Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q3 2019 Earnings Presentation
23 slides from Banca Transilvania SA's earnings presentation, Nov 18, 2019
Slide 1: Q3 2019 financial results
BANCA TRANSILVANIA Q3 2019 financial results November 18th 2019 Clasificare BT: Uz Intern
Slide 2: Disclaimer
|1 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: BT: YTD Sep 2019 by the numbers
|2 EOY 2018 30.09.2019 BT: YTD Sep 2019 by the numbers Stand-alone 900 0% 800 0% total assets (RONbn) 700 0% 600 0% Larger Balance Sheet due to strong organic growth 500 0% 82.2 10.9% 74.1 400 0% 300 0% 200 0% 100 0% 0% 100 % 90% CAR Solid capital base, with good overall financial ratios 80% 19.56
Slide 4: Banking sector dynamics: assets and NPE ratio
|3 assets total bank net assets, RONbn, %YoY Banking sector dynamics 459 Bank assets kept expanding during the first half of 470 14% 451 452 445 the year 450 12% 435 430 9.5% 10% 9.0% 410 8% 390 5.6% 6% 5.5% 4% 4.7% 370 • Net assets growth rate picked up during 2Q19 to 2% 350 5.6% 2Q18 3Q18 4Q18 1Q1
Slide 5: Banking sector dynamics: loans
|4 loans RONbn, %YoY Banking sector dynamics Corporate lending remains the chief driver of credit 11% 280 267 270 260 activity 10% 255 260 251 9% 248 250 8% 7.9% 7.7% 240 7.7% 7.1% 230 7% 6.3% • Bank loans to the private economy grew accelerated 220 6% 210 5% 200 during 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19
Slide 6: Banking sector dynamics: loans by currency
|5 loans by currency, RONbn Banking sector dynamics Loans in local currency amount to RON 178bn or 200 00% 173 178 180 00% 162 165 168 160 00% 140 00% 67% of total 120 00% 100 00% 86 85 87 87 89 800 0% • Both LCY and FCY loans advanced during 3Q19, by RON loans FCY loans 9.7% YoY and 3.9% YoY, respe
Slide 7: Macro developments: real economy
|6 real economy YoY dynamics of GDP (%) Macro developments 15 10 The growth pace is slowing-down, due to the end of the post-crisis cycle in Euroland and the 5 widening twin deficits 0 Romanian economy grew by only 3% YoY in 3Q2019 3Q 16 3Q 19 3Q 05 3Q 08 3Q 09 3Q 06 3Q 07 3Q 10 3Q 13 3Q 14 3Q 17 3Q
Slide 8: Macro developments: potential GDP
|6 real economy contribution of production factors to YoY Macro developments dynamics of potential GDP (pp) 8 The structure of the potential GDP is improving, 6 but the macroeconomic disequilibria has recently 4 continued the intensifying trend 2 0 • The YoY dynamics of the potential output has 2010
Slide 9: Macro developments: financial economy
|7 Macro developments financial economy consumer prices (%, YoY) 8 6 The YoY dynamics of CPI re-entered the NBR target 4 interval at the end of 3Q2019 2 The widening of the twin deficits has been partially 0 counterbalanced by the positive financial climate Oct-14 Oct-15 Oct-18 Oct-13 Oct-16 Oct-17
Slide 10: BT performance as of end of Q3 2019
| 10 BT performance as of end of Q3 2019 INDIVIDUAL CONSOLIDATED profitability 9M 2019 9M 2018 9M 2019 9M 2018 Net interest income, RONmn 1,977.2 1,562.9 26.5% 2,267.5 2,089.6 8.5% Net fee and commission income, RONmn 542.1 466.7 16.1% 620.3 569.2 9.0% Operating expenses, RONmn (1,286.9) (1,053.3) 2
Slide 11: Trends in income structure
| 11 Trends in income structure RONmn +26.5% +38.0% 1,977 1,641 1,563 +16.1% 1,189 +33.5% YTD Sep 2018 YTD Sep 2019 +22.2% 467 542 176 236 Net interest Net fee & Net trading Operating Pre-provision income commission income expenses operating profit income -1,053 -1,287 Clasificare BT: Uz Intern Sep
Slide 12: Loan structure
| 12 Loan structure loans to households Sep/19 Dec/18 RON 21.2bn 6% Sep/19 RON 22.6bn loans to companies Sep/19 Dec/18 RON 17.6bn 5% Sep/19 RON 18.6bn * SMEs identified according to internal classification rules Clasificare BT: Uz Intern Sep 2019 by the numbers Banking sector dynamics Macro deve
Slide 13: Loan quality
| 13 Loan quality NPL (PAR90) ratio stable at 3.13% NPL coverage ratio 133% 127% 127% 126% 119% 117% 46% 40% 49% 57% 50% • Banca Transilvania continued to provide a sound 43% coverage ratio for its PAR 90 portfolio 81% 79% 74% 78% 76% 77% • NPL coverage, including collaterals, sits at a comfortable
Slide 14: Deposit structure
| 14 Deposit structure deposits from households Sep/19 Dec/18 RON 41.7bn 15% Sep/19 RON 47.9bn deposits from companies Sep/19 Dec/18 RON 20.8bn 0.1% Sep/19 RON 20.9bn * SMEs identified according to internal classification rules Clasificare BT: Uz Intern Sep 2019 by the numbers Banking sector dyna
Slide 15: Business lines / Retail banking
| 15 Business lines/ Retail banking Retail loan portfolio reached RON 22.6bn as of September 2019 Retail loans, RONbn 22.6 21.2 2.9 • ~2,850,000 active clients 16.7 15.1 13.6 • 88,000 non-card retail loans disbursed in 9M 2019 3.3 18.3 7.5 • ~4 mn active cards – with a market share of about 10.3 22%
Slide 16: Business lines / SME banking
| 16 Business lines/ SME banking SME (internal definition) loan portfolio at RON 5.6bn SME loans, RONbn 5.6 5.0 0.3 • ~300,000 active clients 4.3 3.2 3.1 0.3 2.6 • Banca Transilvania continued to support the SME 4.7 business sector, granting ~6,800 new loans in Q3 2019 and over 15,300 in 2019 so far
Slide 17: Business lines / Corporate banking
| 17 Business lines/ Corporate banking Corporate loan portfolio remains stable around RON 13.0bn Corporate loans, RONbn 13.0 12.6 11.0 11.1 10.7 1.6 • ~10,000 active clients 10.0 0.9 • Sectorial specialization is a major focus 11.0 10.1 • Banca Transilvania is present with lending facilities especia
Slide 18: Banca Transilvania Financial Group as of 30/Sep/2019
| 18 Banca Transilvania Financial Group as of 30/Sep/2019 total assets RON 82.2bn BANCA TRANSILVANIA ® total assets RON 421mn total assets RON 1,120mn AUM RON 3,931mn total assets RON 169mn total assets RON 446mn total assets RON 3,531mn * Figures for subsidiaries assessed under RAS rules; Clasifica
Slide 19: Annex 1: income statement, IFRS individual
| 19 ANNEX1 income statement, IFRS individual RONmn 9M 2019 9M 2018 Net interest income 1,977.2 1,562.9 26.5% Net fee and commission income 542.1 466.7 16.1% Net trading income 235.7 176.5 33.5% Other net income 173.2 36.5 375.0% Operating income 2,928.1 2,242.5 30.6% Personnel expenses (674.6) (584
Slide 20: Annex 1: balance sheet, IFRS individual
| 20 ANNEX1 balance sheet, IFRS individual RONmn Sep/19 Dec/18 Cash & cash equivalents 11,685.1 9,083.5 28.6% Placements with banks 5,717.7 4,000.4 42.9% Loans to customers, net 38,706.8 36,356.0 6.5% T-bills & securities 23,455.9 22,420.3 4.6% Fixed assets 776.8 736.2 5.5% Right-of-use assets 403.2
Slide 21: Annex 2: income statement, IFRS consolidated
| 21 ANNEX2 income statement, IFRS consolidated RONmn 9M 2019 9M 2018 Net interest income 2,267.5 2,089.6 8.5% Net fee and commission income 620.3 569.2 9.0% Net trading income 286.6 169.9 68.7% Other net income 196.7 427.2 -54.0% Operating income 3,371.0 3,255.9 3.5% Personnel expenses (772.0) (732
Slide 22: Annex 2: balance sheet, IFRS consolidated
| 22 ANNEX2 balance sheet, IFRS consolidated RONmn Sep/19 Dec/18 Cash & cash equivalents 12,718.9 10,322.1 23.2% Placements with banks 6,575.8 4,650.1 41.4% Loans to customers, net 40,291.6 37,817.1 6.5% T-bills & securities 24,303.2 23,126.8 5.1% Fixed assets 960.1 877.1 9.5% Right-of-use assets 42
Slide 23: Banca Transilvania HQ
| 23 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/