Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD - Groupe Société Générale — FY2007 Earnings Presentation
25 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 21, 2008
Slide 1: 2007 Results - Press Conference
PRESS CONFERENCE 21.02.2008 2007 RESULTS
Slide 2: 2007: Another very strong year
2007 RESULTS 2007: Another very strong year 2007 Evolution MRON 07/06 nominal Net banking income 2.512 42% Operating profit 1.407 54% Net consolidated profit (*) 932 36% Net profit (BRD stand alone) 917 40% (*) BRD + BRD Sogelease + BRD Finance+ BRD Securities 2
Slide 3: Agenda
AGENDA I. Activity: BRD has shown an important increase in 2007 II. General expenses : in spite of important investments, they have been well controlled III. Risks: the net cost of risk is one of the lowest of the banking system IV. Performances : they stay at high level V. Stock price: it continues
Slide 4: Network: maintaining the expansion
Activity NETWORK Network: maintaining the expansion… Number of branches (end of period) 806 +206 600 BRD Express +274 326 • Mainly next door banking: small +114 212 customer oriented units (BRD 181 Express). • 627 branches opened since June 2003. 2003 2004 2005 2006 2007 4
Slide 5: ... and covering all areas with growth potential
Activity NETWORK 600 agencies at the end of … and covering all areas with 2006 growth potential + 206 agencies opened in 2007 33 + 11 21 + 11 45 + 24 67 + 15 24 + 10 21 + 11 50 + 9 38 + 12 27 + 11 39 + 18 28 + 4 30 + 14 16 +16 20 + 9 96 + 13 VALAHIA 22 + 13 23+ 5 5
Slide 6: Acceleration of growth
Activity DEPOSITS / LOANS Acceleration of growth Customers’ deposits Loans to customers (BRD consolidated) (BRD consolidated) (end of year, MRON) (end of year, MRON) 26,905 27,011 +44% + 37% Individuals 19,667 45% 18,715 Individuals 50% + 34% 14,681 + 79% Corporates 10,464 55% 8,587 6,997 Corporates
Slide 7: Total commitments
Activity TOTAL COMMITMENTS A continuous and powerful contribution to the economic activity Structure of total commitments 2003 2004 2005 2006 2007 as at 31 Dec 2007 5% 8% 8% 4% 6% 5.0 24% 7.0 10.5 --1.7 2.4 S ma l l 42% -- 18.7 rises 3.2 enterp -- 26.9 8 .2 Individuals Medium 4.8 enterprises 14.3 --
Slide 8: Most important funding realised by BRD during 2008
Activity FINANCING Most important funding realised by BRD during 2008 Baneasa real estate project: syndicated loan manager of MEUR 186 Energomontaj: syndicated loan manager of MEUR 120 Baneasa real estate project: syndicated loan manager of MEUR 80 Hidroconstructia: syndicated loan manager o
Slide 9: An expanding clientele
Activity CLIENTS An expanding clientele Individual Clients (*) Corporate Clients (*) (x 1 000) (x 1 000) 2,259 146 (*) 1,982 1,622 (*) 115 (*) 110 99 1,366 91 1,249 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 (*) Clients having performed transactions during the past three months 9
Slide 10: Consumer finance (BRD Finance): strong growth in consumer credit
Activity FOCUS ON SUBSIDIARIES Consumer finance (BRD Finance): strong growth in consumer credit Balances of loans to customers (MRON) 608 points of sale financing cards revolving 82 • Maintaining good results in a 487 highly competitive market 42 • Strong growth in balances +121 318 MRON (+25% vs. 3
Slide 11: Leasing (BRD Sogelease) – vendor and equipment finance
Activity FOCUS ON SUBSIDIARIES Leasing (BRD Sogelease) – vendor and equipment finance Customer balances (MRON) 1,037 A strong growth since inception +45% 02 x3. 714 +26% A key player in corporate asset financing 566 409 343 2003 2004 2005 2006 2007 11
Slide 12: Operational vehicle leasing and fleet management (ALD)
Activity FOCUS ON SUBSIDIARIES Operational vehicle leasing and fleet management (ALD) • Still an emerging business in 2,616 Romania, servicing both SME’s and large corporates Corporate clients • A good start (July 2005), leveraging on (number) ALD International – member of SG 1,551 135 Group – exper
Slide 13: Net banking income
Activity NET BANKING INCOME Solid increase in revenues Net banking income (BRD consolidated) (MRON) • Net banking income +42% vs. 793 1,082 1,403 1,772 2,512 31 Dec 2006 33 63 146 FX and others 208 335 • Interest margin +29% vs. 31 264 351 Dec 2006 487 645 Commissions • Commissions +53% vs. 31 Dec 9
Slide 14: Agenda
AGENDA I. Activity: BRD has shown an important increase in 2007 II. General expenses: in spite of important investments, they have been well controlled III. Risks: the net cost of risk is one of the lowest of the banking system IV. Performances: they stay at high level V. Stock price: it continues t
Slide 15: Pursuing a strong investment effort
General expenses EXPENSES Pursuing a strong investment effort Investments (MEUR) 67 69 21 IT 29 Real 31 estate 23 21 Other 17 2003 2004 2005 2006 2007 15
Slide 16: Employees
General expenses EMPLOYEES Pursuing a strong recruitment effort and a good management of administrative expenses Employees (end of year - consolidated) 8,489 +1,203 7,286 5,636 4,292 4,539 2003 2004 2005 2006 2007 16
Slide 17: 2007: Maintaining a high increase in revenues
GROSS OPERATING INCOME 2007: Maintaining a high increase in revenues Gross Operating Income (BRD consolidated) (MRON) 1,407 + 54% Low cost/income ratio despite ongoing commercial investment 911 +21% 751 + 30% Accelerated growth of Gross 577 Operating Income + 54% 375 53% 49% Operating 48% 47% 44
Slide 18: Agenda
AGENDA I. Activity: BRD has shown an important increase in 2007 II. General expenses: in spite of important investments, they have been well controlled III. Risks: the net cost of risk is one of the lowest of the banking system IV. Performances: they stay at high level V. Stock price: it continues t
Slide 19: Limited increase of the cost of credit risk
Risks COST OF RISK Limited increase of the cost of credit risk Net Cost of Commercial Risk/Commitments (BRD consolidated) From the Net Cost of Risk of 2007 14 121 b.p. b.p. represents “regulatory impact” 110 b.p. CNR – (without regulatory impact the Net Cost 14 regulatory impact of Risk will be 96
Slide 20: Agenda
AGENDA I. Activity: BRD has shown an important increase in 2007 II. General expenses: in spite of important investments, they have been well controlled III. Risks: the net cost of risk is one of the lowest of the banking system IV. Performances: they stay at high level V. Stock price: it continues t
Slide 21: Profit and loss account: 2007 another very strong year
Performances PROFIT AND LOSS ACCOUNT 2007: Another very strong year Evol. 07/06 MRON - RAS 2006 (*) 2007 (*) nominal Net banking income 1,772 2,512 +42% Operational costs -861 -1,105 +28% Operating profit 911 1,407 +54% Cost of risk -105 -298 +182% Income tax -119 -177 +49% Net profit 687 932 +36% N
Slide 22: Financial strength and strong recurrent profitability
Performances CONCLUSION Financial strength and strong recurrent profitability Total B/S as of 31 December 2007 : 40.7 bnRON 3,549 Equity (MRON) ROE (%) • Equity – 85% increase over the last two years, due to the excellent 2,389 increase in net profit (+60% vs. 31 Dec 2005). 1,923 1,514 1,190 38.3% 3
Slide 23: Agenda
AGENDA I. Activity: BRD has shown an important increase in 2007 II. General expenses : in spite of important investments, they have been well controlled III. Risks: the net cost of risk is one of the lowest of the banking system IV. Performances : they stay at high level V. Stock price: it continues
Slide 24: Constant appreciation of the share price, above BET index
Stock price STOCKMARKET PRICE Constant appreciation of the share price, above BET index Evolution on the Stock Exchange price (area 2007 – the 100 basis in 2001) Market capitalisation at 18.02.2008 = 3,352 MEUR 2500 24,5 2000 BRD RON 20,8 17,5 1500 9.265 11,3 BET RON 7.673 7.985 1000 5.788 5,4 500 3
Slide 25: 2007: Another very strong year
2007 RESULTS 2007: Another very strong year 2007 Evolution MRON 07/06 nominal Net banking income 2.512 42% Operating profit 1.407 54% Net consolidated profit (*) 932 36% Net profit (BRD stand alone) 917 40% (*) BRD + BRD Sogelease + BRD Finance+ BRD Securities 25
BRD - Groupe Société Générale — FY2007 Earnings Presentation on 6ix