Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q3 2024 Earnings Presentation
26 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Oct 31, 2024
Slide 1: BRD Group Results 3rd quarter and 9 months 2024
BRD GROUP RESULTS 3rd quarter and 9 months 2024 | 31.10.2024
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended September 30, 2024 were examined by the Board of Directors on October 30, 2024. The financial information presented for the period ended September 30, 2024 and comparative periods has been prepared
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: 9M 2024: Strong Commercial Momentum
9M 2024: STRONG COMMERCIAL MOMENTUM Lending activity continued to advance at double-digit rate Loan portfolio +15% y/y at September 2024 end Outstanding performance of corporate segment, built on strong contribution from both SMEs and large corporate customers Corporate loans +23% y/y at September 2
Slide 5: Massive Audience for Climate Change Summit 2024
MASSIVE AUDIENCE FOR CLIMATE CHANGE SUMMIT 2024 The most important event in Romania dedicated to climate change, initiated and supported by BRD as founding partner. Climate Change Summit is the yearly CEE meeting place for global researchers, entrepreneurs, government officials and civil society lea
Slide 6: Macroeconomic Environment
2 MACROECONOMIC ENVIRONMENT
Slide 7: Annual GDP Growth Lost Traction, Inflation Continues to Abate
ANNUAL GDP GROWTH LOST TRACTION, INFLATION CONTINUES TO ABATE Subdued growth across Europe GDP GROWTH Despite significant progress on reversing inflation dynamics and 7.3% somewhat less restrictive policy rates, challenges remain 6.0% 5.7% 5.7% 4.7% 4.1% EU GDP growth in Q2 2024 increased by 0.8% vs
Slide 8: Interest Rates on Hold, Consistent Liquidity
INTEREST RATES ON HOLD, CONSISTENT LIQUIDITY NBR cautiously loosening monetary policy After maintaining the key rate at 7% during 1st half of the year, INTEREST RATES NBR reduced it to 6.5% after two consecutive cuts of 25 bps each, in July and August 2024, respectively 8.8% 8.6% 8.3% At the last me
Slide 9: Romanian Banking Sector - Prudential Indicators Remain Solid
ROMANIAN BANKING SECTOR - PRUDENTIAL INDICATORS REMAIN SOLID CAPITAL ADEQUACY, L/D & LIQUIDITY RATIOS Comfortable solvency and liquidity Solid capital adequacy, driven by strong capital generation, at 24.1% 73.6 71.0 65.9 68.8 71.4 67.8 66.4 as at June 2024 end, significantly above the EU average of
Slide 10: 3rd Quarter and 9 Months 2024 BRD Group Results
3 3RD QUARTER AND 9 MONTHS 2024 BRD GROUP RESULTS
Slide 11: Digital Transformation Keeps Good Rhythm
DIGITAL TRANSFORMATION KEEPS GOOD RHYTHM FURTHER INTENSIFYING DIGITAL ACTIVITY ENHANCED DIGITAL JOURNEY 1.65m YouBRD users at September 2024 end, +24% y/y RoPay - instant proximity and secured payment 500k customers enrolled into cashback loyalty program service via QR code, available 24/7/365 days
Slide 12: Lending Expansion Underpinned by Corporate High Dynamic and Retail Solidity
LENDING EXPANSION UNDERPINNED BY CORPORATE HIGH DYNAMIC AND RETAIL SOLIDITY Outstanding lending activity on corporate segment NET LOANS (end of period amounts, RON bn) Strong growth in net corporate lending (+23% y/y), driven by both YoY SMEs (+23.9% y/y) and large corporates (+22.4% y/y) 47.6 +15.1
Slide 13: Robust and Diversified Deposit Base
ROBUST AND DIVERSIFIED DEPOSIT BASE Solid deposit growth, from both retail and large corporates Sustained growth of retail deposits, the most stable and granular funding source, +9.9% y/y at Sep’24 end, with a steady increase in DEPOSITS individuals’ term deposits (+28% y/y). (end of period amounts,
Slide 14: Revenues Building on Commercial Dynamism
REVENUES BUILDING ON COMMERCIAL DYNAMISM NET BANKING INCOME (RON m) Y/Y NII growth led by volumes expansion across all segments +5.4% +7.1% y/y in 9M 2024 and +6.8% y/y in Q3 2024 2,984 2,831 ✓ outstanding loans up by +15% y/y at September 2024 end 233 -9.9% Other income 258 ✓ interest revenues part
Slide 15: Less Intense Inflationary Pressure but New Tax Drives Costs Up
LESS INTENSE INFLATIONARY PRESSURE BUT NEW TAX DRIVES COSTS UP OPERATING EXPENSES (RON m) Y/Y 1,512 +8.8% OPEX controlled at +3.9% y/y in 9M 2024 and +1% y/y in Q3 2024, Tax on turnover 1,390 95 excluding new turnover tax and cumulated contributions to FGDB&RF Contributions to 68 44 -36.1% FGDB & FR
Slide 16: Stable Risk Costs Throughout 2024
STABLE RISK COSTS THROUGHOUT 2024 NET COST OF RISK 150 Net cost of risk at +38 bps in Q3 2024 93 100 36 33 44 50 34 38 26 30 0 Stable quarterly cost of risk, reverting to more normalized levels -12 -29 -20 -19 -49 -29 -50 -47 -100 -150 -159 -200 2021 2022 2023 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 CoR (RONm
Slide 17: Strong Capital Position to Support Business Growth
STRONG CAPITAL POSITION TO SUPPORT BUSINESS GROWTH SOLVENCY RATIO Solid high quality capital base CAR of 22.9% at September 2024 end, excluding the impact of the +129bp (26bp) +10bp new regulatory temporary treatments (implemented through art 468 +145bp and art 500a of CRR3 in July 2024) Regulatory
Slide 18: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 19: Intense Commercial Activity, Reinforcing Support to Economy
INTENSE COMMERCIAL ACTIVITY, REINFORCING SUPPORT TO ECONOMY ▪ Over the first 9M of 2024, BRD fully acted upon its vital role of financier of the economy ✓ Dynamic lending activity (+15% y/y) supported by all segments’ contribution: strong performance on corporate and record-breaking individuals’ loa
Slide 20: Q&A Session
.) Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 21: Appendix
6 APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES BRD STOCK PRICE PERFORMANCE GLOSSARY – CLIENT SEGMENTATION
Slide 22: 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 Q3-2024 Q3-2023 Change 9M-2024 9M-2023 Change Net banking income 1,016 969 +4.8% 2,984 2,831 +5.4% Operating expenses (484) (447) +8.4% (1,512) (1,390)
Slide 23: BRD Standalone | Key Figures
BRD STANDALONE | KEY FIGURES (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q3-2024 Q3-2023 Change 9M-2024 9M-2023 Change Net banking income 992 924 +7.4% 2,884 2,728 +5.7% Financial results Operating expenses (473) (427) +
Slide 24: BRD | Stock Price Performance
BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation 8,000 22.0 EUR 2.9 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 25: 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 26: 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 — Q3 2024 Earnings Presentation on 6ix