Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — FY2018 Earnings Presentation
32 slides from Banca Transilvania SA's earnings presentation, February 2019
Slide 1: 2018 preliminary financial results
BANCA TRANSILVANIA 2018 preliminary financial results ” February 2019 : ™ ..3 7 |
Slide 2: Disclaimer
BT} 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. Di
Slide 3: BT performance 2018 key indicators
60 00 % 50 00 % 40 00 % 30 00 % 59.3 74.1 20 00 % 10 00 % 0% 30 00 00% 25 00 00% 20 00 00% 2,478 15 00 00% 1,808 10 00 00% 50 00 0% 0% 80 00 0% 70 00 0% 60 00 0% 50 00 0% 695 40 00 0% 30 00 0% 581 20 00 0% 10 00 0% 0% 14 00 00% 12 00 00% 10 00 00% 80 00 0% 1,186 1,219 60 00 0% 40 00 0% 20 00
Slide 4: BT performance excluding Bancpost
60 00 % 50 00 % 40 00 % 30 00 % 59.3 67.6 20 00 % 10 00 % 0% 25 00 00% 20 00 00% 15 00 00% 10 00 00% 1,808 2,125 50 00 0% 0% 70 00 0% 60 00 0% 50 00 0% 40 00 0% 30 00 0% 581 634 20 00 0% 10 00 0% 0% 18 00 00% 16 00 00% 14 00 00% 12 00 00% 10 00 00% 1,377 1,636 80 00 0% 60 00 0% 40 00 0% 20 0
Slide 5: Margins and profitability trends by quarter
47 0 14 % 451 445 45 0 12 % 432 435 428 43 0 9.6% 9.5% 10 % 8.7% 9.0% 41 0 8% 39 0 6% 5.4% 4% 37 0 • 2% 35 0 4Q17 1Q18 2Q18 3Q18 4Q18 6.4% 6.2% 5.7% 5.6% 5.0% • 4Q17 1Q18 2Q18 3Q18 4Q18 Clasificare BT: Uz Intern
Slide 6: Loan growth by segment
10 % 26 0 251 9% 248 25 0 242 8% 237 7.9% 24 0 233 6.8% 7% 23 0 6% 6.1% 6.3% 22 0 5.7% 5% 21 0 • 4% 20 0 4Q17 1Q18 2Q18 3Q18 4Q18 corporate loans household - other loans household - consumer loans household - housing loans 7.3 3.7 2.8 3.7 3.4 • 3.2 3.5 3.6 3.9 1.6 7.7 8.1 8.3 7.8 7.3 -0.5 -0.5 -0.1
Slide 7: Loans by currency
18 00 0% 162 165 158 16 00 0% 146 151 14 00 0% 12 00 0% 10 00 0% 87 86 85 86 85 • 80 00 % RON loans 60 00 % FCY loans 40 00 % 20 00 % 0% 4Q17 1Q18 2Q18 3Q18 4Q18 • FCY loans 14% 21% 34% 41% RON loans • 79% 86% 66% 59% household - household - household - non-financial consumer loans housing loans oth
Slide 8: Macroeconomic environment: GDP and investments
10 8 6 4 2 0 1Q10 1Q15 3Q12 3Q 17 4Q13 4Q 18 2Q11 2Q16 -2 -4 • -6 20 Private consumption (%, YoY) 15 Fixed investments (%, YoY) • 10 5 0 4Q12 4Q11 4Q 17 4Q 18 4Q10 4Q13 4Q14 4Q15 4Q16 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q 17 2Q 18 -5 -10 -15 Clasificare BT: Uz Intern
Slide 9: Interest rates and inflation
-4 -2 0 4 2 6 4.75 4.70 4.80 4.50 4.60 4.55 4.65 Nov-17 Jan-14 May-14 Dec-17 Sep-14 Jan-18 Jan-15 Feb-18 May-15 Clasificare BT: Uz Intern Mar-18 Sep-15 Apr-18 Jan-16 May-18 May-16 Jun-18 Sep-16 ROBOR 3M (%) Jul-18 Jan-17 Inflation (%, YoY) NBR policy rate (%) Aug-18 May-17 Sep-18 Sep-17 Oct-18 Jan-1
Slide 10: BT performance in 2018
Net interest income, RONmn Net fee and commission income, RONmn Operating expenses, RONmn Pre-provision operating profit, RONmn Net profit, RONmn EPS, RON Cost of risk, net NIM ROE Cost-to-income ratio Gross loans to customers, RONmn Deposits from customers, RONmn Gross loans-to-deposits ratio NPL r
Slide 11: BT (excluding Bancpost) in 2018
Net interest income, RONmn Net fee and commission income, RONmn Operating expenses, RONmn Pre-provision operating profit, RONmn Net profit, RONmn EPS, RON Cost of risk, net NIM ROE Cost-to-income ratio Gross loans to customers, RONmn Deposits from customers, RONmn Gross loans-to-deposits ratio NPL r
Slide 12: Trends in income structure: BT and Bancpost
RONmn 2,478 1,808 2018 Net interest income 581 695 Net fee & commission income Trends in income structure BT and Bancpost 224 263 a Net trading income Oper exp -1,298 1,792 1,801 1,377 Pre-provision operating profit BT pe
Slide 13: Trends in income structure: BT excluding Bancpost
Trends in income structure e BT excluding Bancpost RONmn 2,125 808 pete 1,636 1,377 ce} 5 581 634 7 Net interest Net fee & Net trading Oper Pre-provision income commission income exp operating profit income -1,298 1,404
Slide 14: Income tax evolution
Income tax evolution RONmn ¢ Income tax increases in BT due to one-off events -423 2017 2018 Hl Corporate income tax related to sale of loans portfolio @§ Corporate income tax related to Bancpost Deferred income tax from IFRS9 impact (mutual funds reserves) I Corporate income tax {il Other deferred
Slide 15: Trends in income structure
Trends in income structure -3 RONmn aD < <TD 695 263 1,801 581 224 1 1,808 377 2017 2018 2017 2018 2017 2018 2017 2018 I Net interest income Bancpost lj Net fee & commission income Bancpost _ lj Net trading income Bancpost I Net interest income BT Ill Net fee & commission income BT Ill Net trading i
Slide 16: Loan structure
15 loans to households Loan structure Dec/17 RON 16.7bn Dec/18 RON 21.2bn Dec/17 RON 15bn * SMEs identified according to internal classification rules BT performance Dec/18 RON 17.8bn
Slide 17: NPL coverage
133% 127% 127% 122% 119% 117% 45% 46% 40% 49% 57% • 43% 81% 77% 79% 74% 78% 76% • 2013 2014 2015 2016 2017 2018 NPL coverage with mortgage collaterals NPL coverage with provisions Clasificare BT: Uz Intern
Slide 18: Deposit structure
17 deposits from households Deposit structure Dec/17 RON 30.4bn Dec/18 RON 41.7bn Dec/17 RON 18.7bn BT performance Dec/18 RON 20.8bn
Slide 19: Retail loans
21.2 2.9 16.7 • 15.1 13.6 3.3 • 18.3 7.5 6.8 • 10.3 • 2013 2014 2015 2016 2017 2018 Loans transferred from Bancpost Loans transferred from VBRO Retail loans Clasificare BT: Uz Intern
Slide 20: SME loans
5.0 0.3 4.3 • 3.2 3.1 0.3 2.5 2.6 4.7 • 2.8 2013 2014 2015 2016 2017 2018 Loans transferred from Bancpost Loans transferred from VBRO SME loans Clasificare BT: Uz Intern
Slide 21: Corporate loans
12.8 • 1.6 11.0 11.1 10.7 9.9 10.0 0.9 • 11.2 • 10.1 2013 2014 2015 2016 2017 2018 Loans transferred from Bancpost Loans transferred from VBRO Corporate loans Clasificare BT: Uz Intern
Slide 22: Internet & Mobile Banking
Internet & Mobile Banking First mobile wallet in Romania + Garmin PAY + Fitbit Pay Non-financial services for SME customers Clasificare BT: Uz Intern
Slide 23: Best shopping experience – credit cards
Best shopping experience – credit cards Educational platform for young entrepreneurs Livia de la BT (Facebook Messenger) – chatbot for retail customers Clasificare BT: Uz Intern
Slide 24: Raul de la BT chatbot for SME customers
Raul de la BT (Facebook Messenger) – chatbot for SME customers The largest online platform for financial education Clasificare BT: Uz Intern
Slide 25: Banca Transilvania Financial Group as of 31/Dec/2018
total assets RON 74.1bn total assets RON 160mn total assets RON 994mn AUM RON 3,668mn total assets RON 97mn total assets RON 345mn total assets RON 3,428mn total assets RON 218mn Banca Transilvania Financial Group as of 31/Dec/2018 BANCA er TRANSILVANIA’” [Bt BT Direct* Grupul Financiar Banca Transi
Slide 26: Annex 1: income statement, IFRS individual
ANNEX1 income statement, IFRS individual out of which 2018 Bancpost (Apr- 2017 Dec'18) Net interest income 2,477.9 3533 1,808.4 37.0% Net fee and commission income 694.7 60.9 581.0 19.6% Net trading income 263.4 17.2 2237 17.8% Other net income 157.8 122.8 62.4 152.9% Operating income 3,593-8 5543 2
Slide 27: Annex 1: income statement excluding Bancpost
ANNEX1 income statement, IFRS individual excluding Bancpost 2018 2017 Net interest income 2,124.6 1,808.4 17.5% Net fee and commission income 633.7 581.0 9.1% Net trading income 246.2 223.7 10.1% Other net income 34.9 62.4 44.0% Operating income 3,039.5 2,675.5 13.6% Personnel expenses (757.2) (715.
Slide 28: Annex 1: balance sheet, IFRS individual
Cash & cash equivalents Placements with banks Loans to customers, net T-bills & securities Fixed assets Participations Current tax assets Deferred tax assets Other financial assets Other assets Total assets Deposits from banks Deposits from customers Loans from banks and FIs Subordinated loan Curren
Slide 29: Annex 1: balance sheet excluding Bancpost
ANNEX1 balance sheet, IFRS individual excluding Bancpost Dec/18 Dec/17 Cash & cash equivalents 9,070.0 6,637.7 36.6% Placements with banks 2,999.1 5,302.3 43.4% Loans to customers, net 32,809.4 29,914.0 9.7% T-bills & securities 20,365.6 16,115.7 26.4% Fixed assets 6373 533-4 19.5% Participations 1,
Slide 30: Annex 2: income statement, IFRS consolidated
ANNEX2 income statement, IFRS consolidated 2018 2017 Net interest income 2,749.5 1,890.8 45.4% Net fee and commission income 7777 626.8 24.1% Net trading income 252.2 278.3 9.4% Other net income 166.6 120.9 37.8% Operating income 3,946.0 2,916.9 35.3% Personnel expenses (1,065.1) (763.2) 39.6% D&A (
Slide 31: Annex 2: balance sheet, IFRS consolidated
ANNEX2 balance sheet, IFRS consolidated Dec/18 Dec/17 Cash & cash equivalents. 10,322.1 6,637.7 55.5% Placements with banks 5,087.1 5,348.1 4.9% Loans to customers, net 38,015.3 30,249.0 25.7% T-bills & securities 22,689.8 16,096.2 41.0% Fixed assets 871.4 766.9 13.6% Current tax assets 0.0 146.9 10
Slide 32: Banca Transilvania HQ contact details
Banca Transilvania HQ 8, G. Baritiu Street, Cluj-Napoca 400027, Romania + 40 264 407 150 + 40 264 407 179 /FAX investor.relations@btrl.ro www.bancatransilvania.ro/en/investor-relations www.bancatransilvania.ro www.bt24.ro facebook.com/BancaTransilvania twitter.com/b_Transilvania linkedin.com/company