Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — FY2020 Earnings Presentation
34 slides from Banca Transilvania SA's earnings presentation, Feb 25, 2021
Slide 1: 2020 preliminary financial results
BANCA TRANSILVANIA 2020 preliminary financial results February 25th, 2021 Clasificare BT: Uz Intern
Slide 2: Disclaimer
|2 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: Macroeconomic Landscape
|3 Macroeconomic Landscape Clasificare BT: Uz Intern
Slide 4: Macro developments: real economy
|4 real economy new confirmed cases (MA10) Macro developments 10,000 9,000 8,000 The indicators of the health crisis significantly 7,000 6,000 improved at the end of 2020 / beginning of 2021 5,000 4,000 Romanian GDP contracted by 3.9% YoY in 2020, a 3,000 2,000 better performance compared with Eurol
Slide 5: Macro developments: policy-mix
|5 policy-mix monetary policy rate vs. inflation Macro developments 15% Consumer prices (HICP) (YoY) Monetary policy rate The policy-makers implemented unprecedented expansionary 10% Consumer prices core (HICP) (YoY) measures after the outbreak of the pandemic, which supported a fast transition towa
Slide 6: Macro developments: financial economy
|6 financial economy inflation, ROBOR and EUR/RON Macro developments 6.0 5.0 Inflation (%, YoY) 5.0 ROBOR 3M (avg.) 4.9 The financing costs continued the downward trend 4.0 EUR/RON (avg.) (rhs) 4.8 3.0 EUR/RON consolidated at the end of 2020 and the beginning of 4.7 2.0 2021 4.6 1.0 BET index has re
Slide 7: Banking sector dynamics: loans
|7 loans Banking sector dynamics loans (YoY) 25% Total RON FX 20% Loans accelerated at the end of 2020, an evolution supported by 15% the improvement of the confidence indicators and by the expansionary policy-mix under implementation 10% 5% 0% • The YoY average pace of the non-government loans dece
Slide 8: Banking sector dynamics: deposits
|8 deposits Banking sector dynamics deposits (YoY) 25% Household Corporate Total Deposits continued the upward trend to record levels at the end 20% of 2020, an evolution supported by the high savings rate and the 15% expansionary income policy in the context of the pandemic 10% 5% • The YoY dynamic
Slide 9: BT - Actions and Impact COVID19
|9 BT - Actions and Impact COVID19 Clasificare BT: Uz Intern
Slide 10: Fuel the economy during CoVID-19 pandemic (1/2)
| 10 Customer Relief Measures Fuel the economy during CoVID-19 pandemic (1/2) Companies 19% Payment holiday for credit card owners Over 41,000 ✓ Granted payment exemption in terms of minimum monthly customers in obligation for 3 months to over 400,000 credit cards moratorium in 2020 ✓ Interest payme
Slide 11: Fuel the economy during CoVID-19 pandemic (2/2)
| 11 Supporting Businesses Fuel the economy during CoVID-19 pandemic (2/2) IMM Invest, 2020 IMM Invest for BT: 72,690 ✓ 41% of ~72k companies applying for IMM Invest chose BT as the 41% 29,628 funding source 8,919 ✓ During Q4, BT granted 2.6k loans amounting to RON 922mn # Companies in # Companies #
Slide 12: Leverage on digital capabilities to move forward – Companies
| 12 Leverage on digital capabilities to move forward – Companies proactive support •Opening of online capital current accounts: usage up by solidarity 4.24x in Q4 vs. Q1; almost 1.7k accounts opened in 2020 •Online onboarding via NEO: 4.5x in Q4 vs. Q3 (launch) •Increasing use (2x in Q4 vs. Q1) of
Slide 13: Leverage on digital capabilities to move forward – Retail
| 13 Leverage on digital capabilities to move forward – Retail proactive support •NEOCont: over 12,000 requests to open a current account, issue cards and enroll in NEO online solidarity •More than 1.77mn customers (~59% of the active clients) are using BT’s digital solutions: BT Pay, BT24, Neo, App
Slide 14: Financial Performance
| 14 Financial Performance Clasificare BT: Uz Intern
Slide 15: BT performance in 12M 2020
| 15 BT performance in 12M 2020 INDIVIDUAL CONSOLIDATED profitability 12M 2020 12M 2019 12M 2020 12M 2019 Net interest income, RONmn 2,580.1 2,685.1 -3.9% 2,980.5 3,073.7 -3.0% Net fee and commission income, RONmn 656.4 712.6 -7.9% 776.5 820.3 -5.3% Operating expenses, RONmn (1,782.3) (1,899.4) -6.2
Slide 16: Trends in income structure 2020 vs 2019
| 16 Trends in income structure 2020 vs 2019 RONmn -3.9% +1.1% 2,685 2,580 2,132 2,155 -7.9% 12M 2019 12M 2020 -2.6% 713 656 319 310 -6.2% Net interest Net fee & Net trading Operating income commission income expenses income Pre-provision operating profit -1,899 -1,782 Clasificare BT: Uz Intern Macr
Slide 17: Trends in income structure Q4 2020 vs. Q4 2019
| 17 Trends in income structure Q4 2020 vs. Q4 2019 RONmn -6.7% +17.2% 696 649 575 -1.3% 491 Q4 2019 Q4 2020 +14.0% 182 179 83 94 -22.9% Net interest Net fee & Net trading Operating income commission income expenses income Pre-provision operating profit -476 -618 Clasificare BT: Uz Intern Macro Land
Slide 18: Loan structure
| 18 Loan structure loans to households Dec/20 Dec/19 RON 23.0bn 5% Dec/20 RON 24.0bn loans to companies Dec/20 Dec/19 RON 18.2bn 7% Dec/20 RON 19.5bn * SMEs identified according to internal classification rules Clasificare BT: Uz Intern Macro Landscape CoVID19 Financial Performance Business Lin
Slide 19: Loan quality
| 19 Loan quality NPL (PAR90) ratio improved to 2.0%, impacted by overall write-offs performed in 2020 in amount of NPL coverage ratio RON 398mn 133% 127% 128% 128% 119% 117% 40% 43% 49% 57% 47% 44% • Banca Transilvania continued to provide a sound coverage ratio for its PAR 90 portfolio 83% • Stabl
Slide 20: Deposit structure
| 20 Deposit structure deposits from households Dec/20 Dec/19 RON 50.9bn 18% Dec/20 RON 60.3bn deposits from companies Dec/20 Dec/19 RON 23.5bn 20% Dec/20 RON 28.0bn * SMEs identified according to internal classification rules Clasificare BT: Uz Intern Macro Landscape CoVID19 Financial Performan
Slide 21: Business lines / Retail banking
| 21 Business lines/ Retail banking Retail loan portfolio reached RON 24.0bn at the end of 2020 Retail loans, RONbn 24.0 23.0 • ~3,038,000 active clients 21.2 2.9 16.7 • ~77,500 non-card retail loans disbursed in 2020 15.1 13.6 3.3 • leader on the cards market (24% market share) both 18.3 on issuing
Slide 22: Business lines / SME banking
| 22 Business lines/ SME banking SME (internal definition) loan portfolio at RON 6.1bn • ~348,000 active clients SME loans, RONbn 6.1 5.4 • Banca Transilvania actively engaged on supporting 5.0 SMEs, with over 2,000 colleagues working together 0.3 4.3 with the IMM Invest applicants 3.1 3.2 • Banca T
Slide 23: Business lines / Corporate banking
| 23 Business lines/ Corporate banking Corporate loan portfolio increased to RON 13.4bn Corporate loans, RONbn • ~10,500 active clients 13.4 12.6 12.7 11.0 11.1 1.6 0.9 10.7 • 5% YTD increase, new production coming from a balanced split between existing clients and new relationships 11.0 • sectorial
Slide 24: Capital
| 24 Capital Clasificare BT: Uz Intern
Slide 25: Comfortably capitalized and able to support lending activity
| 25 Comfortably capitalized and able to support lending activity Banca Transilvania continues to exhibit robust capitalization which provides significant loss absorption RON 5.8bn capacity amid the Coronavirus pandemic CET1 Capital - 56% 19.94% 19.94% 17.00% 2.94% 14.55% 2.45% 10.05% 4.50% RON 2.5b
Slide 26: Sustainability
| 26 Sustainability Clasificare BT: Uz Intern
Slide 27: Stepping up the pace towards sustainability
| 27 Stepping up the pace towards sustainability Responsible financing: ✓75mn EUR granted to BREEAM certified office-buildings ✓Green loans granted through dedicated programes of IFIs: ✓EEEF: RON 31mn as of Dec-20, with a total of RON 436mn under the program ✓RoSEFF: RON 6mn as of Dec-20, with a tot
Slide 28: Banca Transilvania Financial Group as of 31/12/2020
| 28 Banca Transilvania Financial Group as of 31/12/2020 total assets RON 103.4bn total assets RON 532mn total assets RON 1,229mn AUM RON 4,144mn total assets RON 220mn total assets RON 513mn total assets RON 3,539mn * Figures for subsidiaries assessed under RAS rules; Clasificare BT: Uz Intern Macr
Slide 29: Annexes
| 29 Annexes Clasificare BT: Uz Intern
Slide 30: ANNEX1: income statement, IFRS individual
| 30 ANNEX1 income statement, IFRS individual RONmn 12M 2020 12M 2019 Net interest income 2,580.1 2,685.1 -3.9% Net fee and commission income 656.4 712.6 -7.9% Net trading income 310.1 318.5 -2.6% Other net income 390.6 315.0 24.0% Operating income 3,937.2 4,031.3 -2.3% Personnel expenses (958.9) (8
Slide 31: ANNEX1: balance sheet, IFRS individual
| 31 ANNEX1 balance sheet, IFRS individual RONmn Dec/20 Dec/19 Cash & cash equivalents 20,978.6 13,480.2 55.6% Placements with banks 6,636.4 6,995.3 -5.1% Loans to customers, net 40,363.9 38,601.9 4.6% T-bills & securities 32,401.0 25,985.6 24.7% Fixed assets 887.7 777.4 14.2% Right-of-use assets 70
Slide 32: ANNEX2: income statement, IFRS consolidated
| 32 ANNEX2 income statement, IFRS consolidated RONmn 12M 2020 12M 2019 Net interest income 2,980.5 3,073.7 -3.0% Net fee and commission income 776.5 820.3 -5.3% Net trading income 346.7 410.6 -15.6% Other net income 439.0 310.3 41.4% Operating income 4,542.6 4,615.0 -1.6% Personnel expenses (1,097.
Slide 33: ANNEX2: balance sheet, IFRS consolidated
| 33 ANNEX2 balance sheet, IFRS consolidated RONmn Dec/20 Dec/19 Cash & cash equivalents 22,133.2 14,583.1 51.8% Placements with banks 7,223.6 7,775.1 -7.1% Loans to customers, net 42,165.3 40,353.8 4.5% T-bills & securities 33,321.6 26,781.7 24.4% Fixed assets 1,225.8 973.4 26.2% Right-of-use asset
Slide 34: Banca Transilvania HQ
| 34 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/