Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD - Groupe Société Générale — FY2010 Earnings Presentation
22 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 14, 2011
Slide 1: 2010 Results - Press Conference
PRESS CONFERENCE 14 February 2011 2010 RESULTS
Slide 2: 2010: BRD shows resilience in a year of ongoing crisis
2010 RESULTS 2010: BRD shows resilience in a year of ongoing crisis Evolution 2010 10/09 MRON nominal Net banking income 3,687 2% Operating profit 2,245 8% (*) Net consolidated profit 533 -31% Net profit (BRD stand alone) 501 -36% (*) BRD + BRD Sogelease + BRD Finance 2
Slide 3: Agenda: Business highlights
AGENDA I. Business highlights: BRD continued its activity in 2010, but faced the further deterioration of the economic environment 3
Slide 4: Clientele base remains robust despite slight decrease
Business highlights FRANCHISE VALUE The clientele base remains robust in spite of slight decrease of clients number due to the elimination of non-active clients and slow down of acquisition of new ones Individual Clients (*) Corporate Clients (*) (x 1 000) (x 1 000) 162 2,430 2,379 146 149 2,259 2,3
Slide 5: Network: a pause in the development
Business highlights FRANCHISE VALUE Network: a pause in the development… Number of branches (end of period) +124 930 930 +7 937 806 +206 BRD Express 600 +274 • Mainly proximity banking: small customer oriented units (BRD Express). 326 • 2010 marked the continuation of the pause in the development an
Slide 6: Evolution of deposits and loans
Business highlights DEPOSITS / LOANS Evolution of deposits & loans showed that BRD maintained its activity in a depressed environment marked by a weak demand for loans Customers’ deposits Loans to customers (BRD consolidated) (BRD consolidated) (end of year, MRON) (end of year, MRON) 2% -1% 2% 2% 34
Slide 7: Distribution of loans continued in a difficult environment
Business highlights TOTAL COMMITMENTS The distribution of loans continued in spite of a difficult environment Structure of total commitments as at 31 Dec 2010 2005 2006 2007 2008 2009 2010 10.5 15% 18.7 3.2 Smmalalll 40% 26.9 S .3 6 .7 34.3 34.9 34.5 18% 4 Medium Medium 4.8 7.99.8 Individuals Lar 17
Slide 8: Consumer finance (BRD Finance)
Business highlights FOCUS ON SUBSIDIARIES Consumer finance (BRD Finance) Balances of loans to customers (MRON) points of sale financing revolving cards Still difficult economic environment New partnership launched in 2010: Altex and Renault 162 Decrease of OPEX due to 82 170 continuous operati
Slide 9: Leasing (BRD Sogelease) - vendor and equipment finance
Business highlights FOCUS ON SUBSIDIARIES Leasing (BRD Sogelease) – vendor and equipment finance Customer balances (MRON) Resilience of the activity despite the strong economic recession in Romania 1,372 A key player in corporate asset financing (2rd 1,092 rank among leasing bank affiliates) 1,03
Slide 10: Operational vehicle leasing and fleet management (ALD)
Business highlights FOCUS ON SUBSIDIARIES Operational vehicle leasing and fleet management (ALD) •2010 – a very good year 6,079 Vehicles under 5,147 management •In 2010, the estimated market share of ALD 4,828 (number) Romania is 19%; •The main international competitors of ALD Romania in 2010 are: P
Slide 11: Net banking income: slight increase in revenues
Business highlights NET BANKING INCOME Slight increase in revenues Net banking income (BRD consolidated) (MRON) 1,403 1,772 2,512 3,199 3,605 3,687 • Net banking income +2% vs. 2009 146 208 334 514 426 FX and others 461 (12%) • Strong interest margin +13% vs. 2009 487 645 1,332 989 1,297 1,382 Commi
Slide 12: Agenda: Operating expenses
AGENDA II. Operating expenses: the level of investment has been moderately curtailed and the measures of limitation of expenses pursued and reinforced 12
Slide 13: Investments: substantial effort, but in decrease
Operating expenses INVESTMENTS Pursuing a substantial investment effort, but in decrease, partially due to the pause in the network development Investments (MRON (*)) 282 290 270 171 130 122 20 60 IT 16 Real estate 644 6 Other - 2005 2006 2007 2008 2009 2010 (*) FX rate EUR = 4.21 RON 13
Slide 14: Employees
Operating expenses EMPLOYEES The number of employees slightly increased in 2010, mainly in the network Employees (end of year - consolidated) Measures in anticipation of the crisis where taken with the slow down of new recruitments since -363 9,443 9,080 +112 9,192 mid 2008 8,489 Partly this all
Slide 15: Operating expenses and gross operating income
Operating expenses OPERATING EXPENSES 2010: Maintaining a satisfactory increase in revenue despite the crisis Gross Operating Income (BRD consolidated) (MRON) 2,245 Satisfactory growth of Gross 2,074 Operating Income mainly due to 1,841 strong interest margin and limitation of expenses. 1,406 Lo
Slide 16: Agenda: Asset quality and net cost of risk
AGENDA III. Asset quality and net cost of risk: the cost of risk has continued to grow 16
Slide 17: Cost of risk: sharp increase of impairment of loans
Net cost of risk and assets quality COST OF RISK Sharp increase of impairment of loans due to the recession Net Cost of Commercial Risk/Commitments ¾ In the wake of 2009 the rise in net cost of (BRD consolidated) risk was substantial due to unfavorable macroeconomics – impact of stabilization plan d
Slide 18: Agenda: Performances
AGENDA IV. Performances: • Stay at satisfactory level in spite of the difficult environment • Average BRD Stock price increased in 2010 compared to 2009 18
Slide 19: Profit and loss account
Performances PROFIT AND LOSS ACCOUNT 2010: Fairly satisfactory results in a year of ongoing crisis Evol. 10/09 MRON - RAS 2009 2010 nominal Net banking income 3,605 3,687 +2% Operational costs -1,532 -1,442 -6% Operating profit 2,074 2,245 +8% Cost of risk -1,134 -1,598 +41% Income tax -166 -114 -31
Slide 20: Return on equity: financial strength not eroded
Performances RETURN ON EQUITY The crisis has not eroded the financial strength of BRD Total B/S as at 31 December 2010 : 48.9 bnRON Equity before distribution (MRON) ROE (%) 4,923 4,855 • Equity – maintained itself at a 4,544 good level, due to steady profits earned 3,549 •Capital adequacy ratio ~ 1
Slide 21: BRD share price - good evolution in 2010
STOCKMARKET PRICE BRD share price – good evolution in 2010 Evolution on the Stock Exchange average price (area 2010 – the 100 basis in 2001) Market capitalisation at 27.01.2011 = 2.4 bnEUR 2500 24,5 2000 17,5 16,9 1500 9.265 13,8 BRD RON 12,9 11,3 9,3 1000 7.673 5.682 5.233 BET RON 5.788 5.913 5,4 5
Slide 22: Investors relationship
Investors relationship Phone : +4 021 - 301 61 33; Email : investor@brd.ro Disclaimer: Preliminary unaudited financial results
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