Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q3 2022 Earnings Presentation
27 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Nov 7, 2022
Slide 1: BRD Group Results 3rd quarter and 9 months 2022
BRD GROUP RESULTS 3rd quarter and 9 months 2022 | 07.11.2022
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended September 30, 2022 were examined by the Board of Directors on November 3, 2022. The financial information presented for the period ended September 30, 2022 and comparative periods has been prepared
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: High performance across the board in a challenging context
HIGH PERFORMANCE ACROSS THE BOARD IN A CHALLENGING CONTEXT Lending activity kept intense across the board Portfolio growth +12% y/y at Sep 2022 end Robust performance on corporate segment, with Governmental programs Corporate loans +29% y/y at Sep 2022 end also supporting the dynamic Retail core len
Slide 5: Climate Change Summit 2022
CLIMATE CHANGE SUMMIT 2022 1st summit in Romania dedicated to climate change, initiated and supported by BRD as a founding partner first edition held on October 4-5th at Odeon Theatre in Bucharest, tackling solutions for a sustainable future 70 speakers from 15 countries, 462 in-person attendees
Slide 6: Macroeconomic environment
2 MACROECONOMIC ENVIRONMENT
Slide 7: Still strong economic growth while inflation spreads wings wide open
STILL STRONG ECONOMIC GROWTH WHILE INFLATION SPREADS WINGS WIDE OPEN GDP GROWTH Above expectations GDP growth in Q2 2022 …reaching +5.1% y/y (gross series), after +6.4% y/y in Q1 2021, printing second best among EU member states GDP growth still driven by domestic demand (+5.6 ppts to GDP growth). A
Slide 8: Steeply upwards interest rates
STEEPLY UPWARDS INTEREST RATES Rate hikes following regional trend INTEREST RATES Amid larger and lengthier inflation pressures from global cost shocks, amplified by geopolitical context, NBR performed since September 2021, nine monetary policy rate hikes, 500 bps in total, to 6.25%. Though the last
Slide 9: Support for economy progressively extended
SUPPORT FOR ECONOMY PROGRESSIVELY EXTENDED The National Recovery and Resilience Plan, inflows for revitalizing the economy 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.
Slide 10: Very solid Romanian banking sector
VERY SOLID ROMANIAN BANKING SECTOR ROMANIAN BANKING SYSTEM NPL AND NPL COVERAGE RATIOS Robust capital and liquidity positions Loan to deposit ratio at 73% at Jun-2022 end, up from 69% as of 2021 EU end (vs 122% at 2008 end) 43.8% High average liquidity coverage ratio, 195% at Jun-2022 end vs. 239% a
Slide 11: 3rd quarter and 9 months 2022 BRD Group results
3 3RD QUARTER AND 9 MONTHS 2022 BRD GROUP RESULTS
Slide 12: Enhance digitalization, improve efficiency
ENHANCE DIGITALIZATION, IMPROVE EFFICIENCY ENHANCED REMOTE EXPERIENCE INCREASED CONTINUED NETWORK FOR OUR CLIENTS USAGE OF E-CHANNELS OPTIMIZATION 100% online credit card 962k YouBRD active clients at Sep 2022 Reduce no of branches issuance flow, accessible now on end (551k at Sep 2021 end) -55 y/y,
Slide 13: Dynamic all over the board lending activity
DYNAMIC ALL OVER THE BOARD LENDING ACTIVITY Strong corporate lending Loans to SME up by +41% vs September 2021 end Actively support SMEs eligible under Governmental programs, NET LOANS with RON 1.4 billion approved loans in H1 2022, out of which (end of period amounts, RON bn) Y/Y 33% for the agri
Slide 14: Growing the diversified deposit base
GROWING THE DIVERSIFIED DEPOSIT BASE Savings remain elevated Retail deposits up +3.3% y/y Corporate deposits driven by collection of large corporate deposits (+6.0% y/y) DEPOSITS (end of period amounts, RON bn) Y/Y Solid liquidity profile 53.8 55.2 +2.5% 52.7 Net loan to deposit ratio at 68.1% 19.0
Slide 15: Good performance across all revenue categories
GOOD PERFORMANCE ACROSS ALL REVENUE CATEGORIES NET BANKING INCOME (RON m) Y/Y ~10% growth of revenues in 9M 2022 +9.8% 2,541 NBI, up by +9.8% y/y in 9M 2022 and higher to +14.2% y/y in Q3 2022 2,314 +13.4% Other income 241 reflecting a strong commercial momentum and favorable rates environment 213 N
Slide 16: Rigorous spending discipline
RIGOROUS SPENDING DISCIPLINE OPEX increase integrating inflationary pressures OPERATING EXPENSES (RON m) Y/Y +5.0% y/y in 9M 2022, excluding contributions to FGDB&RF (fully 1,198 1,276 +6.5% booked in Q1 2022) 69 +40.0% Contributions to 49 FGDB & FR 558 +4.9% 532 Staff costs evolution, +5.2% y/y in
Slide 17: Stable credit quality indicators
STABLE CREDIT QUALITY INDICATORS NET COST OF RISK Q3 net cost of risk at -8 bps Q3 NCR close to 0, confirming stable portfolio quality QoQ No sign of portfolio deterioration, both Retail and Non Retail. *Note: CoR (bps) in quarter is annualized NPL RATIO NPL ratio and Outlook • Decreasing NPL volume
Slide 18: Capital position
CAPITAL POSITION CAR of 21.9% at September 2022 end SOLVENCY RATIO Regulatory own funds composed of Tier 1 and Tier 2 capital Tier 2 capital consisting of two subordinated loans in total +418bp amount of EUR 250m (EUR 100 million drawn in December +208bp -568bp +130bp 2021, respectively EUR 150 mill
Slide 19: Conclusions
.) CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 20: Conclusions
CONCLUSIONS Solid performance of Romanian economy in Q2 2022, growth printing second best among EU member states BRD showed a robust commercial activity across the board corporate lending activity consolidating its already strong growth pace retail financing still driven by housing loans D
Slide 21: Q&A session
6 Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 22: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE - KEY FIGURES BRD STOCK PRICE PERFORMANCE GLOSSARY – CLIENT SEGMENTATION
Slide 23: 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 Q3-2022 Q3-2021 Change 9M-2022 9M-2021 Change Net banking income 900 788 14.2% 2,541 2,314 +9.8% Operating expenses (423) (384) +10.1% (1,276) (1,198) +
Slide 24: 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 Q3-2022 Q3-2021 Change 9M-2022 9M-2021 Change Net banking income 857 743 +15.4% 2,449 2,194 +11.6% Financial results Operating expenses (401) (368)
Slide 25: 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 11.10 as of September 2022 end, -41% y/y and -37.3% ytd 3RD QUARTER AND 9 MONTHS 2022
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 Société Générale — Q3 2022 Earnings Presentation on 6ix