Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q3 2020 Earnings Presentation
32 slides from Banca Transilvania SA's earnings presentation, Nov 16, 2020
Slide 1: Q3 2020 financial results
BANCA TRANSILVANIA Q3 2020 financial results November 16th, 2020 Clasificare BT: Uz Intern
Slide 2: Disclaimer
|1 Disclaimer The information contained in the present 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
Slide 3: Macroeconomic Landscape
|2 Macroeconomic Landscape Clasificare BT: Uz Intern
Slide 4: Macro developments: real economy
|3 Macro developments real economy stringency index vs. active cases Some restrictions were reintroduced this autumn, 100 70 90 60 as the health crisis intensified 80 70 50 However, the fixed investments rose in 1H despite 60 40 50 the pandemic, Romania being the outlier of EU 40 30 Stringency index
Slide 5: Macro developments: policy-mix
|4 Macro developments policy-mix monetary policy rate vs. inflation The policy-mix maintained highly accommodative in 3Q2020, 15% Consumer prices (HICP) (YoY) in convergence with the global and European stances Monetary policy rate NBR cut the reference rate to 1.50% (a record low level) 10% Consume
Slide 6: Macro developments: financial economy
|5 Macro developments financial economy CDS USD 5 YR (bp) 200 The risk perception improved in 3Q, given the climate on 180 international markets and the outlook for domestic policy-mix 160 140 However, EUR/RON continued the gradual appreciation trend 120 100 BET index rose in September, diverging fr
Slide 7: Banking sector dynamics: loans
|6 loans Banking sector dynamics loans (YoY) 25% Total RON FX 20% Loans continued the slowing-down trend in 3Q, to 3.8% YoY (from 4.7% YoY in 2Q) and rose by 5.2% YoY during 9M2020 15% 10% 5% • After hitting the lowest level since May 2017 in July (3.6%), the YoY pace of the non-government loans sli
Slide 8: Banking sector dynamics: deposits
|7 deposits Banking sector dynamics deposits (RON bn) 450 Household Corporate 400 Deposits continued to outpace the dynamics of the loans in 3Q 350 300 153.2 • The YoY pace of the deposits accelerated from 13.2% in 2Q to 250 14.1% in 3Q (up by 12.9% during 9M2020), an evolution 200 244.0 determined
Slide 9: Actions and Impact COVID19
|8 Actions and Impact COVID19 Clasificare BT: Uz Intern
Slide 10: Fuel the economy during CoVID-19 pandemic
|9 Fuel the economy during CoVID-19 pandemic Granted payment holiday to more than Companies, 41,000 customers, representing 14% of the 19% Supporting customers loan portfolio (i.e. RON 5.8bn) 32,900 customers By 30-Sep-20, more than 8,000 customers in active moratoria at 30-Sep-20 (RON 1.6bn) exited
Slide 11: Leverage on digital capabilities to move forward
| 10 Leverage on digital capabilities to move forward proactive support Retail Companies •More than 1.7mn. customers •Opening of online capital solidarity (~59% of the active clients) are current accounts: usage up by using BT’s digital solutions: BT 4.35x in Q3 vs. Q1 Pay, BT24, Neo, Apple Pay, Fit
Slide 12: Financial Performance
| 11 Financial Performance Clasificare BT: Uz Intern
Slide 13: BT performance in 9M 2020
| 12 BT performance in 9M 2020 INDIVIDUAL CONSOLIDATED profitability 9M 2020 9M 2019 9M 2020 9M 2019 Net interest income, RONmn 1,930.6 1,988.9 -2.9% 2,175.1 2,279.2 -4.6% Net fee and commission income, RONmn 477.2 530.9 -10.1% 560.1 609.2 -8.1% Operating expenses, RONmn (1,305.9) (1,281.6) 1.9% (1,
Slide 14: Trends in income structure Q3 2020 vs Q3 2019
| 13 Trends in income structure Q3 2020 vs Q3 2019 RONmn -2.9% -3.7% 1,989 1,931 1,641 1,580 -10.1% 9M 2019 9M 2020 -8.5% +1.9% 531 477 236 216 Net interest Net fee & Net trading Operating Pre-provision income commission income expenses operating profit income -1,282 -1,306 Clasificare BT: Uz Intern
Slide 15: Trends in income structure Q3 2020 vs. Q2 2020
| 14 Trends in income structure Q3 2020 vs. Q2 2020 RONmn +0.1% -3.6% 635 636 629 606 +25.0% -10.2% Q2 2020 Q3 2020 142 177 +2.8% 86 77 Net interest Net fee & Net trading Operating income commission income expenses Pre-provision income operating profit -410 -421 Clasificare BT: Uz Intern Macro Lands
Slide 16: Loan structure
| 15 Loan structure loans to households Sep/20 Dec/19 RON 23.0bn 3% Sep/20 RON 23.7bn loans to companies Sep/20 Dec/19 RON 18.2bn 7% Sep/20 RON 19.4bn * SMEs identified according to internal classification rules Clasificare BT: Uz Intern Macro Landscape CoVID19 Financial Performance Business Lin
Slide 17: Loan quality
| 16 Loan quality NPL (PAR90) ratio improved to 2.05%, impacted by the write-offs performed in September 2020 in NPL coverage ratio amount of 398 mn RON 133% 131% 127% 128% 119% 117% 40% 43% 49% 57% 47% 51% • Banca Transilvania continued to provide a sound coverage ratio for its PAR 90 portfolio 79%
Slide 18: Deposit structure
| 17 Deposit structure deposits from households Sep/20 Dec/19 RON 50.9bn 12% Sep/20 RON 57.0bn deposits from companies Sep/20 Dec/19 RON 23.5bn 3% Sep/20 RON 24.3bn * SMEs identified according to internal classification rules Clasificare BT: Uz Intern Macro Landscape CoVID19 Financial Performanc
Slide 19: Business lines/ Retail banking
| 18 Business lines/ Retail banking Retail loan portfolio reached RON 23.7bn at the end of 9M 2020 Retail loans, RONbn 23.7 23.0 • ~2,942,000 active clients 21.2 2.9 16.7 15.1 • ~55,800 non-card retail loans disbursed in 9M 2020 13.6 3.3 • leader on the cards market (23% market share) both 18.3 on i
Slide 20: Business lines/ SME banking
| 19 Business lines/ SME banking SME (internal definition) loan portfolio at RON 6.1bn • ~329,000 active clients SME loans, RONbn 6.1 5.4 5.0 • Banca Transilvania actively engaged on supporting 0.3 4.3 SMEs, with over 2,000 colleagues working together with the applicants 3.2 3.1 0.3 • Banca Transilv
Slide 21: Business lines/ Corporate banking
| 20 Business lines/ Corporate banking Corporate loan portfolio remains stable increased to RON 13.3bn Corporate loans, RONbn 12.6 12.7 13.3 • ~10,400 active clients 11.0 11.1 1.6 0.9 10.7 • 4.7% YTD increase coming from a balanced split between existing clients and new relationships • sectorial app
Slide 22: Capital
| 21 Capital Clasificare BT: Uz Intern
Slide 23: Robust capital to weather the pandemic context
| 22 Robust capital to weather the pandemic context Banca Transilvania is a well-capitalized bank and represents a source of strength for the economy amid RON 5.3bn the Coronavirus pandemic CET1 Capital - 53% 20.01% 20.01% 16.87% 3.13% 14.55% 2.32% 4.50% 10.05% RON 2.7bn 8.00% 2.05% Retained earning
Slide 24: Sustainability
| 23 Sustainability Clasificare BT: Uz Intern
Slide 25: Stepping up the pace towards sustainability
| 24 Stepping up the pace towards sustainability Partner of European Energy Efficiency Fund in Romania since 2014 Sustainability is no longer about Ensure high standards of E&S assessment of the loan portfolio, doing less harm, by compliance to IFC/EBRD standards for more than 10 years it’s about do
Slide 26: Banca Transilvania Financial Group as of 30/Sep/2020
| 25 Banca Transilvania Financial Group as of 30/Sep/2020 total assets RON 96.1bn total assets RON 491mn total assets RON 1,211mn AUM RON 3,853mn total assets RON 169mn total assets RON 506mn total assets RON 3,581mn * Figures for subsidiaries assessed under RAS rules; Clasificare BT: Uz Intern Macr
Slide 27: Annexes
| 26 Annexes Clasificare BT: Uz Intern
Slide 28: Income statement, IFRS individual
| 27 ANNEX1 income statement, IFRS individual RONmn 9M 2020 9M 2019 Net interest income 1,930.6 1,988.9 -2.9% Net fee and commission income 477.2 530.9 -10.1% Net trading income 215.7 235.7 -8.5% Other net income 262.4 167.3 56.9% Operating income 2,885.9 2,922.8 -1.3% Personnel expenses (701.4) (67
Slide 29: Balance sheet, IFRS individual
| 28 ANNEX1 balance sheet, IFRS individual RONmn Sep/20 Dec/19 Cash & cash equivalents 15,335.4 13,480.2 13.8% Placements with banks 9,586.8 6,995.3 37.0% Loans to customers, net 40,080.3 38,601.9 3.8% T-bills & securities 28,503.9 25,985.6 9.7% Fixed assets 816.9 777.4 5.1% Right-of-use assets 370.
Slide 30: Income statement, IFRS consolidated
| 29 ANNEX2 income statement, IFRS consolidated RONmn 9M 2020 9M 2019 Net interest income 2,175.1 2,279.2 -4.6% Net fee and commission income 560.1 609.2 -8.1% Net trading income 227.9 286.6 -20.5% Other net income 294.3 190.8 54.2% Operating income 3,257.5 3,365.7 -3.2% Personnel expenses (797.4) (
Slide 31: Balance sheet, IFRS consolidated
| 30 ANNEX2 balance sheet, IFRS consolidated RONmn Sep/20 Dec/19 Cash & cash equivalents 16,373.4 14,583.1 12.3% Placements with banks 10,171.3 7,775.1 30.8% Loans to customers, net 41,925.9 40,353.8 3.9% T-bills & securities 29,371.6 26,781.7 9.7% Fixed assets 1,105.8 973.4 13.6% Right-of-use asset
Slide 32: Banca Transilvania HQ
| 31 Banca Transilvania HQ 8, G. Baritiu Street, Cluj-Napoca 400027, Romania + 40 264 407 150 + 40 264 407 179 /FAX investor.relations@btrl.ro www.bancatransilvania.ro/en/investor-relations www.bancatransilvania.ro www.bt24.ro facebook.com/BancaTransilvania # twitter.com/b_Transilvania linkedin.com/