Banca Transilvania Sa · BVB:TLV
Banca Transilvania Sa — FY2014 Earnings Presentation
29 slides from Banca Transilvania Sa's earnings presentation, 2015
Slide 1: End of 2014 – Preliminary Financial Results IFRS individual
End of 2014 – Preliminary Financial Results IFRS individual
Slide 2: Disclaimer
Disclaimer The information presented for the period ended at 31 December 2014 and for previous periods was prepared in accordance with the International Standards for Financial Reporting as adopted by the European Union and applicable at that date. The information presented is related only to the B
Slide 3: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines 2014 preliminary results Conclusions Q&A 3
Slide 4: Macroeconomic environment
Macroeconomic environment GDP (%, Y/Y) In 3Q14 the GDP rose by 1.8% Q/Q as 10% 8.5% 7.9% 7.3% the fixed investments stabilized (+0.9% 6% 6.3% Q/Q) while the private consumption 4.2% 2.3% 3.4% 2.4% 2.5% 2.8% 3.3% increased by 1.4% Q/Q (Statistics 2% 0.6% Office data). -2% During 1-3Q14 the econom
Slide 5: Macroeconomic environment
Macroeconomic environment Current Account (% of GDP) The current account continued to 0% adjust in 2014. -0.3% -2% -1.1% -1.8% -2.2% During January-November 2014 the -2.6% -4% -4.1% current account presented a deficit of -4.4% -4.5% -4.4% -6% EUR 302 mln (a record low level), -8% down by 62% Y/Y
Slide 6: Romanian Banking System
Romanian Banking System Total banking assets growth rates 6% 5.0% BT achieved 8.4% growth during 5% 4% 3.6% 3.5% 2013 and 6.2% increase during 3Q 3% 3.3% 2014. 2% 1% 0% -1% -0.9% -2% -3% -3.0% -4% 2009 2010 2011 2012 2013 3Q14 Non-performing loans (%) 25% 21.9% BT benchmarks well at 10.9% as at
Slide 7: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q4 2014 preliminary results Conclusions Q&A 7
Slide 8: Banca Transilvania's strengths in 2014
Banca Transilvania’s strengths in 2014 Business and loan portfolio growth, while the overall banking sector was deleveraging (despite write offs) Focus on Retail & SME clients, more than 146,000 new loans being processed during the year Diverse revenue streams Broad spread of risk Strong g
Slide 9: Banca Transilvania's strengths in 2014
Banca Transilvania’s strengths in 2014 Active balance sheet management, keeping the net interest margin around 3.4% throughout the year Loan / deposit ratio: 67% end of 2014; strong liquidity position in all currencies Local currency focus (65% of total loans in RON) Focus on additional chan
Slide 10: Loan quality and coverage ratios
Loan quality and coverage ratios Significant improvement of on balance sheet loan quality, PAR 90 decreased from 12.6% end of 2013 to 10.9% end of 2014, further to both write-off operations and to a decrease of the PAR 90 formation pace in 2014 compared to previous years Cost of risk was at 320
Slide 11: Geographical coverage & market share
Geographical coverage & market share Market shares, Q3 2014 Market share by assets: 9.67% Deposits (lei): 13.46% Loans (lei): 14.79% 11
Slide 12: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines 2014 preliminary results Conclusions Q&A 12
Slide 13: Business Lines & Sectorial Approaches
Business Lines & Sectorial Approaches SME CORPORATE RETAIL Agriculture Healthcare EU Funds 13
Slide 14: Overview of business lines: Corporate Clients
Overview of business lines Corporate Clients well diversified portfolio in terms Loans: Corporate Portfolio Breakdown, RON of type and industry exposure; 12,000 mil. 9,975 trade is slowly declining, while 10,000 9,882 manufacturing and agriculture are 7,612 8,736 8,000 advancing; 6,000 domestic
Slide 15: Overview of business lines: SME Banking
Overview of business lines SME Banking SME Loan Evolution and Breakdown, RON mill. SME Services 2,482 2,579 2,509 20 SME-dedicated products; 2,500 Loan portfolio reaching RON 2,579 mil. end of 2,000 1,805 2014 1,500 over 260,000 active clients. 1,000 500 SME Loans - 2011 2012 2013 2014 Remod
Slide 16: Overview of business lines: SME Banking
Overview of business lines SME Banking • Besides specialized banking services, we provide to our SME clients training and networking opportunities, free of charge, via Clubul Intreprinzatorului Roman, club established in 2006 which counts now over 17,000 members • All the dedicated initiatives broug
Slide 17: Overview of business lines: Retail Banking
Overview of business lines Retail Banking Strategy Retail Loan Growth and Breakdown, RON mill. 8,000 7,467 6,321 6,797 6,278 6,000 To consolidate our Top 3 position in cards in Romania 4,000 Client segmentation 2,000 More revenues from “operational” 0 products and value added services 2011 201
Slide 18: Retail Banking: Bank Cards & ATMs
Overview of business lines Retail Banking Bank Cards & ATMs 3rd largest issuer of credit/debit cards in Cards ATM POS Romania 2,500,000 24,000 over 2.34 million Visa and MasterCard issued 2,000,000 18,000 16.96% market share - cards issued 1,500,000 17.89% market share - transactions volume
Slide 19: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines 2014 preliminary results Conclusions Q&A 19
Slide 20: Summary 2014
Summary 2014 Net Profit & Assets Evolution (RON million) Net Profit: RON 448 million 37,000 500 Cost / Income: 41.92% 36,000 35,645 448 ROE: 13.25% 35,000 34,000 34,047 33,899 375 400 Loan portfolio: + 5.3% vs. Dec.13 338 32,924 33,000 32,066 300 32,000 240 31,000 212 30,287 30,122 180 30,17
Slide 21: 2014 financial highlights (IFRS non-consolidated)
2014 financial highlights (IFRS non-consolidated) m RON 31.12.2014 31.12.2013 Δ Cash and cash equivalents 4,226 4,102 3% Placements with banks 2,216 1,666 33% T bills and securities 11,068 9,040 22.4% Loans to customers, net 17,546 16,667 5.3% Fixed assets and participations 435 446 -2.46% Other ass
Slide 22: 2014 financial highlights: Income statement
2014 financial highlights (IFRS non-consolidated) Income statement m RON 31.12.2014 31.12.2013 Δ Net interest income 1,138 990 14.9% Net commissions income 407 362 12.4% Other operating income 452 308 46.7% Operating income 1,996 1,659 20.3% Operating expenses 837 809 3.4% Profit before provisions 1
Slide 23: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines 2014 preliminary results Conclusions Q&A 23
Slide 24: Conclusions
Conclusions We continue to support the Romanian economy, targeting both organic growth and portfolio acquisitions (especially Retail loan portfolios) We keep our focus on business segments and sectors where we have expertise: SMEs, Retail, Healthcare, Agriculture, EU structural funds 2015 The budget
Slide 25: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines 2014 preliminary results Conclusions Q&A 25
Slide 26: Q&A session
Q&A session 1. What are BT conversion plans with regard to CHF denominated loans in VB? We will maintain an individual approach, based on customer profile. As the case may be, we will opt for conversion at market price with specific discounts, with the aim to solve social problems and to improve the
Slide 27: Q&A session
Q&A session 5. Please provide an indication regarding costs of capital for VB integration Integration costs are already included in the transaction structure. In terms of infrastructure, IT-related integration efforts are significantly lower, because at the time of the acquisition VB was in the proc
Slide 28: Q&A session
Q&A session 7. Considering the strong CAR, are there any changes in the dividend policy? BT plans to continue the organic growth and to be active on the market in terms of future potential acquisitions. Although we do not expect changes regarding the dividend policy, the decision belongs however to
Slide 29: 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 29