Patria Bank Sa · BVB:PBK
Patria Bank Sa — Investor Presentation (August 2019)
18 slides from Patria Bank Sa's investor presentation, August 2019
Slide 1: Investor Presentation
Investor Presentation August 2019 1
Slide 2: Patria Bank positioned to capture the potential of banking services in Romania
After a restructuring process following the merger with Banca Carpatica, Patria Bank positioned itself to capture the potential of banking services in Romania Romania represents one of the greatest opportunities in the financial services sector – over 7 million Romanians do not hold a bank I account
Slide 3: Romania has the highest potential in financial services in Europe
Romania has the highest potential in financial services in Europe, taking into account the low penetration level of lending and savings products Non-governmental credit in GDP Romanian companies liabilities structure Only 8% of the Romanian 35.9% 37.0% 39.2% 39.3% 37.6% 34.0% 31.1% 29.9% 28.1% 26.5%
Slide 4: Romania is split in two categories
Romania is split in two categories. A financial system focused on 5-6 counties strongly urbanized generates 50+% of the stock of loans at national level Retail lending in all 41 counties (incl. Bucharest) Corporate lending in all 41 counties (incl. Bucharest) 25,000 400,000 350,000 Loans/legal entit
Slide 5: Customers within the 2nd Romania require a different business model
Customers within the 2nd Romania require a different business model, but this comes with the advantage of a significantly higher margin per customer Second Romania customer • The 2nd Romania has a significantly higher potential than the already over-saturated Higher interest rates marked from the la
Slide 6: Patria Bank is positioned to provide products for the 2nd Romania and urban area
Patria Bank is positioned to provide financial-banking products both for the 2nd Romania as well as for the urban area TARGETED SEGMENTS PATRIA BANK’S COMPETITIVE ADVANTAGES • Large Corporates and Public Administration Decentralized and dynamic distribution and sales SME entities are not included in
Slide 7: Business model based on bank offices and specialized sales force
Patria Bank business 1 model is based on a mix between bank offices (brick & mortar) and specialized sales force, leveraged by technology • 46 bank offices, efficiently distributed across the country BRICK & MORTAR • Specialized in Retail & Micro segments • Sales consultants specialized according to
Slide 8: Technology allows Patria Bank to be available online to customers
Technology allows Patria Bank to be available online to its customers in an efficient, easy and safe way • New Internet Banking in September • Mobile Banking, online lending, video lending and online enrollment under development • PSD 2 platform implemented for UAT in line with the EU regulation • C
Slide 9: Increase in lending led Patria Bank to reach breakeven in 2018
The current model + the optimization of operations resulted in increase in lending, leading Patria Bank to reach breakeven in 2018 Accelerating lending growth [EUR M] Achieved breakeven in 2018 [EUR 000] 237.0 244.9 210.2 221.0 150.7 111.0 86.7 2015 2016 2017 2018 2019F 2020F 2021F Structure of bala
Slide 10: H1 2019: profit before tax of EUR 0.7 million
During H1 2019 Patria Bank has followed its profitable trajectory: profit before tax of EUR 0.7 million Profit and Loss account June 2019 [EUR 000] • Legislative changes occurred at the end of 2018 (especially the tax on 17,624 assets regulated by GEO 114/ 2018) led to measures to reconfigure branch
Slide 11: SME and Micro segment income
SME segment: +17% in total income Micro segment: +11% in total at 30 Jun 19 vs. 30 Jun 2018 income at 30 Jun 19 vs. 30 Jun 18 Income (from interest, fees and FX) [RON 000] Income (from interest, fees and FX [RON 000] 13,960 13,794 12,175 13,168 11,879 12,804 12,720 11,477 10,947 10,644 11,254 9,452
Slide 12: Agro and Retail segment income
Agro segment: +33% in total Retail segment: +11% in total income at 30 Jun 19 vs. 30 Jun 18 income at 30 Jun 19 vs. 30 Jun 18 Income (from interest, fees and FX) [RON 000] Income (from interest, fees and FX) [RON 000] 5,142 12,683 12,728 12,071 12,129 4,313 4,352 4,197 3,960 11,103 2,922 10,253 Q1'1
Slide 13: New loans expected to remain high, growth in Micro, SME and Agro
While sales of1 new loans are expected to remain high, we see Patria Bank continuing to grow especially in Micro, SME and Agro New loans sold by Patria Bank [EUR 000] • We expect generation of new loans to Average 7.27% remain strong in the immediate future 7.02% 7.35% 7.36% Yield • The slight drop
Slide 14: Budget and business plan 2019-2021
Following 2018’s 1 result, we expect PBK to reach increasing levels of profitability on the back of increasing NBI and more efficient operations PBK budget and business plan for 2019-2021 [EUR M] C/I ratio 101% 85% 69% 66% 2018 Actuals 2019 Budget 2020 Business Plan 2021 Business Plan NBI OPEX CoR P
Slide 15: Balance sheet to reach an equilibrium level in line with the market
At the same time, we expect the balance sheet to reach an equilibrium level in line with the market, with the L/D ratio gaining 19 % in 2019 PBK balance sheet evolution 2019-2021 [EUR M] • We expect a further balancing process on the asset side to take place in 2019, reducing the share of liquid ass
Slide 16: Experienced management and board executives
PBK boasts some of the most experienced management and board executives in the local market 11 11 9 2 2 Horia Manda Daniela Iliescu Nicolae Surdu Vasile Iuga Bogdan Merfea Chairman of the CEO & Board Board Member Board Member Board Member Board Member (independent) (independent) Managing Partner- Fo
Slide 17: Majority shareholder is Emerging Europe Accession Fund (EEAF)
Patria Bank’s majority shareholder is Emerging Europe Accession Fund (EEAF), an investment fund inter alia financed by EIF* and EBRD* • EEAF is the main Axxess Capital past investments in the financial-banking sector: shareholder of Patria Bank and represents an investment vehicle Company in portfol
Slide 18: Concluding, Patria Bank is ready to continue its profitable growth
Concluding, after returning to profitability Patria Bank is ready to continue its solid profitable growth The financial-banking services market in Romania is drastically underdeveloped. The 2nd Romania requires banks that are able to implement I flexible distribution models and to adjust their produ