Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q1 2023 Earnings Presentation
36 slides from Banca Transilvania SA's earnings presentation, May 5, 2023
Slide 1: Banca Transilvania
9) BANCA TRANSILVANIA
Slide 2: Disclaimer
The information contained in the present Banca Transilvania undertakes no obligation to document has not been independently verified update publicly any of them in light of new and no representation or warranty expressed or information or future events. None of Banca implied is made as to, and no re
Slide 3: Macroeconomic Landscape
1 Macroeconomic Landscape
Slide 4: Post-pandemic economic recovery continued at the beginning of 2023
20 60 100 15 40 80 10 20 60 5 0 40 0 4Q 20 4Q 17 4Q 18 4Q 19 4Q 21 4Q 22 4Q05 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 -20 -5 20 -10 -40 BG CZ HU PL RO SK 0 GDP Private consumption GFCF (rhs) 1997 2021 1995 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 5: FDIs on the upward trend, trade deficit adjusting
12 35% Exports Imports 10 30% 25% 8 20% 6 15% 10% 4 5% 2 0% Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 Aug-21 Aug-22 0 -5% Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 -10
Slide 6: Inflationary pressures diminishing, budget deficit intensifying
30 RO PL CZ HU 0 2007 2019 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020 2021 2022 25 -1 -2 20 -3 15 -4 10 -5 -6 5 -7 0 -8 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Slide 7: Financial side of the economy resilient to banking turbulences
3M ROBOR (%) Yield on 10YR Bonds (%) EUR/RON (rhs) 14,000 10 5.0 12,000 8 4.8 10,000 8,000 6 4.6 6,000 4 4.4 4,000 2 4.2 2,000 0 4.0 0 Mar-19 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-20 Mar-21 Mar-22 Mar-23 Sep-18 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-19 Sep-20 Sep-21 Sep-22 Mar-20 Mar-09 Mar-
Slide 8: Non-government loans decelerated at the beginning of 2023
30% 25% Household Corporate Total Total RON FX 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Feb-14 Feb-22 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-23 Aug-17 Aug-14 Aug-15 Aug-16 Aug-18 Aug-19 Aug-20 Aug-21 Aug-22 -5% -5% Feb-21 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-22 Feb-23 Aug-19 Aug-16 Au
Slide 9: Sound financial performance of the banking sector
ROA ROE (rhs) 16 2 20 14 2 15 12 10 1 10 8 1 5 6 0 0 4 Dec. 2010 Dec. 2011 Dec. 2012 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 Dec. 2020 Dec.2021 Dec.2022 -1 -5 2 0 -1 -10 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Aug-17 Aug-16 Aug-18 Aug-19 Aug-20 Aug-21 Au
Slide 10: EU funds absorption rate up in 1Q2023
100% 40% RO PL CZ HU 35% 80% 30% 60% 25% 20% 40% 15% 10% 20% 5% 0% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 source: European Commission source: BT estimates, using Eurostat and European Commission statistics EU funds absorption rate up in 1Q2023 • The f
Slide 11: Business Performance
2. Business Performance
Slide 12: Key financial indicators
Net interest income, RONmn 1,031.4 810.3 27.3% 1,241.9 969.4 28.1% Net fee and commission income, RONmn 250.9 218.9 14.6% 287.9 259.0 11.1% Operating expenses, RONmn (702.2) (587.2) 19.6% (824.0) (689.1) 19.6% Pre-provision operating profit, RONmn 741.5 464.6 59.6% 916.5 607.1 51.0% Net profit, RONm
Slide 13: Net interest income and operating income
4.00% 3.44% 3.20% 2.83% 2.97% 2.54% +27.3% 1,031 2018 2019 2020 2021 2022 Mar’23 810 +14.6% -20.9% 251 8.49% 219 155 123 85 17.38% -32 Net interest Net fee & Net trading Net gain/loss income commission income income from fin. assets 71.45% 3M 2022 3M 2023 Net interest income Net trading income Net f
Slide 14: Loan portfolio by segment
other 0.05 other 0.03 -0.7% Dec/22 Mar/23 Mar/23 RON 28.9bn RON 28.7bn +0.8% Dec/22 Mar/23 Mar/23 RON 30.1bn RON 30.4bn *SMEs identified according to internal classification rules Financial Results Q1 | 5th May 2023 14
Slide 15: Deposits by segment
+3% Dec/22 Mar/23 Mar/23 RON 77.9bn RON 80.3bn +9% Dec/22 Mar/23 Mar/23 RON 38.6bn RON 42.0bn *SMEs identified according to internal classification rules Financial Results Q1 | 5th May 2023 15
Slide 16: Retail and corporate loan evolution
impact of inflationary pressure and increased interest rates -0.71% +3.18% 28.9 28.7 77.9 80.3 26.9 68.4 24.0 23.0 60.3 21.2 50.9 41.7 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 +7.95% +6.73% 5.5 5.3 4.4 4.7 3.7 4.1 3.2 3.5 3.5 2.6 2.9 3.0 2018 2019 2020 2021 2022 2023 2018 2019 202
Slide 17: More than RON 5bn new production
more than RON 5bn new production +0.69% +0.91% 8.2 8.2 22.0 22.2 6.8 6.1 16.2 5.5 13.4 5.0 12.6 12.7 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 • Focus on digital initiatives; • Consolidation of key competences in corporate lending; • Support national programs IMM Invest, new • Acti
Slide 18: Risk
x A} ce
Slide 19: NPL ratio and coverage
195 196 166 57 47 44 41 38 38 133 94 98 83 84 87 89 76 80 2018 2019 2020 2021 2022 Mar’2023 2018 2019 2020 2021 2022 Mar’2023 NPL coverage with mortgage collaterals *Total ECL to EBA NPL NPL coverage with provisions 3.09% 4.36% NPL Ratio (EBA) 2.79% NPL (PAR 90) 3.46% 3.46% 2.71% 2.00% 2.44% 2.40% 1
Slide 20: Cost of risk and ECL
BT – Stand Alone BT – Group +1.3% +1.0% 1.93% 4.02 4.08 4.56 4.52 1.78% 0.05 0.05 0.09 0.09 3.61 0.05 3.94 1.25 1.29 0.10 1.56 1.60 1.27 1.48 0.90% 0.68% 0.69% 1.64 1.67 0.59% 1.70 1.73 0.59% 1.51 0.43% 0.41% 1.56 0.42% 1.08 1.07 1.16 1.14 0.79 0.80 2018 2019 2020 2021 2022 Mar’2023 2021 2022 Mar’23
Slide 21: Capital position and requirements
19.86% 19.86 17.22% 2.64 15.87% 1.35 ---------- 18.7% 15.87% 10.87% 5.00 ---------- 8.0% 2.87 11.11% 13.3% 64.0% 8.00 Min CAR TSCR* OCR** CET1 NBR CAR NBR Label CET1 Capital Retained earnings and reserves Stand-alone basis, NBR computation framework, transitional, profit included: Tier 2 Capital Oth
Slide 22: Liquidity and senior non-preferred bond issue
Other 5.57 9.20 Equity Due from banks 5.59 Other (2.75) EUR 500 million senior non-preferred bonds on the 4.91 Due to banks (0.84) 21st of April 2023, in an oversubscribed issuance 15.46 Cash and Cash eq. Loans and subdebt 80% of the total issue subscribed by international 49.92 investors from ~20 c
Slide 23: GMS Decisions
GMS Decisions
Slide 24: Share capital increase and share buyback
Share capital increase by incorporating reserves from the net profit of 2022: 91 million shares with a nominal value of 10 RON approx. 12 bonus shares will be granted for every 100 shares held at the record date the 24th of July as payment date for distribution of shares Share buyback of up to 5 mil
Slide 25: 2023 budget and BT absorbing BT Building
BT absorbs BT Building S.R.L. 2023 budget, fit for the forthcoming ambitions: Maintaining our position as the largest lender in Romania through organic growth Digital: a constant focus on automating operations and innovating interaction flows for the benefit of customers Consolidating the position o
Slide 26: Agenda: Digital
Slide 27: Digital products and app usage in Q1 2023
phone payments Q1 2023 money active Round-up in Q1 2023,+ transfers through saving tool clients 66% vs. Q1 2022 app vs. Q1 2022 Issuances of a virtual card for online and POS payments Moto vehicles third party liability insurance (RCA) issuance from app BT Pay Kiddo – new function for underage indiv
Slide 28: BT Visual Help
more interactions ~ Call deflection Q1 2023 unique Successful session, 300,000 in Q1 2023 rate users x2 Q1 2022 vs Q1 2022 BT Visual Help – an interactive menu through which the clients can chose the way they want to obtain the information they need: Self-service Chat Chatbot Platform/Consultant Fin
Slide 29: BT Financial Group
BT Financial Group
Slide 30: BT Financial Group
*Values refer to Idea Group Financial Results Q1 | 5th May 2023 30
Slide 31: Appendix
7 Appendix
Slide 32: Income statement, stand-alone
Net interest income 1,031.4 810.3 27.3% Net fee and commission income 250.9 218.9 14.6% Net trading income 122.5 154.8 -20.9% Other net income 38.8 (132.3) Personnel expenses (400.6) (339.0) 18.2% D&A (97.6) (82.1) 18.8% Other operating expenses (203.9) (166.0) 22.8% Income tax (expense)/revenue (10
Slide 33: Balance sheet, stand-alone
Cash & cash equivalents 15,457.5 12,645.2 22.2% Placements with banks and public institutions 5,592.3 6,634.9 -15.7% Loans to customers, net 63,457.1 63,450.0 0.0% T-bills & securities 49,922.7 45,823.0 8.9% Fixed assets 1,148.1 1,161.0 -1.1% Right-of-use assets 669.2 696.8 -4.0% Investments in asso
Slide 34: Income statement, group
Net interest income 1,241.9 969.4 28.1% Net fee and commission income 287.9 259.0 11.1% Net trading income 135.2 167.0 -19.0% Other net income 75.4 (99.2) Personnel expenses (476.3) (397.7) 19.8% D&A (106.7) (92.8) 14.9% Other operating expenses (241.0) (198.6) 21.4% Income tax (expense)/revenue Fin
Slide 35: Balance sheet, group
Cash & cash equivalents 17,858.5 14,540.7 22.8% Placements with banks and public institutions 4,351.2 5,567.3 -21.8% Loans to customers, net 67,845.4 68,013.5 -0.2% T-bills & securities 52,246.4 47,191.3 10.7% Fixed assets 1,830.0 1,835.0 -0.3% Right-of-use assets 463.3 488.0 -5.0% Investments in as
Slide 36: Contact investor relations
30 – 36, Dorobantilor Street, Cluj-Napoca, Romania +40 264 407 150 | +40 264 301 128 investor.relations@btrl.ro