Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — H1 2020 Earnings Presentation
30 slides from Banca Transilvania SA's earnings presentation, Aug 14, 2020
Slide 1: 1H financial results
BANCA TRANSILVANIA 1H financial results August 14th 2020 Clasificare BT: Uz Intern
Slide 2: Disclaimer
|1 Disclaimer The information contained in the present document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of this information or opinions contained
Slide 3: Actions and Impact COVID19
|2 Actions and Impact COVID19 Clasificare BT: Uz Intern
Slide 4: Robust capital to weather the pandemic context
|3 Robust capital to weather the pandemic context Banca Transilvania is prepared to sustain its customer and partners to overcome the healthcare and economic RON 5.3bn crisis CET1 Capital - 55% 19.67% 19.67% 3.21% 16.46% 14.65% 1.81% 4.50% RON 2.5bn 10.15% RON 1.6bn Retained earnings 19.67% 8.00% 2.
Slide 5: Fuel the economy during CoVID-19 pandemic
|4 Fuel the economy during CoVID-19 pandemic Granted payment holidays Individuals Supporting customers through public (GEO 37) and 26% private moratoria to Payment holidays Companies customers in financial need for more than 41.000 customers Digital interaction between 74% customers and the bank Sup
Slide 6: Leverage on digital capabilities to move forward
|5 Leverage on digital capabilities to move forward proactive support Retail Companies •Reissued cards directly in the •Opening of current accounts wallet app allowing use before 100% online solidarity the card is received, up by 85% in •BT Store – meeting point of Q2 online solutions to keep •Launc
Slide 7: Sustainability
|6 Sustainability Clasificare BT: Uz Intern
Slide 8: Stepping up the pace towards sustainability
|7 Stepping up the pace towards sustainability Partnered up with reputed financial institutions, such as IFC, to ensure high standards know-how for a deeper Long-lasting success is only assessment of environmental & social risks possible by doing business responsibly. This is what we did: Elevated o
Slide 9: Macroeconomic Landscape
|8 Macroeconomic Landscape Clasificare BT: Uz Intern
Slide 10: Macro developments: real economy
|9 real economy Macro developments community mobility – %, compared to the baseline (Jan 3 – Feb 6) 100 The economy started a recovery process in May, 50 after bottoming out in April. 0 The pandemic has recently intensified, with daily 9-May 18-Jul 28-Mar 29-Feb 23-May 20-Jun 1-Aug 15-Feb 4-Jul 14-M
Slide 11: Macro developments: policy-mix
| 10 policy-mix monetary policy rate Macro developments 12% 10% The policy-makers implemented unprecedented 8% expansionary mix after the outbreak of COVID-19 6% 4% Budget deficit widened to record level in 1H2020 2% However, S&P maintained the investment grade 0% Aug-09 Aug-11 Aug-20 Aug-10 Aug-12
Slide 12: Macro developments: financial economy
| 11 financial economy yield on 10YR Bonds (%) Macro developments 7 Romania USA Germany 6 The sovereign financing costs declined in 2Q, an evolution also 5 influenced by the NBR’s QE program 4 The EUR/RON continued the gradual appreciation trend, while 3 the BET index increased in 2Q 2 1 0 Jan-20 •
Slide 13: Banking sector dynamics: loans
| 12 loans Banking sector dynamics loans (YoY) 25% Total RON FX 20% Loans decelerated to 4.7% YoY in 2Q, but rose by 5.9% YoY in 15% 1H2020 10% 5% • The outbreak of the pandemic determined the increase of 0% the risk perception, leading to the MoM decline of the Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 De
Slide 14: Banking sector dynamics: deposits
| 13 deposits Banking sector dynamics deposits (YoY) 25% Household Corporate Total 20% Deposits accelerated to 13.2% YoY in 2Q and rose by 12.2% YoY 15% in 1H2020 10% 5% • There can be noticed the increase of the FX-denominated 0% deposits by 18.7% YoY in 2Q and by 17% YoY in 1H2020, an RON loans FC
Slide 15: Financial Performance
| 14 Financial Performance Clasificare BT: Uz Intern
Slide 16: BT performance in H1 2020
| 15 BT performance in H1 2020 INDIVIDUAL CONSOLIDATED profitability H1 2020 H1 2019 H1 2020 H1 2019 Net interest income, RONmn 1,295.0 1,338.3 -3.2% 1,453.0 1,520.2 -4.4% Net fee and commission income, RONmn 299.8 342.0 -12.4% 351.8 391.0 -10.0% Operating expenses, RONmn (884.6) (859.6) 2.9% (1,001
Slide 17: Trends in income structure
| 16 Trends in income structure RONmn -3.2% -4.4% 1,338 1,295 1,018 974 -12.4% -8.1% H1 2019 H1 2020 342 +2.9% 300 151 139 Net interest Net fee & Net trading Operating Pre-provision income commission income expenses operating profit income -860 -885 Clasificare BT: Uz Intern COVID-19 Sustainability
Slide 18: Loan structure
| 17 Loan structure loans to households Jun/20 Dec/19 RON 23.0bn 2% Jun/20 RON 23.4bn loans to companies Jun/20 Dec/19 RON 18.2bn 2% Jun/20 RON 18.5bn * SMEs identified according to internal classification rules Clasificare BT: Uz Intern COVID-19 Sustainability Macro Landscape Financial Performa
Slide 19: Loan quality
| 18 Loan quality NPL (PAR90) ratio stable at 3.06% NPL coverage ratio 133% 127% 128% 126% 119% 117% 40% 49% 57% 47% 44% • Banca Transilvania continued to provide a 43% sound coverage ratio for its PAR 90 portfolio 79% 74% 78% 76% 80% 83% • NPL coverage, including collaterals, sits at a comfortable
Slide 20: Deposit structure
| 19 Deposit structure deposits from households Jun/20 Dec/19 RON 50.9bn 9% Jun/20 RON 55.3bn deposits from companies Jun/20 Dec/19 RON 23.5bn 7% Jun/20 RON 21.8bn * SMEs identified according to internal classification rules Clasificare BT: Uz Intern COVID-19 Sustainability Macro Landscape Finan
Slide 21: Business lines / Retail banking
| 20 Business lines/ Retail banking Retail loan portfolio reached RON 23.4bn at the Retail loans, RONbn end of H1 2020 23.0 23.4 21.2 2.9 • ~2,885,000 active clients 16.7 15.1 13.6 • ~34,800 non-card retail loans disbursed in H1 3.3 2020 18.3 • leader on the cards market (23% market share) 10.3 both
Slide 22: Business lines / SME banking
| 21 Business lines/ SME banking SME (internal definition) loan portfolio at RON SME loans, RONbn 5.5bn 5.4 5.5 5.0 4.3 0.3 • ~325,000 active clients 3.1 3.2 • Banca Transilvania continued to support the 0.3 SME business sector, granting more than 5,200 4.7 new loans in H1 2020 2.8 • focus on IMM In
Slide 23: Business lines / Corporate banking
| 22 Business lines/ Corporate banking Corporate loan portfolio remains stable around Corporate loans, RONbn RON 13.0bn 13.0 12.6 12.7 11.0 11.1 10.7 1.6 • ~10,300 active clients 0.9 • proactively acted in supporting existing clients, while maintaining an active rhythm in 11.0 generation of new rela
Slide 24: Banca Transilvania Financial Group as of 30/Jun/2020
| 23 Banca Transilvania Financial Group as of 30/Jun/2020 total assets RON 93.9bn total assets RON 463mn total assets RON 1,151mn AUM RON 3,746mn total assets RON 172mn total assets RON 504mn total assets RON 3,792mn * Figures for subsidiaries assessed under RAS rules; Clasificare BT: Uz Intern COVI
Slide 25: Annexes
| 24 Annexes Clasificare BT: Uz Intern
Slide 26: Income statement, IFRS individual
| 25 ANNEX1 income statement, IFRS individual RONmn H1 2020 H1 2019 Net interest income 1,295.0 1,338.3 -3.2% Net fee and commission income 299.8 342.0 -12.4% Net trading income 138.7 151.0 -8.1% Other net income 124.7 46.5 168.1% Operating income 1,858.2 1,877.8 -1.0% Personnel expenses (482.5) (45
Slide 27: Balance sheet, IFRS individual
| 26 ANNEX1 balance sheet, IFRS individual RONmn Jun/20 Dec/19 Cash & cash equivalents 14,237.5 13,480.2 5.6% Placements with banks 9,575.5 6,995.3 36.9% Loans to customers, net 38,951.4 38,601.9 0.9% T-bills & securities 28,777.1 25,985.6 10.7% Fixed assets 795.4 777.4 2.3% Right-of-use assets 373.
Slide 28: Income statement, IFRS consolidated
| 27 ANNEX2 income statement, IFRS consolidated RONmn H1 2020 H1 2019 Net interest income 1,453.0 1,520.2 -4.4% Net fee and commission income 351.8 391.0 -10.0% Net trading income 127.6 191.2 -33.3% Other net income 163.4 78.1 109.1% Operating income 2,095.9 2,180.5 -3.9% Personnel expenses (545.5)
Slide 29: Balance sheet, IFRS consolidated
| 28 ANNEX2 balance sheet, IFRS consolidated RONmn Jun/20 Dec/19 Cash & cash equivalents 15,220.3 14,583.1 4.4% Placements with banks 10,355.5 7,775.1 33.2% Loans to customers, net 40,742.4 40,353.8 1.0% T-bills & securities 29,820.2 26,781.7 11.3% Fixed assets 1,046.5 973.4 7.5% Right-of-use assets
Slide 30: Banca Transilvania HQ
| 29 Banca Transilvania HQ 8, G. Baritiu Street, Cluj-Napoca 400027, Romania + 40 264 407 150 + 40 264 407 179 /FAX investor.relations@btrl.ro www.bancatransilvania.ro/en/investor-relations www.bancatransilvania.ro www.bt24.ro facebook.com/BancaTransilvania # twitter.com/b_Transilvania linkedin.com/