Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Societe Generale — Q1 2022 Earnings Presentation
27 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, May 6, 2022
Slide 1: BRD Group Results 1st quarter 2022
BRD GROUP RESULTS 1st quarter 2022 | 06.05.2022
Slide 2: Disclaimer
DISCLAIMER The preliminary consolidated and separate financial position and income statement for the period ended March 31, 2022 were examined by the Board of Directors on May 4, 2022. The financial information presented for the period ended March 31, 2022 and comparative periods has been prepared a
Slide 3: Introduction
INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Q1 2022: Strong Start of the Year
Q1 2022: STRONG START OF THE YEAR Very dynamic lending activity across all business segments Portfolio growth +9% y/y at Mar 2022 end Double digit advance of corporate financing SME loans +30% y/y at Mar 2022 end Record Q1 loan production for individuals PI loan production +27% vs Q1 2021 Enlarged o
Slide 5: Macroeconomic Environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: GDP Growth Above EU Average, Inflation Strongly Upwards
GDP GROWTH ABOVE EU AVERAGE, INFLATION STRONGLY UPWARDS GDP GROWTH GDP growth surpassing pre-pandemic level GDP printed at +5.9% in 2021, after -3.9% contraction in 2020 GDP growth driven again by domestic demand, while net exports acted as drag, slicing off -1.5 ppt Slowdown in Q4’21, with quarterl
Slide 7: Interest Rates Driven by Inflation
INTEREST RATES DRIVEN BY INFLATION Accelerating rate hikes pace in 2022 Answering to unfolding COVID-19 epidemic, central bank reduced the monetary policy rate four times from March 2020 to January 2021, by 125 bps in total, to 1.25% INTEREST RATE ENVIRONMENT In a context of strongly accelerating in
Slide 8: Reinforced Support for Economy
REINFORCED SUPPORT FOR ECONOMY 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 bn subsidie
Slide 9: Very Solid Romanian Banking Sector
VERY SOLID ROMANIAN BANKING SECTOR ROMANIAN BANKING SYSTEM NPL AND NPL COVERAGE RATIOS Strong capital and liquidity positions Loan to deposit ratio at 69% at 2021 end, up from 66% as of 2020 end EU (vs 122% at 2008 end) 44.5% Elevated average liquidity coverage ratio, 239% at Dec-2021 end vs. 266% a
Slide 10: 1st Quarter 2022 BRD Group Results
3 1ST QUARTER 2022 BRD GROUP RESULTS
Slide 11: Continuous Focus on Digitalization
CONTINUOUS FOCUS ON DIGITALIZATION INCREASED DIGITAL ENHANCED CUSTOMERS’ NETWORK ADJUSTMENT TO PENETRATION REMOTE CHANNEL EXPERIENCE CHANGED CLIENT PREFERENCES 818k YouBRD active clients at Mar 2022 end Constant deployment of new functionalities Reduced no of branches for YouBRD +24% y/y nb of tra
Slide 12: Strong Lending Activity Across the Board
STRONG LENDING ACTIVITY ACROSS THE BOARD NET LOANS (end of period amounts, RON bn) Y/Y 34.1 34.8 +9.2% Intense corporate lending 31.8 11.0 11.4 +17.5% Loans to SME up by +25% vs Mar 2021 end 9.7 Active participation in the IMM Invest program with RON 289m approved loans, out of which 23% within Agro
Slide 13: Large, Diversified and Growing Saving Base
LARGE, DIVERSIFIED AND GROWING SAVING BASE Continued expansion of deposit base DEPOSITS Retail deposits up +3.4% y/y (end of period amounts, RON bn) Y/Y Corporate deposits driven by double digit growth of SMEs deposits +3.8% (+14.2% y/y) +4.8% Strong liquidity profile Net loan to deposit ratio at 65
Slide 14: Solid Growth of Revenues Built on Rising Volumes
SOLID GROWTH OF REVENUES BUILT ON RISING VOLUMES Substantial Net Interest Income growth NET BANKING INCOME (RON m) Positive volume effect on rising loans Y/Y outstanding loans, up by + 9.2% y/y vs Mar 2021 end +7.5% 810 housing loans production more than doubled vs Q1 2021 Other income 753 +1.7%
Slide 15: Mild Increase in Operating Expenses Excluding Regulatory Costs
MILD INCREASE IN OPERATING EXPENSES EXCLUDING REGULATORY COSTS Controlled increase in staff costs, +2.5% y/y ….despite the price effect impact induced by wages’ increase OPERATING EXPENSES (RON m) Efficiency initiatives remain in focus, as reflected by network of branches resizing (-70 y/y) stru
Slide 16: Asset Quality Slight Improvement in the First Quarter of the Year
ASSET QUALITY SLIGHT IMPROVEMENT IN THE FIRST QUARTER OF THE YEAR COST OF RISK* EVOLUTION 631 210 198 461 Net cost of risk at 36 bps in Q1-22 160 137 313 110 102 60 55 36 • Q1 2022 NCR reflects the recent uncertainties with regard to the 10 43 31 evolution of domestic and international environment -
Slide 17: Solid Capital Position
SOLID CAPITAL POSITION SOLVENCY RATIO CAR of 21.4% at Mar 2022 end Regulatory own funds composed of Tier 1 and Tier 2 capital Tier 2 capital consisting of EUR 100m subordinated loan +151 bps +181 bps -616 bps Own funds year on year variation mainly driven by: -447 bps -269 bps exceptional dividend
Slide 18: Conclusions
4 CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 19: Conclusions
CONCLUSIONS Romanian economy rebounded faster than EU average in 2021, surpassing pre-pandemic level Perspectives are marked by record inflation that hit double digit threshold in March 2022, and geopolitical turmoil Reinforced support for the economy with the governmental measures package pro
Slide 20: Q&A Session
Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 21: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES STOCK PRICE PERFORMANCE FINANCIAL CALENDAR FOR 2022 GLOSSARY – CLIENT SEGMENTATION
Slide 22: 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 Q1-2022 Q1-2021 Change Net banking income 810 753 +7.5% Operating expenses (460) (432) +6.4% Gross operating income 350 321 +9.0% Financial results Net
Slide 23: 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 Q1-2022 Q1-2021 Change Net banking income 765 714 +7.2% Financial results Operating expenses (437) (410) +6.7% Gross operating income 328 304 +7
Slide 24: BRD | Stock Price Performance
BRD | STOCK PRICE PERFORMANCE BRD is part of the main market indices on the Bucharest Stock Exchange BRD is in Top 5 largest domestic companies listed on the local stock exchange BRD’s share price reached RON 17.48 as of March 2022 end, +10% y/y and -1% ytd. 1ST QUARTER 2022 RESULTS 06/05/2022
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 Societe Generale — Q1 2022 Earnings Presentation on 6ix