Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q1 2017 Earnings Presentation
30 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, May 5, 2017
Slide 1: BRD Group Results 1st Quarter 2017
BRD GROUP RESULTS 1ST QUARTER 2017 5 MAY 2017
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended March 31, 2017 were examined by the Board of Directors on May 3, 2017. The financial information presented for the period ended March 31, 2017 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 2017 GROUP RESULTS CHAPTER 04_CONCLUSIONS 5 MAY 2017 | P.3
Slide 4: Q1 2017: Strong Net Profit
Q1 2017: STRONG NET PROFIT Net profit of RON 330m in Q1 2017, significantly above Q1 2016 (RON 73m) Net banking income up +0.4%, with net interest income increase (+5.1% vs Q1 2016, driven by volume growth and favorable structure shifts) more than compensating the decrease in non interest income
Slide 5: BRD Group | Key Figures
BRD GROUP | KEY FIGURES Q1-2017 Q1-2016 Variation Net banking income (RON m) 650 647 +0.4% Operating expenses (RON m) (384) (405) -5.1% Financial results Gross operating income (RON m) 266 243 9.6% Cost of risk (RON m) 124 (152) Net result (RON m) 330 73 4.5x Cost/Income 59.1% 62.5% -3.4 pt Mar-17 M
Slide 6: Macroeconomic and Banking Environment
CHAPTER 02 MACROECONOMIC AND BANKING ENVIRONMENT 5 MAY 2017 | P.6
Slide 7: Economic Growth Continues, on Rising Private Consumption
ECONOMIC GROWTH CONTINUES, ON RISING PRIVATE CONSUMPTION GDP GROWTH GDP advanced by 4.8% in 2016, strongest increase since 2008 and one of the highest among EU 4.8% member states, with private consumption the main 4.1% 3.5% 3.9% contributor to growth 3.1% Positive inflation rate starting with 20
Slide 8: Banking Sector: Continued Strong Increase in Savings, Lending Picks Up the Pace
BANKING SECTOR: CONTINUED STRONG INCREASE IN SAVINGS, LENDING PICKS UP THE PACE Pace of savings growth remains strong despite the persistent BANKING SYSTEM DEPOSITS (RON bn) low interest rates: +10.1% deposits growth at March 2017 end yoy* vs March 2016 end: 290 299 +10.1% 270 higher individuals
Slide 9: Banking Sector: Single Digit NPL Ratio
BANKING SECTOR: SINGLE DIGIT NPL RATIO BANKING SECTOR NPL RATIO* Loss 2 NPL ratio EBA NPL ratio 21.9% 20.7% 18.2% 13.9% 13.6% 9.5% 9.6% Dec-12 Dec-13 Dec-14 Dec-14 Dec-15 Dec-16 Feb-17 3 4 Significant improvement of the asset quality: NPL ratio reduced gradually from 13.6% at Dec 2015 end, to less
Slide 10: 1st Quarter 2017 Group Results
CHAPTER 03 1ST QUARTER 2017 GROUP RESULTS 5 MAY 2017 | P.10
Slide 11: Strong Client Acquisition
STRONG CLIENT ACQUISITION EVOLUTION OF ACTIVE INDIVIDUAL CUSTOMERS* Further increase in: (x 1000) customer base: +68k (individuals) vs. Q1 2016 +68k individuals’ equipment rate increasing from 4.01 at March 2016 end to 4.09 at March 2017 end, driven by growing number of remote banking solution
Slide 12: Robust Growth in Loan Production
ROBUST GROWTH IN LOAN PRODUCTION Robust increase in loan production for individuals, +17% INDIVIDUALS’ LOAN PRODUCTION (RON m) on a yearly basis: Q1-17 vs. Q1-16 1,763 further advance of unsecured consumer loans, +26.3% vs. Q1 2016, driven by Expresso 1,422 1,374 1,422 +17.0% 1,246 1,304 1,294 c
Slide 13: Dynamic Increase in Deposits
DYNAMIC INCREASE IN DEPOSITS Strong savings collection, pushing customer deposits DEPOSITS (outstanding amounts, RON bn) up by 6.7%, compared to March 2016 end yoy* 42.2 41.4 +6.7% 38.5 retail deposits up +9.5% y/y 16.2 15.3 non retail deposits up +2.3% y/y 14.8 +2.3% Significant increase in
Slide 14: NBI Driven Up by Net Interest Income
NBI DRIVEN UP BY NET INTEREST INCOME Net banking income at RON 650m, slightly NET BANKING INCOME (RON m) increasing vs Q1 2016, with net interest income YoY growth more than compensating the contraction of 647 650 +0.4% non interest income Net interest income up by +5.1% in Q1 2017 vs. Q1 Net in
Slide 15: Further Cost Containment
FURTHER COST CONTAINMENT Operating expenses decreased by -5.1% compared OPERATING EXPENSES (RON m) to Q1 2016, driven by savings on all costs categories YoY 405 384 -5.1% Operating expenses stable when accounting for the Staff 168 167 -0.8% expenses adjustment to Deposit Guarantee Fund contribut
Slide 16: Improved Operational Performance
IMPROVED OPERATIONAL PERFORMANCE GROSS OPERATING INCOME (RON m) Gross operating income up by 9.6% vs Q1 2016, driven by +9.6% slightly higher net banking income coupled with further cost discipline C/I ratio, 3.4 pts lower vs Q1 2016, stable when 264 243 266 considering the full contribution to
Slide 17: Asset Quality
ASSET QUALITY GROSS LOANS - March 31, 2017 Loan portfolio market mix BREAKDOWN BY SEGMENT & 61.5% on individuals market segments CURRENCY (in RON bn) 38.5% on legal entities market segments 17.9 Consolidation of RON lending 19.0 Share of RON denominated loans at around 11.9 57.8% (versus 5
Slide 18: Cost of Risk and Coverage Ratio
COST OF RISK AND COVERAGE RATIO COST OF RISK EVOLUTION (in M RON) Q1 2017 NCR highlights 2,500 2,083 Strong level of recovery performance from 2,000 1,883 non retail NPL exposures (near 80 MRON in net provision reversals) 1,500 1,193 1,193 Extraordinary insurance indemnities related to 800 1,0
Slide 19: Very Strong Increase in Net Profit
VERY STRONG INCREASE IN NET PROFIT NET PROFIT (RON m) RETURN ON EQUITY 19.3% 330 4.5x 4.6% 73 Q1-2016 Q1-2017 Q1-2016 Q1-2017 Very strong increase in net profit, to RON 330m in Q1 2017 on positive net cost of risk, coupled with improved net interest income and strict monitoring of operating expens
Slide 20: Self-Funded on a Standalone Basis
SELF- FUNDED ON A STANDALONE BASIS NET LOANS AND DEPOSITS (RON bn) Loan to deposits ratio: 69.2% at March 2017 end, down -2.1pts compared to March 2016 end, reflecting 101.8% strong deposits growth 40.0 100.0% 35.0 79.4% 76.0% 66.9% 71.3% 67.6% 69.2% 80.0% 30.0 Excess of liquidity primarily inve
Slide 21: Comfortable Capital Adequacy Ratio
COMFORTABLE CAPITAL ADEQUACY RATIO Solid capital base composed of high quality Tier 1 Bank only Mar-16 Dec-16 Mar-17 eligible instruments: share capital, retained Capital adequacy ratio 19.5% 19.8% 19.9% earnings, reserves Own funds (RONm) 5,175 5,212 5,289 Capital adequacy ratio comfortably abo
Slide 22: Conclusions
CHAPTER 04 CONCLUSIONS 5 MAY 2017 | P.22
Slide 23: Conclusions
CONCLUSIONS Romania registered a strong economic advance in 2016, with GDP growth among the highest in EU, at 4.8%. The outlook for 2017 shows positive signs of further economic growth, Romania being expected to remain among the best performers in region. BRD Group delivered a robust performance
Slide 24: Q&A Session
Q&A Session GROUPE SOCIETE GENERALE
Slide 25: Appendix
APPENDIX & BRD BMAv 2017 | a GROUPE SOCIETE GENERALE
Slide 26: BRD | Key Figures for Bank Only
BRD | KEY FIGURES FOR BANK ONLY Q1-2017 Q1-2016 Variation Net banking income (RON m) 601 611 -1.6% Operating expenses (RON m) (365) (386) -5.3% Financial results Gross operating income (RON m) 236 225 4.9% Cost of risk (RON m) 130 (145) Net result (RON m) 307 63 4.9x Cost/Income 60.8% 63.2% -2.4 pt
Slide 27: BRD Stock Price Performance
BRD STOCK PRICE PERFORMANCE 13.0 Market capitalisation 4,000 EUR 1.9bn 12.0 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 compa
Slide 28: Financial Calendar for 2017
FINANCIAL CALENDAR FOR 2017 9th February: Preliminary 2016 financial results and annual press conference 20th April: General Shareholders Meeting 20th April: Publication of the 2016 Board of Directors Report 4th May: Q1-2017 results publication 2nd August: H1-2017 results publication 3rd
Slide 29: 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 30: Thank You
THANK YOU Investor Relations Tel. : +4 021 380 47 62 Email : investor@brd.ro Homepage: www.brd.ro 5 MAY 2017 | P.30
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