Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD - Groupe Société Générale — FY2014 Earnings Presentation
32 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 12, 2015
Slide 1: BRD Bank Results 2014
BRD BANK RESULTS 2014 12 FEBRUARY 2015
Slide 2: Disclaimer
DISCLAIMER The Bank’s balance sheet and profit and loss account for the period ended December 31, 2014 were examined by the Board of Directors on 11 February 2015. The financial information presented for the year ended December 31, 2014 and comparative periods has been prepared according to IFRS as
Slide 3: Content
CONTENT CHAPTER 01_INTRODUCTION CHAPTER 02_MACROECONOMIC AND BANKING ENVIRONMENT CHAPTER 03_2014 BANK FINANCIAL RESULTS CHAPTER 04_BRD IN 2014 CHAPTER 05_CONCLUSIONS BANK RESULTS 2014 12 FEBRUARY 2015 | P.3
Slide 4: 2014 – Return to Profit
2014 – RETURN TO PROFIT Return to profit as a result of declining cost of risk and sound cost discipline Decline in cost of risk and return to profit Decrease in NPL ratio due to write-off operations and sales of impaired receivables Improved level of coverage of NPLs with provisions Continued cost
Slide 5: Key Figures
KEY FIGURES 2014 2013 14 vs 13 Net banking income (RON m) 2,498 2,726 -8.4% Operating expenses (RON m) (1,255) (1,292) -2.9% Gross operating income (RON m) 1,243 1,434 -13.3% Financial results Cost of risk (RON m) (1,193) (2,083) -42.7% Net result (RON m) 43 (386) Cost/Income 50.2% 47.4% +2.9 pts D-
Slide 6: Macroeconomic and Banking Environment
CHAPTER 02 MACROECONOMIC AND BANKING ENVIRONMENT MACROECONOMIC AND BANKING ENVIRONMENT 12 FEBRUARY 2015 | P.6
Slide 7: GDP Growth Sustained by Industry, Services and Private Consumption
GDP GROWTH SUSTAINED BY INDUSTRY, SERVICES AND PRIVATE CONSUMPTION GDP EVOLUTION GDP growth is expected at around 2.6% for 2014, 3.5% supported primarily by industry and services sectors on the supply side, and final consumption on the 2.3% 2.6% demand side. Private consumption was the main contribu
Slide 8: Significantly Reduced Macroeconomic Imbalances
SIGNIFICANTLY REDUCED MACROECONOMIC IMBALANCES CURRENT ACCOUNT BALANCE (% of GDP) FISCAL BALANCE (% of GDP, ESA 2010) 2010 2011 2012 2013 2014E 2010 2011 2012 2013 2014E -0.8% -0.9% -1.9% -2.2% -3.0% -4.4% -4.5% -4.4% -5.5% -6.6% The current account deficit fell in 2013 yoy (from -4.4% in 2012 to -0
Slide 9: Banking Sector: Deposits Advanced While Gross Loans' Contraction Continued
BANKING SECTOR: DEPOSITS ADVANCED WHILE GROSS LOANS’ CONTRACTION CONTINUED 7.9% deposits growth at December 2014 vs. December BANKING SYSTEM DEPOSITS (RON bn) yoy* 2013 : 249 +7.9% 231 214 5.9% increase in individuals’ deposits, with households still showing a relatively high 99 110 +10.7% 90 propen
Slide 10: Acceleration of Balance Sheets' Cleaning
ACCELERATION OF BALANCE SHEETS’ CLEANING BANKING SECTOR (LOSS 2 *) 21.9% 18.2% 15.0% D-12 D-13 N-14 Source: NBR 4 Lower NPL ratio3in the banking system helped by write-off operations and sale of impaired receivables Coverage level of loans classified as Loss 2 with IFRS provisions of 66% as of Septe
Slide 11: 2014 Bank Financial Results
CHAPTER 03 2014 BANK FINANCIAL RESULTS BANK RESULTS 2014 12 FEBRUARY 2015 | P.11
Slide 12: Further Improvement in Penetration Rate of Remote Banking Solutions
FURTHER IMPROVEMENT IN PENETRATION RATE OF REMOTE BANKING SOLUTIONS NUMBER OF REMOTE BANKING CONTRACTS Large customer base in spite of slightly (X 1000) declining number of active clients Higher equipment rate (number of products per 644 client) of individual customers compared to 496 96 411 2013, s
Slide 13: Continuous Expansion of Housing Loans' Portfolio, Strong Rebound in Consumer Loans
CONTINUOUS EXPANSION OF HOUSING LOANS’ PORTFOLIO STRONG REBOUND IN CONSUMER LOANS’ PRODUCTION Gross loans to individuals’ volume remained almost NET LOANS (outstanding amounts, RON bn) yoy* stable ( -0.5% yoy vs. -1.2% for the market) 31.5 27.8 - 4.7% 26.5 Individuals’ loan production was fuelled by
Slide 14: Above Market Deposits' Growth on the Individuals' Segment
ABOVE MARKET DEPOSITS’ GROWTH ON THE INDIVIDUALS’ SEGMENT DEPOSITS (outstanding amounts, RON bn) yoy* Consolidation of the deposits base, which totaled 36.1 36.0 -0.3% RON 36.0bn at the end of December 2014 31.9 19.4 17.9 -7.4% Particularly robust growth in household deposits 15.6 CORPORATES (+8.0%
Slide 15: Net Interest Margin Declined While Net Fees and Commissions Remained Resilient
NET INTEREST MARGIN DECLINED IN A CHALLENGING ENVIRONMENT WHILE NET FEES AND COMMISSIONS REMAINED RESILIENT Decrease in net interest margin by 7.9% vs. 2013, affected by negative volume and structure effects: Decline of average net loans volumes on the corporate segment, with credit demand NET BANKI
Slide 16: Continuously Improved Operational Efficiency
CONTINUOUSLY IMPROVED OPERATIONAL EFFICIENCY OPERATING EXPENSES (RON m) yoy 1,292 1,255 Operating expenses reduced by 2.9% compared to -2.9% 2013 and by 9.3% versus 2011 Staff 625 615 -1.6% expenses 1.6% decline in staff expenses vs. 2013 due to further headcount compression (FTEs reduced by 249 in
Slide 17: Asset Quality
ASSET QUALITY GROSS LOANS 2014 A balanced loan portfolio from a market mix SPLIT BY SEGMENT (RON bn) perspective 55.4% on individuals segment 13.8 44.6% on corporate segment Individuals Corporates 17.1 Decreasing NPL (Loss 2) ratio (-5.4 pts yoy) In line with the evolution observed at the level of t
Slide 18: Consolidated Coverage Ratio
CONSOLIDATED COVERAGE RATIO COST OF RISK EVOLUTION (RON m) Significant provisioning efforts in 2014 recorded on SMEs and small business portfolios: 2,083 1,937 High share of exposures under insolvency regime 1,199 1,193 832 Adjustments to loan collateral values 2010 2011 2012 2013 2014 Significant i
Slide 19: Increased Financial Autonomy
INCREASED FINANCIAL AUTONOMY NET LOANS AND DEPOSITS (RON bn) Consolidation of net loans/deposits ratio which reached 73.4% as at end of 2014 down from 76.8% 4 0. 0 98.7% at 2013 3 5. 0 76.8% 73.4% 10 0 . 0 % 5 0. 0 % 3 0. 0 Excess of liquidity primarily invested in Treasury 2 5. 0 securities which a
Slide 20: Solid Capital Adequacy
SOLID CAPITAL ADEQUACY Solid capital base composed of high quality Tier 1 2012 2013 2014 eligible instruments: share capital, retained Capital adequacy ratio 14.0% 14.2% 17.0% earnings, reserves Own funds (RONm) 4,364 3,858 4,571 RWA (RONm) 31,291 27,170 26,873 Comfortable capital adequacy: with CAR
Slide 21: BRD in 2014
CHAPTER 04 BRD IN 2014 BANK RESULTS 2014 12 FEBRUARY 2015 | P.21
Slide 22: Strong Positions on Various Markets
STRONG POSITIONS ON VARIOUS MARKETS Mature universal banking model Strong positions on numerous markets and outstanding results on key segments: Reinforced our leader position on sectors such as energy, retail and telecom Leader on factoring market (at the end of June 2014) Strong and growing positi
Slide 23: Corporate & Investment Banking Deals
CORPORATE & INVESTMENT BANKING DEALS IPO TRANSACTION INAUGURAL BOND ISSUE BRD - MANAGER BRD - LEAD MANAGER SOLE BOOKRUNNER MANDATORY TAKEOVER BID OF DUCTIL BUZAU BRD - MANAGER Won mandates as custody and depositary bank for SIF Transilvania (EUR 250m AUD) and SIF Banat Crisana (EUR 356m AUD), BRD be
Slide 24: Delivering Product Excellence
DELIVERING PRODUCT EXCELLENCE PREPAID CARDS PRIMA CASA LOANS Exclusive product on the Market leader on new Prima Romanian market Casa loans in 2014 BRD IN 2014 12 FEBRUARY 2015 | P.24
Slide 25: We Innovate to the Benefit of Our Customers
WE INNOVATE TO THE BENEFIT OF OUR CUSTOMERS MYBRD MOBILE 300,000 CONTACTLESS CARDS The most innovative mobile banking solution on Romanian Fast payments market offers more flexibility and available for all new possibilities via new “out of the cards issued in 2014 box” functionalities BRD IN 2014 12
Slide 26: Awarded Products and Services
AWARDED PRODUCTS AND SERVICES << Safest bank in Romania >> Re-affirmed as Most Valuable << Best financial site >> for in 2014 Bank in Romania in Top 100 www.brd.ro – Internetics Most Valuable Companies in Romania << Unique Product on the Romanian << Contactless Acquiring Excellence Award for market
Slide 27: BRD Stock Price Performance
BRD STOCK PRICE PERFORMANCE 10.0 Market capitalisation 4,000 EUR 1.5bn 9.5 3,500 9.0 3,000 8.5 2,500 8.0 2,000 7.5 1,500 7.0 1,000 6.5 500 6.0 0 Volume ('000 shares) Price (RON) BRD is part of the main market indexes on the Bucharest Stock Exchange (BET Index, BET Plus Index, BET-XT Index, BET-TR In
Slide 28: Conclusions
CHAPTER 05 CONCLUSIONS BANK RESULTS 2014 12 FEBRUARY 2015 | P.28
Slide 29: Conclusions
CONCLUSIONS 2014 was marked by BRD’s return to profit and a further improvement of its risk profile. In 2015 GDP growth may be between 2.5% and 3%, positively influenced by a dovish monetary policy. An acceleration of the economic growth rate could result from better absorption of EU funds and rebou
Slide 30: Financial Calendar for 2015
FINANCIAL CALENDAR FOR 2015 9 April: General Shareholders Meeting 9 April: Publication of the 2014 Annual Report 6 May: Q1-15 results publication 3 August: H1-15 results publication 9 November: 9M -15 results publication BANK RESULTS 2014 12 FEBRUARY 2015 | P.30
Slide 31: Thank You
THANK YOU Investor Relations Tel. : +4 021 380 47 62 Email : investor@brd.ro Homepage: www.brd.ro BANK RESULTS 2014 12 FEBRUARY 2015 | P.31
Slide 32: Q&A Session
Q&A Session BANK RESULTS 2014 12 FEBRUARY 2015 | P.32
BRD - Groupe Société Générale — FY2014 Earnings Presentation on 6ix