Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q3 2022 Earnings Presentation
34 slides from Banca Transilvania SA's earnings presentation, November 2022
Slide 1: Banca Transilvania Q3 Financial Results
BANCA TRANSILVANIA Q3 Financial Results
Slide 2: 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 herein. Banca
Slide 3: BT in Q3 2022
BT in Q3 2022 Financial Performance Capital GMS decisions Sustainability Appendix
Slide 4: Real economy
REAL ECONOMY Economic confidence indicator (points) Economic confidence improved in October and the absorption rate 120 140 110 120 of the EU funds strongly increased during 9M2022 100 100 • The economic confidence indicator climbed in October to the maximum 90 80 since April, consolidating above th
Slide 5: Policy mix
POLICY MIX Inflation (HICP) vs. policy rate National Bank of Romania continued the normalisation cycle, 15% Consumer prices (HICP) (YoY) Monetary policy rate while the budget deficit adjusted 10% Consumer prices core (HICP) (YoY) • The consumer prices (HICP basis) accelerated to 13.4% YoY in Septemb
Slide 6: Financial economy
FINANCIAL ECONOMY The nominal financing costs continued the upward trend, but 3M ROBOR vs. Yield on 10 YR Bonds 10 3M ROBOR (%) Yield on 10YR Bonds (%) EUR/RON depreciated in 3Q 8 • The money market interest rates consolidated on the upward trend in 6 3Q, an evolution determined by the normalisation
Slide 7: Loans
LOANS Loans (YoY) Total RON FX The loans continued to increase by strong YoY dynamics in 3Q, 25% given the consolidation of the investment flows 20% 15% • The non-government loans rose for the 28th month in a row in 10% 5% September, by an accelerating MoM pace to 1.6% (16% YoY) to the 0% record hig
Slide 8: Deposits
DEPOSITS Deposits (YoY) Household Corporate Total The deposits continued to increase by a lower YoY pace compared 25% to the dynamics of the loans in 3Q, an evolution influenced by the 20% inflationary pressures 15% • The non-government deposits advanced by 1.0% MoM and by 8.7% YoY 10% to RON 491.7b
Slide 9: Financial Performance
Landscape conomic 3. | Financial Performance @ capital © sustainabil IX Append
Slide 10: Government relief programs – Q3 2022
GOVERNMENT RELIEF PROGRAMS – Q3 2022 BT is prepared to be actively involved in all government relief Pillars of IMM Invest Plus: programs IMM INVEST AGRO IMM IMM IMM INVEST PLUS: ROMÂNIA INVEST PROD • BT supports the SMEs to access the state aid scheme, which was approved RURAL by the government in
Slide 11: In brief
IN BRIEF INSTANT EUR COLLECTIONS Esign Q3 – Solution for 524 contracts signed • Free of charge service whereby individuals and companies receive money online contract signing electronically in Q3 2022 on the spot from one of the banks in Europe, part of the TIPS (TARGET for entrepreneurs instant pay
Slide 12: Macroeconomic Landscape
Macroeconomic Landscape BT in Q3 2022 Financial Performance Capital GMS decisions Sustainability Appendix
Slide 13: Profitability 9M 2022
INDIVIDUAL CONSOLIDATED Profitability 9M 2022 9M 2021 Δ 9M 2022 9M 2021 Δ Net interest income, RONmn 2,616.4 1,997.3 31.0% 3,145.7 2,267.2 38.7% Net fee and commission income, RONmn 727.1 599.6 21.3% 852.4 701.4 21.5% Operating expenses, RONmn (1,999.3) (1,526.3) 31.0% (2,171.4) (1,716.9) 26.5% Pre-
Slide 14: Pre-provision operating profit 9M 2022 vs 9M 2021
+8.3% +31.0% 1,847 2,616 1,705 1,997 +21.3% +60.5% 9M 2021 9M 2022 600 727 502 +31.0% 313 280 -195 Net interest Net fee & Net trading income commission income Pre-provision income Net gain/loss operating profit from fin. -1,526 assets -1,999 Operating expenses RONmn 14
Slide 15: Loans to households and loans to companies
LOANS TO HOUSEHOLDS other 0.11 Dec/21 Sep/22 Sep/22 RON 26.9bn ↑8% RON 29.0bn LOANS TO COMPANIES Dec/21 Sep/22 Sep/22 RON 23.0bn ↑30% RON 29.8bn *SMEs identified according to internal classification rules 15
Slide 16: Stable NPL (PAR 90) ratio, below 2% (1.50%)
NPL (PAR 90) COVERAGE RATIO Stable NPL (PAR 90) ratio, below 2% (1.50%) 133% 128% 128% 128% 127% 125% • Banca Transilvania continues to display a sound loan portfolio • NPL (PAR 90) ratio on a downward trend versus previous level 49% 57% 47% 44% 41% 40% (YE 2021): 1.50% down from 1.77%; • NPL (PAR 9
Slide 17: Deposits from households and companies
DEPOSITS FROM HOUSEHOLDS Dec/21 Sep/22 Sep/22 ↑6%* RON 72.6bn RON 68.4bn DEPOSITS FROM COMPANIES Dec/21 Sep/22 Sep/22 RON 34.3bn ↑10%** RON 37.7bn Notes: *Retail deposits transferred from Idea Bank: RON 1.09bn; **Corporate deposits transferred from Idea Bank: RON 0.34bn. 17
Slide 18: Retail loan portfolio reached RON 29.0bn
RETAIL LOANS, RON BN Retail loan portfolio reached RON 29.0bn at the end of 29.0 9M 2022 26.9 24.0 • ~3.4mn active clients and over 60,000 retail loans disbursed 23.0 21.2 in third quarter of 2022, worth RON 2.1bn; 2.9 16.7 • Sustainable growth in the online payments area, with a portfolio of 5.2mn
Slide 19: SME loan portfolio at RON 8.4bn
SME LOANS, RON BN SME (internal definition) loan portfolio at RON 8.4bn 8.4 6.8 • The total number of SME clients increased by +6% vs EOY 6.1 2021 reaching almost 400,000 clients; 5.4 5.0 • Loans worth ~RON 1.3bn were granted during Q3’22, +22% 0.3 4.3 vs the same period of the previous year; • BT c
Slide 20: Corporate loan portfolio consolidated to RON 21.4bn
CORPORATE LOANS, RON BN 21.4 Corporate loan portfolio consolidated to RON 21.4bn 16.2 • The number of large corporate clients maintained the 13.4 overall trend of +5% vs Dec’21; 12.6 12.7 10.7 1.6 • Lending activity in first three quarters of 2022 was supported by the by IMM Invest program determini
Slide 21: Capital
UL11\\S> Var TOY €B Macroeconomic Landscape €B BT in a3 2022 & Financial Performance ©} GMs decisions GB sustainability [I] Appendix
Slide 22: Structure of own funds
STRUCTURE OF OWN FUNDS Banca Transilvania has strong capital positions, well above those imposed by capital requirements and regulatory guidance RON 11.7bn Total Capital 1.4bn Retained earnings and reserves - 12% 22.05% 22.05% 1.5bn Tier 2 Capital - 13% 19.24% 2.81% 1.7bn Other - 15% 15.87% 3.37% 10
Slide 23: GMS decisions
Macroeconomic Landscape BT in Q3 2022 Financial Performance Capital Sustainability Appendix
Slide 24: MTN Program
MTN Program On 18th October 2022, the Extraordinary General Issuer Banca Transilvania S.A. Shareholders’ Meeting approved a multi-year program for BB+ ((with stable perspective), the issuance of MREL-eligible corporate bonds: Rating Fitch • The MTN program sustains the growth objectives of BT and Na
Slide 25: Sustainability
Macroeconomic Landscape BT in Q3 2022 Financial Performance Capital GMS decisions Sustainability Appendix
Slide 26: ESG Rating of 81/100 from Refinitiv
In Q3 2022, Banca Transilvania received an ESG Rating of 81/100 (A-) from Refinitiv, a London Stock Exchange Group Company: No. 47 from 1,081 banks globally The assessment relied only on the information publicly disclosed by Banca Transilvania and covered all 3 ESG pillars (Environment, Social and G
Slide 27: Space dedicated to supporting the entrepreneurs' community
A physical and virtual space dedicated to supporting the entrepreneurs’ community – supporting entrepreneurs, business environment and people alike. A place where business needs are addressed in a transparent and applied way: either financing solution or other aspects related to the business develop
Slide 28: Group subsidiaries by total assets
TOTAL ASSETS RON 135BN TOTAL ASSETS RON 709MN TOTAL ASSETS RON 1,855MN AUM RON 4,440MN TOTAL ASSETS RON 364MN TOTAL ASSETS RON 723MN AUM RON 136MN TOTAL ASSETS RON 4,410MN TOTAL ASSETS* RON 2,283MN *Value refers to Idea Group TOTAL ASSETS RON 1,125MN 28
Slide 29: Appendix
oo Macroeconomic Landscape BT in Q3 2022 Financial Performance Capital GMS decisions Sustainability
Slide 30: Individual income statement 9M 2022
RONmn 9M 2022 9M 2021 Δ Net interest income 2,616.4 1,997.3 31.0% Net fee and commission income 727.1 599.6 21.3% Net trading income 502.1 312.9 60.5% Other net income 1.2 322.0 -99.6% Operating income 3,846.8 3,231.7 19.0% Personnel expenses (1,022.1) (854.9) 19.6% D&A (257.5) (258.4) -0.4% Other o
Slide 31: Individual statement of financial position
RONmn Sept/22 Dec/21 Δ Cash & cash equivalents 14,546.5 16,763.6 -13.2% Placements with banks and public institutions 6,302.9 9,612.7 -34.4% Loans to customers, net 63,215.5 52,238.5 21.0% T-bills & securities 46,278.3 42,785.7 8.2% Fixed assets 1,048.1 987.4 6.2% Right-of-use assets 658.7 706.6 -6.
Slide 32: Consolidated income statement 9M 2022
RONmn 9M 2022 9M 2021 Δ Net interest income 3,145.7 2,267.2 38.7% Net fee and commission income 852.4 701.4 21.5% Net trading income 553.2 387.6 42.7% Other net income (123.5) 262.0 Operating income 4,427.8 3,618.2 22.4% Personnel expenses (1,211.0) (962.9) 25.8% D&A (286.9) (266.7) 7.6% Other opera
Slide 33: Consolidated statement of financial position
RONmn Sep/22 Dec/21 Δ Cash & cash equivalents 16,507.9 18,320.9 -9.9% Placements with banks and public institutions 5,342.8 10,394.3 -48.6% Loans to customers, net 67,796.7 56,117.8 20.8% T-bills & securities 47,448.3 44,204.2 7.3% Fixed assets 1,678.6 1,492.9 12.4% Right-of-use assets 457.7 492.0 -
Slide 34: Contact details
30 – 36, Dorobanților Street, Cluj-Napoca, Cluj, 400117, Romania +40 264 407 150 | +40 264 301 128 investor.relations@btrl.ro www.bancatransilvania.ro/en/investor-relations www.bancatransilvania.ro