Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD - Groupe Société Générale — Q2 2022 Earnings Presentation
27 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Aug 4, 2022
Slide 1: BRD Group Results
BRD GROUP RESULTS 2nd quarter and 1st half 2022 | 04.08.2022
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended June 30, 2022 were examined by the Board of Directors on August 2, 2022. The financial information presented for the period ended June 30, 2022 and comparative periods has been prepared according to
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Solid business momentum despite environment under tensions
SOLID BUSINESS MOMENTUM DESPITE ENVIRONMENT UNDER TENSIONS Intense lending activity across the board Portfolio growth +9% y/y at Jun 2022 end Dynamic housing loan production Corporate loans +15% y/y at Jun 2022 end Very strong growth in corporate loans Housing loan production +77% vs H1 2021 Activel
Slide 5: Macroeconomic Environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: Still strong economic growth while inflation spreads wings wide open
STILL STRONG ECONOMIC GROWTH WHILE INFLATION SPREADS WINGS WIDE OPEN GDP GROWTH GDP accelerated growth pace GDP printed at +6.4% y/y in Q1 2022, after +5.9% y/y in 2021 GDP growth still driven by domestic demand (+5.9 ppts to GDP growth). A more modest contribution came from gross fixed capital form
Slide 7: Interest rates following inflation trend
INTEREST RATES FOLLOWING INFLATION TREND Accelerating pace of rate hikes Amid the prospect of larger and lengthier inflation pressures from global cost shocks, NBR started in September 2021 monetary policy INTEREST RATE ENVIRONMENT rate hikes: 50 bps in Q4 2021, two additional increases by 75 bps in
Slide 8: Support for economy progressively extended
SUPPORT FOR ECONOMY PROGRESSIVELY EXTENDED The National Recovery and Resilience Plan, medium to longer run growth booster Main RRP objectives: achieve green and digital transitions, while strengthening healthcare, education, social cohesion and inclusion Allocated EU funds: EUR 29.2 bn (EUR 14.3
Slide 9: Very solid Romanian banking sector
VERY SOLID ROMANIAN BANKING SECTOR ROMANIAN BANKING SYSTEM NPL AND NPL COVERAGE RATIOS Robust capital and liquidity positions Loan to deposit ratio at 70% at Mar-2022 end, up from 69% as of 2021 EU end (vs 122% at 2008 end) 44.9% High average liquidity coverage ratio, 212% at Mar-2022 end vs. 239% a
Slide 10: 2nd Quarter and 1st Half 2022 BRD Group Results
3 2ND QUARTER AND 1ST HALF 2022 BRD GROUP RESULTS
Slide 11: Further enrichment of offer and channels
FURTHER ENRICHMENT OF OFFER AND CHANNELS INCREASED ENHANCED REMOTE CHANNELS COMMITTED TO SUPPORT USAGE OF E-CHANNELS EXPERIENCE SUSTAINABILITY TRANSITION Green consumer and housing loans Constant deployment of new launched in April 890k YouBRD active clients at June 2022 functionalities for YouBRD e
Slide 12: Very dynamic lending activity across the board
VERY DYNAMIC LENDING ACTIVITY ACROSS THE BOARD NET LOANS (end of period amounts, RON bn) Y/Y +8.9% Corporate lending in a double-digit growth range +15.3% Loans to SME up by +31% vs June 2021 end Actively support SMEs eligible under Governmental programs, with RON 1.4 billion approved loans in H1 20
Slide 13: Broad deposit base
BROAD DEPOSIT BASE Savings remain elevated Retail deposits up +4.2% y/y on average DEPOSITS (average amounts, RON bn) Y/Y Corporate deposits driven by resilient growth of SMEs deposits (+4.8% y/y on average) +4.0% +3.6% Solid liquidity profile Net loan to deposit ratio at 68% High liquidity buffer a
Slide 14: Consolidation of revenues on upward trend
CONSOLIDATION OF REVENUES ON UPWARD TREND NET BANKING INCOME (RON m) Y/Y Best ever H1 net banking income 1,642 +7.6% 1,526 NBI, up by +7.6% y/y in H1 2022 and Q2 2022, reflecting a very good 145 -0.2% Other income 146 commercial momentum across the board 373 Net fees and 367 +1.7% commissions Double
Slide 15: Confirmed discipline, while inflation starts to materialize on costs
CONFIRMED DISCIPLINE, WHILE INFLATION STARTS TO MATERIALIZE ON COSTS OPERATING EXPENSES (RON m) Controlled increase in OPEX, +2.5% y/y in H1 2022, Y/Y excluding contributions to Deposit Guarantee & Resolution Funds 853 +4.8% 814 Contributions to 49 69 +40.0% FGDB & FR 357 368 +3.2% Moderate staff co
Slide 16: Stable credit quality indicators despite macroeconomic uncertainties
STABLE CREDIT QUALITY INDICATORS DESPITE MACROECONOMIC UNCERTAINTIES NET COST OF RISK Q2 net cost of risk in line with expectations Q2 NCR allocation linked to deteriorating macroeconomic environment/ outlook. Notwithstanding this context, default portfolio continues to yield important recoveries *
Slide 17: Capital position
CAPITAL POSITION SOLVENCY RATIO CAR of 22.6% at June 2022 end Regulatory own funds composed of Tier 1 and Tier 2 capital Tier 2 capital consisting of two subordinated loans in total +432bp +216bp -589bp amount of EUR 250m +134bp -655bp -264bp -26bp Own funds year on year variation mainly driven by:
Slide 18: Conclusions
.) CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 19: Conclusions
CONCLUSIONS Growing Romanian economy, but prolonged geopolitical turmoil amplifies risk on perspectives BRD showed a very good commercial momentum across the board intense lending activity, with a remarkable performance on corporates and housing loans actively engaged in Governmental program
Slide 20: BRD | Stock Price Performance
BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation 8,000 22.0 EUR 1.8 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 is in Top 5
Slide 21: Q&A Session
6 Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 22: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE - KEY FIGURES FINANCIAL CALENDAR FOR 2021 GLOSSARY – CLIENT SEGMENTATION
Slide 23: 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 Q2-2022 Q2-2021 Change H1-2022 H1-2021 Change Net banking income 832 773 +7.6% 1,642 1,526 +7.6% Operating expenses (393) (382) +3.0% (853) (814) +4.8%
Slide 24: 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 Q2-2022 Q2-2021 Change H1-2022 H1-2021 Change Net banking income 826 747 +10.6% 1,592 1,461 +9.0% Financial results Operating expenses (369) (35
Slide 25: Financial Calendar for 2022
FINANCIAL CALENDAR FOR 2022 10th February: Preliminary 2021 financial results 28th April: General Shareholders Meeting for approving the 2021 annual financial results 5th May: Presentation of the 1st quarter 2022 financial results 3rd August: Presentation of the 2nd quarter and 1st half 2022 financi
Slide 26: 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 27: 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 — Q2 2022 Earnings Presentation on 6ix