Banca Transilvania Sa · BVB:TLV
Banca Transilvania Sa — Q1 2014 Earnings Presentation
35 slides from Banca Transilvania Sa's earnings presentation, 2014
Slide 1: Q1 2014 - Financial Results
Q1 2014 - FINANCIAL RESULTS IFRS non-consolidated
Slide 2: Disclaimer
Disclaimer THE INFORMATION CONTAINED IN THIS 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 HEREIN.
Slide 3: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2014 results 2013 financial highlights Conclusions 3
Slide 4: Macroeconomic environment
Macroeconomic environment GDP - % YoY GDP rose by 3.5% YoY in 2013, an 10% 8.5% evolution determined by the net 7.9% 6.3% 7.3% foreign demand and agriculture 6% 4.2% 2.2% 3.5% 2.2% 2.5% In 1Q14 the economy increased by 2% 0.7% 3.9% YoY, an evolution mainly -2% determined by the reviving -1.1% do
Slide 5: Macroeconomic environment
Macroeconomic environment Current Account deficit - % of GDP 0% Current account deficit for 2013 at -2% -1.1% -1.7% EUR 1.5 bln. compared to 5.9 bln. -2.2% -4% a year ago -4.1% -4.4% -4.5% -4.4% -6% Exports were the main driver with -8% -8.4% -8.6% +13.5% YoY growth -10% -12% -10.4% -11.6% Acc
Slide 6: Romanian Banking System
Romanian Banking System Total banking assets growth rates 6% 5.01% *BT achieved 8.4% growth during 2013 5% 3.56% 3.50% and 2.7% increase during Q1 2014. 3.31% 4% 3% 2% 1% 0% 2009 2010 2011 2012 2013 Q1 2014 -1% -0.92% -1.04% -2% Doubtful and loss (% of total loans) 32.14% 32.60% 35% 29.91% 30% 23.28
Slide 7: Romanian Banking System
Romanian Banking System Conservative and strong Central Bank Rather concentrated: Top 7 banks hold 66% of total assets, Top 3 banks weight around 40% • For the end of 2013, the cumulative profit was corrected at RON49 mill., compared to a loss of RON 2.3bn, following restatements performed by au
Slide 8: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2014 results 2013 financial highlights Conclusions 8
Slide 9: Banca Transilvania on its home market
Banca Transilvania on its home market 20% Market share by total assets 17.7% 17.5% 18% 16% 14% 13.0% 13% 12% 10% 9.3% 8.9% Q1 2014 8% 7.3% 7.4% 7.6% 7.2%7.3% Dec-13 7.1% 6% 5.0% 4.6% 4.5% 4.8% 4% 3.7% 3.8% 3.3% 3.3% 2% 0% BCR BRD Banca Transilvania CEC Bank Unicredit Tiriac RZB Volksbank Alpha Bank
Slide 10: Our Business Model
Our Business Model Traditional banking Diverse revenue streams Broad spread of risk Successful track record Wide branch coverage Deposit funded Romania HQ 10
Slide 11: Banca Transilvania's strengths
Banca Transilvania’s strengths Strong roots in Romania, one of the least banked CEE countries The leading SME bank… The Bank for Entrepreneurial People Nationwide distribution network with 548 branches and agencies Solid capitalization (CAR 13.5% Q1 2014) and good funding structure Loan /
Slide 12: Our rating
Our rating Fitch Ratings – BT rating reaffirmed, June 2014 Long term IDR BB- Short-Term B Outlook Stable Individual D Support 3 12
Slide 13: Shareholder structure, March 2014
Shareholder structure, March 2014 No. of shareholders No. of shares % Romanian capital 26,799 965,659,055 43.77 individuals 26,181 421,749,431 19.11 companies 618 543,909,624 24.65 Foreign capital 757 1,240,777,269 56.23 individuals 613 50,144,139 2.27 companies 144 1,190,633,130 53.96 TOTAL 27,556
Slide 14: Group structure
Group structure Banca Transilvania Leasing Consumer Banking services Brokerage Asset Finance management Business lines SME Corporate Retail 14
Slide 15: Geographical coverage
Geographical coverage Key statistics No. of units: 548 No. of customers: over 1.7 million Market shares Market share by assets: 9.3% Deposits (lei): 13.53% Loans (lei): 14.68% 15
Slide 16: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2014 results 2013 financial highlights Conclusions 16
Slide 17: Business Lines & Sectorial Approaches
Business Lines & Sectorial Approaches SME CORPORATE RETAIL Agriculture Healthcare EU Funds 17
Slide 18: Overview of business lines: Corporate Clients
Overview of business lines Corporate Clients well diversified portfolio in Loans: Corporate Portfolio Breakdown, RON mil. terms of type and industry 12,000 exposure; trade is slowly declining, while manufacturing 10,000 9,882 10,175 and agriculture are advancing; 8,000 8,736 6,000 7,612 domestic
Slide 19: Overview of business lines: SME Banking
Overview of business lines SME Banking SME Services SME Loan Evolution and Breakdown, RON mill. 20 SME-dedicated products launched so far; 3,000 2,509 2,482 2,564 Loan portfolio reaching RON 2,564 mil. end of Q1 2,500 1,805 2014 2,000 1,500 ~ 150,000 active clients. 1,000 500 SME Loans - 2011
Slide 20: SME Banking: Commitment to the SME sector
Overview of business lines SME Banking Commitment to the SME sector • Starting with 2002, together with the reorganization of the sales activity by business lines, Banca Transilvania has positioned itself as the SME Bank in Romania • This strategic goal was supported by a SME specialized products an
Slide 21: SME Banking
Overview of business lines SME Banking • Besides specialized banking services, we have tried to provide to our SME clients training and networking opportunities, free of charge, via Clubul Intreprinzatorului Roman, club established in 2006 which counts now 17,000 members • All these initiatives brou
Slide 22: Retail Banking
Overview of business lines Retail Banking Strategy Retail Loan Growth and Breakdown, RON mill. 7,100 The strategy for this year - 3 main 6,800 pillars: 6,900 6,797 6,500 To consolidate our Top 3 position in 6,200 6,278 6,321 cards in Romania 5,900 5,600 Client segmentation 5,300 More revenues
Slide 23: Retail Banking: Bank Cards & ATMs
Overview of business lines Retail Banking Bank Cards & ATMs Cards ATM POS 3rd largest issuer of credit/debit cards in 2,000,000 20,000 Romania 1,800,000 18,000 over 1.9 million Visa and MasterCard issued 1,600,000 16,000 15% market share - cards issued 1,400,000 14,000 1,200,000 12,000 17.5%
Slide 24: Overview by sector: Healthcare
Overview by sector Healthcare Strategy Approach Dedicated team (doctors and bankers) Transparency – costs Stability – terms and conditions Special Credit Scoring System Design Flexibility – product packages First credit card only for doctors Friendly and assertive people – common langu
Slide 25: Overview by sector: Agribusiness
Overview by sector Agribusiness Strategy Approach Specialized team Dedicated products for agriculture and Qualitative and technical overview agribusiness Integrated chain overview Long term partnership with farmer associations Loan portfolio dispersion Results More than 10% market shar
Slide 26: Overview by sector: EU Structural funds
Overview by sector EU Structural funds Strategy Approach Consolidating BT position as EU funds Specialized team specialist Flexible financing products + consulting Enhancing partnerships with consultants Integrated services following the project acting in EU funds sector cycle Active mem
Slide 27: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2014 results 2013 financial highlights Conclusions 27
Slide 28: Summary Q1 - 2014
Summary Q1 - 2014 Net Profit & Assets Evolution (Lei million) 1.0 32,924 33,000 Net Profit: RON 103 million 0.8 32,066 30,287 Cost / Income: 46.9% 0.6 30,178 30,122 30,200 ROE: 14% 0.4 Net Profit (YTD) Loan portfolio: + 2.5% vs. Dec.13 Total Assets 0.2 375 240 200 180 0.0 103 84 0 Q1 Q4 Q3 Q
Slide 29: Q1 2014 financial highlights (IFRS non-consolidated)
Q1 2014 financial highlights (IFRS non-consolidated) m RON 31.03.2014 31.12.2013 Δ Cash and cash equivalents 4,131 4,102 0.7% Placements with banks 835 1,666 -49.9% T bills and securities 10,322 9,040 14.2% Loans to customers, net 17,034 16,667 2.2% Fixed assets and participations 451 446 1.12% Othe
Slide 30: Q1 2014 financial highlights: Income statement
Q1 2014 financial highlights (IFRS non-consolidated) Income statement m RON 31.03.2014 31.03.2013 Δ Net interest income 276 231 19.6% Net commissions income 91 80 14.2% Other operating income 58 46 26% Operating income 425 357 19% Operating expenses 199 178 11.9% Profit before provisions 226 179 26.
Slide 31: 2013 vs 2012 – IFRS, non-consolidated
2013 vs 2012 – IFRS, non-consolidated m RON 31.12.2013 31.12.2012 y/y Cash and cash equivalents 4,102 5,576 -26.4% Placements with banks 1,666 1,305 27.7% T bills and securities 9,040 6,648 35.98% Loans to customers, net 16,667 15,457 7.8% Fixed assets and participations 446 444 0.45% Other assets 1
Slide 32: 2013 vs 2012 (IFRS non-consolidated)
2013 vs 2012 (IFRS non-consolidated) m RON 31.12.2013 31.12.2012 Y/Y Net interest income 1,194 938 27% Net commissions income 362 425 -15% Other operating income 168 175 -4% Operating income 1,659 1,484 12% Operating expenses 809 769 5% Provisions 407 375 9% Gross profit 443 341 30% Net profit 375 3
Slide 33: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2014 results 2013 financial highlights Conclusions 33
Slide 34: Conclusions
Conclusions We defend our position as 3rd bank in the system and we keep our entrepreneurial profile We aim a market share of 10 – 11% in 2 – 3 years, but we keep a strong eye on efficiency We continue to support the Romanian economy, targeting both organic growth and portfolio acquisitions (e
Slide 35: Banca Transilvania S.A.
Banca Transilvania S.A. 8, G. Baritiu Street Cluj-Napoca, 400027 Romania Telephone + 40 264 407 150 Fax + 40 264 407 179 35