Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q1 2024 Earnings Presentation
26 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, May 7, 2024
Slide 1: BRD Group Results 1st quarter 2024
BRD GROUP RESULTS 1st quarter 2024 | 07.05.2024
Slide 2: Disclaimer
DISCLAIMER The preliminary consolidated and separate financial position and income statement for the period ended March 31, 2024 were examined by the Board of Directors on May 2, 2024. The financial information presented for the period ended March 31, 2024 and comparative periods has been prepared a
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Excellent commercial start of the year
EXCELLENT COMMERCIAL START OF THE YEAR Growth of lending activity exceeding market pace Portfolio growth +12.3% y/y at Mar 24 end Lending on corporate segment maintains a healthy momentum, on both SMEs and large companies, building on dedicated sectorial coverage, Corporate loans +20.4% y/y at Mar 2
Slide 5: Macroeconomic environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: Slowdown of economic activity, inflation back on downward trend
SLOWDOWN OF ECONOMIC ACTIVITY, INFLATION BACK ON DOWNWARD TREND GDP GROWTH Economic growth lost momentum within an European context … reflecting elevated inflation, tighter monetary and financial conditions, 7.3% and weakening global demand 6.0% 5.7% 5.7% 4.7% 3.9% 4.1% EU GDP growth at 0.5% y/y in
Slide 7: Quasi stable interest rates, still high market liquidity
QUASI STABLE INTEREST RATES , STILL HIGH MARKET LIQUIDITY NBR in expectation with the easing rate cycle With still high core inflation, uncertainties surrounding fiscal consolidation and short-term wage pressure, key policy rate was INTEREST RATES maintained at 7% during the first three months of 20
Slide 8: Solid banking sector, sound levels of prudential indicators
SOLID BANKING SECTOR, SOUND LEVELS OF PRUDENTIAL INDICATORS ROMANIAN BANKING SYSTEM Strong capital and liquidity positions, ratios remaining above EU NPL AND NPL COVERAGE RATIOS average Capital adequacy ratio at 22.5% at December 2023 end, compared to 63.3% 66.1% 65.6% 66.2% 64.1% 64.9% 65.5% EU 60.
Slide 9: 1st quarter 2024 BRD Group results
3 1ST QUARTER 2024 BRD GROUP RESULTS
Slide 10: Remote channels adoption maintains high momentum
REMOTE CHANNELS ADOPTION MAINTAINS HIGH MOMENTUM FURTHER INCREASED USAGE OF E-CHANNELS ENHANCED DIGITAL JOURNEY ~1.5m YouBRD users at Mar 2024 end, +28% y/y Q1 2024 highlights 7.2m nb of transactions via YouBRD, +24% y/y vs Q1 23 Visualization, buying or selling investment funds, directly from YouBR
Slide 11: Lending growth across all segments
LENDING GROWTH ACROSS ALL SEGMENTS NET LOANS (end of period amounts, RON bn) Corporate lending maintained good rhythm, with high double Y/Y 42.3 43.4 digit growth pace on both SMEs and large companies 38.7 +12.3% ✓ outstanding loans, +26.9% y/y at Mar 2024 end on SMEs and 16.9 17.6 +20.4% +16.9% y/y
Slide 12: Expanding, robust and diversified deposit base
EXPANDING, ROBUST AND DIVERSIFIED DEPOSIT BASE Consistent growth in deposit volumes Most stable and ample funding source, retail deposits, in constant growth, +12.0% y/y at March 2024 end, building on strong collection of individuals term deposits DEPOSITS (end of period amounts, RON bn) Corporate d
Slide 13: Dynamic volumes, leading driver of revenues growth
DYNAMIC VOLUMES, LEADING DRIVER OF REVENUES GROWTH NII momentum, up +6.8% y/y in Q1 2024 amid positive volume effect following growth of both retail and corporate loans NET BANKING INCOME (RON m) ✓ corporate loans outstanding, + 20.4% y/y at Mar 24 end Y/Y ✓ core retail loans outstanding, +8.2% y/y
Slide 14: Persistent inflation pressure, but costs remained under strict oversight
PERSISTENT INFLATION PRESSURE, BUT COSTS REMAINED UNDER STRICT OVERSIGHT OPEX, +4.2% y/y in Q1 24, reflecting disciplined approach to spending OPERATING EXPENSES (RON m) Staff expenses increase (+9.3% y/y in Q1 24), linked to price effect and higher benefits within an inflationary environment Y/Y an
Slide 15: Stabilizing credit quality indicators
STABILIZING CREDIT QUALITY INDICATORS NET COST OF RISK Net cost of risk at +34 bps in Q1-24 Cost of risk linked to commercial advances on Retail while Corporate continues to benefit from NPL recoveries *Note: CoR (bps) in quarter is annualized NPL RATIO NPL ratio and Outlook NPL rate stable around ~
Slide 16: Strong capital position, MREL compliance ensured
STRONG CAPITAL POSITION, MREL COMPLIANCE ENSURED Solid high quality capital base SOLVENCY RATIO CAR of 24.1% at March 2024 end +169bp +5bp Regulatory own funds composed of Tier 1 and Tier 2 capital +243bp -7bp Tier 2 capital consists of EUR 250m subordinated loans -191bp The year on year variation o
Slide 17: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 18: 1st quarter 2024: commercial activity maintained strong track
1ST QUARTER 2024: COMMERCIAL ACTIVITY MAINTAINED STRONG TRACK ▪ 1ST quarter 2024 results reflecting BRD’s strength and capacity to deliver value ✓ Lending activity, up +12.3% y/y, building on strong commercial performance across the board +20.4% advance of corporate loans outstanding, benefiting fro
Slide 19: Q&A Session
.) Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 20: Appendix
6 APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE - KEY FIGURES BRD STOCK PRICE PERFORMANCE FINANCIAL CALENDAR FOR 2024 GLOSSARY – CLIENT SEGMENTATION
Slide 21: 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 Q1-2024 Q1-2023 Change Net banking income 985 935 +5.3% Operating expenses (529) (508) +4.2% Gross operating income 455 427 +6.5% Financial results Net
Slide 22: BRD Standalone | Key figures
BRD STANDALONE | KEY FIGURES (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q1-2024 Q1-2023 Change Net banking income 942 893 +5.4% Financial results Operating expenses (511) (487) +5.0% Gross operating income 431 407 +5.9%
Slide 23: BRD | Stock price performance
BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation 8,000 22.0 EUR 3.04 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’s share pr
Slide 24: Financial calendar for 2024
FINANCIAL CALENDAR FOR 2024 8th February: Preliminary 2023 financial results 25th April: General Shareholders Meeting for approving the 2023 annual financial results 2nd May: Presentation of 1st quarter 2024 financial results 1st August: Presentation of 2nd quarter and 1st half 2024 financial result
Slide 25: 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 26: 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 — Q1 2024 Earnings Presentation on 6ix