Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q4 2022 Earnings Presentation
33 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 9, 2023
Slide 1: BRD Group Results 4th quarter and full year 2022
BRD GROUP RESULTS 4th quarter and full year 2022 | 09.02.2023
Slide 2: Disclaimer
DISCLAIMER The preliminary consolidated and separate financial position and income statement for the period ended December 31, 2022 were examined by the Board of Directors on February 7, 2023. The financial information presented for the period ended December 31, 2022 and comparative periods has been
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: A challenging 2022 proving the commitment and solidity of BRD
A CHALLENGING 2022 PROVING THE COMMITMENT AND SOLIDITY OF BRD Top partner for Romanian economy and our customers Portfolio growth +10% y/y at 2022 end Remarkable dynamic of corporate loans Corporate loans +26% y/y at 2022 end Best ever housing loans production, +58% y/y ~RON 7.5 bn private individua
Slide 5: Awarded excellence in 2022
AWARDED EXCELLENCE IN 2022 Recognized know-how in lending, green finance, custody services and trade finance Awarded for Excellence in Leader in green finance Bank of the Year Financing Environmental Projects in Romania In Lending The World’s Best Sub-Custodian in Romania, last 7 years in a row Sub-
Slide 6: Macroeconomic environment
2 MACROECONOMIC ENVIRONMENT
Slide 7: Decelerating economic growth, while inflation reached decade high
DECELERATING ECONOMIC GROWTH, WHILE INFLATION REACHED DECADE HIGH GDP GROWTH Robust, yet slowing down economic growth in Q3 2022 Annual GDP growth decreased to +3.8% y/y from +5.1% y/y in Q2 2022, however remained relatively high 7.3% 6.4% 5.9% 4.7% 5.3% 5.5% 5.1% 4.5% Economic growth, supported, as
Slide 8: Softening interbank rates amid less tensed liquidity conditions
SOFTENING INTERBANK RATES AMID LESS TENSED LIQUIDITY CONDITIONS Rates are following inflation, within a regional trend Amid larger and lengthier inflation pressures from global cost shocks, amplified by geopolitical context, NBR performed ten monetary policy rate hikes, 575 bps in total, since the s
Slide 9: Diverse and extended programs in support of the economy
DIVERSE AND EXTENDED PROGRAMS IN SUPPORT OF THE ECONOMY The National Recovery and Resilience Plan, expected growth catalyst Main objectives: achieve green and digital transitions, while strengthening healthcare, education, social cohesion and inclusion Potential to boost Romania’s GDP by 1.8 ppt
Slide 10: Well positioned banking sector
WELL POSITIONED BANKING SECTOR ROMANIAN BANKING SYSTEM NPL AND NPL COVERAGE RATIOS Adequate capital and liquidity positions 67.2% 66.9% 65.9% 60.7% 63.3% 66.1% EU Loan to deposit ratio at 73% at September 2022 end, up from 69% as of 55.6% 56.2% 58.5% 44.1% 2021 end (vs 122% at 2008 end) Average liqu
Slide 11: 4th quarter and full year 2022 BRD Group results
3 4TH QUARTER AND FULL YEAR 2022 BRD GROUP RESULTS
Slide 12: Enhance digital experience, improve efficiency
ENHANCE DIGITAL EXPERIENCE, IMPROVE EFFICIENCY INCREASED NETWORK EXTENDED DIGITAL OFFER USAGE OF E-CHANNELS OPTIMIZATION 1.07m YouBRD users at 2022 end, +46% Accessible directly from Reduced no of branches y/y -36 y/y, to 460 at 2022 end Credit card issuance flow and +12% y/y nb of transactions on
Slide 13: Strong lending activity across the board
STRONG LENDING ACTIVITY ACROSS THE BOARD NET LOANS Remarkable dynamic of corporate lending (end of period amounts, RON bn) Y/Y Loans to SME up by +43% vs December 2021 end 37.7 34.1 +10.4% Active support for over 2,000 SMEs eligible under IMM 30.7 13.8 +25.8% INVEST program, with RON 2 billion app
Slide 14: Committed in building a sustainable economy
COMMITTED IN BUILDING A SUSTAINABLE ECONOMY Sizeable volume and premieres of transactions STRUCTURED BY BRD First syndicated green loan in the real estate sector, Ploiesti Shopping City, belonging to NEPI ROCKASTLE PLC – EUR 60m; BRD acted as MLA and Green Structuring Bank and assumed a final take
Slide 15: Constant consolidation of the deposit base
CONSTANT CONSOLIDATION OF THE DEPOSIT BASE Growing deposits DEPOSITS Significant corporate deposits increase (+17.2% y/y) driven by (end of period amounts, RON bn) extensive collection of large corporate deposits (+40.4% y/y) Y/Y Retail deposits up +3.1% y/y in a tight liquidity and competitive cont
Slide 16: Strong revenues dynamic on intense commercial activity and rising rates
STRONG REVENUES DYNAMIC ON INTENSE COMMERCIAL ACTIVITY AND RISING RATES NET BANKING INCOME (RON m) Y/Y 3,459 +11.7% NII, up +13.7% y/y in 2022 (+18.0% y/y in Q4 2022) 3,097 334 +24.5% Other income Interest income built on volume growth and rising interest rates 269 754 Net fees and +1.4% commissions
Slide 17: Closely managed expenditures within strong inflationary context
CLOSELY MANAGED EXPENDITURES WITHIN STRONG INFLATIONARY CONTEXT OPEX growth influenced by surging inflation OPERATING EXPENSES (RON m) +8.3% y/y in 2022, excluding the higher contributions to Guarantee Y/Y and Resolution funds (fully booked in Q1 2022) 1,745 +9.2% 1,597 69 +40.0% Contributions to 49
Slide 18: Good asset quality despite macroeconomic environment
GOOD ASSET QUALITY DESPITE MACROECONOMIC ENVIRONMENT NET COST OF RISK Q4 net cost of risk at 52 bps Q4 NCR reflects persisting uncertainties regarding short to medium- term macroeconomic outlook. Cost of risk on non performing portfolio shows overall net gains, positively influenced by sustained rec
Slide 19: Sound capital position
SOUND CAPITAL POSITION SOLVENCY RATIO Solid high quality capital base CAR of 20.9%* at December 2022 end +251bp Regulatory own funds composed of Tier 1 and Tier 2 capital +337bp -697bp -194bp -15bp Tier 2 capital consists of two subordinated loans in total amount of EUR 250m (EUR 100m drawn in Decem
Slide 20: Conclusions
.) CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 21: Conclusions
CONCLUSIONS Within the increasingly complex geopolitical and volatile economic environment, BRD is a committed, trustworthy and effective partner of Romania’s economy and its customers, providing support to answer challenges BRD commercial activity was strong on all business lines remarkable d
Slide 22: Social responsibility at the heart of our action
6 SOCIAL RESPONSIBILITY AT THE HEART OF OUR ACTION
Slide 23: Tech & Innovation
TECH & INNOVATION Prepare the Romanian society for the knowledge based economy Investing in STEM education, tech entrepreneurship, R&D in artificial intelligence to generate economic development and growth Universities, startups Tech & robotics hubs, university-based acceleration programs, incubator
Slide 24: Education & Volunteering
EDUCATION & VOLUNTEERING OUR VISION: by 2035, the Romanian education system should be in the top 10 education systems in Europe, by investing in teachers Engage conversation about a modern education Scoala 9 Over 1.4 million readers A dedicated literacy program and platform Alfabetar - the largest i
Slide 25: Culture - Fundatia 9
CULTURE - FUNDATIA 9 A unique cultural foundation to support the young generation of creators SCENA 9 – a leading voice in cultural journalism REZIDENTA 9 – our cultural center focusing on contemporary culture 4TH QUARTER AND FULL YEAR 2022 RESULTS 09/02/2023 25
Slide 26: Climate Change Summit 2022
CLIMATE CHANGE SUMMIT 2022 1st summit in Romania dedicated to climate change, initiated and supported by BRD as a founding partner first edition held on October 4-5th at Odeon Theatre in Bucharest, tackling solutions for a sustainable future 70 speakers from 15 countries, 462 in-person attendees
Slide 27: Q&A Session
7 Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 28: Appendix
8 APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE - KEY FIGURES BRD STOCK PRICE PERFORMANCE GLOSSARY – CLIENT SEGMENTATION
Slide 29: 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 Q4-2022 Q4-2021 Change 2022 2021 Change Net banking income 918 783 +17.2% 3,459 3,097 +11.7% Operating expenses (469) (399) +17.5% (1,745) (1,597) +9.2%
Slide 30: 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 Q4-2022 Q4-2021 Change 2022 2021 Change Net banking income 840 736 +14.1% 3,289 2,930 +12.3% Financial results Operating expenses (433) (369) +17.4
Slide 31: BRD | Stock price performance
BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation EUR 1.8 bn 8,000 22.0 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 is in Top 5
Slide 32: 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 33: 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 — Q4 2022 Earnings Presentation on 6ix