Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q1 2021 Earnings Presentation
29 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, May 7, 2021
Slide 1: BRD Group Results 1st Quarter 2021
BRD GROUP RESULTS 1st quarter 2021 | 07.05.2021
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended March 31, 2021 were examined by the Board of Directors on May 5, 2021. The financial information presented for the period ended March 31, 2021 and comparative periods has been prepared according to
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Strong Start of the Year
STRONG START OF THE YEAR Dynamic lending activity Individuals’ consumer loan production in strong rebound +19% vs Q1 2020 Dynamic lending to corporates, especially on SME segment +25% SME financing vs Mar 2020 end At the forefront of sustainability transitions Green financing RON 1.25 bn investment
Slide 5: Macroeconomic Environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: Romanian Economy Resisted Better Than Expected
ROMANIAN ECONOMY RESISTED BETTER THAN EXPECTED GDP -3.9% in 2020, printing much better than expectations Romania’s GDP witnessed a rebound in H2’20, recovering to a large extent the loss caused by the pandemic crisis, amid surprising GDP GROWTH resilience of some economic sectors along with extended
Slide 7: Declining Interest Rates
DECLINING INTEREST RATES Policy rate cuts To support the economy in the context of unfolding COVID-19 epidemic, the central bank reduced the monetary policy rate four INTEREST RATE ENVIRONMENT times since March 2020, by 125 bps in total, to 1.25%. 3.2% 3.2% 3.1% 3.1% 2.9% Lessened quantitative easin
Slide 8: Support Measures Extended in 2021
SUPPORT MEASURES EXTENDED IN 2021 Extended relief measures to support the economy Income supporting measures : indemnity for technical unemployment (amounting to 75% of the net salary, capped at 75% of the average salary in the economy) for employees of companies affected by the crisis. The measur
Slide 9: A Very Solid Romanian Banking Sector
A VERY SOLID ROMANIAN BANKING SECTOR ROMANIAN BANKING SYSTEM Solvency and liquidity ratios standing at high levels NPL AND NPL COVERAGE RATIOS Loan to deposit ratio at 66% at 2020 end vs. 71% at 2019 end (122% at 63.3% EU 2008 end) with accelerated growth of deposits 55.6% 57.7% 56.2% 57.7% 58.5% 60
Slide 10: 1st Quarter 2021 BRD Group Results
3 1ST QUARTER 2021 BRD GROUP RESULTS
Slide 11: Accelerated Digital Adoption
ACCELERATED DIGITAL ADOPTION NEWLY LAUNCHED APPLICATION, YOU BRD, PAVING THE WAY TO THE OMNICHANNEL PLATFORM MOBILE PAYMENT VIA GOOGLE PAY RECENTLY LAUNCHED INCREASED DIGITAL HIGHLY REACTIVE CUSTOMER ADAPTING NETWORK TO PENETRATION INTERACTION CENTER CHANGED CLIENT PREFERENCES 763k MyBRD Mobile & Ne
Slide 12: Loan Growth All Across the Board
LOAN GROWTH ALL ACROSS THE BOARD NET LOANS (end of period amounts, RON bn) Y/Y 31.3 30.7 31.8 +1.6% Sustained corporate financing activity Loans to SME up by +24.7% y/y 9.0 8.7 9.7 +7.8% Large companies loans’ advance of +2.4% y/y Dynamic performance of leasing activity with overall portfolio +0.1%
Slide 13: Materialized Commitment to Support Sustainability Transitions
MATERIALIZED COMMITMENT TO SUPPORT SUSTAINABILITY TRANSITIONS Building on strong capabilities and expertise Set up of a dedicated structure supporting the development of green financing and the integration of Environmental & Social Risk assessment BRD structured the most important green loan granted
Slide 14: Continued Consolidation of Both Retail and Corporate Deposits
CONTINUED CONSOLIDATION OF BOTH RETAIL AND CORPORATE DEPOSITS SAVINGS (average amounts, RON bn) Y/Y 50.0 51.4 +9.4% Large, diversified and growing deposit base 46.9 Retail deposits accelerating growth pace to +10.1% y/y 17.2 +8.1% 16.2 15.9 Corporate deposits up +8.1%, mainly driven by SME Strong li
Slide 15: Resilient Revenues
RESILIENT REVENUES Quasi-stable revenues despite much lower market rates Contraction in NII, -7.4% in Q1 2021 vs Q1 2020, reflecting the decrease of interest income from customer loans on lower market rates key rate reduced by 125 bps in total since beginning of 2020 NET BANKING INCOME (RON m) a
Slide 16: Continued Strong Cost Discipline
CONTINUED STRONG COST DISCIPLINE Important staff costs’ reduction, -5.1% y/y in Q1 2021 OPERATING EXPENSES (RON m) Y/Y -410 FTEs vs March 2020 end +3.1% 425 438 freeze of hiring since March 2020 Contributions to 43.3 49.4 +14.1% network of branches adjustment, -71 vs March 2020 end FGDB & FR O
Slide 17: Strong Asset Quality
STRONG ASSET QUALITY GROSS LOANS – March 31, 2021 breakdown by segment and currency (RON bn) Loan portfolio market mix breakdown by segment and currency (RON bn) 68% on individuals 32% on corporate segment 21.70 21.84 Consolidation of RON lending Share of RON denominated loans at 68.5% (vs 66.8% as
Slide 18: Cost of Risk Affected by Macroeconomic Context
COST OF RISK AFFECTED BY MACROECONOMIC CONTEXT COST OF RISK * EVOLUTION Net cost of risk at 55 bps in Q1-21 NCR driven by the joint effect of moratoria exits and regulatory impact from “New default definition” on retail portfolio, partially offset by good recovery performance on corporates Note: Cos
Slide 19: Elevated Capital Position
ELEVATED CAPITAL POSITION SOLVENCY RATIO Strong high quality capital base +66bp 31.6% CAR of 31.6% at Mar 2021 end +293bp Regulatory own funds composed solely of Tier 1 capital +258bp 22.6% +292bp Increase in own funds on a yearly basis driven by incorporation of 2020 profit (net of dividends acco
Slide 20: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 21: Conclusions
CONCLUSIONS Q1 2021 still marked by restrictive measures to contain a third wave of the pandemic Romanian economy nevertheless performing better than expected Within this context, BRD’s Q1 business dynamic was strong, marking a forceful start of the year Significant increase of individuals’
Slide 22: Q&A Session
.) Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 23: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE – KEY FIGURES STOCK PRICE PERFORMANCE FINANCIAL CALENDAR FOR 2021 GLOSSARY – CLIENT SEGMENTATION
Slide 24: BRD Group | Key Figures
BRD GROUP | KEY FIGURES (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q1-2021 Q1-2020 Change Net banking income 759 767 -1.0% Operating expenses (438) (425) +3.1% Gross operating income 321 342 -6.1% Financial results Net
Slide 25: BRD | Key Figures for Bank Only
BRD | KEY FIGURES FOR BANK ONLY (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q1-2021 Q1-2020 Change Net banking income 720 721 -0.1% Financial results Operating expenses (416) (402) +3.5% Gross operating income 304 319 -4
Slide 26: BRD | Stock Price Performance
BRD | STOCK PRICE PERFORMANCE Market capitalisation 4,000 EUR 2.2 bn 16.0 3,500 3,000 14.0 2,500 12.0 2,000 10.0 1,500 1,000 8.0 500 6.0 0 Volume ('000 shares, rhs) Price (RON, lhs) BRD is part of the main market indices on the Bucharest Stock Exchange BRD is in Top 5 largest domestic companies
Slide 27: Financial Calendar for 2021
FINANCIAL CALENDAR FOR 2021 10th February: Preliminary 2020 financial results and annual press conference 22nd April: General Shareholders Meeting for approving the 2020 annual financial results 6th May: Presentation of the 1st quarter 2021 financial results 3rd August: Presentation of the 2nd quart
Slide 28: Glossary – Client Segmentation
GLOSSARY – CLIENT SEGMENTATION The Retail category is comprised of the following customer segments: • Individuals – BRD provides individual customers with a range of banking products such as: savings and deposits taking, consumer and housing loans, overdrafts, credit card facilities, funds transfe
Slide 29: BRD Groupe Societe Generale - Investor Relations
BRD GROUPE SOCIETE GENERALE - INVESTOR RELATIONS +4 021 380 47 62 | investor@brd.ro; www.brd.ro
BRD Groupe Société Générale — Q1 2021 Earnings Presentation on 6ix