Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q1 2016 Earnings Presentation
28 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, May 6, 2016
Slide 1: BRD Group Results 1st Quarter 2016
BRD GROUP RESULTS 1ST QUARTER 2016 6 MAY 2016
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended March 31, 2016 were examined by the Board of Directors on May 3, 2016. The financial information presented for the period ended March 31, 2016 and comparative periods has been prepared according to
Slide 3: Content
CONTENT CHAPTER 01_INTRODUCTION CHAPTER 02_MACROECONOMIC AND BANKING ENVIRONMENT CHAPTER 03_1ST QUARTER 2016 GROUP RESULTS CHAPTER 04_CONCLUSIONS 6 MAY 2016 | P.3
Slide 4: Q1-2016: Improved Operational Performance
Q1-2016: IMPROVED OPERATIONAL PERFORMANCE Higher net banking income by 3.0% versus Q1-2015 (+6.2% excluding non-recurring items): improvement in net interest income and net fees and commissions Q1-2016: Rise in gross Strict expense control (operating expenses -1.8%): savings on real estate and sundr
Slide 5: BRD Group | Key Figures
BRD GROUP | KEY FIGURES Q1-2015 Q1-2016 Variation Net banking income (RON m) 629 647 3.0% Operating expenses (RON m) (412) (405) -1.8% Gross operating income (RON m) 217 243 12.0% Financial results Cost of risk (RON m) (114) (152) 32.4% Net result (RON m) 85 73 -14.3% Cost/Income 65.5% 62.5% -3.0 pt
Slide 6: Macroeconomic and Banking Environment
CHAPTER 02 MACROECONOMIC AND BANKING ENVIRONMENT 6 MAY 2016 | P.6
Slide 7: Favourable Macroeconomic Context
FAVOURABLE MACROECONOMIC CONTEXT GDP EVOLUTION 2015 GDP rose by 3.8% versus 2014 driven by rising domestic demand which was mostly sustained by higher disposable income 3.5% 3.8% 3.9% 3.0% March end CPI reached -3.0% versus March 2015 end, as a result of the two VAT rate cuts in June 2015 and Januar
Slide 8: Banking Sector: Moderate Loan Growth
BANKING SECTOR: MODERATE LOAN GROWTH 8.6% deposits growth at March 2015 end versus BANKING SYSTEM DEPOSITS (RON bn) March 2014 end in spite of low interest rates: yoy* 270 264 +8.6% 5.9% higher household savings 242 122 115 +12.2% 102 12.2% growth in companies’ deposits 2.1% higher loans due to stea
Slide 9: Banking Sector: NPL Ratio Declining Versus 2014 Due to Write-off Transactions
BANKING SECTOR: NPL RATIO DECLINING VERSUS 2014 DUE TO WRITE-OFF TRANSACTIONS BANKING SECTOR NPL RATIO* Loss 2 indicator NPL ratio (EBA def inition) 21.9% 20.7% 18.2% 14.3% 13.9% 13.6% 13.7% Dec-11 Dec-12 Dec-13 Dec-14 Dec-14 Dec-15 Feb-16 Lower NPL ratio 4 3 in the banking system compared to the ye
Slide 10: 1st Quarter 2016 Group Results
CHAPTER 03 1ST QUARTER 2016 GROUP RESULTS 6 MAY 2016 | P.10
Slide 11: Large Customer Base
LARGE CUSTOMER BASE EVOLUTION OF ACTIVE INDIVIDUAL CUSTOMERS* +7,000 yoy increase in the number of active (x 1000) individual customers at constant methodology +7k 2,073 2,080 Steady increase in equipment rate (number of products per active client) of individual customers due to a better penetration
Slide 12: New Loan Volumes Driven Up by Consumer Loans
NEW LOAN VOLUMES DRIVEN UP BY CONSUMER LOANS INDIVIDUALS’ LOAN PRODUCTION (RON m) Loan production for individual customers on a confirmed growth path (annual dynamics): Q1-2016 1,422 vs Q1- 1,374 2015 1,246 New consumer loans rose compared to 1,125 1,095 1,106 Q1-2015 in an environment characterized
Slide 13: Deposit Collection Remained Strong
DEPOSIT COLLECTION REMAINED STRONG DEPOSITS (outstanding amounts, RON bn) Deposits increasing versus March 2015 end, with both retail and non-retail clients showing yoy* material propensity to save; year-to-date 41.1 +6.9% evolution is influenced by the peak registered 38.5 35.9 at 2015 end on seaso
Slide 14: Improved Core Income Generation…
IMPROVED CORE INCOME GENERATION… NET BANKING INCOME (RON m) Net banking income up by 3.0% versus Q1- yoy 2015 and by 6.2% excluding non-recurring 647 3.0% items (sale of available for sale instruments 629 of RON 20m in Q1-2015 compared to RON 1m in Q1-2016) Net interest 388 362 7.2% income Higher ne
Slide 15: …and Cost Control Led to Better Operational Performance
…AND COST CONTROL LED TO BETTER OPERATIONAL PERFORMANCE Strict expense control: OPERATING EXPENSES (RON m) yoy savings mostly on real estate and sundry 412 -1.8% 405 expenses 166 168 1.5% staff expenses under control 246 236 -4.0% 11.4% overall decline in operating costs in 2015 versus 2011: Q1-2015
Slide 16: Asset Quality
ASSET QUALITY A relatively balanced loan portfolio from a market GROSS LOANS – March 31, 2016 mix perspective: BREAKDOWN BY SEGMENT & CURRENCY (RON bn) 60% on individuals segment 40% on companies segment 12.3 14.6 Consolidation of RON lending: Individuals RON 16.4 Companies FX Share of RON-denominat
Slide 17: Coverage Ratio and Cost of Risk
COVERAGE RATIO AND COST OF RISK COST OF RISK EVOLUTION (RON m) Highlights: Provisioning efforts focused on SMEs 2,131 250 1,943 212 Resilient risk profile for individuals 195 200 1,223 1,215 147 150 883 Net cost of risk evolution 658 100 Q1-2016 net cost of risk at 195 bps versus 114 152 50 147 bps
Slide 18: Self-Funded on a Standalone Basis
SELF-FUNDED ON A STANDALONE BASIS Consolidation of net loans/deposits ratio: 71% at NET LOANS AND DEPOSITS (RON bn) March 2016 end versus 75% at March 2015 end, due 108% to reduction of FX component from 97% at March 40 .0 102% 2015 end to 80% at March 2016 end 35 .0 1 0 0.0 % 79% 76% 75% 30 .0 67%
Slide 19: Capital Adequacy Safely Above Requirements
CAPITAL ADEQUACY SAFELY ABOVE REQUIREMENTS Bank only Mar-15 Dec-15 Mar-16 Solid capital base composed of high quality Tier 1 eligible instruments: share capital, retained Capital adequacy ratio 17.6% 18.1% 19.5% earnings, reserves Own funds (RONm) 4,727 4,857 5,175 Capital adequacy safely above regu
Slide 20: Conclusions
CHAPTER 04 CONCLUSIONS 6 MAY 2016 | P.20
Slide 21: Conclusions
CONCLUSIONS In 2015, BRD registered substantial rise in profitability, expansion of the individual customer base and consistent progress on strategic and sound client segments – individuals and large corporate clients. Q1-2016, BRD marked a good start to the year in terms of operational performance,
Slide 22: Q&A Session
Q&A Session GROUPE SOCIETE GENERALE
Slide 23: Appendix
APPENDIX i] B R D 6 MAY 2016 | P.23 GROUPE SOCIETE GENERALE
Slide 24: BRD | Key Figures for Bank Only
BRD | KEY FIGURES FOR BANK ONLY Q1-2015 Q1-2016 Variation Net banking income (RON m) 596 611 2.5% Operating expenses (RON m) (393) (386) -1.9% Gross operating income (RON m) 203 225 10.9% Financial results Cost of risk (RON m) (106) (145) 36.7% Net result (RON m) 82 63 -23.2% Cost/Income 66.0% 63.2%
Slide 25: BRD Stock Price Performance
BRD STOCK PRICE PERFORMANCE 13.0 4,000 Market capitalisation 12.0 EUR 1.5bn 3,500 3,000 11.0 2,500 10.0 2,000 9.0 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 indices on the Bucharest Stock Exchange BRD is in Top 5 largest domestic companies
Slide 26: Financial Calendar for 2016
FINANCIAL CALENDAR FOR 2016 11th February: Preliminary 2015 financial results 11 February: Annual press conference 12 February: Presentation of the preliminary financial results for 2015 (conference call and webcast) 14th April: General Shareholders Meeting 14th April: Publication of the 2015 Board
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 6 MAY 2016 | P.28
BRD Groupe Société Générale — Q1 2016 Earnings Presentation on 6ix