Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q3 2015 Earnings Presentation
29 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Nov 6, 2015
Slide 1: BRD Group Results 3rd Quarter and First 9 Months 2015
BRD GROUP RESULTS 3RD QUARTER AND FIRST 9 MONTHS 2015 6 NOVEMBER 2015
Slide 2: Disclaimer
DISCLAIMER The consolidated balance sheet and profit and loss account for the period ended September 30, 2015 were examined by the Board of Directors on November 4, 2015. The financial information presented for the nine months ended September 30, 2015 and comparative periods has been prepared accord
Slide 3: Content
CONTENT CHAPTER 01_INTRODUCTION CHAPTER 02_MACROECONOMIC AND BANKING ENVIRONMENT CHAPTER 03_3RD QUARTER AND FIRST 9 MONTHS 2015 GROUP RESULTS CHAPTER 04_CONCLUSIONS FINANCIAL RESULTS 3rd QUARTER AND FIRST 9 MONTHS 2015 6 NOVEMBER 2015 | P.3
Slide 4: Q3-2015: Financial performance remains strong
Q3-2015: FINANCIAL PERFORMANCE REMAINS STRONG Consolidated net profit of RON 110m in Q3-2015, significantly higher yoy thanks to lower cost of risk and continuous focus on costs Sequential improvement in revenues since Q1-2015, by ca. 2% in the last 2 quarters as 3rd quarter confirmed retail demand
Slide 5: Key figures (BRD Group)
KEY FIGURES (BRD GROUP) Q3-2014 Q3-2015 Variation 9M-2014 9M-2015 Variation Net banking income (RON m) 676 634 -6.2% 1,966 1,860 -5.4% Operating expenses (RON m) (318) (321) 0.7% (960) (954) -0.6% Gross operating income (RON m) 357 313 -12.4% 1,006 906 -9.9% Financial results Cost of risk (RON m) (4
Slide 6: Macroeconomic and banking environment
CHAPTER 02 MACROECONOMIC AND BANKING ENVIRONMENT FINANCIAL RESULTS 3rd QUARTER AND FIRST 9 MONTHS 2015 6 NOVEMBER 2015 | P.6
Slide 7: Private consumption sustains economic growth
PRIVATE CONSUMPTION SUSTAINS ECONOMIC GROWTH GDP EVOLUTION Q2-2015 GDP rose by 3.8%* versus Q2-2014 (**) due to growth in domestic demand and gross 3.5% 3.5% fixed capital formation. 2.8% September 2015 CPI reached -1.7% vs. 1.1% September 2014, crossing into negative territory 0.6% starting with Ju
Slide 8: Banking sector: household loans continue their positive trend
BANKING SECTOR: HOUSEHOLD LOANS CONTINUE THEIR POSITIVE TREND 7.2% deposits growth at September 2015 vs. BANKING SYSTEM DEPOSITS (RON bn) September 2014: yoy * 249 247 +7.2% 231 6.9% higher individuals’ savings, in spite of the low interest rate environment 105 +7.7% 110 COMPANIES 98 7.7% growth in
Slide 9: Banking sector: substantial yoy improvement in NPL ratio
BANKING SECTOR: SUBSTANTIAL YOY IMPROVEMENT IN NPL RATIO BANKING SECTOR LOSS 2 INDICATOR* 21.9% 18.2% 17.2% 14.3% 13.9% 12.6% Dec-11 Dec-12 Dec-13 Aug-14 Dec-14 Aug-15 3 4 Lower NPL ratio in the banking system compared to the years 2012-2013 helped by write-off operations and sale of impaired receiv
Slide 10: 3rd Quarter and First 9 Months 2015 Group Results
CHAPTER 03 3RD QUARTER AND FIRST 9 MONTHS 2015 GROUP RESULTS FINANCIAL RESULTS 3rd QUARTER AND FIRST 9 MONTHS 2015 6 NOVEMBER 2015 | P.10
Slide 11: Increase in the number of active individual customers
INCREASE IN THE NUMBER OF ACTIVE INDIVIDUAL CUSTOMERS EVOLUTION OF ACTIVE INDIVIDUAL CUSTOMERS* +29,000 yoy increase in the number of active (x 1000) customers on the individuals’ segment +29k 2,077 2,048 Higher equipment rate (number of products per active client) of individual customers compared t
Slide 12: Confirmed improvement of individuals' loan production
CONFIRMED IMPROVEMENT OF INDIVIDUALS’ LOAN PRODUCTION Rising demand from individuals led to 14% higher Q3-2015 INDIVIDUALS’ LOAN PRODUCTION (RON m) vs. Q3-2014 yoy loan production over Q3-2015, and 17% yoy 1,422 increase during the first 9 months 2015: 1,246 +13.8% 1,125 1,095 Housing loans remain t
Slide 13: Consistent growth of the deposits base
CONSISTENT GROWTH OF THE DEPOSITS BASE DEPOSITS (outstanding amounts, RON bn) Deposits on a growing trend compared to ytd* yoy* September 2014 end and December 2014 end (+13.1% and +7.1% respectively) both 36.0 38.3 +7.1% +13.1% retail and non-retail clients showing material 33.8 propensity to save
Slide 14: Yoy evolution of revenues still affected by low interest rates
YOY EVOLUTION OF REVENUES STILL AFFECTED BY LOW INTEREST RATES Narrowing net interest margin in Q3-2015 versus NET BANKING INCOME (RON m) yoy Q3-2014, given the falling interest rates context: 676 634 -6.2% Historically low interest rates… Net interest Average ROBOR 3M: 1.37% in Q3- margin 398 -3.3%
Slide 15: Further rise in revenues versus the previous quarter in Q3-2015
FURTHER RISE IN REVENUES VERSUS THE PREVIOUS QUARTER IN Q3-2015 NET BANKING INCOME (RON m) +2.1% qoq increase of net banking income in Q3-2015, after a similar evolution in Q2-2015 +2.1% +2.4% 634 606 621 (+2.4%), on gradual pick-up of retail loan demand and sharp reduction in cost of funding +3.1%
Slide 16: Contained costs
CONTAINED COSTS Contained opex (+0.7% up yoy) in Q3-2015: OPERATING EXPENSES (RON m) yoy 318 321 +0.7% Staff expenses well under control vs. Q3-2014; 1.2% yoy increase in staff costs in the first 9 Staff months of 2015, but almost stable (+0.2%) 166 -0.5% expenses 165 excluding one-off item (employe
Slide 17: Asset quality
ASSET QUALITY A balanced loan portfolio from a market mix GROSS LOANS – September 30, 2015 perspective: SPLIT BY SEGMENT (RON bn) 58.1% on individuals segment 13.1 41.9% on companies’ segment Individuals Companies 18.1 NPL ratio Decreasing loss2 ratio - in line with the evolution observed at the lev
Slide 18: Solid coverage ratio and declining cost of risk
SOLID COVERAGE RATIO AND DECLINING COST OF RISK COST OF RISK EVOLUTION (RON m) 2015 provisioning efforts focused on SMEs 2,131 700 1,943 573 bps 600 Net cost of risk Q3-2015 evolution: 1,223 1,215 500 400 883 237 bps300 Increase against previous quarter due to 468 200 recalibration of provisioning p
Slide 19: Continued reinforcement of financial autonomy
CONTINUED REINFORCEMENT OF FINANCIAL AUTONOMY Consolidation of net loans/deposits ratio which NET LOANS AND DEPOSITS (RON bn) reached 70.1% at end of September 2015, versus 81.5% at September 2014 end, showing BRD is well 105% 40.0 100% prepared to benefit from a meaningful recovery in credit 35.0 1
Slide 20: Own funds safely above capital requirements
OWN FUNDS SAFELY ABOVE CAPITAL REQUIREMENTS Basel III (Bank only) Sep-14 Dec-14 Sep-15 Solid capital base composed of high quality Tier 1 eligible instruments: share capital, retained Capital adequacy ratio 17.1% 17.2% 17.2% earnings, reserves Own funds (RONm) 4,712 4,614 4,572 Capital adequacy safe
Slide 21: Conclusions
CHAPTER 04 CONCLUSIONS FINANCIAL RESULTS 3rd QUARTER AND FIRST 9 MONTHS 2015 6 NOVEMBER 2015 | P.21
Slide 22: Conclusions
CONCLUSIONS In the first 9 months of 2015, BRD Group achieved a sharp rise in earnings, thanks to further efforts to improve the quality of the loan portfolio and focus on cost control. The positive signals observed earlier this year regarding retail and large clients activity were confirmed in the
Slide 23: Q&A Session
Q&A Session FINANCIAL RESULTS 3rd QUARTER AND FIRST 9 MONTHS 2015 6 NOVEMBER 2015 | P.23
Slide 24: Appendix
APPENDIX FINANCIAL RESULTS 3rd QUARTER AND FIRST 9 MONTHS 2015 6 NOVEMBER 2015 | P.24
Slide 25: BRD key figures (bank only)
BRD KEY FIGURES (BANK ONLY) Q3-2014 Q3-2015 Variation 9M-2014 9M-2015 Variation Net banking income (RON m) 635 597 -5.9% 1,879 1,768 -5.9% Operating expenses (RON m) (301) (303) 0.7% (909) (899) -1.1% Gross operating income (RON m) 334 294 -11.9% 970 869 -10.4% Financial results Cost of risk (RON m)
Slide 26: BRD stock price performance
BRD STOCK PRICE PERFORMANCE 12.0 Market capitalisation 4,000 EUR 1.8 bn 3,500 11.0 3,000 10.0 2,500 9.0 2,000 1,500 8.0 1,000 7.0 500 6.0 0 Volume ('000 shares, rhs) Price (RON, lhs) BRD is part of the main market indexes on the Bucharest Stock Exchange (BET Index, BET Plus Index, BET-XT Index, BET-
Slide 27: Financial calendar for 2015
FINANCIAL CALENDAR FOR 2015 9 April: General Shareholders Meeting 9 April: Publication of the 2014 Board of Directors Report 6 May: Q1-2015 results publication 8 May: Presentation of the financial results for Q1-2015 (conference call and webcast) 5 August: H1-2015 results publication 5 August: Prese
Slide 28: 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 transfer an
Slide 29: Thank you
THANK YOU Investor Relations Tel. : +4 021 380 47 62 Email : investor@brd.ro Homepage: www.brd.ro FINANCIAL RESULTS 3rd QUARTER AND FIRST 9 MONTHS 2015 6 NOVEMBER 2015 | P.29
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