Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q1 2024 Earnings Presentation
40 slides from Banca Transilvania SA's earnings presentation, May 13, 2024
Slide 1: Banca Transilvania First Quarter Financial Results
Banca Transilvania First Quarter Financial Results The 13th Of May 2024
Slide 2: Disclaimer
DISCLAIMER The information contained in the present undertakes no obligation to update publicly any document has not been independently verified of them in light of new information or future and no representation or warranty expressed or events. None of Banca Transilvania or any of its implied is ma
Slide 3: Agenda
AGENDA Macroeconomic Business GSM Risk Landscape Performance Decisions 1 2 3 4 BT Financial Sustainability Digital Appendix Group 5 6 7 8
Slide 4: Economic Activity
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group ECONOMIC ACTIVITY POSITIVE PROSPECTS FOR GDP DYNAMICS (%, YoY) 2024 MACROECONOMIC LANDSCAPE 20 15 The GDP real growth of Romania in 2023 is above 10 5 1.1 EU average with an increase of
Slide 5: Lending Dynamics
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group LENDING DYNAMICS DIVERGENT CORPORATE LOANS (%, YoY) MOVE FOR LENDING 30.0 25.0 Corporate lending declined in January and 20.0 15.0 February after the increase in December, 10.0 5.07 opp
Slide 6: Deposits Overview
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group DEPOSITS OVERVIEW DEPOSITS WELL ABOVE CORPORATE DEPOSITS (%, YoY) THE EUROPEAN AVERAGE 25.0 20.0 Corporate deposits slightly decreased, in sync 15.0 11.97 with the EU trend, but remain
Slide 7: Banking Sector
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group BANKING SECTOR ASSET QUALITY NPL RATIO (%) REMAINS STRONG 25 20 The non-performing loan (NPL) ratio remains low, 15 recording 2.39% as at February 2024. 10 5 2.33 0 Net assets increased
Slide 8: Agenda
AGENDA Macroeconomic Business GSM Risk Landscape Performance Decisions 1 2 3 4 BT Financial Sustainability Digital Appendix Group 5 6 7 8
Slide 9: BT Performance
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group BT PERFORMANCE INDIVIDUAL CONSOLIDATED PROFITABILITY Q1 2024 Q1 2023 Δ Q1 2024 Q1 2023 Δ Net interest income, RONmn 1,324.7 1,031.4 28.4% 1,543.0 1,241.9 24.2% Net fee and commission in
Slide 10: Trends in Income
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group TRENDS IN INCOME NIM Net fee & Net gain/loss Net interest Net trading commission from fin. 3.44% 3.17% 3.51% income income 2.83% 2.54% 2.97% income assets 1,325 2019 2020 2021 2022 2023
Slide 11: Trends in Opex
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group TRENDS IN OPEX C/I RATIO Depreciation Other 41.81 %* Personnel and operating 49.7% expenses amortization expenses 46.5% 48.1% 45.3% 45.6% 45.1% 482 2019 2020 2021 2022 2023 Q1 2024* *Q1
Slide 12: Sustained Portfolio Growth
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group SUSTAINED PORTFOLIO GROWTH LOANS TO HOUSING 2.4 % 18.7 19.0 Housing Housing 91 % RON 31.4 12.7 32.2 13.2 BN RON Consumer BN RON Consumer 9 % FCY 0.04 0.01 Other Other Mar/24 Dec/23 Mar/
Slide 13: Sticky and Growing Depositor's Base
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group STICKY AND GROWING DEPOSITOR’S BASE DEPOSITS FROM HOUSEHOLD 2.1 % 59% 39.8 39.4 Current RON 86.3 accounts 88.1 Current accounts BN RON BN RON 41 % 46.5 FCY Deposits 48.8 Deposits Mar/24
Slide 14: Retail Banking: ~RON 2bn in New Production
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group RETAIL BANKING: ~RON 2BN IN NEW PRODUCTION RETAIL LOANS, RON BN RETAIL DEPOSITS, RON BN 2.4% 2.1 % 31.4 32.2 86.3 88.1 29.0 77.9 26.9 68.4 24.0 23.0 60.3 21.2 50.9 41.7 2018 2019 2020 2
Slide 15: SME & Corporate Banking: ~RON 3bn in New Production
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group SME & CORPORATE BANKING: ~RON 3BN IN NEW PRODUCTION CORPORATE LOANS, RON BN SME LOANS, RON BN 3.5% 18.1% 10.7 8.2 9.1 35.4 34.2 30.4 6.8 6.1 22.2 5.5 5.0 12.7 13.4 12.6 2018 2019 2020 2
Slide 16: Agenda
AGENDA Macroeconomic Business GSM Risk Landscape Performance Decisions 1 2 3 4 BT Financial Sustainability Digital Appendix Group 5 6 7 8
Slide 17: Sound Credit Risk Management
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group SOUND CREDIT RISK MANAGEMENT COST OF RISK, % STOCK OF LOAN LOSS PROVISIONS, BN RON 1.93% BT INDIVIDUAL BT CONSOLIDATED 1.78% 1.13 % 1.04 % 4.85 4.90 4.37 4.42 0.05 0.05 0.04 0.04 4.52 4
Slide 18: Prudent Underwriting Leading to Strong Asset Quality
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group PRUDENT UNDERWRITING LEADING TO STRONG ASSET QUALITY NPL COVERAGE RATIO* (EBA), % NPL COVERAGE RATIO (PAR90), % 203 198 195 166 57 44 38 47 41 33 31 133 94 98 80 83 84 87 87 87 76 2018
Slide 19: Comfortable Capital Position
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group COMFORTABLE CAPITAL POSITION CAPITAL RATIOS (INCLUDING PROFIT), % OWN FUNDS’ STRUCTURE, % 21.47% 21.47 5.10 61.6 % CET 1 16.37% 19.35% CET1 Capital 5.50 21.7% 10.87% Retained earnings 1
Slide 20: High Liquidity Levels Maintained
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group HIGH LIQUIDITY LEVELS MAINTAINED LIQUID BALANCE SHEET, RON BN HIGH QUALITY ASSETS, RON 54.6 BN 5.7 12.8 73.0% Other Equity FVTCI 11.4 5.9 23.5% Due from Other HTC banks 0.5 23.3 Due to
Slide 21: Agenda
AGENDA Macroeconomic Business GSM Risk Landscape Performance Decisions 1 2 3 4 BT Financial Sustainability Digital Appendix Group 5 6 7 8
Slide 22: Approval of Cash Dividends Distribution and 2024 Budget
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group APPROVAL Approval of the distribution of cash dividends from the OF CASH profit for the year 2023: DIVIDENDS The amount of RON 1,000,000,000 from the net DISTRIBUTION profit reserves fo
Slide 23: Share Capital Increase, Buybacks and OTP Acquisition
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group SHARE Share capital increase by incorporating reserves from CAPITAL the net profit of 2023: INCREASE 118 million shares with a nominal value of RON 10 ~15 bonus shares will be granted f
Slide 24: BT Evolution on Stock Exchange, 2015-Q1 2024
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group BT EVOLUTION ON STOCK EXCHANGE, 2015-Q1 2024 STOCK EXCHANGE CAPITALIZATION BT IN DIVIDEND TERMS 13.1%* 14.7% DIVIDEND / SHARE 1.130 1.252 22.23 0.397 19.38 0.127 0.141 0.170 0.115 0.060
Slide 25: Agenda
AGENDA Macroeconomic Business GSM Risk Landscape Performance Decisions 1 2 3 4 BT Financial Sustainability Digital Appendix Group 5 6 7 8
Slide 26: Actions Taken During Q1
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group ACTIONS TAKEN DURING Q1 SUSTAINABILITY REPORT EMPOWERING LOCAL ENTREPRENEURS OF BT FINANCIAL GROUP TO EMBRACE A GREENER FUTURE In May 2024 we will publish our 4th We hosted workshops on
Slide 27: Agenda
AGENDA Macroeconomic Business GSM Risk Landscape Performance Decisions 1 2 3 4 BT Financial Sustainability Digital Appendix Group 5 6 7 8
Slide 28: BT, Early Adopter of AI in Banking
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group BT, EARLY ADOPTER OF AI IN BANKING People have made over 1.5 million visits to 1,000,0000 Întreb BT since AI integration (Oct 2023) Questions found an anwer throught the ~85,000 Întreb
Slide 29: Digital Power: Enabling Financial Access
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group DIGITAL POWER: ENABLING FINANCIAL ACCESS BT PAY: THE UNLIMITED APP Q1‘24 vs Q1’23 Q1‘24 vs Q1’23 27 NO. OF USERS % 65 VOL. FUND TRANSFERS % Q1‘24 vs Q1’23 Q1‘24 vs Q1’23 40 NO. MOBILE P
Slide 30: Salt Bank: Born Digital
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group SALT BANK: BORN DIGITAL 100 % 1 st 100K Digital Neobank built in Romania Founders Fintech licensed bank SIMPLE BANKING: FULLY DIGITAL EXPERIENCE TAILORED TO MODERN USERS Business Object
Slide 31: Salt Bank: Improving on Customers' Constant Feedback
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group SALT BANK: IMPROVING ON CUSTOMERS' CONSTANT FEEDBACK 200 K 17 132 MN Customers in the Transactional currencies in current accounts and first month deposits from customers FOUNDER’S POIN
Slide 32: Agenda
AGENDA Macroeconomic Business GSM Risk Landscape Performance Decisions 1 2 3 4 BT Financial Sustainability Digital Appendix Group 5 6 7 8
Slide 33: BT Financial Group Overview
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group BT FINANCIAL GROUP OVERVIEW INDICATORS NET PROFIT TOTAL ASSETS/AUM* OTHER ROE ROA Q1 2024 (RON MN) (RON MN) INDICATORS Banca Transilvania 913.24 167,629 32.77% 2.22% 4,288,950 Active cl
Slide 34: Increasing the Breadth of the BT Financial Group
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group INCREASING THE BREADTH OF THE BT FINANCIAL GROUP BT ASSET MANAGEMENT +12% number of clients and +7% AUM versus YE23 >9% yields of equity funds with exposure to the local market BT Maxim
Slide 35: Agenda
AGENDA Macroeconomic Business GSM Risk Landscape Performance Decisions 1 2 3 4 BT Financial Sustainability Digital Appendix Group 5 6 7 8
Slide 36: Annex 1: Income Statement, IFRS Individual
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group ANNEX 1: INCOME STATEMENT, IFRS INDIVIDUAL RON | MN MAR 2024 MAR 2023 Δ Net interest income 1,324.7 1,031.4 28.4% Net fee and commission income 295.9 250.9 18.0% Net trading income 156.
Slide 37: Annex 1: Balance Sheet, IFRS Individual
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group ANNEX 1: BALANCE SHEET, IFRS INDIVIDUAL RON | MN MAR 2024 DEC 2023 Δ Cash & cash equivalents 23,303.6 22,286.3 4.6% Placements with banks and public institutions 11,358.1 12,619.3 -10.0
Slide 38: Annex 2: Income Statement, IFRS Consolidated
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group ANNEX 2: INCOME STATEMENT, IFRS CONSOLIDATED RON | MN MAR 2024 MAR 2023 Δ Net interest income 1,543.0 1,241.9 24.2% Net fee and commission income 337.7 287.9 17.3% Net trading income 19
Slide 39: Annex 2: Balance Sheet, IFRS Consolidated
Macroeconomic Business GMS BT Financial Risk Sustainability Digital Appendix Landscape Performance Decisions Group ANNEX 2: BALANCE SHEET, IFRS CONSOLIDATED RON | MN MAR 2024 DEC 2023 Δ Cash & cash equivalents 25,243.5 24,252.6 4.1% Placements with banks and public institutions 11,265.6 12,273.0 -8.
Slide 40: Thank You
THANK YOU investor.relations@btrl.ro +40 264 407 150 +40 264 301 128 Calea Dorobantilor, Nr. 30- 36, Cluj-Napoca, Romania