Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — H1 2015 Earnings Presentation
28 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Aug 5, 2015
Slide 1: BRD Group Results 2nd Quarter and 1st Half 2015
BRD GROUP RESULTS 2ND QUARTER AND 1ST HALF 2015 5 AUGUST 2015
Slide 2: Disclaimer
DISCLAIMER The consolidated balance sheet and profit and loss account for the period ended June 30, 2015 were examined by the Board of Directors on July 31, 2015. The financial information presented for the six months ended June 30, 2015 and comparative periods has been prepared according to IFRS as
Slide 3: Content
CONTENT CHAPTER 01_INTRODUCTION CHAPTER 02_MACROECONOMIC AND BANKING ENVIRONMENT CHAPTER 03_2ND QUARTER AND 1ST HALF 2015 GROUP RESULTS CHAPTER 04_CONCLUSIONS FINANCIAL RESULTS 2ND QUARTER AND 1ST HALF 2015 5 AUGUST 2015 | P.3
Slide 4: Solid Financial Results
SOLID FINANCIAL RESULTS Consolidated net profit of RON 131m in Q2-2015, +64% yoy thanks to risk profile improvement and rigorous cost management Q2-2015 operating performance stronger vs. Q1-2015 on rising core banking income as A stronger second credit activity showed signs of recovery, and on opex
Slide 5: Key Figures (BRD Group)
KEY FIGURES (BRD GROUP) Q2-2014 Q2-2015 Variation H1-2014 H1-2015 Variation Net banking income (RON m) 657 621 -5.6% 1,290 1,226 -5.0% Operating expenses (RON m) (320) (309) -3.5% (642) (633) -1.3% Gross operating income (RON m) 337 311 -7.5% 649 593 -8.6% Financial results Cost of risk (RON m) (248
Slide 6: Macroeconomic and Banking Environment
CHAPTER 02 MACROECONOMIC AND BANKING ENVIRONMENT FINANCIAL RESULTS 2ND QUARTER AND 1ST HALF 2015 5 AUGUST 2015 | P.6
Slide 7: Private Consumption Sustains Economic Growth
PRIVATE CONSUMPTION SUSTAINS ECONOMIC GROWTH GDP EVOLUTION Q1-2015 GDP rose by 4.1%* versus Q1-2014, the expansion being supported by rising private (**) and public consumption, gross fixed capital 3.4% 3.1% 2.8% formation and inventories. June 2015 CPI reached -1.6% vs. June 2014, 1.1% crossing int
Slide 8: Banking Sector: Household Loans Continue Their Positive Trend
BANKING SECTOR: HOUSEHOLD LOANS CONTINUE THEIR POSITIVE TREND BANKING SYSTEM DEPOSITS (RON bn) 7.3% deposits growth at June 2015 vs. June 2014: yoy * 249 247 +7.3% 6.9% higher individuals’ savings, in spite of 228 the low interest rate environment 110 104 +7.8% COMPANIES 96 7.8% growth in companies’
Slide 9: Banking Sector: Substantial YoY Improvement in NPL Ratio
BANKING SECTOR: SUBSTANTIAL YOY IMPROVEMENT IN NPL RATIO BANKING SECTOR LOSS 2 INDICATOR* 21.9% 20.3% 18.2% 14.3% 13.9% 13.3% Dec-11 Dec-12 Dec-13 May-14 Dec-14 May-15 3 4 Lower NPL ratio in the banking system compared to the years 2012-2013 helped by write-off operations and sale of impaired receiv
Slide 10: 2nd Quarter and 1st Half 2015 Group Results
CHAPTER 03 2ND QUARTER AND 1ST HALF 2015 GROUP RESULTS FINANCIAL RESULTS 2ND QUARTER AND 1ST HALF 2015 5 AUGUST 2015 | P.10
Slide 11: Steady Increase in the Equipment Rate for Individuals
STEADY INCREASE IN THE EQUIPMENT RATE FOR INDIVIDUALS NUMBER OF REMOTE BANKING CONTRACTS +9,000 annual increase in the number of FOR INDIVIDUALS* (X 1000) active customers on the individuals’ segment 622 to 2.1m at June 2015 end; 541 496 Higher equipment rate (number of products per active client) o
Slide 12: Continued Improvement in Loan Production
CONTINUED IMPROVEMENT IN LOAN PRODUCTION Rising financing demand from individuals translated Q2-2015 INDIVIDUALS’ LOAN PRODUCTION (RON m) vs. Q2-2014 into 26.5% yoy rise in loan production, over Q2-2015 and 18.3% yoy increase during H1-2015: 1,423 +26.5% 1,125 1,095 Housing loans remain the main dri
Slide 13: Dynamic Growth in Savings
DYNAMIC GROWTH IN SAVINGS DEPOSITS (outstanding amounts, RON bn) ytd* yoy* Deposits on a growing trend, both yoy and 36.0 37.7 +4.9% +9.5% qoq (+9.5% and +4.9% respectively) with 34.1 positive evolutions on retail and non-retail segments 15.2 +4.4% +8.2% 14.0 14.6 NON-RETAIL Increase in household de
Slide 14: Net Banking Income Still Impacted by Low Interest Rates
NET BANKING INCOME STILL IMPACTED BY LOW INTEREST RATES Narrowing net interest margin in Q2-2015 versus Q2- NET BANKING INCOME (RON m) yoy 2014, given the falling interest rates context: 657 621 -5.6% Historically low interest rates (both for RON and EUR)… Net interest margin 402 373 -7.1% Average R
Slide 15: Strict Cost Monitoring
STRICT COST MONITORING Further optimization of the cost base translating into a OPERATING EXPENSES (RON m) yoy 3.5% decline of operating expenses in Q2-2015: 320 309 -3.5% Staff expenses under control vs. Q2-2014; Staff 154 156 +1.2% 2.1% increase in staff costs over H1-2015, but expenses almost sta
Slide 16: Asset Quality
ASSET QUALITY GROSS LOANS – June 30, 2015 A balanced loan portfolio from a market mix SPLIT BY SEGMENT (RON bn) perspective 57.4% on individuals segment 13.3 42.6% on companies’ segment Individuals Companies 18.0 Decreasing NPL (Loss 2) ratio In line with the evolution observed at the level of the w
Slide 17: Solid Coverage Ratio and Declining Cost of Risk
SOLID COVERAGE RATIO AND DECLINING COST OF RISK COST OF RISK EVOLUTION (RON m) 2015 provisioning efforts remained focused on legal entities, particularly SMEs 2,131 350 1,943 298 bps 300 250 1,223 1,215 199 bps Lower provisioning perspectives for 2015, 200 confirmed by H1-2015 realized 883 150 248 1
Slide 18: Continued Reinforcement of Financial Autonomy
CONTINUED REINFORCEMENT OF FINANCIAL AUTONOMY NET LOANS AND DEPOSITS (RON bn) Consolidation of net loans/deposits ratio which reached 71.6% at end of June 2015, versus 105% 80.3% at June 2014 end, showing BRD is well 40.0 100% 100.0% prepared to benefit from a meaningful recovery 35.0 78% 80% in cre
Slide 19: Own Funds Safely Above Capital Requirements
OWN FUNDS SAFELY ABOVE CAPITAL REQUIREMENTS Basel III Jun-14 Dec-14 Jun-15 Solid capital base composed of high quality Tier 1 eligible instruments: share capital, retained Capital adequacy ratio 16.6% 17.2% 16.3% earnings, reserves Own funds (RON m) 4,594 4,614 4,442 Capital adequacy safely above re
Slide 20: Conclusions
CHAPTER 04 CONCLUSIONS FINANCIAL RESULTS 2ND QUARTER AND 1ST HALF 2015 5 AUGUST 2015 | P.20
Slide 21: Conclusions
CONCLUSIONS In the first half of 2015, BRD Group achieved solid earnings generation thanks to further improving the quality of the loan portfolio and consistent cost discipline. Positive signals also appeared regarding the evolution of retail activity. A material improvement of profitability level i
Slide 22: Q&A Session
Q&A Session FINANCIAL RESULTS 2ND QUARTER AND 1ST HALF 2015 5 AUGUST 2015 | P.22
Slide 23: Appendix
APPENDIX FINANCIAL RESULTS 2ND QUARTER AND 1ST HALF 2015 5 AUGUST 2015 | P.23
Slide 24: BRD Key Figures (Bank Only)
BRD KEY FIGURES (BANK ONLY) Q2-2014 Q2-2015 Variation H1-2014 H1-2015 Variation Net banking income (RON m) 642 598 -6.8% 1,244 1,171 -5.9% Operating expenses (RON m) (303) (291) -4.0% (608) (596) -2.0% Gross operating income (RON m) 339 307 -9.4% 636 575 -9.6% Financial results Cost of risk (RON m)
Slide 25: BRD Stock Price Performance
BRD STOCK PRICE PERFORMANCE 12.0 Market capitalisation 4,000 EUR 1.8 bn 3,500 11.0 3,000 10.0 2,500 9.0 2,000 1,500 8.0 1,000 7.0 500 6.0 0 Volume ('000 shares, rhs) Price (RON, lhs) BRD is part of the main market indexes on the Bucharest Stock Exchange (BET Index, BET Plus Index, BET-XT Index, BET-
Slide 26: Financial Calendar for 2015
FINANCIAL CALENDAR FOR 2015 9 April: General Shareholders Meeting 9 April: Publication of the 2014 Board of Directors Report 6 May: Q1-2015 results publication 8 May: Presentation of the financial results for Q1-2015 (conference call and webcast) 5 August: H1-2015 results publication 5 August: Prese
Slide 27: 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 transfer an
Slide 28: Thank You
THANK YOU Investor Relations Tel. : +4 021 380 47 62 Email : investor@brd.ro Homepage: www.brd.ro FINANCIAL RESULTS 2ND QUARTER AND 1ST HALF 2015 5 AUGUST 2015 | P.28
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