Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — FY2023 Earnings Presentation
45 slides from Banca Transilvania SA's earnings presentation, Feb 28, 2024
Slide 1: Banca Transilvania
9) BANCA TRANSILVANIA
Slide 2: Disclaimer
The information contained in the present Banca Transilvania undertakes no obligation to document has not been independently verified update publicly any of them in light of new and no representation or warranty expressed or information or future events. None of Banca implied is made as to, and no re
Slide 3: Financial Results 2023 | 28th February 2024
Financial Results 2023 | 28th February 2024 3
Slide 4: Macroeconomic Landscape
1 Macroeconomic Landscape
Slide 5: GDP growth slowing, Q4 shows 1% increase
20 16 15 14 10 12 5 1.0 10 0 8 7.0 0.1 -5 6 -10 4 3.4 -15 2 -20 0 EU RO EU RO Source: Eurostat Source: Eurostat • Despite GDP growth slowing down compared to previous periods, Q4 shows a 1% increase as compared with 0.1% performance at the EU level. • The annual growth rate of consumer prices record
Slide 6: Corporate and household lending growth
30 12 25 10 20 8 15 6 10.3 10 4 5 2 1.4 3.4 0.3 0 0 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2020Jun 2022Jun 2020Mar 2021Mar 2022Mar 2023Mar 2020Mar 2021Mar 2022Mar 2023Mar 2021Jun 2022Jun 2023Jun 2020Jun 2021Jun 2023Jun 2021Sep 2020Sep 2022Sep 2023Sep 2020Sep
Slide 7: Corporate and household deposits growth
25 18 16 20 14 14.9 12 15 11.7 10 8 10 6 4 5 2 0.8 -0.6 0 0 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2020Mar 2020Jun 2021Mar 2021Jun 2022Mar 2022Jun 2023Mar 2023Jun 2020Sep 2022Sep 2021Sep 2023Sep 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2020Mar 2021Mar 2022Mar 2023Mar 2020Jun 2021Jun 2022Jun 2023Jun
Slide 8: NPL ratio, net assets, ROA and ROE of banking sector
25 25 20 19.22 20 15 17.03 15 10 10 5 2.61 5 0 01/12/2009 01/03/2021 01/09/2010 01/06/2011 01/03/2012 01/12/2012 01/09/2013 01/06/2014 01/03/2015 01/12/2015 01/09/2016 01/06/2017 01/03/2018 01/12/2018 01/09/2019 01/06/2020 01/12/2021 01/09/2022 01/06/2023 0 2023Q3 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3
Slide 9: Business Performance
2 Business Performance
Slide 10: Key financial indicators
Net interest income, RONmn 4,319.2 3,658.2 18.1% 5,213.6 4,426.7 17.8% Net fee and commission income, RONmn 1,106.0 998.5 10.8% 1,284.3 1,167.8 10.0% Operating expenses, RONmn (2,935.5) (2,661.3) 10.3% (3,523.6) (2,983.7) 18.1% Pre-provision operating profit, RONmn 3,501.7 2,698.7 29.8% 4,219.1 3,29
Slide 11: Net interest income and net fee & commission income
+18.1% 3.44% 3.17% 2.83% 2.97% 2.54% 4,319 2019 2020 2021 2022 2023 3,658 +10.8% -9.6% 998 1,106 597 540 345 -140 Net interest Net fee & Net trading Net gain/loss from income commission income income fin. assets 67.10% FY 2022 FY 2023 Net interest income Net trading income Net fee & commission incom
Slide 12: Deposits and loans by segment
other other 0.05 0.04 +8.7% Dec/22 Dec/23 Dec/23 RON 28.9bn RON 31.4bn +19.4% Dec/22 Dec/23 Dec/23 RON 30.1bn RON 36.0bn *SMEs identified according to internal classification rules Financial Results 2023 | 28th February 2024 12
Slide 13: Deposits and loans by segment
+10.8% Dec/22 Dec/23 Dec/23 RON 77.9bn RON 86.3bn +24.6% Dec/22 Dec/23 Dec/23 RON 38.6bn RON 48.2bn *SMEs identified according to internal classification rules Financial Results 2023 | 28th February 2024 13
Slide 14: Loan and deposit evolution
+10.8% +8.7% 31.4 86.3 28.9 77.9 26.9 24.0 68.4 23.0 21.2 60.3 50.9 41.7 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 +9.9% +8.1% 5.3 6.0 4.1 4.4 4.7 3.2 3.5 3.8 3.7 2.6 2.9 3.0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Financial Results 2023 | 28th February 2024 14
Slide 15: Corporate and SME lending
+11.0% +22.5% 8.2 9.1 22.0 26.9 6.8 6.1 16.2 5.5 13.4 5.0 12.6 12.7 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 • Focus on improving client experience and • Tapping into PNRR-related projects, with enhanced quality of services, beyond peak expected from 2024 onwards lending • New pro
Slide 16: Risk
Risk
Slide 17: Cost of risk and ECL
+8.6% +7.4% 1.93% 4.37 4.85 0.04 0.05 4.02 4.52 0.05 0.09 3.61 1.36 3.94 0.05 1.67 0.10 1.25 1.56 1.78% 1.27 1.48 1.68 0.90% 1.76 1.64 1.70 0.68% 1.51 0.69% 1.56 0.59% 0.64% 0.43% 0.59% 0.41% 0.49% 1.30 1.36 1.08 1.16 0.42% 0.79 0.80 2021 2022 2023 2021 2022 2023 2018 2019 2020 2021 2022 2023 ECL -
Slide 18: NPL ratio and coverage
195 203 166 57 47 44 41 38 33 133 94 98 80 83 84 87 87 76 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 *Total ECL to EBA NPL NPL coverage with mortgage collaterals NPL coverage with provisions 4.36% 3.09% 2.79% NPL Ratio (EBA) NPL (PAR 90) 3.46% 3.46% 2.71% 2.00% 2.44% 1.98% 1.77% 1.6
Slide 19: Capital adequacy and buffers
23.58% 23.58 ---------- 7.21 19.94% CET1 25.5% 16.37% 5.50 10.87% ---------- 54.9% 11.61% Min CET1 8.0% 2.87 15.5% 8.00 CET1 Capital Retained earnings and reserves Min CAR TSCR* OCR** CAR NBR Tier 2 Capital Other STAND-ALONE BASIS, NBR COMPUTATION FRAMEWORK, TRANSITIONAL, PROFIT INCLUDED: Banca Tran
Slide 20: Balance sheet structure and MREL
325 bps Other(5.25) Due from banks 11.83 Equity 12.62 Other (3.44) 33.35% 487 bps 10.99 Due to banks (1.08) 30.10% Cash and Cash eq. 22.29 Loans and subdebt 28.71% 10.91% 5.50% 6.37% 23.84% Securities 50.08 3.26% 5.00% 3.78% 134.44 Deposits 24.60% 19.18% 18.57% 18.84% Net loans 71.55 Assets Liab&Eq
Slide 21: Debut international bond issuance
BT’s debut bond issuance in international financial 9.00 markets of €500mm in Apr-23 with re-tap of €100mm 8.50 made in Jun-23 and re-tap of €190mm in Aug-23 8.00 7.50 €200mm subordinated bond package from IFC and AIIB in Jul-23. 7.00 6.50 6.00 5.50 BT’s issuance under the current EMTN program was e
Slide 22: Credit ratings: Moody's and Fitch
Outlook on the Bank’s Long-Term Ratings Stable Outlook on the Bank’s Long-Term Rating Stable Long- and Short-Term Counterparty Risk Ratings (CRRs) Baa1/P-2 Foreign Currency Long- and Short-Term Deposit Ratings Long-Term IDR BB+ Baa2/P-2 Baseline Credit Assessment Short-Term IDR B ba1 Adjusted Baseli
Slide 23: Sustainability
4 Sustainability
Slide 24: Sustainable Financing Framework and ESG highlights
✓ BT published it’s first Sustainable Financing ✓ BT committed to support Via Transilvanica for the Framework, in November 2023, which is next three years. endorsed by a Second Party Opinion issued by Sustainalytics. The bank attracted EUR 500 ✓ BT was the main partner of the European Cultural milli
Slide 25: Green financing
1,116 2,221 161 20 49 1,778 790 32 30 58 1,103 510 212 654 7 10 34 129 457 330 233 2021 2022 2023 2021 2022 2023 Green Buildings Energy Efficiency ✓ 15% of mortgages granted in 2023 qualify as green Renewable Energy Mobility Special Climate (EPC grade A). RON 827MN of green mortgages were granted in
Slide 26: Healthcare and agriculture financing
IN HEALTHCARE MARKET SHARE IN BANK IN ROMANIA WITH MARKET SHARE IN FINANCING MARKET HEALTHCARE FINANCING A DEDICATED DIVISION AGRICULTURE FINANCING NUMBER OF VALUE OF NUMBER OF VALUE OF CUSTOMERS NEW LOANS CUSTOMERS NEW LOANS DEPOSITS LOANS DEPOSITS LOANS Financial Results 2023 | 28th February 2024
Slide 27: Digital
Digital
Slide 28: BT Pay and digital cards
OF THE CARDS ISSUED BY BT ROUND-UP BT PAY USERS GEN Z CLIENTS ARE ENROLLED IN BT PAY ACCOUNTS 2023 VS 2022 IN BT PAY KIDDO Animated virtual card - a premiere in Europe BT Pay Kiddo, card and app for children and their parents Complete travel experience: euro card issuing, travel insurance and curren
Slide 29: Digital platform for entrepreneurs
CLIENTS PAYMENTS IN INVOICES FROM ENTREPRENEURS ACCESSING ENROLLED VALUE THE PLATFORM INVOICING OPPTIONS Deposits, Savings, Loans and Cards Electronic signature for bulk transactions Direct and simple transfers Opening accounts and deposits Foreign currency exchange establishment transactions Invoic
Slide 30: Digital clients and instant payments
DIGITAL CARDS ENROLLED MOBILE PAYMENTS CARD TRANSFERS CLIENTS IN MOBILE APPS 2023 VS 2022 2022 VS 2023 • 21% of the EUR interbank small amounts received are instant • 16% of the EUR small payments are instant >26% increased number of transactions in 2023 vs 2022 96% transactions initiated in digital
Slide 31: BT Financial Group
BT Financial Group
Slide 32: BT Financial Group
Financial Results 2023 | 28th February 2024 32
Slide 33: BT Financial Group subsidiaries
*including Idea Leasing Financial Results 2023 | 28th February 2024 33
Slide 34: OTP Acquisition
7 OTP Acquisition
Slide 35: OTP Group Romania franchise
LARGEST BANK IN TOTAL ASSETS & A FULL RANGE NET INTEREST INCOME CLIENTS ROMANIA OF FINANCIAL PRODUCTS PROFITABLE BANKING BOOK EXTENSIVE CLIENT BASE OTP Group Romania is a strong banking franchise in Romania with a comprehensive product offering serving both wholesale and retail clients Nationwide pr
Slide 36: Transaction perimeter
The transaction perimeter encompasses the Romanian operations of OTP Group: OTP Bank Romania S.A. (including its 100% subsidiaries), OTP Leasing Romania IFN S.A. and OTP Asset Management S.A.I S.A. SAVINGS AND LENDING MARKET TOTAL FTES BRANCHES ACROSS PRODUCTS SHARE ASSETS (AS OF DEC 2022) ROMANIA L
Slide 37: Pro forma impact on key indicators
L/D 55% 140% 61% NIM: negligible impact due to similar loan 138.0 10.3 148.3 portfolios 14.4 90.0 75.6 NFCI: upside potential, considered in the revenue synergies BT Group OTP RO Combined BT Group OTP RO Combined ROE: normalized to ~20% after synergies kick-in Asset quality: low impact, due to caref
Slide 38: Transaction timeline and rationale
Signing of SPA and TSA Regulatory Approvals 9th February Closing of the Operational and 2024 Transaction IT integration (est. Q1 2025) BT strengthens its leadership position, with a consolidated market share of cca. 23% by total assets Additional value unlocked by enhancing revenues from cross-s
Slide 39: BT acquisition track record
First acquisition of BT Market position Expansion of the and gaining consolidation strategy, First acquisition of a Cementing BT’s financial services nationwide coverage in retail and SME stand-alone leasing position portfolio by entering and a balanced retail- banking, leasing and company as BT as
Slide 40: Appendix
Appendix
Slide 41: Income statement
Net interest income 4,319.2 3,658.2 18.1% Net fee and commission income 1,106.0 998.5 10.8% Net trading income 539.7 597.1 -9.6% Other net income 472.2 106.2 344.9% Personnel expenses (1,614.0) (1,385.2) 16.5% D&A (404.2) (350.9) 15.2% Other operating expenses (917.2) (925.2) -0.9% Income tax (expen
Slide 42: Statement of financial position
Cash & cash equivalents 22,286.3 12,645.2 76.2% Placements with banks and public institutions 12,619.3 6,634.9 90.2% Loans to customers, net 71,550.4 63,450.0 12.8% T-bills & securities 50,075.5 45,823.0 9.3% Fixed assets 1,317.4 1,161.0 13.5% Right-of-use assets 698.0 696.8 0.2% Investments in asso
Slide 43: Group income statement
Net interest income 5,213.6 4,426.7 17.8% Net fee and commission income 1,284.3 1,167.8 10.0% Net trading income 657.0 686.1 -4.2% Other net income 587.8 (0.6) Personnel expenses (1,967.5) (1,655.5) 18.8% D&A (450.5) (393.0) 14.6% Other operating expenses (1,105.6) (935.2) 18.2% Income tax (expense)
Slide 44: Group statement of financial position
Cash & cash equivalents 24,252.6 14,540.7 66.8% Placements with banks and public institutions 12,273.0 5,567.3 120.4% Loans to customers, net 75,570.9 68,013.5 11.1% T-bills & securities 51,775.4 47,191.3 9.7% Fixed assets 2,126.9 1,835.0 15.9% Right-of-use assets 514.1 488.0 5.3% Investments in ass
Slide 45: Investor relations contact
30 – 36, Dorobantilor Street, Cluj-Napoca, Romania +40 264 407 150 | +40 264 301 128 investor.relations@btrl.ro