Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — 9M 2023 Earnings Presentation
27 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Nov 6, 2023
Slide 1: BRD Group Results 3rd quarter and 9 months 2023
BRD GROUP RESULTS 3rd quarter and 9 months 2023 | 06.11.2023
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended September 30, 2023 were examined by the Board of Directors on November 2, 2023. The financial information presented for the period ended September 30, 2023 and comparative periods has been prepared
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Strong momentum for commercial activity, foundation for excellent financial results
STRONG MOMENTUM FOR COMMERCIAL ACTIVITY, FOUNDATION FOR EXCELLENT FINANCIAL RESULTS Lending activity kept a double digit growth rate Loan portfolio growth +10% y/y at September 2023 end Outstanding performance of corporate segment, built on strong contribution Corporate loans +20% y/y at September 2
Slide 5: Massive audience for Climate Change Summit 2023
MASSIVE AUDIENCE FOR CLIMATE CHANGE SUMMIT 2023 1st summit in Romania 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 society leaders to exchang
Slide 6: Macroeconomic environment
2 MACROECONOMIC ENVIRONMENT
Slide 7: Annual GDP growth lost traction, inflation softening
ANNUAL GDP GROWTH LOST TRACTION, INFLATION SOFTENING GDP GROWTH Economic growth slowed in the first half of 2023 EU GDP growth at 0.4% YoY in Q2 23 7.3% 6.0% 5.7%5.7% After a strong performance in 2022, Romanian economy slowed down in a 4.7% 3.9% 4.7% 3.4% context of lagging global economic developm
Slide 8: Interest rates on hold, liquidity remains abundant
INTEREST RATES ON HOLD, LIQUIDITY REMAINS ABUNDANT NBR refrained from rate cuts Given sticky core inflation, labor market tension and uncertainty regarding fiscal consolidation, NBR maintained the key rate INTEREST RATES unchanged, at 7%, during the last monetary policy meeting from 9.2% October. 8.
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 Improving the institutional capacity to absorb European funds and respe
Slide 10: Solid banking sector
SOLID BANKING SECTOR ROMANIAN BANKING SYSTEM NPL AND NPL COVERAGE RATIOS Comfortable solvency and liquidity Banking sector average Capital Adequacy Ratio at 22.8% at June 2023 63.3% 66.1% 65.6% 64.1% EU 58.5% 60.7% 55.6% 56.2% 57.7% 42.9% end, lower compared to 23.4% at 2022 end (vs.13.8% at 2007 en
Slide 11: 3rd quarter and 9 months 2023 BRD Group results
3 3RD QUARTER AND 9 MONTHS 2023 BRD GROUP RESULTS
Slide 12: Digital transformation keeps good rhythm
DIGITAL TRANSFORMATION KEEPS GOOD RHYTHM FURTHER INTENSIFYING DIGITAL ACTIVITY EXPANDED AND ENHANCED DIGITAL FUNCTIONALITIES Flow duration further optimized: 1.33 m YouBRD users at September 2023 end, +36% y/y 19 min for online onboarding, record at 15 min 17m nb of transactions via You BRD in 9M
Slide 13: Lending expansion underpinned by corporate high dynamic and retail solidity
LENDING EXPANSION UNDERPINNED BY CORPORATE HIGH DYNAMIC AND RETAIL SOLIDITY Outstanding lending activity on corporate segment Strong advance of SME financing, +26% YoY NET LOANS RON 1.97 bn new loans under IMM Invest Plus program in 9M (end of period amounts, RON bn) 2023, +31% YoY YoY Large corpo
Slide 14: Robust and diversified deposit base
ROBUST AND DIVERSIFIED DEPOSIT BASE Solid growth of deposits Sustained growth of retail deposits, most stable and granular funding source, +7.2% y/y at September 2023 end DEPOSITS Significant net inflows from large corporate customers (end of period amounts, RON bn) YoY 60.6 +9.8% 55.2 56.7 Strong l
Slide 15: Revenues supported by volumes growth and higher interest rates
REVENUES SUPPORTED BY VOLUMES GROWTH AND HIGHER INTEREST RATES NET BANKING INCOME (RON m) Y/Y NII growth on lending dynamic and higher interest rates +11.4% +16.5% y/y in 9M 2023, +13.2% y/y in Q3 2023 2,831 2,541 258 +6.9% Outstanding loans up by +10% y/y at September 2023 end Other income 241 563
Slide 16: Good discipline on opex despite inflationary pressures
GOOD DISCIPLINE ON OPEX DESPITE INFLATIONARY PRESSURES OPERATING EXPENSES (RON m) Y/Y Staff expenses increase driven by higher wages within a still 1,390 +9.0% tight labour market and elevated inflation context 1,276 68 -1.6% 69 Contributions to +8.8% y/y in 9M 2023 vs 9M 2022, including the impac
Slide 17: Strong asset quality with no sign of deterioration
STRONG ASSET QUALITY WITH NO SIGN OF DETERIORATION NET COST OF RISK Net cost of risk at -31 bps in Q3-23 Q3 NCR positively influenced by consistent recoveries on non- performing portfolio and relatively stable evolution on performing portfolio *Note: CoR (bps) in quarter is annualized NPL RATIO NPL
Slide 18: Good capital position, in capacity to distribute dividend
GOOD CAPITAL POSITION, IN CAPACITY TO DISTRIBUTE DIVIDEND Solid high quality capital base SOLVENCY RATIO CAR of 19.4% at September 2023 end Regulatory own funds composed of Tier 1 and Tier 2 capital +266bp -197bp +205bp -314bp Tier 2 capital consists of EUR 250m subordinated loans -182p -35bp The ye
Slide 19: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 20: Solid financials & digital acceleration to reinforcing support to economy
SOLID FINANCIALS & DIGITAL ACCELERATION TO REINFORCING SUPPORT TO ECONOMY Over the first 9M of 2023, BRD fully acted upon its role of financier of the economy Outstanding rhythm of lending activity (+10% y/y) with corporate loans as main driver (+20% y/y) Retail lending kept a strong momentum
Slide 21: Q&A Session
.) Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 22: Appendix
6 APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES BRD STOCK PRICE PERFORMANCE GLOSSARY – CLIENT SEGMENTATION
Slide 23: 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 Q3-2023 Q3-2022 Change 9M-2023 9M-2022 Change Net banking income 969 900 +7.8% 2,831 2,541 +11.4% Operating expenses (447) (423) +5.5% (1,390) (1,276) +
Slide 24: 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 Q3-2023 Q3-2022 Change 9M-2023 9M-2022 Change Net banking income 924 857 +7.8% 2,728 2,449 +11.4% Financial results Operating expenses (427) (401)
Slide 25: BRD | Stock price performance
BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation 8,000 22.0 EUR 2.2 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
Slide 26: 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
Slide 27: BRD Groupe Societe Generale - Investor Relations
BRD GROUPE SOCIETE GENERALE - INVESTOR RELATIONS +4 021 380 47 62 | investor@brd.ro; www.brd.ro
BRD Groupe Société Générale — 9M 2023 Earnings Presentation on 6ix