Patria Bank Sa · BVB:PBK
Patria Bank Sa — Investor Presentation (July 2020)
25 slides from Patria Bank Sa's investor presentation, Jul 22, 2020
Slide 1: Profitability in three years after the merger
Profitability in three years after the merger Presentation of results and outlook Bucharest • July 2020 patriabank.ro
Slide 2: I. Patria Bank – Background strategic update
I. Patria Bank – Background strategic update Romania represents an important opportunity in the financial services sector due to a low level of financial intermediation. Patria Bank is positioned to capture the potential of banking services on the Romanian market through products, distribution model
Slide 3: We are positioned to capture the potential of banking services
We are positioned to capture the potential of banking services › Romania represents an important opportunity in the Patria Bank is positioned to capture the potential of banking financial services sector due to the low level of financial services in Romania intermediation: › The lending to the priva
Slide 4: Segments with competitive advantage
Products for banked and non-banked customers Target segments Competitive advantages of Patria Bank › Patria Bank focuses on SME, › Decentralised and dynamic distribution and Microenterprises (“Micro”), Agriculture sales models SME (“Agro”) and Retail, especially in areas where › Tailored specific pr
Slide 5: Target segments (I)
Target segments (I) SME and Small Corporate (“SME”) Microenterprises (“Micro”) SME MICRO › Focus on developing customer base through personalized › Patria Bank is one of the major players on the market in offers and continuously improving quality of customer this segment (ranked in Top 3) relationsh
Slide 6: Target segments (II)
Target segments (II) Agricultural producers (“Agro”) Individuals (“Retail”) AGRO RETAIL › Key segment for Patria Bank, affected to a lesser extent by › Significant improvement of the product offer (both in the the Covid-19 pandemic lending business, especially mortgage loans, as well as in the trans
Slide 7: II. Financial performance at 31.12.19 & 31.03.20
II. Financial performance at 31.12.19 & 31.03.20 Reaching annual profitability in 2019 with a net profit of 5.3 Million RON. Organic growth in all lines of activity through sales of loans of over RON 841 Million during 2019 and an increase in the share of gross loans in total assets from 57% at the
Slide 8: Placement of cash in income-generating assets continues
Placement of cash in income-generating assets continues Evolution of the gross performing credit Balance sheet assets structure 2017 - 2019 portfolio [Mill. RON] In 2019 the Bank continued the process of placement of liquid assets in loans granted to customers. › Placement of liquid assets in loans
Slide 9: Key Balance Sheet items
Key Balance Sheet items Adjustment of balance sheet due to Selected ratios 2017 - 2020 [%] network optimization % Dec 2018 Dec 2019 Mar 2020 › In 2019 the Bank carried out a › OCR 15.78 17.75 16.50 network optimisation process in line › Gross loans / Total assets 50 53 57 with its future strategy an
Slide 10: Sales model + operational optimization = net profit in 2019
Sales model + operational optimization = net profit in 2019 Profit and loss account 2017- 2019 [RON Mill.] › After reaching break-even in 2018, Patria Bank ends 2019 with a net profit of RON 5.3 Million, resulting from both the increase in operational revenues by 4.4% and in the decrease of operatio
Slide 11: The road to sustainable and profitable growth
The road to sustainable and profitable growth Active and innovative participant in key Quarterly results evolution [RON Mill.] segments › The Bank continued to be an active and innovative participant in the segments of key companies for its activity (agriculture, micro-enterprises and SMEs) › Develo
Slide 12: The road to sustainable and profitable growth
The road to sustainable and profitable growth Evolution on key segments The quarterly evolution of income from interest, fees, commissions and FX [RON Mill.] › In the SME and Small Corporate sub- Quarterly revenues in the key segments of the Bank, SMEs, Micro and Agro, have been segment the Bank foc
Slide 13: Mix of bank offices, specialized sales force and technology
Mix of bank offices, specialized sales force and technology Distribution/sales channels Implemented projects with impact on the business area › Brick & Mortar: national network of 46 bank units › New Internet Banking platform - Sept 2019 specialized in Retail and Micro segments › New Mobile Banking
Slide 14: Investment in technology and operational flows
Investment in technology and operational flows DIGITIZATION - Major projects under implementation Proejcts for increased efficiency of operational flows › Implemented projects: › Internet Banking platform – continuous • SIEM - operational security incident management development, as well as Payment
Slide 15: III. Financial performance for 2020 revised due to Covid-19 pandemic
III. Financial performance for 2020 revised due to Covid-19 pandemic We anticipate a moderate negative financial impact and the effects on profits following reduced business activity during the lockdown period. As a result, we publish revised estimated results for 2020 and the Bank's revised financi
Slide 16: Covid-19 pandemic
Covid-19 pandemic A. Impact on bank’s activity B. Covid-19 measures › Reduction of credit demand with impact on the volume of › Support measures for clients in difficulty through flexible loans granted solutions for postponing payments of installments (renewal of financing for SME and Micro clients
Slide 17: The road to sustainable and profitable growth and its challenges (I)
The road to sustainable and profitable growth and its challenges (I) Covid-19 impact and explanations Operating income and result forecast [RON Mill.] 2019 Realised 2020 Approved Budget 2020 Revised forecast › Revised estimation of net banking 175 167 income for 2020 to RON 153.4 Million 153 › Revis
Slide 18: The road to sustainable and profitable growth and its challenges (II)
The road to sustainable and profitable growth and its challenges (II) Covid-19 impact and explanations Total assets and loans to customers forecast [RON Million] › Upward revision of balance of loans 2019 Realised 2020 appproved Budget 2020 Revised forecast granted to customers to RON 1.975,5 3,447
Slide 19: Prospects for the future
Prospects for the future Placement of liquid assets Forecast of main ratios for 2020 The main banking activity ratios forecasted for 2020, both in the initial version › The Bank will continue to place liquid approved by the GSM and in the revised version including Covid-19 impact are assets in incom
Slide 20: New loans sales remain at a high level
New loans sales remain at a high level We expect new loans production to Patria Bank - New loans sales [RON Million] remain solid in the short term The 2020 forecast was revised due to the impact of the Covid-19 pandemic. To this end, the total volume of new loan sales was revised to RON 837.5 Milli
Slide 21: Market performance
Market performance PBK27E bond issue PBK shares on BSE (RON) › In September 2019 the Bank 0.1200 succesfully closed a private 0.1100 Publishing of the placement of subordinated bonds results of the offer amounting to EUR 5 Million, with an 0.1000 8 year tenor and 6.50% interest rate 0.0900 › The iss
Slide 22: Patria Bank on BSE in 2020
Patria Bank on BSE in 2020 2020 bond issue 2020 Financiar calendar › In April 2020 the Bank approved a As per the financial communication calendar, Patria Bank will publish Q2 2020 new subordinated bond issue results on August 17, and Q3 2020 results on November 16. The next call with › As per GSM d
Slide 23: Strong shareholding structure
Strong shareholding structure Emerging Europe Accession Fund Axxess Capital track record in the financial sector Company in portfolio Acquisition on exit › EEAF is the main shareholder of Patria Bank and represents an investment vehicle managed by Banca Agricola Axxess Capital Partners › EEAF is a p
Slide 24: Experienced management and board executives teams
Experienced management and board executives teams Vasile Iuga Nicolae Surdu Horia Manda Bogdan Merfea BoD member BoD member BoD Chairman BoD member (independent) (independent) Ex-Managing Managing Partner- Ex CEO and Partner-South East Axxess Capital BoD CEO-Raiffeisen President BCC Europe, Romania
Slide 25: Investor relations
Investor relations Patria Bank SA Information for shareholders and bondholders › Soseaua Pipera Nr. 42, Sector 2 › www.patriabank.ro/despre-patria/investitori Bucuresti, Romania › Phone: 0747 045 464 › Email: capital@patriabank.ro Contact persons › Razvan Pasol razvan.pasol@patriabank.ro › Remus Bog