Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q3 2017 Earnings Presentation
25 slides from Banca Transilvania SA's earnings presentation, Nov 13, 2017
Slide 1: Q3 2017 financial results
BANCA TRANSILVANIA Q3 2017 financial results November 13th 2017
Slide 2: Disclaimer
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 her
Slide 3: Agenda
Agenda 1 Banking Sector Dynamics 2 H1 2017 Highlights 3 Performance in H1 2017 4 Overview of Business Lines 5 BT Financial Group a Financial Statements 2
Slide 4: Bank assets propelled to RON 400bn by revival in corporate loans
Bank assets propelled to RON 400bn by revival in corporate loans Bank assets up by 1.3% YTD as corporate NPL ratios continues to drop, as loans switch to a positive dynamic loan quality improves total bank net assets source: NBR 399 NPL ratio, % source: NBR 10% 40 0 394 394 39 0 16.2% 15.7% 8% 380 3
Slide 5: Corporate loans join housing loans as major driver of credit activity
Corporate loans join housing loans as major driver of the credit activity Private loans advance during 3Q17 at the Lending gathers steam on a RON fastest pace since 2012 6.3bn YoY surge in corporate loans private loans, %YoY source: NBR YoY change private loans, RONbn source: NBR 7.3% 9% 20 non-fina
Slide 6: LCY loans continue to gain weight as FCY loans stall
LCY loans continue to gain weight as FCY loans stall New loans tend to be in LCY, as FCY loans Most of the total FCY loans are being stalled during 3Q17 contracted by companies (51%) private loans, RONbn source: NBR private loans at 3Q17, RONbn source: NBR 143 137 3% 10 0% 4% 3% other 14000% 130 14%
Slide 7: The real economy: GDP up by 5.9% YoY in 1H2017
The real economy GDP up by 5.9% YoY in 1H2017, the highest pace since 2008 An evolution supported by the pro- Deterioration of the investment cyclical policy-mix climate Private consumption vs. fixed FDIs (12M cumulative) (EUR mn) source: NBR investments (%, YoY) source: Statistics Office 4,500 20 6
Slide 8: The financial economy
The financial economy CPI acceleration and the intensifying risk perception determined the increase of the financing costs to the highest levels since 2014 Financing costs on upward trend ERP on an upward trend ROBOR vs. EURIBOR (%) source: Bloomberg ERP RO vs. ERP US (%) source: BT estimates 0.1 1.
Slide 9: Banca Transilvania's business development and financial performance in Q3 2017
Banca Transilvania’s business development and financial performance in Q3 2017 8 Banking sector dynamics Q3 2017 highlights Performance in Q3 2017 Overview of business lines BT Financial Group
Slide 10: Q3 2017 highlights
Q3 2017 highlights YTD Sep’17 YTD Sep’16 ∆ Net interest income RONmn 1,320.3 1,268.7 4.1% profitability Net fee and commission income RONmn 424.3 374.1 13.4% Operating expenses RONmn (957.6) (826.2) 15.9% Gross profit before provisions RONmn 959.6 1,284.9 -25.3% Net income RONmn 779.8 657.0 18.7% Co
Slide 11: Business performance Q3 2017 at a glance
Business performance Q3 2017 at a glance Total assets at RON 54.9 bn Enhanced ALM for higher efficiency Capital adequacy ratio at Strong capital base, supporting organic and non 20.38% organic growth Net fees and commissions at Driven by increased number of operations and RON 424.3 mn +13.4% Y/Y add
Slide 12: Trends in income structure
Trends in income structure YTD Sep’16 YTD Sep’17 +4.1% 1,320 1,269 119 166 +15.9% 958 826 1,201 1,103 +13.4% 424 374 21.6% 162 133 Net interest income Net fee and Net trading income Operating expenses commission income VBRO loans adjustments 11 Banking sector dynamics Q3 2017 highlights Performance
Slide 13: Loan structure
Loan structure Loans to households, RONbn Loans to companies, RONbn 16.4 15.3 15.1 0.1 14.3 0.1 4.3 3.2 8.1 6.9 11.1 11.0 8.1 8.2 Dec’16 Sep’17 Dec’16 Sep’17 Other Housing Consumption SMEs Large corporates 75% 25% 81% 19% *SMEs identified according to internal classification rules RON FX RON FX 12 B
Slide 14: Deposit structure
Deposit structure Deposits from households, RONbn Deposits from companies, RONbn 28.8 16.2 15.5 26.4 10.1 5.4 6.9 7.9 18.4 18.6 10.1 9.3 Dec’16 Sep’17 Dec’16 Sep’17 Current accounts Deposits SMEs Large corporates 56% 44% 71% 29% RON FX RON FX *SMEs identified according to internal classification rul
Slide 15: NPL ratio at 3.64%
NPL ratio at 3.64% Banca Transilvania continued to provide a sound coverage ratio for its PAR 90 portfolio 127% 122% 119% 121% 117% 108% 46% 45% 40% 54% 46% 46% 43% 33% 45% 40% 33% 75% 77% 81% 79% 75% 74% 2012 2013 2014 2015 2016 Sep’17 NPL coverage with mortgage collaterals NPL coverage with provis
Slide 16: Retail banking
Retail banking retail loan portfolio reached RON 16.4 bn as of Sep’17 57,000 non-card retail loans disbursed in 16.4 first 9 months of 2017 15.1 13.6 Market share for retail loans at December 2016 -14.25% 3.3 Mobile banking users: over 350,000 7.5 6.8 6.3 3 mn active cards; BT is the market
Slide 17: SME banking
SME banking SME loan portfolio at RON 4.3 bn and 240,000 active clients 4.3 Banca Transilvania continued its specific focus on the SME business sector, offering almost 12,700 new loans in the first 9 3.2 months of 2017 3.1 0.3 2.6 BT continued its partnership with DFIs, 2.5 2.5 offering special
Slide 18: Corporate banking
Corporate banking corporate loan portfolio above RON 11 bn 11.0 11.1 11.0 The reorganizational process was 10.0 0.9 concluded, including client new 9.9 segmentation & deeper sectorial 8.7 specialization BT was present with lending facilities especially in the industrial manufacturing and agribus
Slide 19: Banca Transilvania Financial Group
Banca Transilvania Financial Group as of 30.09.2017* Total assets: RON 54.9 bn Total assets: RON 70 mn Total assets: RON 153 mn Total assets: RON 181 mn Total assets: RON 701 mn Total assets: RON 134 mn AuM: RON 3,950 mn *Total assets for subsidiaries are presented under RAS rules 18 Banking sector
Slide 20: Q3 2017 highlights – consolidated figures
Q3 2017 highlights – consolidated figures YTD Sep’17 YTD Sep’16 ∆ Net interest income RONmn 1,379.0 1,307.3 5.5% Net fee and commission income RONmn 458.8 399.6 14.8% Operating expenses RONmn (1,056.2) (897.0) 17.7% profitability Gross profit before provisions RONmn 1,033.5 1,329.0 -22.2% Net income
Slide 21: Annex I: Income statement YTD Sep'17 – individual
annex I income statement YTD Sep’17 – individual figures IFRS individual, RONmn YTD Sep’17 YTD Sep’16 ∆ Net interest income 1,320.3 1,268.7 4.1% Net fee and commission income 424.3 374.1 13.4% Net trading income 162.0 133.2 21.6% Other net income 10.7 335.1 -96.8% Operating income 1,917.2 2,111.1 -9
Slide 22: Annex II: Balance sheet September 2017 – individual
annex II balance sheet September 2017 – individual figures IFRS individual, RONmn Sep 2017 Dec 2016 ∆ Cash & cash equivalents 4,259.8 5,293.6 -19.5% Placements with banks 4,051.7 2,524.9 60.5% Loans to customers, net 29,852.6 27,210.0 9.7% T-bills & securities 15,437.0 15,402.1 0.2% Fixed assets 530
Slide 23: Annex III: Income statement YTD Sep'17 – consolidated
annex III income statement YTD Sep’17 – consolidated figures IFRS consolidated, RONmn YTD Sep’17 YTD Sep’16 ∆ Net interest income 1,379.0 1,307.3 5.5% Net fee and commission income 458.8 399.6 14.8% Net trading income 204.9 142.5 43.8% Other net income 47.0 376.8 -87.5% Operating income 2,089.7 2,22
Slide 24: Annex IV: Balance sheet September 2017 – consolidated
annex IV balance sheet September 2017 – consolidated figures IFRS consolidated, RONmn Sep 2017 Dec 2016 ∆ Cash & cash equivalents 4,259.8 5,293.7 -19.5% Placements with banks 4,111.3 2,563.8 60.4% Loans to customers, net 29,916.5 27,234.0 9.8% T-bills & securities 15,433.2 15,399.7 0.2% Fixed assets
Slide 25: Banca Transilvania HQ
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/compa