Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q2 2024 Earnings Presentation
26 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Aug 1, 2024
Slide 1: BRD Group Results
BRD GROUP RESULTS 2nd quarter and 1st half 2024 | 01.08.2024
Slide 2: Disclaimer
DISCLAIMER The preliminary consolidated and separate financial position and income statement for the period ended June 30, 2024 were examined by the Board of Directors on July 31, 2024. The financial information presented for the period ended June 30, 2024 and comparative periods has been prepared a
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: H1 2024: Intense business rhythm all over the board
H1 2024: INTENSE BUSINESS RHYTHM ALL OVER THE BOARD Further supporting our customers’ diverse projects Loan portfolio growth +14% y/y at Jun 24 end Excellent performance on corporate segment (net loans outstanding +22% y/y) underpinned by active participation in SMEs governmental RON 3bn approved fi
Slide 5: Macroeconomic Environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: Subdued economic growth, inflation anchors on downside
SUBDUED ECONOMIC GROWTH, INFLATION ANCHORS ON DOWNSIDE GDP GROWTH Subdued growth across Europe, acceleration expected by 2024 end 7.3% Despite significant progress on reversing inflation dynamics and 6.0% 5.7% 5.7% 4.7% somewhat less restrictive policy rates, challenges remain 3.9% 4.1% 3.4% 2.8% 2.
Slide 7: Prudently easing monetary policy, elevated market liquidity
PRUDENTLY EASING MONETARY POLICY, ELEVATED MARKET LIQUIDITY NBR started cautiously to loosen its monetary policy Given the decrease of inflation on a significantly less steep INTEREST RATES path than previously estimated, on July 5th 2024, NBR reduced the monetary policy rate by 25bps to 6.75% 8.8%
Slide 8: Romanian banking sector – prudential indicators remain solid
ROMANIAN BANKING SECTOR – PRUDENTIAL INDICATORS REMAIN SOLID Comfortable solvency and liquidity CAPITAL ADEQUACY, L/D & LIQUIDITY RATIOS Solid capital adequacy, driven by strong capital generation, at 22.9% as 71.9 69.5 63.6 64.0 65.7 61.0 59.9 at March 2024 end, c. 200bps higher than the EU average
Slide 9: 2nd Quarter and 1st Half 2024 BRD Group Results
3 2ND QUARTER AND 1ST HALF 2024 BRD GROUP RESULTS
Slide 10: Speeding-up adoption of a relevant digital offer
SPEEDING-UP ADOPTION OF A RELEVANT DIGITAL OFFER FURTHER INCREASED USAGE OF E-CHANNELS ENHANCED DIGITAL JOURNEY ~1.6m YouBRD users at June 2024 end, +20% y/y 100% online APIA loans for small businesses 14.5m transactions via YouBRD, +30% y/y vs H1 23 Digital signature in branch for PI lending applic
Slide 11: Strong lending growth across all segments
STRONG LENDING GROWTH ACROSS ALL SEGMENTS NET LOANS OUTSTANDING Corporate lending maintained an excellent performance, (end of period amounts, RON bn) with double-digit growth on both SMEs and large companies Y/Y 45.0 +13.9% 42.3 ✓ outstanding loans, +14.3% YoY on SMEs and +26.9% YoY on 39.6 large c
Slide 12: Expanding, robust and diversified deposit base
EXPANDING, ROBUST AND DIVERSIFIED DEPOSIT BASE DEPOSITS Consistent growth in deposit volumes (end of period amounts, RON bn) Y/Y Retail deposits, +10.8% y/y at June 2024 end, with strong dynamic 62.4 65.5 +12.0% on term deposits, on rates context change 58.4 Corporate deposits increase by +14.3% y/y
Slide 13: Dynamic volumes, leading driver of revenues growth
DYNAMIC VOLUMES, LEADING DRIVER OF REVENUES GROWTH NET BANKING INCOME (RON m) Y/Y Steady NII growth, above +7% y/y in both H1 2024 and Q2 1,968 +5.7% 1,861 2024, on dynamic lending activity across the board 158 -7.9% Other income 172 ✓ corporate loans outstanding, + 22.4% y/y at Jun 24 end 384 Net f
Slide 14: New levy tax weighs on costs, inflation pressure persists albeit reduced
NEW LEVY TAX WEIGHS ON COSTS, INFLATION PRESSURE PERSISTS ALBEIT REDUCED OPERATING EXPENSES (RON m) Y/Y OPEX controlled at +5% y/y in H1 ‘24 and Q2 ‘24, excluding 1,028 +8.9% new levy tax and cumulated contributions to FGDB&RF Tax on turnover 944 62 FGDB & FR 68 44 -36.1% 414 429 +3.6% Staff expense
Slide 15: Stable portfolio evolution in the second quarter
STABLE PORTFOLIO EVOLUTION IN THE SECOND QUARTER NET COST OF RISK Net cost of risk at +30 bps in Q2 2024 Stable cost of risk amid continuous portfolio growth and solid asset base *Note: CoR (bps) in quarter is annualized NPL RATIO NPL ratio and Outlook Stable NPL ratio, mirroring banking system evol
Slide 16: Strong capital position, MREL compliance ensured
STRONG CAPITAL POSITION, MREL COMPLIANCE ENSURED SOLVENCY RATIO Solid high quality capital base CAR of 23.1% at June 2024 end +68bp -46bp -3bp Regulatory own funds composed of Tier 1 and Tier 2 capital -189bp +240bp Tier 2 capital consists of EUR 250m subordinated loans The year-on-year variation of
Slide 17: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 18: H1 2024: Commercial activity maintained strong advance
H1 2024: COMMERCIAL ACTIVITY MAINTAINED STRONG ADVANCE ▪ 1ST half 2024 results reflecting BRD’s strength and capacity to deliver value ✓ Net loans outstanding, up +14% y/y, benefitting from across-the-board business growth Corporate loans maintained a dynamic track, building on strong partnerships a
Slide 19: Q&A Session
.) Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 20: Appendix
6 APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE - KEY FIGURES BRD STOCK PRICE PERFORMANCE FINANCIAL CALENDAR FOR 2024 GLOSSARY – CLIENT SEGMENTATION
Slide 21: 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 Q2-2024 Q2-2023 Change H1-2024 H1-2023 Change Net banking income 983.4 926 +6.2% 1,968 1,861 +5.7% Operating expenses (498.5) (436) +14.4% (1,028) (944)
Slide 22: 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 Q2-2024 Q2-2023 Change H1-2024 H1-2023 Change Net banking income 950 911 +4.3% 1,891 1,804 +4.8% Operating expenses (487) (418) +16.5% (998) (905)
Slide 23: BRD | Stock Price Performance
BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation 8,000 22.0 EUR 2.9 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 24: Financial Calendar for 2024
FINANCIAL CALENDAR FOR 2024 8th February: Preliminary 2023 financial results 25th April: General Shareholders Meeting for approving the 2023 annual financial results 2nd May: Presentation of 1st quarter 2024 financial results 1st August: Presentation of 2nd quarter and 1st half 2024 financial result
Slide 25: 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 26: 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 — Q2 2024 Earnings Presentation on 6ix