Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — FY2024 Earnings Presentation
33 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 6, 2025
Slide 1: BRD Group Results
BRD GROUP RESULTS 4th quarter and full year 2024 | 06.02.2025
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended December 31, 2024 were examined by the Board of Directors on February 5, 2025. The financial information presented for the period ended December 31, 2024 and comparative periods has been prepared ac
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: 2024: Strong financing partner for the Romanian economy
2024: STRONG FINANCING PARTNER FOR THE ROMANIAN ECONOMY Remarkable lending activity Loan portfolio +19% y/y at 2024 end Broad based solid lending dynamic within the corporate segment Corporate loans +29% y/y at 2024 end Record annual production of individuals’ loans Individuals loan production, ̴ RO
Slide 5: Awarded excellence in 2024
AWARDED EXCELLENCE IN 2024 Best Trade Finance provider in Romania E-Growth award Global Finance The Banker: Bank of the Year in Bank of the Year, sustainability Romania Award for the Excellence award contribution to the Award for social for CSR and transition to the responsibility sustainability gre
Slide 6: Macroeconomic environment
2 MACROECONOMIC ENVIRONMENT
Slide 7: Marginal GDP growth, inflation picks up towards year-end
MARGINAL GDP GROWTH, INFLATION PICKS-UP TOWARDS YEAR-END GDP GROWTH Tepid growth throughout Europe Despite significant progress on reversing inflation dynamics and somewhat less restrictive policy rates, challenges remain 7.3% 6.0% 4.7% 5.7% 5.7% EU GDP growth of +0.9% in Q3 2024 vs. Q3 2023 3.9% 4.
Slide 8: Interest rates again under pressure, lower interbank liquidity
INTEREST RATES AGAIN UNDER PRESSURE, LOWER INTERBANK LIQUIDITY Monetary policy on hold, matching expectations 2024 brought two consecutive key rate cuts of 25 bps each, in July INTEREST RATES and August 2024, respectively, from 7% to 6.5% 8.8% 8.6% 8.3% Beginning of 2025, NBR maintained the key rate
Slide 9: Romanian banking sector - prudential indicators remain robust
ROMANIAN BANKING SECTOR - PRUDENTIAL INDICATORS REMAIN ROBUST Comfortable solvency and liquidity CAPITAL ADEQUACY, L/D & LIQUIDITY RATIOS Increased capital adequacy, amid a high share of profit incorporated, 73.6 71.0 65.9 68.8 71.4 67.8 67.3 at 24.9% as at September 2024 end, well above the EU aver
Slide 10: 4th quarter and full year 2024 BRD Group results
3 4TH QUARTER AND FULL YEAR 2024 BRD GROUP RESULTS
Slide 11: Expanding digital footprint
EXPANDING DIGITAL FOOTPRINT INTENSE DIGITAL ACTIVITY BROADENED DIGITAL OFFER >1.7m YouBRD users at 2024 end, +20% y/y ✓ Cashback loyalty program – launched in June 2024 ~650k enrolled clients, RON 1.8m cashback 30.5m transactions via You BRD in 2024, +28% y/y ✓ RoPay, instant QR code RON payments, a
Slide 12: Lending expansion powered by both corporate and retail growth
LENDING EXPANSION POWERED BY BOTH CORPORATE AND RETAIL GROWTH NET LOANS (end of period amounts, RON bn) Solid lending dynamic within the corporate segment YoY 49.7 +19.1% Strong growth in corporate lending driven by both SMEs (+26.4% y/y) and large corporates (+31.1% y/y) 41.7 37.7 +28.9% 21.1 Conti
Slide 13: Growing dedication to fostering a sustainable economy
GROWING DEDICATION TO FOSTERING A SUSTAINABLE ECONOMY Driving responsible and sustainable financing ✓ Total volume of sustainable financing committed in 2024 of EUR 366m: EUR 185m on corporates and EUR 181m on retail ✓ With EUR 1.3bn cumulated sustainable financing granted by 2024 end, BRD Horizons
Slide 14: Diversified and solid deposit base
DIVERSIFIED AND SOLID DEPOSIT BASE Deposit growth on collection from individuals and SMEs Retail deposits, the most stable and granular funding source, up +8.7% y/y at 2024 end DEPOSITS (end of period amounts, RON bn) YoY Higher net inflows from corporate customers, +9.1% y/y growth in outstanding a
Slide 15: Revenues driven by robust commercial activity
REVENUES DRIVEN BY ROBUST COMMERCIAL ACTIVITY NET BANKING INCOME (RON m) NII growth fueled by expanding volumes Y/Y 4,032 +5.2% +6.8% y/y in 2024, +6.1% y/y in Q4 2024 3,834 Other income 312 -13.2% ✓ substantial rise in loans outstanding, building on both retail and 359 Net fees and 809 +7.8% corpor
Slide 16: New tax on turnover casts a shadow over costs evolution
NEW TAX ON TURNOVER CASTS A SHADOW OVER COSTS EVOLUTION OPERATING EXPENSES (RON m) Y/Y 2,023 +6.8% OPEX kept stable excluding the impact of the new tax on turnover Tax on turnover 1,895 129 Contributions to 68 44 -36.1% FGDB & FR 864 841 Other expenses -2.7% Staff expenses increase for full year mai
Slide 17: Stable risk costs throughout 2024
STABLE RISK COSTS THROUGHOUT 2024 NET COST OF RISK 128 14 0 Net cost of risk at +12 bps in Q4 2024 12 0 93 10 0 2024 cost of risk returns to normalized levels, with a slightly 80 lower Q4, positively impacted by Retail NPL portfolio sale 60 36 33 44 40 34 30 38 26 28 7 15 20 12 8 - -12 -6 -5 -19 -2
Slide 18: Comfortable capital position
COMFORTABLE CAPITAL POSITION Solid high quality capital base SOLVENCY RATIO CAR of 22.7% at December 2024 end, excluding the impact of the new regulatory temporary treatments (implemented through art 468 and art 500a of CRR3 in July 2024) +58 bps -28 bps -61 bps 8 bps Regulatory own funds composed o
Slide 19: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 20: 2024: Remarkable commercial activity
2024: REMARKABLE COMMERCIAL ACTIVITY ▪ Drive for growth and commercial development ✓ Lending activity, up +19% y/y, driven by both retail and corporate segments: solid corporate financing dynamic (+29%) and growing momentum in individual customers lending ✓ Balanced deposit growth, with inflows from
Slide 21: Social responsibility at the heart of our action
5 SOCIAL RESPONSIBILITY AT THE HEART OF OUR ACTION
Slide 22: Tech & Innovation
TECH & INNOVATION BRD objective: to equip Romanian society for the knowledge-driven economy by investing in STEM education, tech entrepreneurship, and AI research and development to spur economic growth Universities ▪ BRD financed the opening of 30 educational hubs in 24 universities in Romania, whi
Slide 23: BRD & Fundatia9
CULTURE BRD & Fundatia9 BRD invests in the next generation of creators, in art and music, education, journalism. Moreover, BRD champions numerous programs and events, aiming to foster community engagement, connection, inclusivity and diversity. Fundatia 9 : Rezidenta 9 I Scena9 I Scoala 9 Contempora
Slide 24: Culture
CULTURE Empowering the next generation of creators During 2024, Fundatia9, which coordinates Scena9, Scoala9 and Rezidenta9, celebrated several significant milestones, including 8 years of Scena9 cultural magazine, 3 years of Recomandata Scena9 newsletter which reaches over 5,000 subscribers, and 48
Slide 25: Education & Volunteering
EDUCATION & VOLUNTEERING Our goal: to help transform and update education in Romania Our dedicated platform Scoala9 continued to advance its mission of advocating for the modernization of pre-university education in Romania. The initiative served as a dynamic platform for fostering dialogue among ke
Slide 26: Climate Change Summit – a well established and developing event
CLIMATE CHANGE SUMMIT – A WELL ESTABLISHED AND DEVELOPING EVENT CCS’s 3rd edition took place on October 15–17 at the Bucharest Opera House, as well as in 30 other locations throughout Romania and Central and Eastern Europe. Over 60 Romanian and international speakers contributed to the event, which
Slide 27: Q&A Session
6 Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 28: Appendix
7 APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES BRD STOCK PRICE PERFORMANCE GLOSSARY – CLIENT SEGMENTATION
Slide 29: BRD Group | Key figures
BRD GROUP | KEY FIGURES RON m Q4-2024 Q4-2023 Change 2024 2023 Change Net banking income 1,048 1,003 +4.4% 4,032 3,834 +5.2% Operating expenses (511) (505) +1.3% (2,023) (1,895) +6.8% Gross operating income 536 498 +7.6% 2,009 1,939 +3.6% Financial results Net cost of risk (9) 22 n.a. (145) 57 n.a.
Slide 30: BRD Standalone | Key figures
BRD STANDALONE | KEY FIGURES RON m Q4-2024 Q4-2023 Change 2024 2023 Change Net banking income 1,011 994 +1.7% 3,895 3,723 +4.6% Financial results Operating expenses (493) (483) +2.2% (1,965) (1,815) +8.2% Gross operating income 518 512 +1.2% 1,930 1,908 +1.2% Net cost of risk (15) 20 n.a. (128) 48 n
Slide 31: BRD | Stock price performance
BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation 8,000 22.0 EUR 2.6 bn 7,000 20.0 6,000 18.0 5,000 16.0 4,000 14.0 12.0 3,000 10.0 2,000 8.0 1,000 6.0 0 Volume ('000 shares, rhs) Price (RON, lhs) ▪ BRD is part of the main market indices on the Bucharest Stock Exchange ▪ BRD’s share pri
Slide 32: 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 33: 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 Société Générale — FY2024 Earnings Presentation on 6ix