Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD - Groupe Societe Generale — H1 2021 Earnings Presentation
28 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Aug 4, 2021
Slide 1: BRD Group Results 2nd quarter and 1st half 2021
BRD GROUP RESULTS 2nd quarter and 1st half 2021 | 04.08.2021
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended June 30, 2021 were examined by the Board of Directors on August 2, 2021. The financial information presented for the period ended June 30, 2021 and comparative periods has been prepared according to
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Very dynamic business momentum
VERY DYNAMIC BUSINESS MOMENTUM Broad based credit growth Corporate loan portfolio Strong performance in lending to corporate clients +24% vs June 2020 end Confirmed rebound of individuals’ loan production, well above pre-crisis Individuals loan production levels +58% vs H1 2020 end +19% vs H1 2019 e
Slide 5: Macroeconomic environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: Romanian economy continued to show resilience
ROMANIAN ECONOMY CONTINUED TO SHOW RESILIENCE GDP continues to surprise on the upside in Q1 2021 GDP expanded by 2.9% q/q (seasonally adjusted) in Q1 2021, one of the highest growth rates among EU member states, while annual growth printed close to zero. GDP GROWTH Domestic demand remained a drag of
Slide 7: On-hold monetary policy stance
ON-HOLD MONETARY POLICY STANCE Policy rates on hold after successive cuts To support the economy in the context of unfolding COVID-19 epidemic, the central bank reduced the monetary policy rate four times since March 2020, by 125 bps in total, to 1.25%. INTEREST RATE ENVIRONMENT Since the last rate
Slide 8: Support measures extended in 2021
SUPPORT MEASURES EXTENDED IN 2021 Extended relief measures to support the economy Income supporting measures: indemnity for technical unemployment (amounting to 75% of the net salary, capped at 75% of the average salary in the economy) for employees of companies affected by the crisis. The measure
Slide 9: A very solid Romanian banking sector
A VERY SOLID ROMANIAN BANKING SECTOR ROMANIAN BANKING SYSTEM Strong capital and liquidity positions NPL AND NPL COVERAGE RATIOS Loan to deposit ratio at 66% at Mar-2021, same as for 2020 end (122% 63.3% 63.8% EU at 2008 end), with accelerated growth of deposits 57.7% 56.2% 57.7% 58.5% 60.7% 55.6% 44
Slide 10: 2nd quarter and 1st half 2021 BRD Group results
3 2ND QUARTER AND 1ST HALF 2021 BRD GROUP RESULTS
Slide 11: Acceleration of digital deliveries
ACCELERATION OF DIGITAL DELIVERIES FURTHER ENHANCEMENT OF CLIENTS’ DIGITAL EXPERIENCE You BRD functionalities expanded enrollment of Mastercard cards in Apple and Google Pay biometric validation of online payments made with BRD Two major deliveries, now in pilot phase: cards – SCA e-commerce
Slide 12: Solid loan growth all across the board
SOLID LOAN GROWTH ALL ACROSS THE BOARD NET LOANS (end of period amounts, RON bn) Y/Y Very dynamic corporate financing activity 33.7 +8.6% 31.0 30.7 SME loans’ strong advance of +36.5% y/y 11.0 +23.5% Active participation in IMM Invest Program with RON 700 m 8.9 8.7 approved loans (in just 2 months f
Slide 13: Large, diversified and growing deposit base
LARGE, DIVERSIFIED AND GROWING DEPOSIT BASE SAVINGS (average amounts, RON bn) Y/Y Consolidating both retail and corporate deposit base 50.0 53.0 +11.5% 47.6 Higher corporate deposits, +20.4% y/y, driven by both large corporates (+24.2%) and SMEs (+15.7%) 16.2 18.6 +20.4% 15.5 Retail deposits up by +
Slide 14: Good dynamic of revenues
GOOD DYNAMIC OF REVENUES NET BANKING INCOME (RON m) Rebound confirmed Y/Y NBI grew by +1.7% y/y in H1 2021 and accelerated to +4.5% y/y in 1,512 1,538 +1.7% Q2 2021, reflecting the dynamic commercial activity +6.4% Other income 138 146 NII contracted, but at a slower pace (-2.7% y/y) in H1 2021, on
Slide 15: Opex evolution influenced by increased IT investments
OPEX EVOLUTION INFLUENCED BY INCREASED IT INVESTMENTS Flat costs y/y in H1 2021, excluding contributions to Deposit OPERATING EXPENSES (RON m) Guarantee & Resolution Funds and IT costs Y/Y 800 825 +3.2% Contributions to - 49 +13.5% Staff costs reduced by -1.1% y/y in H1 2021 43 FGDB & FR 344 369 +7.
Slide 16: Strong asset quality
STRONG ASSET QUALITY GROSS LOANS – June 30, 2021 breakdown by segment and currency (RON bn) Loan portfolio market mix breakdown by segment and currency (RON bn) 66% on individuals 34% on corporate segment 22.1 23.0 Consolidation of RON lending Share of RON denominated loans at 68.6% (vs 67.8% as of
Slide 17: Cost of risk reflects signs of economic recovery
COST OF RISK REFLECTS SIGNS OF ECONOMIC RECOVERY COST OF RISK* EVOLUTION Net cost of risk at -122 bps in Q2-21 In Q2, a net release was recorded for the first time since the onset of the Covid-19 pandemic. The NCR release reflects the joint effects of economic rebound and consistent recoveries on no
Slide 18: Capital position
CAPITAL POSITION SOLVENCY RATIO Strong high quality capital base CAR of 29.6% at June 2021 end +104bp -133bp -36bp Regulatory own funds composed solely of Tier 1 capital +328bp Increase in own funds on a yearly basis driven by 26.69% incorporation of 2020 profit (net of dividends according to 29.6
Slide 19: Conclusions
.) CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 20: Conclusions
CONCLUSIONS Romanian economy performed again above expectations and returned to pre- Covid levels In this context, BRD delivered a strong commercial performance: very dynamic lending activity on all segments active partner within the government backed lending programs for supporting SMEs (RO
Slide 21: BRD | Stock price performance
BRD | STOCK PRICE PERFORMANCE BRD is part of the main market indices on the Bucharest Stock Exchange BRD is in Top 5 largest domestic companies listed on the local stock exchange BRD’s share price reached RON 17.50 as of June 2021 end, +51.4% y/y and +17.8% ytd. 2ND QUARTER AND 1ST HALF 2021 R
Slide 22: Q&A session
6 Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 23: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE - KEY FIGURES FINANCIAL CALENDAR FOR 2021 GLOSSARY – CLIENT SEGMENTATION
Slide 24: BRD Group | Key figures
BRD GROUP | KEY FIGURES (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q2-2021 Q2-2020 Change H1-2021 H1-2020 Change Net banking income 779 745 4.5% 1,538 1,512 1.7% Operating expenses (387) (374) +3.4% (825) (800) 3.2% Gro
Slide 25: BRD | Key figures for bank only
BRD | KEY FIGURES FOR BANK ONLY (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q2-2021 Q2-2020 Change H1-2021 H1-2020 Change Net banking income 752 712 5.7% 1,472 1,433 2.8% Financial results Operating expenses (362) (353)
Slide 26: Financial calendar for 2021
FINANCIAL CALENDAR FOR 2021 10th February: Preliminary 2020 financial results and annual press conference 22nd April: General Shareholders Meeting for approving the 2020 annual financial results 6th May: Presentation of the 1st quarter 2021 financial results 3rd August: Presentation of the 2nd quart
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 transfe
Slide 28: BRD Groupe Societe Generale - Investor Relations
BRD GROUPE SOCIETE GENERALE - INVESTOR RELATIONS +4 021 380 47 62 | investor@brd.ro; www.brd.ro
BRD - Groupe Societe Generale — H1 2021 Earnings Presentation on 6ix