Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q3 2020 Earnings Presentation
28 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Nov 6, 2020
Slide 1: BRD Group Results – 3rd quarter and 9 months 2020
BRD GROUP RESULTS 3rd quarter and 9 months 2020 | 06.11.2020
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended September 30, 2020 were examined by the Board of Directors on November 4, 2020. The financial information presented for the period ended September 30, 2020 and comparative periods has been prepared
Slide 3: Introduction
INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Resilient operational performance
RESILIENT OPERATIONAL PERFORMANCE Dynamic lending activity in Q3 Individuals loan production Strong consumer loans’ production rebound RON 1.4bn, +74% in Q3 vs Q2 2020 Corporate lending supported by leasing activity and financing Leasing financing, +18% y/y vs Sep 2019 end granted through IMM INVEST
Slide 5: Macroeconomic environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: COVID-19 crisis abruptly ends a 9 year expansionary cycle
COVID-19 CRISIS ABRUPTLY ENDS A 9 YEAR EXPANSIONARY CYCLE Q2 2020 strongly impacted by the lockdown Romania’s GDP growth was resilient in Q1, marking the highest rate GDP GROWTH in EU. 7.0% In Q2, the lockdown led to a strong contraction of activity and 4.8% 4.4% 4.1% consumption 3.5% 3.4% 3.9% 2.3%
Slide 7: Further rate cut
FURTHER RATE CUT Policy rate cut To support the economy in the context of unfolding COVID-19 epidemic, the central bank reduced the monetary policy rate three times this year, by 100 bps in total, to 1.50%. INTEREST RATE ENVIRONMENT 3.2% 3.2% 3.2% 3.0% Quantitative easing 2.6% At the beginning of CO
Slide 8: Extensive policy offset
EXTENSIVE POLICY OFFSET Relief measures to support the economy Income supporting measures : indemnity for technical unemployment (amounting to 75% of the net salary, capped at 75% of the average salary in the economy) for employees of companies affected by the crisis Debt moratorium for individu
Slide 9: A healthy Romanian banking sector
A HEALTHY ROMANIAN BANKING SECTOR ROMANIAN BANKING SYSTEM Solid capital and liquidity positions NPL AND NPL COVERAGE RATIOS Loan to deposit ratio at 70% at June 2020, close to 71% at 2019 63.0% 60.6% end (vs 122% at 2008 end) 55.6% 57.7% 56.2% 57.7% 58.5% Average liquidity coverage ratio of 269% at
Slide 10: 3rd quarter and 9 months 2020 BRD Group results
3 3RD QUARTER AND 9 MONTHS 2020 BRD GROUP RESULTS
Slide 11: Providing financing solutions to support our clients
PROVIDING FINANCING SOLUTIONS TO SUPPORT OUR CLIENTS NON-RETAIL - SMEs 1,387 requests approved Active participation in IMM Invest 285 requests approved RON 300m Almost RON 700 m approved, as of 30 September RON 400m 85% (in value) for working capital RETAIL - SB Moratorium RETAIL LOANS NON-R
Slide 12: Accelerated digital transformation
ACCELERATED DIGITAL TRANSFORMATION Contact Center FAST ADOPTION OF DIGITAL HIGHLY REACTIVE CUSTOMER ADAPTED PHYSICAL SET UP CHANNELS INTERACTION CENTER Increasing digital penetration Fast tracked Customer Interaction Centre capabilities to answer Fewer branches 695k MyBRD Mobile & MyBRD Net active
Slide 13: Individuals' loan production rebound
INDIVIDUALS’ LOAN PRODUCTION REBOUND CONSUMER LOANS’ PRODUCTION* (RON m) Strong rebound in consumer loans production in Q3 981 979 990 +1% vs Q3 2019 +123% vs Q2 2020 818 801 759 443 * BRD standalone Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 NET LOANS Strong SME financing growth (end o
Slide 14: Strong deposit collection
STRONG DEPOSIT COLLECTION SAVINGS (end of period amounts, RON bn) Y/Y 45.9 48.1 +9.4% Further consolidation of already broad deposit base 43.9 Retail deposits accelerating growth pace (+9.1% y/y) 15.6 +10.1% 14.2 15.5 Individuals’ savings up +8.3% y/y (o/w current accounts up by +30% y/y) Double dig
Slide 15: Resilient revenues
RESILIENT REVENUES NET BANKING INCOME (RON m) Revenues proved their resilience over the first 9M of 2020 NII moderate decrease by -2.3% y/y in 9M 2020 and by -6.1% y/y in Q3 Y/Y 2020, mainly driven by: 2,446 2,308 -5.7% lower market rates Other income 249 -11.7% 220 ROBOR 3M average of 2.49% in
Slide 16: Significant cost saving secured
SIGNIFICANT COST SAVING SECURED OPERATING EXPENSES (RON m) Y/Y Reduced headcount and staff expenses 1,186 1,188 +0.1% Staff expenses reduced by - 2.2% y/y in Q3 2020, reflecting the Contributions to 72 43 -40.0% rigorous HR policy as part of the ongoing cost saving plan FGDB & FR 501 527 Other expen
Slide 17: Strong asset quality
STRONG ASSET QUALITY GROSS LOANS – September 30, 2020 breakdown by segment and currency (RON bn) Loan portfolio market mix 70% on individuals market segment 30% on legal entities market segment Consolidation of RON lending Share of RON denominated loans at 69.7% (vs 67.4% as of September 2019 end) T
Slide 18: Cost of risk affected by macroeconomic context
COST OF RISK AFFECTED BY MACROECONOMIC CONTEXT COST OF RISK EVOLUTION 538 Net cost of risk at 30 bps in Q3-20 (after 205 bps in Q2- 438 1,883 2,083 20) 338 NCR reflects primarily the incorporation into the ECL model of 238 1,193 1,193 198 more severe macroeconomic assumptions in the context of the 8
Slide 19: Very solid capital position
VERY SOLID CAPITAL POSITION SOLVENCY RATIO Strong high quality capital base CAR of 28% at Sep 2020 end -38bp +68bp +163bp Regulatory own funds composed solely of Tier 1 capital Increase in own funds on a yearly basis mainly driven by +534bp the retention of the entire 2019 net profit, considering: (
Slide 20: Conclusions
rs) CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 21: Conclusions
CONCLUSIONS The unprecedented sanitary crisis translated into a major economic crisis. But an extensive policy offset was implemented and the economy is functioning In this context, BRD is fully mobilized to provide adequate and continuous support to its customers Priority given to acceleratio
Slide 22: Q&A session
6 Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 23: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES STOCK PRICE PERFORMANCE GLOSSARY – CLIENT SEGMENTATION
Slide 24: 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 Q3-2020 Q3-2019 Change 9M-2020 9M-2019 Change Net banking income 796 838 -5.0% 2,308 2,446 -5.7% Operating expenses (388) (382) +1.5% (1,188) (1,186) +0
Slide 25: BRD | Key figures for bank only
BRD | KEY FIGURES FOR BANK ONLY (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q3-2020 Q3-2019 Change 9M-2020 9M-2019 Change Net banking income 756 825 -8.4% 2,189 2,391 -8.5% Financial results Operating expenses (365) (358
Slide 26: BRD | Stock price performance
BRD | STOCK PRICE PERFORMANCE Market capitalisation 4,000 EUR 1.9 bn 16.0 3,500 3,000 14.0 2,500 12.0 2,000 10.0 1,500 1,000 8.0 500 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 companies
Slide 27: 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 28: BRD Groupe Société Générale - Investor Relations
BRD GROUPE SOCIETE GENERALE - INVESTOR RELATIONS +4 021 380 47 62 | investor@brd.ro; www.brd.ro
BRD Groupe Société Générale — Q3 2020 Earnings Presentation on 6ix