Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — FY2021 Earnings Presentation
35 slides from Banca Transilvania SA's earnings presentation, 2022
Slide 1: 2021 Preliminary Financial Results
BANCA TRANSILVANIA 2021 Preliminary Financial Results
Slide 2: 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 herein. Banca
Slide 3: Agenda
1. @ srin2021 3. | Financial Performance @ capital 5. | Acquisitions © sustainability Appendix
Slide 4: The Romanian economy advanced by 5.6% YoY in 2021
The Romanian economy advanced by 5.6% YoY in 2021 Real economy Contribution of production factors to the The economic confidence improved at the end of 2021, an YoY pace of potential output (pp) evolution influenced by lower political tensions 10 K L TFP 8 • The GDP rose by 5.6% YoY in 2021, due to
Slide 5: Policy-mix: public finance consolidation and inflation
The public finance initiated a consolidation process in 2021, Policy-mix Inflation (HICP) vs. policy rate (%) supported by the strong dynamics of the nominal GDP; The central 8% Consumer prices (HICP) (YoY) bank continued the normalisation of the monetary policy at the Monetary policy rate Consumer
Slide 6: Financial economy: upward trend for interest rates
The upward trend for the interest rates has recently consolidated, an Financial economy evolution determined by the monetary policy outlook in Romania ROBOR 3M vs. ROBOR 6M 8.0 and the signals of FED regarding an aggressive tightening in 2022 6.0 4.0 • Money market interest rates consolidated on the
Slide 7: Non-government loans continued to increase in 4Q 2021
The non-government loans continued to increase by a strong Loans pace in 4Q 2021, based on the resilience of the real economy and Loans (YoY) the low level of the real financing costs 30% Total RON FX • Loans rose for the 19th month in a row in December, by 0.7% 20% MoM and by 14.8% YoY to RON 324.2
Slide 8: Deposits upward trend consolidated at end of 2021
The upward trend of the deposits consolidated at the end of Deposits 2021, with the same high savings rate, given the improvement of Deposits (YoY) household income and better bottom line figures for companies 25% Household Corporate Total 20% 15% 10% • Deposits rose by 3.6% MoM and by 13.9% YoY to
Slide 9: BT in 2021
cape 3. | Financial Performance €B Macroeconomic Lands @ capital © sustainabiii @ Appendix 5. | Acquisitions
Slide 10: Second year into the COVID-19 pandemic, BT delivering financial support
IMM Invest 2021 & Government grants, RON Second year into the COVID-19 pandemic, with BT delivering significant financial support to the Romanian economy through government relief 2.6bn 2bn programs 5% Micro-grants Agro IMM Invest 26% • Since the launch of the IMM Invest program in 2020, over 13.5k
Slide 11: More solutions for digitalized clients
Retail Digitalized clients, ratio 48% 59% 72% Retail Companies • Online lending platform for entrepreneurs 3.2 3.0 • BT One subscriptions are now available to 2.9 has been launched providing 2.3 1.8 all retail customers, including existing accommodation of digital interactions, customers; at EOY 202
Slide 12: Financial Performance
Macroeconomic Landscape BT in 2021 Financial Performance Capital Acquisitions Sustainability Appendix
Slide 13: Profitability 12M 2021
INDIVIDUAL CONSOLIDATED Profitability 12M 2021 12M 2020 Δ 12M 2021 12M 2020 Δ Net interest income, RONmn 2,739.8 2,580.1 6.2% 3,142.5 2,977.1 5.6% Net fee and commission income, RONmn 806.3 656.4 22.8% 961.5 776.5 23.8% Operating expenses, RONmn (2,091.0) (1,782.3) 17.3% (2,381.5) (2,049.4) 16.2% Pr
Slide 14: Net interest income and operating profit
+6.2% +4.7% 2,740 2,580 +22.8% 12M 2020 12M 2021 +48.7% 656 806 310 461 +17.3% Net interest Net fee & Net trading Operating income commission income expenses Pre-provision operating profit income -1,782 RONmn -2,091 14
Slide 15: Loans to households and companies
Loans to households other 0.02 Dec/20 Dec/21 Dec/21 ↑12% RON 24.0bn RON 26.9bn Loans to companies Dec/20 Dec/21 Dec/21 ↑18% RON 19.5bn RON 23bn *SMEs identified according to internal classification rules 15
Slide 16: NPL (PAR90) ratio remained stable below 2% (1.77%)
NPL (PAR90) ratio remained stable below 2% (1.77%) • Banca Transilvania provided crucial support to the economy and contributed to the robust economic recovery in 2021 , while NPL coverage ratio maintaining a sound loan portfolio: NPL ratio on a downward trend; 133% 127% 128% 128% 125% 117% • NPL co
Slide 17: Deposits from households and companies
Deposits from households Dec/20 Dec/21 Dec/21 ↑14% RON 68.4bn RON 60.3bn Deposits from companies Dec/20 Dec/21 Dec/21 RON 28bn ↑22% RON 34.3bn *SMEs identified according to internal classification rules 17
Slide 18: Retail loan portfolio reached RON 26.9bn
Retail loan portfolio reached RON 26.9bn at the end of year 2021 • ~3.25mn active clients and over 221,000 retail loans disbursed in 2021, worth RON 8.3bn, with consumer loans leading the increase YoY; Retail loans, RON bn • Well positioned in the digital transactions industry with a portfolio of 26
Slide 19: SME loan portfolio at RON 6.8bn
SME (internal definition) loan portfolio at RON 6.8bn • Over 376,800 active clients, +8% increase vs EOY 2020; SME loans, RON bn 6.8 6.1 • Loans worth ~RON 3.7bn granted during 2021 to over 18k clients, out of 5.4 which 57% were newly financed customers; 5.0 0.3 4.3 • Beside the active roll in the r
Slide 20: Corporate loan portfolio increased to RON 16.2bn
Corporate loan portfolio increased to RON 16.2bn • With a portfolio of over 11,200 active clients, the corporate banking area of BT had a double digit new loan production exceeding RON 16bn; Corporate loans, RON bn • Medium Corporate segment focus was on supporting existing clients and 16.2 provide
Slide 21: Capital
€B Macroeconomic Landscape @ srin2021 (a) Financial Performance 5. | Acquisitions GB sustainability 7. | Appendix
Slide 22: Structure of own funds
Structure of own funds Banca Transilvania has an adequate capital to sustain its growth ambitions, either RON 10,8bn Total Capital organic or through acquisitions 1bn Other - 9% 1,5bn Tier 2 Capital - 14% 22.88% 22.88% 2bn Retained earnings and reserves - 18% 19.69% 3.19% 14.84% 4.85% 10.34% 4.50% 6
Slide 23: Acquisitions
Macroeconomic Landscape BT in 2021 Financial Performance Capital Acquisitions Sustainability Appendix
Slide 24: M&A activity in Banca Transilvania
Acquisition of Idea Group Romania is Consolidation of two Romanian strong part of the digital journey of BT Group, brands on the financial leasing market, M&A activity in allowing for a fully-fledged digital dedicated to B2B services, will provide Banca Transilvania financial hub. superior value pro
Slide 25: Sustainability
Macroeconomic Landscape BT in 2021 Financial Performance Capital Acquisitions Sustainability Appendix
Slide 26: Key progress with our responsible financing goals
Key progress with our responsible financing goals More than RON 1.5bn in Green loans disbursed in 2021 Product offer includes Green products: ✓ Green Mortgage 10% ✓ Green consumer loans for responsible acquisitions 3% ✓ Green Mobility Leasing 22% ✓ Impact financing for legal entities: renewable ener
Slide 27: Key progress: People and Environment
We promote and rely on local Key progress: People and Environment suppliers of goods and services: Sustained initiatives for financial In 2021, 75% of our energy 5% education: consumption comes from clean ✓ BT Club: financial and business sources, renewable energy. We will education for young entrep
Slide 28: Initiatives towards our sustainability objectives
Initiatives towards our sustainability objectives: BT approved to submit its membership application to the UN Environment Programme Finance Initiative – Principle for Responsible Banking framework to ensure that our business strategy and practice is aligned with the Sustainable Development Goals and
Slide 29: BT Group subsidiaries and total assets
Total assets RON 125.1bn Total assets RON 610mn Total assets RON 1,400mn AUM RON 5,255mn Total assets RON 331mn Total assets RON 625mn AUM RON 125mn Total assets RON 4,086mn Total assets* RON 2,923mn *Value refers to Idea Group 29
Slide 30: Appendix
Macroeconomic Landscape BT in 2021 Financial Performance Capital Acquisitions Sustainability Appendix
Slide 31: Individual income statement
RONmn 12M 2021 12M 2020 Δ Net interest income 2,739.8 2,580.1 6.2% Net fee and commission income 806.3 656.4 22.8% Net trading income 461.3 310.1 48.7% Other net income 340.8 390.6 -12.7% Operating income 4,348.2 3,937.2 10.4% Personnel expenses (1,159.1) (958.9) 20.9% D&A (340.6) (303.7) 12.2% Othe
Slide 32: Individual balance sheet
RONmn Dec/21 Dec/20 Δ Cash & cash equivalents 16,763.6 20,978.6 -20.1% Placements with banks and public institutions 15,539.1 6,636.4 134.2% Loans to customers, net 46,312.1 40,363.9 14.7% T-bills & securities 42,785.7 32,401.0 32.1% Fixed assets 987.4 887.7 11.2% Right-of-use assets 706.6 708.5 -0.
Slide 33: Consolidated income statement
RONmn 12M 2021 12M 2020 Δ Net interest income 3,142.5 2,977.1 5.6% Net fee and commission income 961.5 776.5 23.8% Net trading income 527.6 345.1 52.9% Other net income 323.3 439.0 -26.3% Operating income 4,954.9 4,537.6 9.2% Personnel expenses (1,326.1) (1,097.5) 20.8% D&A (358.2) (327.7) 9.3% Othe
Slide 34: Consolidated balance sheet
RONmn Dec/21 Dec/20 Δ Cash & cash equivalents 18,320.9 22,133.2 -17.2% Placements with banks and public institutions 16,320.7 7,223.3 125.9% Loans to customers, net 50,196.9 42,120.3 19.2% T-bills & securities 44,203.7 33,321.6 32.7% Fixed assets 1,498.4 1,225.8 22.2% Right-of-use assets 492 448.9 9
Slide 35: Contact details
30 – 36, Dorobanților Street, Cluj-Napoca, Cluj, 400117, Romania +40 264 407 150 | +40 264 301 128 investor.relations@btrl.ro www.bancatransilvania.ro/en/investor-relations www.bancatransilvania.ro