Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — FY2022 Earnings Presentation
37 slides from Banca Transilvania SA's earnings presentation, Oct 11, 2023
Slide 1: 2022 Financial Results
BANCA TRANSILVANIA 2022 Financial Results
Slide 2: Disclaimer
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. Banca
Slide 3: Strong income generation, loan growth, profitability and asset quality
+31% Strong income generation, with robust levels of NII (+33.5%) and fee income generation (+23.8%) Solid growth rate in gross loans, as BT continued +29.2% to fuel the development and activity of SMEs & corporates Attractive and consistent profitability levels, in the +25% context of consistent, o
Slide 4: Agenda
BEGBBEH = Financial & Business Performance Risk Sustainability Digital BT Financial Group Appendix
Slide 5: Real Economy
REAL ECONOMY GDP (%, YoY) 15. Euro Area CZ HU PL RO Post-pandemic economic recovery continued in 2022, but with 10. slowing-down paces, in convergence with Euro Area and CEE 5. • Preliminary estimates of Eurostat: the Romanian economy advanced by 0. 4.8% YoY in 2022, decelerating from 5.8% in 2021.
Slide 6: Policy Mix: Consumer Prices
POLICY MIX Consumer prices (HICP) (%, YoY) 30 Euro Area RO PL CZ HU Consumer prices rose in Romania in 2022 with lower dynamics 25 compared to the CEE countries 20 15 • Eurostat: the consumer prices (HICP basis) rose by an average annual 10 pace of 12.0% in Romania in 2022, a slower pace compared to
Slide 7: Policy Mix: Energy Prices
POLICY MIX Energy prices (HICP) (%, YoY) 50 Euro Area RO PL CZ HU 40 Romania implemented important measures to counter the energy 30 crisis 20 • The energy prices rose in Romania in 2022 by a higher pace compared to 10 the countries in our region, despite the important resources, and the 0 significa
Slide 8: Financial Economy
FINANCIAL ECONOMY 3M ROBOR vs. Yield on 10 YR Bonds 12 3M ROBOR Yield on 10YR Bonds The money market interest rates rose in 2022, but started to 10 change the trend towards the year-end 8 6 • The money market interest rates rose by strong dynamics in 2022, on the 4 back of the acceleration of the po
Slide 9: Loans
LOANS Loans (YoY) 30% 25% Total RON FX The non-government loans accelerated in 2022 20% 15% • NBR: the figures released show the increase of the non-government 10% loans by an average annual pace of 15.4% in 2022, accelerating from 5% 10.7% in 2021. 0% • This evolution was determined by the consolid
Slide 10: Deposits
DEPOSITS Deposits (YoY) 25% Household Corporate Total 20% The deposits continued to increase in 2022, but with a slowing- 15% down YoY pace 10% 5% • NBR: the figures released show the increase of the non-government deposits by an average annual pace slowing down from 14.5% in 2021 0% to 9.6% in 2022
Slide 11: EU funds absorption rate accelerated in 2022
EU Funds absorption rate 2014 - 2020 100% RO PL CZ HU 90% EU funds absorption rate accelerated in 2022 80% 70% 60% • European Commission: the EU funds absorption rate for the multiannual 50% financial framework 2014 – 2020 rose by 18pps from end of 2021 to the 40% beginning of February 2023, to 75%
Slide 12: Financial & Business Performance
Macroeconomic Landscape Financial & Business Performance Risk Sustainability Digital BT Financial Group Appendix
Slide 13: Profitability
INDIVIDUAL CONSOLIDATED Profitability 2022 2021 Δ 2022 2021 Δ Net interest income, RONmn 3,658.2 2,739.8 33.5% 4,426.7 3,142.1 40.9% Net fee and commission income, RONmn 998.5 806.3 23.8% 1,167.8 961.4 21.5% Operating expenses, RONmn (2,661.3) (2,091.0) 27.3% (2,983.7) (2,382.0) 25.3% Pre-provision
Slide 14: NIM and Fee Income
NIM Consolidation of loan portfolio (+21.5% net loans) and continued increase of 4.00% active customers (+8.1%) contributed to the increase in core revenues, on top 3.44% 2.83% 2.54% 2.97% of interest rate trends 2018 2019 2020 2021 2022 +33.5% NFCI/AVG CLIENT DEPOS 3,658 1.34% 1.12% 0.93% 0.83% 0.8
Slide 15: Loans to Households and Companies
LOANS TO HOUSEHOLDS other 0.05 Dec/21 Dec/22 Dec/22 RON 26.9bn ↑8% RON 28.9bn LOANS TO COMPANIES Dec/21 Dec/22 Dec/22 RON 23.0bn ↑31% RON 30.1bn *SMEs identified according to internal classification rules 15
Slide 16: Deposits from Households and Companies
DEPOSITS FROM HOUSEHOLDS Dec/21 Dec/22 Dec/22 ↑14%* RON 77.9bn RON 68.4bn DEPOSITS FROM COMPANIES Dec/21 Dec/22 Dec/22 RON 34.3bn ↑13%** RON 38.6bn *Retail deposits transferred from Idea Bank: RON 1.09bn; **Corporate deposits transferred from Idea Bank: RON 0.34bn. 16
Slide 17: Retail Loans, Deposits, Clients and Cards
RETAIL LOANS, RON BN RETAIL DEPOSITS, RON BN 77.9 +8.07% 28.9 1.1 26.9 0.1 +16.91% 68.4 23.0 24.0 60.3 21.2 50.9 2.9 41.7 5.2 76.8 28.8 18.3 36.5 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Loans transferred from Bancpost* Retail loans Depos transferred from Bancpost* Retail depos Loans transf
Slide 18: Corporate and SME Loans
CORPORATE LOANS, RON BN SME LOANS, RON BN 22.0 8.2 +14.95% 0.0 +13.32% 0.0 6.8 16.2 6.1 13.4 5.0 5.5 12.6 12.7 0.3 1.6 22.0 8.2 4.7 11.0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Loans transferred from Bancpost* Corporate loans Loans transferred from Bancpost* SME loans Loans transferred fro
Slide 19: Risk
BOGG+ 8s Macroeconomic Landscape Financial & Business Performance Sustainability Digital BT Financial Group Appendix
Slide 20: NPL Ratio and Coverage
NPL COVERAGE RATIO (EBA), % 195 166 4.36% 133 3.46% NPL Ratio (EBA) 3.46% 98 2.71% 94 2.44% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 NPL COVERAGE RATIO (PAR90) 133% 128% 128% 125% 124% 3.09% 57 47 44 41 38 2.79% 2.00% NPL (PAR 90) 1.77% 1.50% 80 83 84 87 76 2018 2019 2020 2021 2022 2018 201
Slide 21: Cost of Risk and Loan Loss Provisions
COST OF RISK, % STOCK OF LOAN LOSS PROVISIONS, RON BN BT – STAND ALONE BT GROUP +11.34% +14.74% 4.0 4.5 1.93% 3.6 3.9 1.1 1.2 1.78% 0.8 0.8 CoR Bank CoR Group 1.7 0.90% 1.5 1.6 1.6 0.68% 0.69% 0.59% 0.59% 0.43% 0.41% 0.42% 1.6 1.3 1.3 1.5 2018 2019 2020 2021 2022 0.0 0.1 0.1 0.1 2021 2022 2021 2022
Slide 22: Capital Ratios and Own Funds Structure
CAPITAL RATIOS, % OWN FUNDS’ STRUCTURE, % 21.62% 21.62% 20% 18.93% 2.69% 15.87% 3.06% ---------- 7% 10.87% 5.00% 15.87% 61% ---------- 12% 8.00% 2.87% 11.11% 8.00% CET1 Capital Tier 2 Capital Min CAR TSCR* OCR** CET1 NBR CAR NBR Total Retained earning and reserves Other ---------- CET 1 and overall
Slide 23: Liquid Balance Sheet and MREL Strategy
LIQUID BALANCE SHEET, % MREL STRATEGY The European standards require banks to Equity ensure an optimal level of MREL- eligible Other 5.41 7.96 Other Due from banks 6.63 2.59 1.63 Due to banks funds. 5.28 Cash and cash eq. 12.65 Loans&Sub. Debt BT complied with the binding MREL target as 45.82 of 1 J
Slide 24: Sustainability
Macroeconomic Landscape Financial & Business Performance Risk Sustainability Digital BT Financial Group Appendix
Slide 25: ESG ratings and recognitions
BT obtained a score of 17 (Low ESG Risk) from Sustainalytics. This score ranks Banca Transilvania on the 133rd position, out of the 983 assessed banks worldwide. BT obtained a score of 83 /100 (A-), from Refinitiv, a London Stock Exchange Group Company. This score places Banca Transilvania on the 43
Slide 26: Green financing: Companies and Retail
790 32 30 58 +55% 212 510 COMPANIES 10 7 34 ✓ Green loans granted to companies in 2022 amounted to RON 790MN, 129 accelerating by 55% YoY ✓ Weight of green financings to SMEs&Micro in total green loans granted 457 330 increased to 21% in 2022 from 4% in 2021 ✓ New production of green loans for 2023-
Slide 27: Digital
Macroeconomic Landscape Financial & Business Performance Risk Sustainability Digital BT Financial Group Appendix
Slide 28: Digitization of clients and processes
DIGITIZED CLIENTS, MN ONLINE CURRENT ACCOUNTS (COMPANIES), MN 85% 7,153 75% EUR 296MN invested in IT equipment, software and +22% digital initiatives, +18.4% more than in 2021 +250% 3.3 BT Pay, the most popular app for financial 2.7 transactions, introduced new features: 2,042 ✓ overdraft 100% onlin
Slide 29: BT Financial Group
é4-4-\-\ \\ 1. Macroeconomic Landscape €4 Financial & Business Performance ER Risk G3 sustainability E83 Digital 6. EA Appendix
Slide 30: BT Financial Group subsidiaries
TOTAL ASSETS RON 134BN TOTAL ASSETS RON 734MN TOTAL ASSETS RON 1,940MN AUM RON 4,181MN TOTAL ASSETS RON 334MN TOTAL ASSETS RON 773MN AUM RON 151MN TOTAL ASSETS RON 4,419MN TOTAL ASSETS* RON 2, 407MN *Value refers to Idea Group TOTAL ASSETS RON 1,148MN 30
Slide 31: Market Capitalization and TLV Share
MARKET CAPITALIZATION, RON BN TLV: 25 years of being listed on BSE in 2022 20 TLV: one of the first two companies included in the 16.3 FTSE Global Equities Index Series (GEIS) 13.5 14.1 15 12.9 9.6 TLV: most traded share on the main market of the BSE 10 in 2022 5 TLV: consolidation in August 2022, f
Slide 32: Appendix
Macroeconomic Landscape Financial & Business Performance Risk Sustainability Digital BT Financial Group ~BOSBG08
Slide 33: Individual income statement
RONmn 12M 2022 12M 2021 Δ Net interest income 3,658.2 2,739.8 33.5% Net fee and commission income 998.5 806.3 23.8% Net trading income 597.1 461.3 29.5% Other net income 106.2 340.8 -68.8% Operating income 5,360.0 4,348.2 23.3% Personnel expenses (1,385.2) (1,159.1) 19.5% D&A (350.9) (340.6) 3.0% Ot
Slide 34: Individual balance sheet
RONmn Dec/22 Dec/21 Δ Cash & cash equivalents 12,645.2 16,763.6 -24.6% Placements with banks and public institutions 6,634.9 9,612.7 -31.0% Loans to customers, net 63,450.0 52,238.5 21.5% T-bills & securities 45,823.0 42,785.7 7.1% Fixed assets 1,161.0 987.4 17.6% Right-of-use assets 696.8 706.6 -1.
Slide 35: Consolidated income statement
RONmn 12M 2022 12M 2021 Δ Net interest income 4,426.7 3,142.1 40.9% Net fee and commission income 1,167.8 961.4 21.5% Net trading income 686.1 528.7 29.8% Other net income (0.6) 309.3 Operating income 6,280.0 4,941.4 27.1% Personnel expenses (1,655.5) (1,328.3) 24.6% D&A (393.0) (357.8) 9.8% Other o
Slide 36: Consolidated balance sheet
RONmn Dec/22 Dec/21 Δ Cash & cash equivalents 14,540.7 18,320.9 -20.6% Placements with banks and public institutions 5,567.3 10,394.3 -46.4% Loans to customers, net 68,013.5 56,117.8 21.2% T-bills & securities 47,191.3 44,204.2 6.8% Fixed assets 1,835.0 1,492.9 22.9% Right-of-use assets 488.0 492.0
Slide 37: Contact details
30 – 36, Dorobanților Street, Cluj-Napoca, Cluj, 400117, Romania +40 264 407 150 | +40 264 301 128 investor.relations@btrl.ro www.bancatransilvania.ro/en/investor-relations www.bancatransilvania.ro