.0% (IMF and European 4.7% 4.5% 4.1% 3.8% 3.6% 3.0% Commission forecasts) 1.8% 2.3% 2.0% 2.6% 2.0% 4.1% 1.6% 0.3% GDP growth driven by domes
Slide 10: Interest Rates on the Rise
INTEREST RATES ON THE RISE Multiple rate hikes starting Q4 2021 To support the economy in the context of unfolding COVID-19 epidemic, central bank reduced the monetary policy rate four times from March 2020 to January 2021, by 125 bps in total, to 1.25% INTEREST RATE ENVIRONMENT In a context of stro
Slide 11: Rolling Out the Recovery and Resilience Plan
ROLLING OUT THE RECOVERY AND RESILIENCE PLAN The National Recovery and Resilience Plan, a powerful growth booster National Recovery and Resilience Plan adopted by Romanian Government in April 2021 Allocated EU funds: EUR 29.2 bn (EUR 14.3 bn subsidies and EUR 14.9 bn loans) Plan approved by Eu
Slide 12: Very Solid Romanian Banking Sector
VERY SOLID ROMANIAN BANKING SECTOR ROMANIAN BANKING SYSTEM NPL AND NPL COVERAGE RATIOS Strong capital and liquidity positions Loan to deposit ratio at 69% at 2021 end, up from 66% as of 2020 end 63.3% 63.8% 65.8% EU 58.5% 60.7% (vs 122% at 2008 end) 55.6% 57.7% 56.2% 57.7% 45.1% Elevated average liq
Slide 13: 4th Quarter and Full Year 2021 BRD Group Results
3 4TH QUARTER AND FULL YEAR 2021 BRD GROUP RESULTS
Slide 14: Rapidly Progressing Digital Penetration
RAPIDLY PROGRESSING DIGITAL PENETRATION INCREASED DIGITAL HIGHLY REACTIVE CUSTOMER NETWORK ADJUSTMENT TO PENETRATION INTERACTION CENTER CHANGED CLIENT PREFERENCES 883k MyBRD & YouBRD active clients at Further improved Customer Center Reduced no of branches 2021 end, +20% y/y interactions More sp
Slide 15: Intense Lending Activity Across the Board
INTENSE LENDING ACTIVITY ACROSS THE BOARD NET LOANS (end of period amounts, RON bn) Y/Y Very dynamic corporate lending 34.1 +11.2% 30.7 Loans to SME up by +23% vs 2020 end 11.0 +26.3% 8.7 Active participation in the IMM Invest program with RON 1.3 bn approved loans, out of which 30% within Agro IMM
Slide 16: Further Consolidated and Diversified Saving Base
FURTHER CONSOLIDATED AND DIVERSIFIED SAVING BASE DEPOSITS (end of period amounts, RON bn) Y/Y 52.7 +5.5% Sustained growth of deposit base 50.0 Retail deposit growth pace stabilized around +7% y/y in the last 3 16.7 +2.7% 16.2 quarters RON denominated corporate deposits increasing by +6% Strong liqui
Slide 17: Volume Driven Growth of Revenues
VOLUME DRIVEN GROWTH OF REVENUES Stable full year 2021 Net Interest Income NET BANKING INCOME (RON m) Y/Y Expanded volumes compensating the adverse interest rate environment +1.0% 3,088 3,118 across the year Other income 290 269 -7.2% average ROBOR 3M of 1.82% in 2021, -56 bps y/y Net fees and 711
Slide 18: Contained Operating Expenses
CONTAINED OPERATING EXPENSES OPERATING EXPENSES (RON m) Y/Y 1,618 +1.9% Reduced staff expenses 1,588 Contributions to - 49 +14.1% FGDB & FR 43 Acceleration of efficiency initiatives Other expenses 711 740 +4.0% resizing the network of branches (-85 y/y) structural headcount reduction (-453 FTE y
Slide 19: Strong Asset Quality
STRONG ASSET QUALITY COST OF RISK* EVOLUTION 631 210 Net cost of risk at -134 bps in Q4-21 160 198 461 137 313 110 102 60 100 Q4 2021 NCR mainly driven by dynamic recovery activity (including 10 portfolio sale) -40 -49 88 -81 -113 -90 -73 -159 -120 -224 -134 -140 -246 -190 -376 2015 2016 2017 2018 2
Slide 20: Elevated Capital Position
ELEVATED CAPITAL POSITION SOLVENCY RATIO Strong high quality capital base CAR of 24% at 2021 end +190 bps +147 bps -645 bps 30.3% Regulatory own funds composed of Tier 1 and Tier 2 capital -294 bps Tier 2 capital consisting of EUR 100m subordinated loan -325 bps -32 bps Own funds yearly variation ca
Slide 21: Consistent Dividend Policy
CONSISTENT DIVIDEND POLICY Exceptional dividend distribution PAYOUT RATIO ≥ 70% Extraordinary payment of RON 1,68bn from the retained profit of 2019 and 2020, subject to GSM approval on 100% 2,000 February 24, 2022 83% 74% 70% 70% 80% 70% 70% 1,500 Payout ratio of 70% of 2019 and 2020 profits (inclu
Slide 22: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 23: Conclusions
CONCLUSIONS Strong economic rebound fostered by better business conditions and sentiment, however with record inflation starting H2 National Recovery and Resilience Plan, expected to be a catalyst for sustainable growth Excellent commercial activity all over the board: remarkable growth for
Slide 24: Social Responsibility at the Heart of Our Action
SOCIAL RESPONSIBILITY AT THE HEART OF OUR ACTION
Slide 25: Tech & Innovation
TECH & INNOVATION Prepare the Romanian society for the knowledge based economy Investing in stem education, innovation labs and universities to bring economic development and growth Universities, Fintechs Tech hubs, innovation labs, data centers Mindcraft Stories Publishing platform owned by BRD in
Slide 26: Education & Volunteering
EDUCATION & VOLUNTEERING OUR VISION: by 2035, the Romanian education system should be in the top 10 education systems in Europe Engage conversation about a modern education Scoala 9 Over 1.5 million readers Dedicated literacy program and platform Alfabetar - the largest integrated literacy platform,
Slide 27: Culture
CULTURE A unique cultural foundation to support the young generation Fundatia9 Works with more than 300 visual artists, curators, musicians, journalists each year, to produce and promote the new Romanian culture Scena9 A cultural journalism publication, online & print Over 1 million readers Rezident
Slide 28: Environment
ENVIRONMENT Forests & Biodiversity BRD Forests Fund Continuing to support causes related to Romanian forests Planted over 38,000 trees in Iași County Urban Biodiversity with Antipa Museum Conferences on environmental challenges in Romania Raising awareness 4TH QUARTER AND FULL YEAR 2021 RESULTS 11/0
Slide 29: Q&A Session
Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 30: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES STOCK PRICE PERFORMANCE FINANCIAL CALENDAR FOR 2022 GLOSSARY – CLIENT SEGMENTATION
Slide 31: 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 Q4-2021 Q4-2020 Change 2021 2020 Change Net banking income 787 780 +0.9% 3,118 3,088.0 +1.0% Operating expenses (403) (400) +0.6% (1,618) (1,588) +1.9%
Slide 32: BRD | Key Figures for Bank Only
BRD | KEY FIGURES FOR BANK ONLY (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q4-2021 Q4-2020 Change 2021 2020 Change Net banking income 740 738 +0.3% 2,950 2,927 +0.8% Financial results Operating expenses (373) (361) +3.4
Slide 33: BRD | Stock Price Performance
BRD | STOCK PRICE PERFORMANCE Market capitalisation 20.0 9,000 EUR 2.5 bn 8,000 18.0 7,000 16.0 6,000 14.0 5,000 12.0 4,000 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 5 largest d
Slide 34: Financial Calendar for 2022
FINANCIAL CALENDAR FOR 2022 10th February: Preliminary 2021 financial results 28th April: General Shareholders Meeting for approving the 2021 annual financial results 5th May: Presentation of the 1st quarter 2022 financial results 3rd August: Presentation of the 2nd quarter and 1st half 2022 financi
Slide 35: 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 36: 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 — FY2021 Earnings Presentation on 6ix