Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — H1 2016 Earnings Presentation
24 slides from Banca Transilvania SA's earnings presentation, August 2016
Slide 1: Banca Transilvania June 2016 Financial Results
BANCA TRANSILVANIA June 2016 Financial Results August 2016
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 2016 Highlights 3 Performance in H1 2016 4 Overview of Business Lines 5 BT Financial Group A Financial Statements 3
Slide 4: Bank assets continue to grow at a steady pace in 2016
BANK ASSETS continue to grow at a steady pace in 2016 Bank assets advanced by 2.5% NPL ratio stabilized at 13.5% YoY over the first quarter total bank net assets source: NBR NPL ratio, % source: NBR 377 10% 38 0 21.5% 370 8% 20.4% 20.7% 37 0 20.2% 19.2% 364 6% 362 363 361 360 16.2% 4% 36 0 15.7% 356
Slide 5: LCY loans display double-digit annual growth
LCY LOANS DISPLAY DOUBLE-DIGIT ANNUAL GROWTH despite slowdown in overall lending activity Lending activity slowing down over Yet loans in LCY continue the first two quarters of 2016 expanding, now at 54% of total loans non-government , %YoY source: NBR 13 00 0% loans non-government , RONbn source: N
Slide 6: Romanian economy: strong increase of private consumption
ROMANIAN ECONOMY Strong increase of the private consumption GDP rose by 5.2% YoY in 1H2016, Stimulated consumption vs. due to the expansionary policy-mix sluggish investments Retail sales vs. industrial production, GDP, %YoY source:: Statistics Office (INS) MA12, %YoY source: Statistics Office (INS)
Slide 7: The impact of the pro-Brexit vote
THE IMPACT OF THE PRO-BREXIT VOTE HIGHER PRUDENCE AND LOWER FINANCING COSTS Inflexion of the CPI dynamics, as the The 10YR financing costs down impact of the VAT cuts is fading out close to the record low levels consumer prices, %YOY source: Statistics Office (INS) yield curve, % source: NBR 7.0 5.0
Slide 8: Banca Transilvania's business development and financial performance H1 2016
Banca Transilvania’s business development and financial performance H1 2016 8 BANKING SECTOR DYNAMICS H1 2016 highlights PERFORMANCE IN H1 2016 OVERVIEW OF BUSINESS LINES BT FINANCIAL GROUP
Slide 9: H1 2016 Highlights
H1 2016 HIGHLIGHTS Mil. RON H1 2016 H1 2015 ∆ Operating income 1,415.2 946.8 49.5% PROFITABILITY Operating expenses (551.7) (483.7) 14.1% Gross profit before provisions 863.5 463.1 86.5% Net profit 458.3 190.2 140.9% EPS RON 0.13 0.05 140.9% Cost of risk (%) 2.20% 2.33% -5.7% NIM (%) 3.40% 2.84% 0.6
Slide 10: Business Performance 2016 at a glance
BUSINESS PERFORMANCE 2016 at a glance Total assets at RON 47.9 bn ● Enhanced ALM for higher efficiency ● Strong capital base, supporting organic and non organic growth, after special Capital adequacy ratio at 18.2% dividend payout Net fees and commissions at RON ● Driven by increased number of opera
Slide 11: Detailed Income Structure
DETAILED INCOME STRUCTURE +64,3% H1 2015 H1 2016 858 +14,1% +140,9% 552 522 484 +37,3% 458 +15,2% +62,4% 325 243 234 237 211 +15,5% +121,7% 190 144 70 81 80 36 Net interest Net fee and Net trading Other net Operating Cost of risk Income tax Net profit income commission income operating expenses inco
Slide 12: Loan Structure
LOAN STRUCTURE Loans to Households, RONbn Loans to Companies, RONbn 14,3 14,1 14,3 13,6 0,04 12,7 0,04 3,1 3.1 2.7 5,3 6,1 9,4 0,03 3,5 11 11,3 10 8,3 8,2 5,9 Jun’15 Dec’15 Jun’16 Jun’15 Dec’15 Jun’16 other housing consumption SMEs large corporates Loans to Households, RONbn Loans to Companies, RONb
Slide 13: Deposit Structure
DEPOSIT STRUCTURE Deposits from Households, RONbn Deposits from Companies, RONbn 24,7 15,1 23,3 14,4 20,2 5,1 6,5 11,7 5,2 4,7 3,7 3,6 16,5 18,2 18,1 9,9 9,6 8,2 Jun’15 Dec’15 Jun’16 Jun’15 Dec’15 Jun’16 Current accounts Deposits SMEs large corporates Deposits from Households, RONbn Deposits from Co
Slide 14: NPL ratio at 9.17%
NPL RATIO AT 9.17% 127% 125% 122% 119% 108% 46% 46% 45% 40% 33% ● Banca Transilvania continued to provide a sound coverage ratio for its PAR 90 portfolio 75% 77% 81% 79% 79% 12 13 14 15 H1 16 NPL coverage with mortgage collaterals NPL coverage with provisions *For Financial Statements purposes the g
Slide 15: Retail banking
Retail banking Retail loan portfolio reached RON 14.3 bn as at Jun’16 Retail Loan Portfolio, RONbn source: BT 32,500 non-card retail loans 1500% 1400% 13.64 Market share for retail loans at June 2016 - 14% 14.31 loans 1300% transferred 1200% from VBR 3.3 Internet banking users +19% 1100% Mob
Slide 16: SME Banking
SME Banking SME loan portfolio at RON 3.1 bn and 196,300 active clients ● Banca Transilvania continued its specific focus on SME Loan Portfolio, RONbn source: BT the SME business sector, offering almost 10,000 320% new loans in H1 2016 3.1 loans BT continued its partnership with DFIs, offering 3.1
Slide 17: Corporate Banking
Corporate Banking Corporate loan portfolio above RON 11.28 bn Corporate Loan Portfolio, RONbn source: BT ● An important reorganizational process was started 1150% 11.04 in the Corporate business line, including client resegmentation & deeper sectorial specialization 1100% loans transferred 0.88 1050
Slide 18: Banca Transilvania Financial Group: full array of financial services
BANCA TRANSILVANIA FINANCIAL GROUP full array of financial services As of 30.06.2016: Total assets: 47.9 RON bn Total assets: 73 RON mn. Total assets: 115 RON mn. Total assets: 107 RON mn. AuM: 2,795 RON mn. Total assets: 437 RON mn. 18 BANKING SECTOR DYNAMICS Q1 2016 highlights PERFORMANCE IN Q1 20
Slide 19: H1 2016 Highlights – consolidated figures
H1 2016 HIGHLIGHTS – consolidated figures Mil. RON H1 2016 H1 2015 ∆ PROFITABILITY Operating income 1,479.0 1,378.2 7.3% Operating expenses (596.0) (582.2) 2.4% Gross profit before provisions 883.0 795.9 10.9% Net income 481.1 2,071.6 -76.8% EPS RON 0.13 0.57 -76.8% Cost of risk (%) 2.22% 0.31% 618.
Slide 20: Annex I Income Statement H1 2016 - individual
ANNEX I INCOME STATEMENT H1 2016 - individual IFRS, individual, RONmn H1 2016 H1 2015 ∆ Net interest income 857.7 522.0 64.3% Net fee and commission income 242.9 210.9 15.2% Net trading income 80.7 69.8 15.5% Other net income* 233.9 144.0 62.4% Operating income 1,415.2 946.8 49.5% Personnel expenses
Slide 21: Annex II Balance Sheet H1 2016 - individual
ANNEX II BALANCE SHEET H1 2016 - individual Dec-15 IFRS, individual, RON mn Jun-16 ∆ (audited) Cash & cash equivalents 5,096.7 4,997.9 2.0% Placements with banks 2,503.77 3,889.5 -35.6% Loans to customers, net 25,851.2 25,107.5 3.0% T-bills & securities 13,585.2 12,389.4 9.7% Fixed assets 416.5 409.
Slide 22: Annex III Income Statement H1 2016 - consolidated
ANNEX III INCOME STATEMENT H1 2016 - consolidated IFRS, consolidated, RONmn H1 2016 H1 2015 ∆ Net interest income 881.8 940.1 -6.2% Net fee and commission income 258.5 229.8 12.5% Net trading income 79.7 60.3 32.2% Other net income * 258.9 148.0 75.0% Operating income 1,479.0 1,378.2 7.3% Personnel
Slide 23: Annex IV Balance Sheet H1 2016 - consolidated
ANNEX IV BALANCE SHEET H1 2016 - consolidated IFRS, consolidated, RONmn Jun-16 Dec-15 ∆ Cash & cash equivalents 5,096.7 4,997.9 2.0% Placements with banks 2,524.6 3,908.9 -35.4% Loans to customers, net 25,913.9 25,225.6 2.7% T-bills & securities 13,601.6 12,416.9 9.5% Fixed assets 580.1 526.7 10.1%
Slide 24: 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