Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — H1 2021 Earnings Presentation
32 slides from Banca Transilvania SA's earnings presentation, 2021
Slide 1: Banca Transilvania H1 2021 Financial Results
BANCA TRANSILVANIA H1 2021 Financial Results
Slide 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 herein. Banca
Slide 3: Macroeconomic Landscape
Macroeconomic Landscape
Slide 4: Real economy
Real economy The YoY pace of the economy significantly improved during Q2, Retail sales (%, YoY) 50 2021 (13% - a record high level), driven by both the base effect and 45 40 35 the expansionary policy-mix 30 25 20 15 • Retail sales rose by over 23% YoY in 2Q and by 13.4% YoY in 10 5 1H 2021, expres
Slide 5: Policy-mix
Policy-mix The central bank maintained the policy rate at a low level, but 15% Inflation (HICP) vs. policy rate (%) Consumer prices (HICP) (YoY) signalled the prospects of a new monetary cycle. The budget Consumer prices core (HICP) (YoY) 10% Monetary policy rate deficit adjusted in H1 2021 5% • NBR
Slide 6: Financial economy
Financial economy The money market interest rates continued the decline in Q2. However, Yield on 10 YR bonds (%) 7.0 the yield on 10 YR bonds initiated an upward trend. EUR/RON Romania USA Germany 6.0 continued the stable trend. BET index hit record high levels 5.0 4.0 3.0 • The interest rates on th
Slide 7: Loans
Loans Loans went up in June by the highest YoY pace since May 2009. Loans (YoY) The NPL ratio declined in May to the lowest since last January 25% Total RON FX 20% 15% • Loans rose for the 13th month in a row in June, by 1.4% MoM 10% and by 11.2% YoY to RON 300.3 bn; 5% • RON-denominated loans climb
Slide 8: Deposits
Deposits The loans-to-deposits ratio up in June to the highest since last October Deposits (YoY) 25% Household Corporate Total 20% • Deposits rose by 0.5% MoM and by 14.7% YoY to RON 438.1 bn in 15% June (a record level), given the high level of savings and the 10% improvement of the financial perfo
Slide 9: BT during H1 2021
BT during H1 2021
Slide 10: BT continues to be a relevant partner for government support programs
During 2021 Banca Transilvania continues to be a relevant partner for government support Government programs programs: IMM Invest 2021 • 13.9k companies applied for IMM Invest 2021 program, ~41% of the registered 563 926 companies chose BT; Agro IMM Invest 26% 16% • Under IMM Invest and AGRO IMM Inv
Slide 11: Continuous development of online banking solutions
Continuous development of online banking solutions Increased efficiency Customized offer Resource savings OL EEE (ity for both Retail and Corporate clients Retail * 65% of all Retail clients are digitized, opting for one of our digital solutions (BT Pay, ApplePay, GooglePay, FitbitPay, GarminPay, In
Slide 12: Financial Performance
Performance Financial
Slide 13: Profitability H1 2021
INDIVIDUAL CONSOLIDATED Profitability H1 2021 H1 2020 H1 2021 H1 2020 Net interest income, RON mn 1,357.0 1,295.0 4.8% 1,529.0 1,453.0 5.2% Net fee and commission income, RON mn 382.2 299.8 27.5% 447.0 351.8 27.0% Operating expenses, RON mn (1,013.1) (884.6) 14.5% (1,132.7) (1,001.4) 13.1% Pre-provi
Slide 14: H1 2021 vs H1 2020 income and profit
+4.8% +18.8% 1,295 1,357 +27.5% +46.9% H1 2020 H1 2021 382 300 204 +14.5% 139 Net interest Net fee & Net trading Operating Pre-provision income commission income expenses operating profit income -885 RONmn -1,013 14
Slide 15: Q2 2021 vs Q1 2021 income and profit
+3.8% +18.8% 666 691 +10.8% +12.5% Q1 2021 Q2 2021 181 201 108 +4.7% 96 Net interest Net fee & Net trading Operating Pre-provision income commission income expenses operating profit income RON mn -495 -518 15
Slide 16: Loans to households and companies
Loans to households Dec/20 Jun/21 Jun/21 ↑7% RON 24.0bn RON 25.7 bn Loans to companies Dec/20 Jun/21 Jun/21 ↑5% RON 19.5 bn RON 20.5 bn *SMEs identified according to internal classification rules 16
Slide 17: NPL ratio remained under 2%
NPL (PAR90) ratio remained under 2% (1.96%) displaying low credit risk for BT NPL coverage ratio • Banca Transilvania continued to provide a sound coverage ratio for its 133% 128% 128% 128% 127% PAR 90 portfolio; 117% 57% 49% 47% • NPL coverage, including collaterals, remained stable at mid year, 42
Slide 18: Deposits from households and companies
Deposits from households Dec/20 Jun/21 Jun/21 ↑6% RON 64.1 bn RON 60.3 bn Deposits from companies Dec/20 Jun/21 Jun/21 RON 28 bn ↑8% RON 30.3 bn *SMEs identified according to internal classification rules 18
Slide 19: Retail loan portfolio reached RON 25.7 bn
Retail loan portfolio reached RON 25.7 bn at the end of H1 2021 • over 3.1 mn active clients; Retail loans, RON bn • ~106,700 retail loans disbursed in H1 2021, worth RON 4.2 bn, with 25.7 24.0 consumer loans representing the highest increase in both absolute and 23.0 21.2 relative terms; 2.9 16.7 1
Slide 20: SME loan portfolio at RON 6.5 bn
SME (internal definition) loan portfolio at RON 6.5 bn • Over 358,700 active clients; • SME segment is engaged in Government programs such as: ✓ IMM Invest and AGRO IMM Invest: the amounts disbursed by BT are ~RON 563 mn SME loans, RON bn 6.5 6.1 in H1 5.4 5.0 ✓ Government micro-grants and working-c
Slide 21: Corporate loan portfolio increased to RON 14.0 bn
Corporate loan portfolio increased to RON 14.0 bn • ~10,900 active clients; Corporate loans, RON bn 14.0 • active supporter of the corporate sector (public or private companies), with 13.4 12.6 12.7 loan portfolio increase fairly balanced between existing clients and new 11.1 1.6 10.7 relationships
Slide 22: Capital
Slide 23: Structure of own funds
Banca Transilvania has a comfortable structure of own funds and a robust Structure of own funds: RON 11.4 billion capitalization. (6M 2021 profit excluded) 21.83% 21.83% 18.92% 2.91% 14.84% 4.08% CET 1 Capital RON 50% 5.7bn 10.34% 4.50% 8.00% 2.34% Retained earnings and reserves 30% RON 8.00% 3.5bn
Slide 24: Sustainability
Sustainability
Slide 25: Responsible financing and Climate Change Strategy
Responsible financing: • BT financed over RON 500 mn of ESG related projects (i.e. social/ educational, energy efficiency) and Environmental is further committed to extend such financings given the solid pipeline of projects in progress; Climate Change Strategy • Green loans granted through dedicate
Slide 26: Group subsidiaries total assets
Total assets RON 110.9 bn Total assets RON 551 mn Total assets RON 1,313 mn AUM RON 4,780 mn Total assets RON 397 mn Total assets RON 581 mn Total assets RON 3,793 mn *Figures for subsidiaries assessed under RAS rules 26
Slide 27: Annexes
Annexes
Slide 28: Individual income statement
RONmn H1 2021 H1 2020 Net interest income 1,357.0 1,295.0 4.8% Net fee and commission income 382.2 299.8 27.5% Net trading income 203.8 138.7 46.9% Other net income 226.9 124.7 82.0% Operating income 2,169.9 1,858.2 16.8% Personnel expenses (580.6) (482.5) 20.3% D&A (173.8) (146.8) 18.4% Other opera
Slide 29: Individual balance sheet
RON mn Jun/21 Dec/20 Cash & cash equivalents 17,723.5 20,978.6 -15.5% Placements with banks 5,715.6 6,636.4 -13.9% Loans to customers, net 42,657.7 40,363.9 5.7% T-bills & securities 41,615.3 32,401.0 28.4% Fixed assets 917.6 887.7 3.4% Right-of-use assets 666.7 708.5 -5.9% Investments in associates
Slide 30: Consolidated income statement
RON mn H1 2021 H1 2020 Net interest income 1,529.0 1,453.0 5.2% Net fee and commission income 447.0 351.8 27.0% Net trading income 261.6 127.6 105.0% Other net income 172.4 163.4 5.5% Operating income 2,410.0 2,095.9 15.0% Personnel expenses (650.7) (545.5) 19.3% D&A (178.0) (158.8) 12.1% Other oper
Slide 31: Consolidated balance sheet
RON mn Jun/21 Dec/20 Cash & cash equivalents 18,756.4 22,133.2 -15.3% Placements with banks 6,349.8 7,223.3 -12.1% Loans to customers, net 44,379.3 42,120.3 5.4% T-bills & securities 42,887.0 33,321.6 28.7% Fixed assets 1,302.7 1,225.8 6.3% Right-of-use assets 420.3 448.9 -6.4% Investments in associ
Slide 32: Banca Transilvania HQ
Banca Transilvania HQ Our new home: 30 – 36, Dorobanților Street, Cluj-Napoca, Cluj, 400117, Romania +40 264 407 150 | +40 264 301 128 investor.relations@btrl.ro www.bancatransilvania.ro/en/investor-relations www.bancatransilvania.ro