Banca Transilvania Sa · BVB:TLV
Banca Transilvania Sa — H1 2024 Earnings Presentation
38 slides from Banca Transilvania Sa's earnings presentation, Aug 21, 2024
Slide 1: First Half 2024 Financial Results
Banca Transilvania First Half 2024 Financial Results The 21st of August 2024
Slide 2: Disclaimer
DISCLAIMER The information contained in the present undertakes no obligation to update publicly any document has not been independently verified of them in light of new information or future and no representation or warranty expressed or events. None of Banca Transilvania or any of its implied is ma
Slide 3: Agenda
AGENDA Macroeconomic Business Risk Sustainability Landscape Performance 1 2 3 4 BT Financial Digital Appendix Group 5 6 7
Slide 4: Economic Activity
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group ECONOMIC ACTIVITY GDP DYNAMICS (%, YoY) FIRST SIX MONTHS OF 2024: STABLE MACROECONOMIC LANDSCAPE 20. 15. 10. The GDP real growth reduced its pace compared 5. 0.7 with last year. In the first six mont
Slide 5: Lending Dynamics
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group LENDING DYNAMICS CORPORATE LOANS (%, YoY) POSITIVE EVOLUTION FOR LENDING DURING THE FIRST SIX MONTHS OF 2024 30.0 25.0 20.0 Corporate lending increased in June by 5.76% 15.0 YoY and 2.31% MoM highest
Slide 6: Deposits Overview
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group DEPOSITS OVERVIEW CORPORATE DEPOSITS (%, YoY) DEPOSITS WELL ABOVE THE EUROPEAN AVERAGE 25.0 20.0 Corporate deposits growth rate slowed its pace 15.0 to 7.91% YoY as interest rates decreased. Term 10.
Slide 7: Banking Sector
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group BANKING SECTOR NPL RATIO (%) ASSET QUALITY REMAINS STRONG 25 20 The non-performing loan (NPL) ratio remains low 15 10 in Romania at 2.49% as of June 2024. 5 2.49 Capital adequacy ratio (Tier 1) in th
Slide 8: Agenda
AGENDA Macroeconomic Business Risk Sustainability Landscape Performance 1 2 3 4 BT Financial Digital Appendix Group 5 6 7
Slide 9: BT Performance
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group BT PERFORMANCE INDIVIDUAL CONSOLIDATED PROFITABILITY H1 2024 H1 2023 Δ H1 2024 H1 2023 Δ Net interest income RON | MN 2,674.5 2,036.8 31.3% 3,124.4 2,528.5 23.6% Net fee and commission income RON | M
Slide 10: BT Individual: Trends in Income
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group TRENDS IN INCOME NIM BT INDIVIDUAL Net fee & Net gain/loss Net interest Net trading 3.46% commission from fin. 3.44% income income 3.17% income assets 2.83% 2.97% 2.54% 2,675 2019 2020 2021 2022 2023
Slide 11: BT Individual: Trends in Opex
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group TRENDS IN OPEX C/I RATIO* BT INDIVIDUAL Depreciation Other Personnel expenses and operating 42.12 %** amortization expenses* 49.7% 46.5% 48.1% 45.03% 45.3% 45.6% 2019 2020 2021 2022 2023 H1 2024 965
Slide 12: Sustained Portfolio Growth
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group SUSTAINED PORTFOLIO GROWTH LOANS TO HOUSEHOLD BT INDIVIDUAL 4.1 % 18.7 19.0 Housing Housing 91 % RON 31.4 12.7 32.7 13.7 BN RON Consumer BN RON Consumer 9 % FCY 0.04 0.03 Other Other Jun/24 Dec/23 Ju
Slide 13: Growing Depositor's Base
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group GROWING DEPOSITOR’S BASE DEPOSITS FROM HOUSEHOLD 5.0 % BT INDIVIDUAL 60 % 39.8 40.5 Current RON 86.3 accounts 90.6 Current accounts BN RON BN RON 40 % 46.5 FCY Deposits 50.1 Deposits Jun/24 Dec/23 Ju
Slide 14: Retail Banking: ~RON 4BN in New Production
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group RETAIL BANKING: ~RON 4BN IN NEW PRODUCTION RETAIL LOANS, RON BN RETAIL DEPOSITS, RON BN 4.1 % 5.0 % BT INDIVIDUAL 32.7 90.6 31.4 86.3 29.0 77.9 26.9 68.4 24.0 23.0 60.3 50.9 2019 2020 2021 2022 2023
Slide 15: SME & Corporate Banking: ~RON 11BN in New Production
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group SME & CORPORATE BANKING: ~RON 11BN IN NEW PRODUCTION CORPORATE LOANS, RON BN SME LOANS, RON BN 1.7 20.2 % BT INDIVIDUAL % 10.9 35.4 36.0 9.1 30.4 8.2 6.8 22.2 6.1 5.5 12.7 13.4 2019 2020 2021 2022 20
Slide 16: Agenda
AGENDA Macroeconomic Business Risk Sustainability Landscape Performance 1 2 3 4 BT Financial Digital Appendix Group 5 6 7
Slide 17: Sound Credit Risk Management
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group SOUND CREDIT RISK MANAGEMENT COST OF RISK, % STOCK OF LOAN LOSS PROVISIONS, BN RON 1.93% BT INDIVIDUAL BT CONSOLIDATED 1.78% 0.92 % 4.01 % 4.85 4.80 4.37 4.55 0.05 0.04 0.04 0.03 4.52 4.02 0.09 0.05
Slide 18: Prudent Underwriting Leading to Strong Asset Quality
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group PRUDENT UNDERWRITING LEADING TO STRONG ASSET QUALITY NPL COVERAGE RATIO* (EBA), % NPL COVERAGE RATIO (PAR90), % BT INDIVIDUAL 203 200 195 166 57 44 38 47 41 33 26 133 94 98 83 84 87 87 89 76 80 2018
Slide 19: Comfortable Capital Position
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group COMFORTABLE CAPITAL POSITION CAPITAL RATIOS (INCLUDING PROFIT), % OWN FUNDS’ STRUCTURE, % BT INDIVIDUAL 27.84% 27.84 11.47 89.6 % CET 1 24.20% CET1 Capital 16.37% 5.50 13.1 % 10.87% Tier 2 Min 11.61%
Slide 20: High Liquidity Levels Maintained
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group HIGH LIQUIDITY LEVELS MAINTAINED LIQUID BALANCE SHEET, RON BN MREL STRATEGY BT INDIVIDUAL 757 bps 234bps 5.7 12.6 37.67% Other Equity 4.3 5.5 11.52 32.44% Due from Other 30.10% 30.10% banks 0.6 5.5 1
Slide 21: Agenda
AGENDA Macroeconomic Business Risk Sustainability Landscape Performance 1 2 3 4 BT Financial Digital Appendix Group 5 6 7
Slide 22: Sustainability: Updates of the Impact Financing
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group SUSTAINABILITY: UPDATES OF THE IMPACT FINANCING ONGOING IMPROVEMENTS NEW HORIZONS • Banca Transilvania improved it’s ESG Rating • Following its sustainability approach and values granted by Sustainal
Slide 23: Sustainability: Updates of the Impact Financing
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group SUSTAINABILITY: UPDATES OF THE IMPACT FINANCING COMPANIES RETAIL 1,116 • Over RON 2.1BN retail green loans outstanding 161 Special Climate as of June 2024. 790 32 20 Mobility 1.9 • Almost 7.5% of the
Slide 24: Agenda
AGENDA Macroeconomic Business Risk Sustainability Landscape Performance 1 2 3 4 BT Financial Digital Appendix Group 5 6 7
Slide 25: BT Pay: The Tailored Ecosystem to Fit Your Lifestyle
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group BT PAY THE TAILORED ECOSYSTEM TO FIT YOUR LIFESTYLE FINANCIAL FIRST STEP BT PAY AT A GLANCE 120.000 kids began their journey 28% YoY in number of users into financial literacy with BT Pay 50,000 pers
Slide 26: Digital Power: Business Banking
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group DIGITAL POWER: BUSINESS BANKING BT GO: ALL INCLUSIVE APP 100 USERS ENROLLED K 21 NO. INVOICES ISSUED K 800 NO. OF PAYMENTS K 4.5 PAYMENTS VALUE BN RON 13 E-FACTURA ISSUED K 3 NO. NEW DEPOSITS K CONST
Slide 27: Agenda
AGENDA Macroeconomic Business Risk Sustainability Landscape Performance 1 2 3 4 BT Financial Digital Appendix Group 5 6 7
Slide 28: BT Financial Group Overview
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group BT FINANCIAL GROUP OVERVIEW Net Profit Net Profit Net Profit Net Profit RON 1,810.15 MN RON 19.99 MN RON 9.17 MN RON 18.36 MN Total Assets Total AUM Total Assets Total Assets RON 169,168 MN RON 5,488
Slide 29: BT Financial Group Highlights
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group BT FINANCIAL GROUP HIGHLIGHTS BANCA TRANSILVANIA BT MIC • Largest bank in Romania and SE Europe • 20k active clients • 20.3% market share • First financier for 74.4% of clients • 4.3MN active clients
Slide 30: M&A Update #1
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group M&A UPDATE #1 COMPLETION OF OTP ACQUISITION • BT completed the acquisition of OTP subsidiaries on 30th July 2024, immediately after receiving the necessary approvals, save for the Asset Management 30
Slide 31: M&A Update #2
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group M&A UPDATE #2 COMPLETION OF OTP ACQUISITION KEY RATIOS 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% Total Assets 11 Total assets 169.2 19.0 188.2 % Loans 79.6 13.0 92.6 OTP vs. Banca Transilvania (gross
Slide 32: M&A Update #3
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group M&A UPDATE #3 JUN’24 PILLAR II MK ACQUIRED MS BT ACQUIRED BRD PENSII The transaction is subject to analysis and approval from 143.2 4.4 MLD % authorities. RON Integration in BT Group requires two sta
Slide 33: Agenda
AGENDA Macroeconomic Business Risk Sustainability Landscape Performance 1 2 3 4 BT Financial Digital Appendix Group 5 6 7
Slide 34: Annex 1: Income Statement, IFRS Individual
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group ANNEX 1: INCOME STATEMENT, IFRS INDIVIDUAL RON | MN H1 2024 H1 2023 Δ Net interest income 2,674.5 2,036.8 31.3% Net fee and commission income 610.1 528.9 15.4% Net trading income 372.0 283.1 31.4% Ot
Slide 35: Annex 1: Balance Sheet, IFRS Individual
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group ANNEX 1: BALANCE SHEET, IFRS INDIVIDUAL RON | MN JUN 2024 DEC 2023 Δ Cash & cash equivalents 24,860.2 22,286.3 11.5% Placements with banks and public institutions 4,308.0 12,619.3 -65.9% Loans to cus
Slide 36: Annex 2: Income Statement, IFRS Consolidated
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group ANNEX 2: INCOME STATEMENT, IFRS CONSOLIDATED RON | MN H1 2024 H1 2023 Δ Net interest income 3,124.4 2,528.5 23.6% Net fee and commission income 696.0 606.7 14.7% Net trading income 477.8 328.9 45.3%
Slide 37: Annex 2: Balance Sheet, IFRS Consolidated
Macroeconomic Business BT Financial Risk Sustainability Digital Appendix Landscape Performance Group ANNEX 2: BALANCE SHEET, IFRS CONSOLIDATED RON | MN JUN 2024 DEC 2023 Δ Cash & cash equivalents 27,131.2 24,252.6 11.9% Placements with banks and public institutions 5,105.0 12,273.0 -58.4% Loans to c
Slide 38: Thank You
THANK YOU investor.relations@btrl.ro +40 264 407 150 +40 264 301 128 Calea Dorobantilor, Nr. 30- 36, Cluj-Napoca, Romania