Brd Groupe Societe Generale Sa (romania) · BVB:BRD

Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — FY2023 Earnings Presentation

33 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 9, 2024

  1. Slide 1: BRD Group Results 4th quarter and full year 2023

    BRD GROUP RESULTS 4th quarter and full year 2023 | 09.02.2024

  2. Slide 2: Disclaimer

    DISCLAIMER The consolidated and separate financial position and income statement for the period ended December 31, 2023 were examined by the Board of Directors on February 7, 2024. The financial information presented for the period ended December 31, 2023 and comparative periods has been prepared ac

  3. Slide 3: Introduction

    1 INTRODUCTION BRD GROUPE SOCIETE GENERALE

  4. Slide 4: 2023: Outstanding commercial activity and financial results

    2023: OUTSTANDING COMMERCIAL ACTIVITY AND FINANCIAL RESULTS Excellent lending activity Loan portfolio +13% y/y at 2023 end Remarkable catalyst of growth, lending on corporate built on both strong Corporate loans +23% y/y at 2023 end contribution from SMEs and large corporate customers Consolidated t

  5. Slide 5: Awarded excellence in 2023

    AWARDED EXCELLENCE IN 2023 Bank of the Year, Risk Management The Banker: Bank of the Year in Most consistent activity in environment Bank of the Year, CSR Romania Most visible supporter of culture Best practices in corporate governance Best Trade Finance and investor provider in Romania communicatio

  6. Slide 6: Macroeconomic environment

    2 MACROECONOMIC ENVIRONMENT

  7. Slide 7: Modest growth of GDP, single-digit year end inflation

    MODEST GROWTH OF GDP, SINGLE - DIGIT YEAR END INFLATION GDP GROWTH Economic growth lost momentum EU GDP marked a low point of growth at 0.1% YoY in Q3 23 7.3% 6.0% 5.7%5.7% RO GDP marginally up to 1.1% YoY in Q3 23 on largely negative 4.7% 3.9% 4.1% impact of changes in inventory and modest contribu

  8. Slide 8: Interest rates on hold, record market liquidity

    INTEREST RATES ON HOLD, RECORD MARKET LIQUIDITY NBR keeps status-quo on rates Key policy rate maintained at 7% throughout 2023 in light of still high, although decelerating, core inflation, labor market tensions, and uncertainty surrounding fiscal consolidation INTEREST RATES 9.2% 8.8% 8.6% 8.3% 7.9

  9. Slide 9: Diverse and extended programs in support of the economy

    DIVERSE AND EXTENDED PROGRAMS IN SUPPORT OF THE ECONOMY National Recovery and Resilience Plan  Main RRP objectives target green and digital transitions, while strengthening healthcare, education, social cohesion and inclusion  In Dec 2023, Romania sent the third RRP payment request to the EC, wort

  10. Slide 10: Solid banking sector

    SOLID BANKING SECTOR ROMANIAN BANKING SYSTEM Comfortable solvency and liquidity NPL AND NPL COVERAGE RATIOS Banking sector solvency ratio, at 22.3% at September 2023 end, 66.1% 65.6% 66.2% 64.9% adequate and above EU average, provides a good capacity to absorb 60.7% 63.3% 64.1% EU 56.2% 57.7% 58.5%

  11. Slide 11: 4th quarter and full year 2023 BRD Group results

    3 4TH QUARTER AND FULL YEAR 2023 BRD GROUP RESULTS

  12. Slide 12: Digital in good traction

    DIGITAL IN GOOD TRACTION GROWING DIGITAL IMPACT FURTHER EXPANDED DIGITAL OFFER 1.42 m YouBRD users at 2023 end, +33% y/y Extended digital offer with 100% online investment products 24 m nb of transactions via You BRD in 2023, +29% y/y 76% of deposits & 91% of savings accounts opened directly in  Ex

  13. Slide 13: Impressive lending expansion across segments

    IMPRESSIVE LENDING EXPANSION ACROSS SEGMENTS Exceptional corporate lending performance Strong advance of SME financing, +18.4% YoY NET LOANS  RON 2.63 bn new loans under IMM Invest Plus program in 2023, (end of period amounts, RON bn) +27% YoY YoY Large corporate loan portfolio growing by +25.8% Yo

  14. Slide 14: Increasingly committed in building a sustainable economy

    INCREASINGLY COMMITTED IN BUILDING A SUSTAINABLE ECONOMY Sizeable overall volume of transactions  Financing of a photovoltaic project implemented by Vrancart, the renewable energy to be used in its own production activity -> a EUR 15.9m green loan structured in line with Loan Market Association (LM

  15. Slide 15: Growing, resilient and varied foundation of deposits

    GROWING, RESILIENT AND VARIED FOUNDATION OF DEPOSITS Steady expansion of deposit base Most stable and ample funding source, Retail deposits, in constant growth, +9.9% YoY at 2023 end DEPOSITS Impressive net inflows from SMEs, +15.1% YoY at 2023 end (end of period amounts, RON bn) YoY +10.1% Strong l

  16. Slide 16: Business growth, catalyst for high revenues

    BUSINESS GROWTH, CATALYST FOR HIGH REVENUES NET BANKING INCOME (RON m) Y/Y Engines of NII growth: expanded volumes and high IR +10.8% +15% y/y in 2023, +10.7% y/y in Q4 2023 3,834 3,459 359 +7.3% Other income Consistent rise in loans outstanding, +13% y/y, given strong 334 750 contribution from both

  17. Slide 17: Growth in opex contained at single digit

    GROWTH IN OPEX CONTAINED AT SINGLE DIGIT OPERATING EXPENSES (RON m) Y/Y OPEX, +8.6% y/y in 2023, given persistent pressure on staff 1,895 +8.6% expenses and other costs advance 1,745 68 -1.6% Contributions to 69 FGDB & FR Staff expenses growth mainly explained by wage increase in 864 777 highly comp

  18. Slide 18: Strong asset quality throughout 2023

    STRONG ASSET QUALITY THROUGHOUT 2023 NET COST OF RISK 150 Net cost of risk at -19 bps in Q4-23 100 Q4 NCR driven by successful completion of unsecured Retail 50 93 52 portfolio sale (only non-performing) and slight credit quality 26 31 36 21 24 48 7 8 improvement within performing category 0 -8 -8 -

  19. Slide 19: Good capital position

    GOOD CAPITAL POSITION Solid high quality capital base SOLVENCY RATIO CAR of 21.5% at December 2023 end Regulatory own funds composed of Tier 1 and Tier 2 capital -198bps -6bps Tier 2 capital consists of EUR 250m subordinated loans -199bps +93bps +277bps Variation in own funds mainly explained by: 

  20. Slide 20: Conclusions

    A CONCLUSIONS BRD GROUPE SOCIETE GENERALE

  21. Slide 21: 2023: Outstanding performance

    2023: OUTSTANDING PERFORMANCE  Full year 2023 results, reflecting the strength and resilience of BRD business model  Lending activity, up +13% y/y, building on both retail and corporate segments  +23% advance of corporate loans outstanding, BRD remaining a trustworthy partner of both SMEs and lar

  22. Slide 22: Social responsibility at the heart of our action

    5 SOCIAL RESPONSIBILITY AT THE HEART OF OUR ACTION

  23. Slide 23: Tech & Innovation

    TECH & INNOVATION Prepare the Romanian society for the knowledge based economy Investing in STEM education, tech entrepreneurship, R&D in artificial intelligence to generate economic development and growth Universities, startups Tech & robotics hubs, university-based acceleration programs, incubator

  24. Slide 24: Education & Volunteering

    EDUCATION & VOLUNTEERING OUR VISION: Transform education in Romania, by investing in teachers Engage conversation about a modern education Scoala9.ro - over 1.4 million readers Supported building Alfabetar – the largest dedicated literacy program and platform, involving 10 NGOs  1,366 schools invol

  25. Slide 25: Culture - Fundatia 9

    CULTURE - FUNDATIA 9 A unique cultural foundation created 7 years ago in order to support the young generation of creators SCENA 9 – a leading voice in cultural journalism REZIDENTA 9 – our cultural center focusing on contemporary culture ARTISTS ROOMS – micro-grants for independent art productions

  26. Slide 26: Massive audience for Climate Change Summit 2023

    MASSIVE AUDIENCE FOR CLIMATE CHANGE SUMMIT 2023 The most important event in Romania and SEE dedicated to climate change, initiated and supported by BRD as founding partner Climate Change Summit is the yearly CEE meeting place for global researchers, entrepreneurs, government officials and civil soci

  27. Slide 27: Q&A Session

    6 Q&A SESSION BRD GROUPE SOCIETE GENERALE

  28. Slide 28: Appendix

    7 APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES BRD STOCK PRICE PERFORMANCE GLOSSARY – CLIENT SEGMENTATION

  29. Slide 29: BRD Group | Key figures

    BRD GROUP | KEY FIGURES (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q4-2023 Q4-2022 Change 2023 2022 Change Net banking income 1,003 918 +9.3% 3,834 3,459 +10.8% Operating expenses (505) (469) +7.8% (1,895) (1,745) +8.6%

  30. Slide 30: BRD Standalone | Key figures

    BRD STANDALONE | KEY FIGURES (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q4-2023 Q4-2022 Change 2023 2022 Change Net banking income 994 840 +18.4% 3,723 3,289 +13.2% Financial results Operating expenses (483) (433) +11.4

  31. Slide 31: BRD | Stock price performance

    BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation 8,000 22.0 EUR 2.5 bn 7,000 20.0 6,000 18.0 5,000 16.0 4,000 14.0 12.0 3,000 10.0 2,000 8.0 1,000 6.0 0 Volume ('000 shares, rhs) Price (RON, lhs)  BRD is part of the main market indices on the Bucharest Stock Exchange  BRD’s share pri

  32. Slide 32: Glossary – Client segmentation

    GLOSSARY – CLIENT SEGMENTATION  The Retail category is comprised of the following customer segments: • Individuals – BRD provides individual customers with a range of banking products such as: savings and deposits taking, consumer and housing loans, overdrafts, credit card facilities, funds transfe

  33. Slide 33: BRD Groupe Societe Generale - Investor Relations

    BRD GROUPE SOCIETE GENERALE - INVESTOR RELATIONS +4 021 380 47 62 | investor@brd.ro; www.brd.ro

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