Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q3 2014 Earnings Presentation
36 slides from Banca Transilvania SA's earnings presentation, 2014
Slide 1: Q3 2014 - Financial Results
Q3 2014 - FINANCIAL RESULTS IFRS individual
Slide 2: Disclaimer
Disclaimer THE INFORMATION CONTAINED IN THIS 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.
Slide 3: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q3 2014 results 2013 financial highlights Conclusions 3
Slide 4: Macroeconomic environment
Macroeconomic environment GDP After the recession in 1H14, the economy stabilized in 3Q14, due to 10% 8.5% 7.9% 7.3% the dynamics of the macroeconomic 6.3% 6% 5.1% 5.2% indicators in September. 4.2% 3.5% 2.3% 2.4% 2.5% 2% 0.6% To be noticed the dynamics of the net trade and public investments (w
Slide 5: Macroeconomic environment
Macroeconomic environment After adjusting in the past 6 years the Current Account - % of GDP current account deteriorated in 2014. 0% During 8M2014 the current account -2% -1.1% -1.2% -1.8% deficit intensified by 93% YoY to EUR -4% -6% -4.1% -4.4% -4.5% -4.4% 945 mln, as the primary income -8% d
Slide 6: Romanian Banking System
Romanian Banking System Total banking assets growth rates 6.00% 5.01% 5.00% BT achieved 8.4% growth during 2013 and 6.2% increase during 3Q 3.56% 4.00% 3.50% 3.31% 2014. 3.00% 2.00% 1.00% 0.00% 2009 2010 2011 2012 2013 H1 2014 -1.00% -0.92% -2.00% -2.70% -3.00% NPL (%) 25.00% 21.87% BT benchmark
Slide 7: Romanian Banking System
Romanian Banking System Conservative and strong Central Bank Rather concentrated: Top 7 banks hold 66% of total assets, Top 3 banks weight around 40% • H1 2014 the 40 banks operating on the market recorded a profit of RON 223 mill. (for the end of 2013, the cumulative profit was corrected at RON
Slide 8: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q3 2014 results 2013 financial highlights Conclusions 8
Slide 9: Banca Transilvania's growth path
Banca Transilvania’s growth path BT market share on assets 10% 9.6% 8.9% 9% 8.1% 8% 7.3% 7% 6.3% 6% 5.9% 5.5% 5.4% 5% 4.7% 4% 3.9% UNITS 3% 2.9% BT clients and units evolution CLIENTS 1.8% 2.0% 600 3,000,000 2% 535 548 500 2,500,000 1% 400 2,000,000 0% 300 1,500,000 2002 2003 2004 2005 2006 2007 200
Slide 10: Banca Transilvania on its home market
Banca Transilvania on its home market Source: NBR 10
Slide 11: Our Business Model
Our Business Model Traditional banking Diverse revenue streams Broad spread of risk Successful track record Wide branch coverage Deposit funded Romania HQ 11
Slide 12: Banca Transilvania's strengths
Banca Transilvania’s strengths Strong roots in Romania, one of the least banked CEE countries The leading SME bank… The Bank for Entrepreneurial People Nationwide distribution network with 548 branches and agencies Solid capitalization (CAR 15.82%, Q3 2014) and good funding structure Loan
Slide 13: Our rating
Our rating Fitch Ratings – BT rating reaffirmed, June 2014 Long term IDR BB- Short-Term B Outlook Stable Individual D Support 3 13
Slide 14: Shareholder structure, Sept. 2014
Shareholder structure, Sept. 2014 No. of shareholders No. of shares % Romanian capital 26,789 1,289,560,456 50.39 individuals 26,156 465,312,367 18.18 companies 633 833,032,527 32.21 Foreign capital 781 1,269,618,859 49.61 individuals 627 53,779,370 2.10 companies 154 1,215,839,489 47.51 TOTAL 27,57
Slide 15: Group structure
Group structure Banca Transilvania Leasing Consumer Banking services Brokerage Asset Finance management Business lines SME Corporate Retail 15
Slide 16: Geographical coverage
Geographical coverage Key statistics No. of units: 548 No. of customers: over 2.5 million Market shares, H1 2014 Market share by assets: 9.6% Deposits (lei): 13.46% Loans (lei): 14.79% 16
Slide 17: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q3 2014 results 2013 financial highlights Conclusions 17
Slide 18: Business Lines & Sectorial Approaches
Business Lines & Sectorial Approaches SME CORPORATE RETAIL Agriculture Healthcare EU Funds 18
Slide 19: Overview of business lines: Corporate Clients
Overview of business lines Corporate Clients well diversified portfolio in terms of type and industry exposure; trade is slowly declining, while manufacturing and agriculture are advancing; domestic currency lending is dominant; loan portfolio end of Q3 2014 amounts to RON 10,177 mill. represe
Slide 20: Overview of business lines: SME Banking
Overview of business lines SME Banking SME Services 20 SME-dedicated products launched so far; Loan portfolio reaching RON 2,576 mil. end of Q3 2014 over 200,000 active clients. SME Loans Remodeling the SME credit approach starting with By type By industry 2011 within a new platform (SME 3.0
Slide 21: SME Banking: Commitment to the SME sector
Overview of business lines SME Banking Commitment to the SME sector • Starting with 2002, together with the reorganization of the sales activity by business lines, Banca Transilvania has positioned itself as the SME Bank in Romania • This strategic goal was supported by a SME specialized products an
Slide 22: SME Banking
Overview of business lines SME Banking • Besides specialized banking services, we have tried to provide to our SME clients training and networking opportunities, free of charge, via Clubul Intreprinzatorului Roman, club established in 2006 which counts now 17,000 members • All these initiatives brou
Slide 23: Retail Banking Strategy
Overview of business lines Retail Banking Strategy The strategy for this year - 3 main pillars: To consolidate our Top 3 position in cards in Romania Client segmentation More revenues from “operational” products and value added services End of Q3 2014 the Retail loan portfolio reached RON 7,27
Slide 24: Retail Banking: Bank Cards & ATMs
Overview of business lines Retail Banking Bank Cards & ATMs 3rd largest issuer of credit/debit cards in Romania over 2.2 million Visa and MasterCard issued 16.5% market share - cards issued 17.7% market share - transactions volume The largest Visa issuer in Romania Market leader in premi
Slide 25: Overview by sector: Healthcare
Overview by sector Healthcare Strategy Approach Dedicated team (doctors and bankers) Transparency – costs Stability – terms and conditions Special Credit Scoring System Design Flexibility – product packages First credit card only for doctors Friendly and assertive people – common langu
Slide 26: Overview by sector: Agribusiness
Overview by sector Agribusiness Strategy Approach Specialized team Dedicated products for agriculture and Qualitative and technical overview agribusiness Integrated chain overview Long term partnership with farmer associations Loan portfolio dispersion Results More than 10% market shar
Slide 27: Overview by sector: EU Structural funds
Overview by sector EU Structural funds Strategy Approach Consolidating BT position as EU funds Specialized team specialist Flexible financing products + consulting Enhancing partnerships with consultants Integrated services following the project acting in EU funds sector cycle Active mem
Slide 28: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q3 2014 results 2013 financial highlights Conclusions 28
Slide 29: Summary Q3 - 2014
Summary Q3 - 2014 Net Profit & Assets Evolution (RON million) 35,000 375 400 Net Profit: RON 338 million 34,047 33,899 34,000 350 Cost / Income: 42.31% 338 32,924 300 ROE: 13.87% 33,000 240 32,066 250 Loan portfolio: + 5.6% vs. Dec.13 32,000 212 180 200 31,000 30,287 30,122 30,178 150 30,000
Slide 30: Q3 2014 financial highlights (IFRS non-consolidated)
Q3 2014 financial highlights (IFRS non-consolidated) m RON 30.09.2014 31.12.2013 Δ Cash and cash equivalents 4,529 4,102 10.4% Placements with banks 1,658 1,666 -0.5% T bills and securities 9,655 9,040 % Loans to customers, net 17,593 16,667 5.6% Fixed assets and participations 435 446 -2.46% Other
Slide 31: Q3 2014 financial highlights: Income statement
Q3 2014 financial highlights (IFRS non-consolidated) Income statement m RON 30.09.2014 30.09.2013 Δ Net interest income 854 717 19% Net commissions income 299 259 15.5% Other operating income 296 172 72% Operating income 1,449 1,148 26.3% Operating expenses 613 583 5.2% Profit before provisions 836
Slide 32: 2013 vs 2012 – IFRS, non-consolidated
2013 vs 2012 – IFRS, non-consolidated m RON 31.12.2013 31.12.2012 y/y Cash and cash equivalents 4,102 5,576 -26.4% Placements with banks 1,666 1,305 27.7% T bills and securities 9,040 6,648 35.98% Loans to customers, net 16,667 15,457 7.8% Fixed assets and participations 446 444 0.45% Other assets 1
Slide 33: 2013 vs 2012 (IFRS non-consolidated)
2013 vs 2012 (IFRS non-consolidated) m RON 31.12.2013 31.12.2012 Y/Y Net interest income 1,194 938 27% Net commissions income 362 425 -15% Other operating income 168 175 -4% Operating income 1,659 1,484 12% Operating expenses 809 769 5% Provisions 407 375 9% Gross profit 443 341 30% Net profit 375 3
Slide 34: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q3 2014 results 2013 financial highlights Conclusions 34
Slide 35: Conclusions
Conclusions We defend our position as 3rd bank in the system and we keep our entrepreneurial profile We aim a market share of 10 – 11% in 2 – 3 years, but we keep a strong eye on efficiency We continue to support the Romanian economy, targeting both organic growth and portfolio acquisitions (e
Slide 36: Banca Transilvania S.A. contact details
Banca Transilvania S.A. 8, G. Baritiu Street Cluj-Napoca, 400027 Romania Telephone + 40 264 407 150 Fax + 40 264 407 179 Investor.Relations@btrl.ro 36