Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q4 2013 Earnings Presentation
33 slides from Banca Transilvania SA's earnings presentation, 2014
Slide 1: Q4 2013 Financial Results
Q4 2013 FINANCIAL RESULTS IFRS non-consolidated
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 Q4 2013 financial highlights Conclusions 3
Slide 4: Macroeconomic environment
Macroeconomic environment GDP 4th quarter preliminary GDP growth 10% 8.5% stood at +1.7% QoQ (s.a.) and 5.2% 7.9% 6.3% 7.3% YoY (n.s.a.) probably underpinned 5.1% 5.2% 6% 4.2% 3.5% 3.0% by export activity 2.2% 2.5% 2% 0.7% 2013 GDP growth at +3.5% -2% according to flash figures -1.1% -6% -6.6% -
Slide 5: Macroeconomic environment
Macroeconomic environment Current Account deficit - % of GDP 0% Current account deficit for 2013 -2% -1.1% -1.8% at EUR 1.5 bln. compared to 5.8 -1.9% -4% -3.8% bln. a year ago -4.2% -4.5% -4.5% -6% Exports were the main driver with -8% -8.5% -8.5% +10.0% YoY growth -10% -10.4% -12% -11.6% -14%
Slide 6: Romanian Banking System
Romanian Banking System Total banking assets growth rates 48.33% *BT achieved 8.4 % growth 30.58% end of 2013. 25% 5.09% 3.64% 3.54% 3.39% 2007 2008 2009 2010 2011 2012 2013 -5% -0.92% Doubtful and loss (% of total loans) 35% 32.14% 29.91% 30% 23.28% 25% BT benchmarks well at 22.30% D&L 20.81% 20%
Slide 7: Romanian Banking System
Romanian Banking System Conservative and strong Central Bank Rather concentrated: Top 7 banks hold 67% of total assets, Top 3 banks weight around 40% • H1 2013 indicates a cumulative profit of RON 1.46 bn., compared to a loss of RON 200 mil. same period last year; end of 2012 the total loss reac
Slide 8: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines 2014 financial highlights Conclusions 8
Slide 9: Banca Transilvania on its home market
Banca Transilvania on its home market 25% Market share by total assets 20% 19.27% 17.5% 15% 13.1% 13% Dec-12 10% 8.9% Dec-13 8.08% 7.35% 7.4% 7.6% 7.3% 6.85% 6.45% 5.0% 5% 4.51% 4.50% 4.5% 4.51% 3.8% 3.31% 3.3% 0% BCR BRD Banca Transilvania CEC Bank Unicredit Tiriac RZB Volksbank Alpha Bank ING Bank
Slide 10: 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 10
Slide 11: 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 13.78% end of 2013) and good funding structure Lo
Slide 12: Our rating
Our rating Fitch Ratings – BT rating reaffirmed, July 2013 Long term IDR BB- Short-Term B Outlook Stable Individual D Support 3 12
Slide 13: Shareholder structure, Dec. 2013
Shareholder structure, Dec. 2013 No. of shareholders No. of shares % Romanian capital 27,206 975,311,874 44.20 individuals 26,580 431,592,495 19.56 companies 626 543,719,379 24.64 Foreign capital 766 1,231,124,450 55.80 individuals 619 51,404,610 2.33 companies 147 1,179,719,840 53.47 TOTAL 27,972 2
Slide 14: Group structure
Group structure Banca Transilvania Leasing Consumer Banking services Brokerage Asset Finance management Business lines SME Corporate Retail 14
Slide 15: Geographical coverage
Geographical coverage Key statistics No. of units: 548 No. of customers: over 1.7 million Market shares Market share by assets: 8.6% Deposits (lei): 11.3% Loans (lei): 12.5% 15
Slide 16: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q4 2013 financial highlights Conclusions 16
Slide 17: Business Lines & Sectorial Approaches
Business Lines & Sectorial Approaches SME CORPORATE RETAIL Agriculture Healthcare EU Funds 17
Slide 18: Overview of business lines: Corporate Clients
Overview of business lines Corporate Clients well diversified portfolio in Loans: Corporate Portfolio Breakdown, RON mil. terms of type and industry 12,000 exposure; trade is slowly declining, while manufacturing 10,000 9,882 and agriculture are advancing; 8,000 8,736 6,000 7,612 domestic curren
Slide 19: Overview of business lines: SME Banking
Overview of business lines SME Banking SME Services SME Loan Evolution and Breakdown, RON mill. 20 SME-dedicated products launched so far; 3,000 2,500 2,509 2,482 Loan portfolio reaching EUR 553 mil. end of 2013 2,000 1,500 1,805 ~ 150,000 active clients. 1,000 500 SME Loans - 2011 2012 2013
Slide 20: 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 21: 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 22: Retail Banking
Overview of business lines Retail Banking Strategy Retail Loan Growth and Breakdown, RON mill. 7,100 The strategy for this year - 3 main 6,800 pillars: 6,500 6,797 To consolidate our Top 3 position in 6,200 6,278 6,321 cards in Romania 5,900 5,600 Client segmentation 5,300 More revenues from
Slide 23: Retail Banking: Bank Cards & ATMs
Overview of business lines Retail Banking Bank Cards & ATMs Cards ATM POS 2,000,000 20,000 3rd largest issuer of credit/debit cards in Romania 1,800,000 18,000 over 1.9 million Visa and MasterCard issued 1,600,000 16,000 1,400,000 14,000 15% market share - cards issued 1,200,000 12,000 17.5%
Slide 24: 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 25: 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 26: 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 27: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q4 2013 financial highlights Conclusions 27
Slide 28: Key Indicators December 2013
Key Indicators December 2013 Net Profit & Assets Evolution (Lei million) 1.0 32,500 32,066 Loans portfolio up by 9.1% vs. Dec’12 0.8 30,287 30,122 30,178 0.6 30,000 Net Profit: RON 378 million 0.4 29,572 Net Profit (YTD) 378 320 Total Assets 0.2 240 180 ROE (annualized): 12.9% 84 0.0 0 Q4 Q3 Q
Slide 29: Q4 2013 financial highlights (IFRS non-consolidated)
Q4 2013 financial highlights (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%
Slide 30: Q4 2013 financial highlights: Income statement
Q4 2013 financial highlights (IFRS non-consolidated) Income statement 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 pr
Slide 31: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q4 2013 financial highlights Conclusions 31
Slide 32: 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 33: Contact details
Contact details Mihaela Nadasan, Executive Manager FI & IR Banca Transilvania S.A. 8 G. Baritiu Street Cluj-Napoca, 400027 Romania mihaela.nadasan@bancatransilvania.ro Telephone + 40 264 407 150 Fax + 40 264 407 179 33