Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q3 2016 Earnings Presentation
24 slides from Banca Transilvania SA's earnings presentation, November 2016
Slide 1: Banca Transilvania September 2016 Financial Results
BANCA TRANSILVANIA September 2016 Financial Results November 2016
Slide 2: Disclaimer
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 her
Slide 3: Agenda
AGENDA 1 Banking Sector Dynamics 2 Q3 2016 Highlights 3 Performance in Q3 2016 4 Overview of Business Lines 5 BT Financial Group A Financial Statements
Slide 4: Bank Assets at RON 380bn
BANK ASSETS at RON 380bn NPL ratio further improving Bank assets continue to grow over 2nd quarter total bank net assets source: NBR NPL ratio, % source: NBR 11% 39 0 9% 380 21.5% 377 20.7% 20.2% 38 0 7% 19.2% 370 37 0 16.2% 5% 364 363 15.7% 362 4.6% 361 360 3.6% 3% 3.1% 36 0 13.5% 13.5% 355 2.4% 2.
Slide 5: LCY Loans to Households Remain the Driver of Lending Activity
LCY LOANS TO HOUSEHOLDS remain the driver of lending activity this year Decline in corporate lending slows Loans in RON continue down overall credit activity expanding, albeit at a lower pace loans non-government , %YoY source: NBR loans non-government , RONbn source: NBR 13 00 0% 4% 122 3.0% 2.8% 1
Slide 6: Romanian Economy: 2016 – the Peak of the Post-Crisis Cycle
ROMANIAN ECONOMY 2016 – the peak of the post-crisis cycle Output gap closed in 1H16, but VAT cuts’ impact is fading, while domestic demand moderated in 3Q16 construction hit by Foreclosure Law GDP vs. potential GDP source Statistics Office (NIS), Retail sales vs. construction, MA12, % BT estimates 1
Slide 7: The Increasing Intervention of the State Resulting in Higher Risk Perception
THE INCREASING INTERVENTION OF THE STATE RESULTING IN HIGHER RISK PERCEPTION The real interest rate spread (RO vs. The 10YR financing costs up to the US) is normalizing highest level since Aug Real interest rate spread (RO-US) (10YR) (pp) source BT estimates 10 YR T-Bonds yield, % source NBR 3.15 8
Slide 8: Banca Transilvania's Business Development and Financial Performance Q3 2016
Banca Transilvania’s Business Development and Financial Performance Q3 2016
Slide 9: Profitability: Q3 2016 Highlights
Q3 2016 HIGHLIGHTS Mil. RON YTD Sep 2016 YTD Sep 2015 ∆ Operating income RONmn 2,125.4 1,421.5 49.5% Operating expenses RONmn (840.5) (716.6) 17.3% PROFITABILITY Gross profit before provisions RONmn 1,284.9 704.9 82.3% Net profit RONmn 657.0 313.0 109.9% EPS RON 0.18 0.09 109.9% Cost of risk (%) 2.5
Slide 10: Business Performance Q3 2016 at a Glance
BUSINESS PERFORMANCE Q3 2016 at a glance Total assets at RON 48.1 bn ● Enhanced ALM for higher efficiency ● Strong capital base, supporting organic and non organic growth, after Capital adequacy ratio at 19.1% special dividend payout Net fees and commissions at ● Driven by increased number of operat
Slide 11: Trends in Income Structure
TRENDS IN INCOME STRUCTURE +53,4% YTD Sep 2015 YTD Sep 2016 1.269 +17,3% 827 841 717 +15,3% 374 324 +16,5% 114 133 Net interest income Net fee and Net trading income* Operating expenses commission income * Visa transaction related income not included BANKING SECTOR OVERVIEW OF BUSINESS Q3 2016 highl
Slide 12: Loan Structure
LOAN STRUCTURE Loans to Households, RONbn Loans to Companies, RONbn 14,5 14,1 13,8 13,6 13,3 0,0 0,0 3,1 3,1 10,6 10,7 5,3 6,4 0,0 4,0 8,1 10,5 11,0 10,7 8,3 6,5 6,5 Sep’15 Dec’15 Sep’16 Sep’15 Dec’15 Sep’16 Loans to Households, RONbn Loans to Companies, RONbn 70% 30% 79% 21% RON FX RON FX *SMEs ide
Slide 13: Deposit Structure
DEPOSIT STRUCTURE Deposits from Households, RONbn Deposits from Companies, RONbn 24,8 15,1 14,6 23,3 20,7 11,8 5,1 7,0 5,2 5,1 4,2 3,9 18,2 17,9 16,5 8,0 9,9 9,5 Sep’15 Dec’15 Sep’16 Sep’15 Dec’15 Sep’16 Current accounts Deposits Deposits from Households, RONbn Deposits from Companies, RONbn 57% 43%
Slide 14: NPL Ratio at 5.55%
NPL RATIO AT 5.55% 127% 123% 122% 119% 108% 54% 45% 46% 40% 33% ● Banca Transilvania continued to provide a sound coverage ratio for its PAR 90 portfolio 6,4 81% 79% 77% 70% 75% 12 13 14 15 Q3 16 NPL coverage with mortgage collaterals NPL coverage with provisions *For Financial Statements purposes t
Slide 15: Retail Banking
Retail Banking Retail loan portfolio reached RON 14.5 bn as at Sep’16 Retail Loan Portfolio, RONbn source: BT 54,000 non-card retail loans disbursed in 9 months 13.6 of 2016 14.5 Market share for retail loans at September 2016 - loans transferred 14% from VBR 3.3 Internet banking users +19% vs
Slide 16: SME Banking
SME Banking SME loan portfolio at RON 3.1 bn and 205,000 active clients SME Loan Portfolio, RONbn source: BT 3.1 ● Banca Transilvania continued its specific focus on loans 3.1 transferred 0.3 the SME business sector, offering almost 13,000 from VBR new loans in the first 9 months of 2016 2.8 BT co
Slide 17: Corporate Banking
Corporate Banking Corporate loan portfolio above RON 10.7 bn Corporate Loan Portfolio, RONbn source: BT ● An important reorganizational process was started 1150% 11.04 in the Corporate business line, including new client segmentation & deeper sectorial specialization 1100% loans transferred 0.88 105
Slide 18: Banca Transilvania Financial Group
Banca Transilvania Financial Group As of 30.09.2016: Total assets: 48.1 RON bn Total assets: 79 RON mn. Total assets: 126 RON mn. Total assets: 121 RON mn. AuM: 3,043 RON mn. Total assets: 482RON mn. BANKING SECTOR OVERVIEW OF BUSINESS Q3 2016 highlights PERFORMANCE IN Q3 2016 BT FINANCIAL GROUP DYN
Slide 19: Q3 2016 Highlights – Consolidated Figures
Q3 2016 HIGHLIGHTS – Consolidated Figures Mil. RON YTD Sep 2016 YTD Sep 2015 ∆ Operating income 2,240.4 2,074.3 8.0% Operating expenses (911.4) (919.5) -0.9% PROFITABILITY Gross profit before provisions 1,329.0 1,154.8 15.1% Net income 697.9 2,280.7 -69.4% EPS RON 0.19 0.63 -69.4% Cost of risk (%) 2
Slide 20: Annex I Income Statement YTD September 2016 - Individual
ANNEX I INCOME STATEMENT YTD September 2016 - Individual IFRS, individual, RONmn YTD Sep 2016 YTD Sep 2015 ∆ Net interest income 1,268.7 826.8 53.4% Net fee and commission income 374.1 324.4 15.3% Net trading income 133.2 114.3 16.5% Other net income* 349.5 156.0 124.0% Operating income 2,125.4 1,42
Slide 21: Annex II Balance Sheet Q3 2016 - Individual
ANNEX II BALANCE SHEET Q3 2016 - Individual IFRS, individual, RONmn Sep-16 Dec-15 ∆ Cash & cash equivalents 4,486.8 4,997.9 -10.2% Placements with banks 3,229.22 3,676.8 -12.2% Loans to customers, net 26,440.3 25,107.5 5.3% T-bills & securities 13,103.3 12,602.1 4.0% Fixed assets 432.0 409.5 5.5% Pa
Slide 22: Annex III Income Statement September 2016 - Consolidated
ANNEX III INCOME STATEMENT September 2016 - Consolidated IFRS, consolidated, RONmn YTD Sep 2016 YTD Sep 2015 ∆ Net interest income 1,307.3 1,439.3 -9.2% Net fee and commission income 399.6 355.0 12.5% Net trading income 142.5 103.5 37.6% Other net income* 391.1 176.4 121.7% Operating income 2,240.4
Slide 23: Annex IV Balance Sheet Q3 2016 - Consolidated
ANNEX IV BALANCE SHEET Q3 2016 - Consolidated IFRS, consolidated, RONmn Sep-16 Dec-15 ∆ Cash & cash equivalents 4,486.9 4,997.9 -10.2% Placements with banks 3,458.2 3,908.9 -11.5% Loans to customers, net 26,474.8 25,225.6 5.0% T-bills & securities 12,905.2 12,416.9 3.9% Fixed assets 611.2 526.7 16.0
Slide 24: Banca Transilvania HQ
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/compa