Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD - Groupe Société Générale — FY2008 Earnings Presentation
23 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 12, 2009
Slide 1: 2008 Results - Press Conference
PRESS CONFERENCE 12 Feb 2009 2008 RESULTS
Slide 2: 2008: Another satisfactory year in a troubled environment
2008 RESULTS 2008: Another satisfactory year in a troubled environment Evolution 2008 08/07 MRON nominal Net banking income 3,199 27% Operating profit 1,841 31% Net consolidated profit (*) 1,138 22% Net consolidated profit with Asiban 1,364 46% Net profit (BRD stand alone) 1,127 23% Net profit with
Slide 3: Agenda
AGENDA I. Activity: BRD has continued its development in 2008 and shown a strong resilience II. General expenses : in spite of important investments, they have been well controlled and even frozen in the middle of the year III. Risks: the net cost of risk is one of the lowest of the banking system I
Slide 4: An expanding clientele
Activity CLIENTS An expanding clientele Individual Clients (*) Corporate Clients (*) (x 1 000) (x 1 000) 162 2,430 146 2,259 1,982 115 110 1,622 99 1,366 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 (*) Clients having performed transactions during the past three months 4
Slide 5: Network: maintaining the expansion
Activity NETWORK Network: maintaining the expansion… Number of branches (end of period) 930 +124 806 +206 BRD 600 Express +274 • Mainly next door banking: small customer oriented units (BRD 326 Express). +114 212 • 751 branches opened since June 2003. • In 2008 expansion continued but at lower pace
Slide 6: … and covering all areas with growth potential
Activity NETWORK 806 agencies at the end of 2007 … and covering all areas with growth potential + 124 agencies opened in 2008 44 + 9 32 + 7 69 + 1 82 + 8 34 + 3 32 + 2 59 + 18 50 + 2 38 + 2 32 + 12 57 + 14 44 + 4 32 +3 29 + 15 109 + 20 VALAHIA 35 + 2 28+ 2 6
Slide 7: Continuation of growth in spite of the crisis
Activity DEPOSITS / LOANS Continuation of growth in spite of the crisis Customers’ deposits Loans to customers (BRD consolidated) (BRD consolidated) (end of year, MRON) (end of year, MRON) 28,552 27,011 + 6% 34,260 +27% + 37% Individuals 26,905 19,667 46% Individuals + 44% 48% 14,681 18,715 8,587 10
Slide 8: A continuous and powerful contribution to the economic activity
Activity TOTAL COMMITMENTS A continuous and powerful contribution to the economic activity 2004 8% 2005 2006 2007 2008 8% Structure of total commitments 4% 6% 8% as at 31 Dec 2008 7.0 10.5 2.4 -- 18.7 3.2 -- 26.9 34.3 16% 40% Small 4.8 -- rises enterp 7.3 7.1 Individuals 9.2 25% Medium 17.4 Loans (b
Slide 9: Consumer finance (BRD Finance): strong growth in consumer credit
Activity FOCUS ON SUBSIDIARIES Consumer finance (BRD Finance): strong growth in consumer credit Balances of loans to customers (MRON) points of sale financing • Maintaining good results in a cards revolving 162 highly competitive market 82 42 • Strong growth in balances +129 MRON (+21% vs. 31 Dec 20
Slide 10: Leasing (BRD Sogelease) – vendor and equipment finance
Activity FOCUS ON SUBSIDIARIES Leasing (BRD Sogelease) – vendor and equipment finance Customer balances (MRON) 1,372 +32% A strong growth since inception 1,037 .4 x3 A key player in corporate asset financing (3rd rank among leasing bank affiliates) 714 A well balanced portfolio 566 409 2004 20
Slide 11: Operational vehicle leasing and fleet management (ALD)
Activity FOCUS ON SUBSIDIARIES Operational vehicle leasing and fleet management (ALD) • Still an emerging business in Romania, servicing both SME’s and large corporates 4,828 Vehicles under • A good start (July 2005), leveraging on management (number) ALD International – member of SG Group – experti
Slide 12: Solid increase in revenues
Activity NET BANKING INCOME Solid increase in revenues Net banking income (BRD consolidated) MRON) 1,082 1,403 1,772 2,512 3,199 6363 • Net banking income +27% vs. 2007 146 146 208 208 334 334 461 461 FX and 351 others • Interest margin +21% vs. 2007 351 487 645 989 487 645 1,297 • Commissions +31%
Slide 13: Agenda
AGENDA I. Activity: BRD has continued its development in 2008 and shown a strong resilience II. General expenses : in spite of important investments, they have been well controlled and even frozen in the middle of the year III. Risks: the net cost of risk is one of the lowest of the banking system I
Slide 14: Pursuing a strong investment effort
General expenses EXPENSES Pursuing a strong investment effort Investments (MEUR) 69 67 64 19 IT Real 29 20 estate 23 Other 25 2004 2005 2006 2007 2008 14
Slide 15: Pursuing the recruitment effort but at slower pace
General expenses EMPLOYEES Pursuing the recruitment effort but at slower pace and a strict management of administrative expenses Employees (end of year - consolidated) +954 9,443 8,489 7,286 5,636 4,539 2004 2005 2006 2007 2008 15
Slide 16: 2008: Maintaining a high increase in revenues
GROSS OPERATING INCOME 2008: Maintaining a high increase in revenues Gross Operating Income (BRD consolidated) (MRON) 1,841 Low cost/income ratio despite ongoing commercial investment 1,406 Accelerated growth of Gross Operating Income 911 751 577 53% 48% 49% Operating 47% 44% ratio 42% 2004 2005
Slide 17: Agenda
AGENDA I. Activity: BRD has continued its development in 2008 and shown a strong resilience II. General expenses : in spite of important investments, they have been well controlled and even frozen in the middle of the year III. Risks: the net cost of risk is one of the lowest of the banking system I
Slide 18: Limited increase of the cost of credit risk
Risks COST OF RISK Limited increase of the cost of credit risk Net Cost of Commercial Risk/Commitments (BRD consolidated) From the Net Cost of Risk of 2008 137 b.p. 16 b.p. represents “regulatory 16 b.p. impact” 110 b.p. 14 b.p. The BRD’s credit risk rate is lower 83 b.p. than the banking system
Slide 19: Agenda
AGENDA I. Activity: BRD has continued its development in 2008 and shown a strong resilience II. General expenses : in spite of important investments, they have been well controlled and even frozen in the middle of the year III. Risks: the net cost of risk is one of the lowest of the banking system I
Slide 20: 2008: Another satisfactory year in a troubled environment
Performances PROFIT AND LOSS ACCOUNT 2008: Another satisfactory year in a troubled environment Evol. 08/07 MRON - RAS 2007 2008 nominal Net banking income 2,512 3,199 +27% Operational costs -1,105 -1,358 +23% Operating profit 1,407 1,841 +31% Cost of risk -298 -484 +62% Income tax -177 -220 +24% Net
Slide 21: Financial strength and strong recurrent profitability
Performances RETURN ON EQUITY Financial strength and strong recurrent profitability Total B/S as of 31 December 2008 : 51.4 bnRON 226 Equity before distribution (MRON) Net profit from Asiban 4,318 ROE (%) 3,549 • Equity – 95% increase over the last two years, due to the excellent increase in 2,389 n
Slide 22: BRD share price above BET index
Performances - Stock price STOCKMARKET PRICE BRD share price above BET index Evolution on the Stock Exchange average price (area 2008 – the 100 basis in 2001) Market capitalisation at 09.02.2009 = 928 MEUR 2500 24.5 2000 17.5 16.9 1500 9,265 11.3 1000 7,673 5,788 7.14 5,913 BRD RON 5.4 500 3.5 3,147
Slide 23: 2008: Another satisfactory year in a troubled environment
2008 RESULTS 2008: Another satisfactory year in a troubled environment 2008 Evolution 08/07 MRON nominal Net banking income 3,199 27% Operating profit 1,841 31% Net consolidated profit (*) 1,138 22% Net consolidated profit with Asiban 1,364 46% Net profit (BRD stand alone) 1,127 23% Net profit with
BRD - Groupe Société Générale — FY2008 Earnings Presentation on 6ix