Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD - Groupe Société Générale — FY2020 Earnings Presentation
37 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 11, 2021
Slide 1: BRD Group Results 4th quarter and full year 2020
BRD GROUP RESULTS 4th quarter and full year 2020 | 11.02.2021
Slide 2: Disclaimer
DISCLAIMER The preliminary consolidated and separate financial position and income statement for the period ended December 31, 2020 were examined by the Board of Directors on February 9, 2021. The financial information presented for the period ended December 31, 2020 and comparative periods has been
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Resilient financial performance
RESILIENT FINANCIAL PERFORMANCE Further increase in digital channel adoption Digital banking MyBRD Mobile & MyBRD Net reached 734k unique active users 734k active users, +23% y/y vs 2019 end Increased no of transactions, +42% y/y vs 2019 Sustained lending activity to SME +22% end of year SME portfol
Slide 5: Well managing an unprecedented crisis
WELL MANAGING AN UNPRECEDENTED CRISIS ENSURE CONTINUITY OF ACTIVITY SUPPORT OUR CUSTOMERS MITIGATE IMPACTS FOR THE BANK PROTECT OUR CUSTOMERS PAYMENT MORATORIUM SIGNIFICANT SAVING PLAN AND EMPLOYEES Defferal in loan repayment offered for Implementation of adequate ~ 40k customers Immediate tactical
Slide 6: Important progresses on our client centric roadmap
IMPORTANT PROGRESSES ON OUR CLIENT CENTRIC ROADMAP RETAIL CORPORATE ENHANCED VALUE PROPOSITION ACCELERATED DIGITAL DELIVERIES New & improved daily banking packages, with more than Launch of BRD@Office Mobile, the mobile 340k packages sold until 31 Dec 2020 companion of the online banking applicati
Slide 7: Awarded excellence
AWARDED EXCELLENCE Bank of the Year 2020 in Romania Recognized know-how in cash management and trade finance Acknowledged performance in leasing and alternative savings - Bank of excellence in Romania over the last 25 years - Best Asset Management Company – BRD AM Best Treasury& Cash Best Trade Fina
Slide 8: Macroeconomic environment
2 MACROECONOMIC ENVIRONMENT
Slide 9: COVID-19 crisis abruptly ended a 9 year expansionary cycle
COVID-19 CRISIS ABRUPTLY ENDED A 9 YEAR EXPANSIONARY CYCLE Growth rebound in Q3 2020 amid softer containment measures Romania’s GDP growth was rather resilient in Q1, marking the highest rate in EU GDP GROWTH 7.3% GDP growth hit the bottom in Q2, strongly impacted by the lockdown 3.8% 3.6% 4.7% 4.5%
Slide 10: Declining interest rates
DECLINING INTEREST RATES Policy rate cut To support the economy in the context of unfolding COVID-19 epidemic, the central bank reduced the monetary policy rate three times in 2020, by 100 bps in total, to 1.50%. On the backdrop of declining annual INTEREST RATE ENVIRONMENT inflation rate and the dr
Slide 11: Extended support measures
EXTENDED SUPPORT MEASURES Relief measures to support the economy Income supporting measures : indemnity for technical unemployment (amounting to 75% of the net salary, capped at 75% of the average salary in the economy) for employees of companies affected by the crisis. The measure was extended un
Slide 12: A very solid Romanian banking sector
A VERY SOLID ROMANIAN BANKING SECTOR ROMANIAN BANKING SYSTEM Strong capital and liquidity positions NPL AND NPL COVERAGE RATIOS Loan to deposit ratio at 69% at September 2020 vs. 71% at 2019 end 63.4%* 60.6% (122% at 2008 end) 55.6% 57.7% 56.2% 57.7% 58.5% Average liquidity coverage ratio rose to ne
Slide 13: 4th quarter and full year 2020 BRD Group results
3 4TH QUARTER AND FULL YEAR 2020 BRD GROUP RESULTS
Slide 14: Providing financing solutions to support our clients
PROVIDING FINANCING SOLUTIONS TO SUPPORT OUR CLIENTS Active participation in IMM Invest 1,457 requests approved NON-RETAIL - SMEs ~RON 930m approved, as of December 2020 end ~ RON 300m 404 requests approved 84% (in value) for working capital RETAIL - SB ~ RON 630m Moratorium granted RETAIL L
Slide 15: Accelerated digital adoption
ACCELERATED DIGITAL ADOPTION INCREASED DIGITAL HIGHLY REACTIVE CUSTOMER ADAPTING NETWORK TO PENETRATION INTERACTION CENTER CHANGED CLIENT PREFERENCES 734k MyBRD Mobile & Net active clients Fast tracked Customer Interaction Fewer branches at 2020 end, +23% y/y Centre capabilities to answer More s
Slide 16: Loan growth pushed by dynamic SME financing
LOAN GROWTH PUSHED BY DYNAMIC SME FINANCING NET LOANS Corporate lending fueled by strong SME financing and (average amounts, RON bn) Y/Y leasing activity 30.9 31.0 +0.5% Average loans to SME up by +7.9% vs 2019, end of year portfolio 9.1 9.3 +1.9% growth reaching +22%. Active participation in IMM In
Slide 17: Further consolidation of both retail and corporate deposits
FURTHER CONSOLIDATION OF BOTH RETAIL AND CORPORATE DEPOSITS Large, diversified and growing deposit base Retail deposits accelerating growth pace to +7.0% y/y Corporate deposits up +4.7%, mainly driven by SME SAVINGS (average amounts, RON bn) Y/Y Strong liquidity profile 47.9 +6.3% 45.1 Net loan to d
Slide 18: Resilient revenues
RESILIENT REVENUES NET BANKING INCOME (RON m) Resilient revenues despite prolonged crisis Limited contraction of NII, by -2.9% y/y in 2020 and by -4.9% y/y in Q4 Y/Y 2020, mainly driven by: 3,270 3,088 -5.6% decreasing market interest rates Other income 314 290 -7.7% ROBOR 3M average of 2.39% in
Slide 19: Significant cost reduction
SIGNIFICANT COST REDUCTION OPERATING EXPENSES (RON m) Full achievement of the saving plan 1,678 Y/Y -5.3% Gross savings of RON 70m at Dec-20 end, in line with annual Exceptional items* 75 1,588 -42.7% 43 target Contributions to 72 43 -40.0% FGDB & FR 704 684 -2.8% Reduced staff expenses Other expens
Slide 20: Strong asset quality
STRONG ASSET QUALITY GROSS LOANS – December 31, 2020 breakdown by segment and currency (RON bn) Loan portfolio market mix 72% on retail 28% on corporate segment 22.2 21.5 Consolidation of RON lending Share of RON denominated loans at 70.3% (vs 68.2% as of 8.4 9.1 December 2019 end) Trend in line wit
Slide 21: Cost of risk affected by macroeconomic context
COST OF RISK AFFECTED BY MACROECONOMIC CONTEXT COST OF RISK EVOLUTION 260 631 Net cost of risk at 100 bps in Q4-20 210 461 160 198 313 100 110 137 NCR driven by the prudent treatment of Retail moratoria loans 60 91 -4 88 10 and of debtors operating/ employed in sensitive industries -40 -5 affected b
Slide 22: Elevated capital position
ELEVATED CAPITAL POSITION SOLVENCY RATIO Strong high quality capital base CAR of 30% at Dec 2020 end -15bp 30.3% Regulatory own funds composed solely of Tier 1 capital +342bp 24.9% +213bp Increase in own funds on a yearly basis driven by higher reserves from revaluation of debt instruments accounted
Slide 23: Social responsibility at the heart of our action
4 SOCIAL RESPONSIBILITY AT THE HEART OF OUR ACTION
Slide 24: Responsible together: BRD actions during the pandemic
RESPONSIBLE TOGETHER: BRD ACTIONS DURING THE PANDEMIC // DONATIONS OF RON 2 MILLION FOR THE MEDICAL SYSTEM FOR THE CULTURAL SECTOR BRD’s donations reached: BRD & FUNDATIA9: 70 hospitals // 43 cities ARTISTS ROOMS: a micro-grant program for the 53,400 medical protective equipment (gloves, masks
Slide 25: Culture
CULTURE A UNIQUE CULTURAL FOUNDATION TO SUPPORT THE YOUNG GENERATION Fundatia9, working with more than 300 visual artists, curators, musicians, journalists each year, to produce and promote the new Romanian culture Scena9, a cultural journalism publication, online & print Rezidenta BRD Scena9, our c
Slide 26: Tech & education: highlights
TECH & EDUCATION: HIGHLIGHTS A COMPREHENSIVE ECOSYSTEM OF PARTNERSHIPS AND PROPRIETARY PROGRAMS Universities, Fintechs: tech hubs, innovation labs, data centers Publishing platforms owned by BRD in partnership with journalists: continuous conversation about important themes for the Romanian society
Slide 27: Environment
ENVIRONMENT CONTINUOUSLY WORKING ON REDUCING OUR CO2 FOOTPRINT BRD Forests Fund continued to support causes related to Romanian forests : monitor and preserve valuable forests partnership with WWF to preserve over 100 Ha of valuable forest near Sibiu partnership with Ecotree to plant 70 Ha of
Slide 28: Conclusions
.) CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 29: Conclusions
CONCLUSIONS Unprecedented sanitary crisis translating into an abrupt and strong economic crisis Relief measures and stimulus packages implemented, ensuring the functioning of the economy BRD fully mobilized to provide adequate and continuous support to its customers, through sustained SME fina
Slide 30: Q&A session
6 Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 31: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES STOCK PRICE PERFORMANCE FINANCIAL CALENDAR FOR 2021 GLOSSARY – CLIENT SEGMENTATION
Slide 32: 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 Q4-2020 Q4-2019 Change 2020 2019 Change Net banking income 780 824 -5.3% 3,088 3,270 -5.6% Operating expenses (400) (491) -18.6% (1,588) (1,678) -5.3% G
Slide 33: 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 Q4-2020 Q4-2019 Change 2020 2019 Change Net banking income 738 779 -5.3% 2,927 3,170 -7.7% Financial results Operating expenses (361) (463) -22.
Slide 34: BRD | Stock price performance
BRD | STOCK PRICE PERFORMANCE Market capitalisation 4,000 EUR 2.1 bn 16.0 3,500 3,000 14.0 2,500 12.0 2,000 10.0 1,500 1,000 8.0 500 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 largest domestic companies
Slide 35: Financial calendar for 2021
FINANCIAL CALENDAR FOR 2021 10th February: Preliminary 2020 financial results and annual press conference 22nd April: General Shareholders Meeting for approving the 2020 annual financial results 6th May: Presentation of the 1st quarter 2021 financial results 3rd August: Presentation of the 2nd quart
Slide 36: 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 37: 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 — FY2020 Earnings Presentation on 6ix