Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — H1 2018 Earnings Presentation
25 slides from Banca Transilvania SA's earnings presentation, Aug 10, 2018
Slide 1: H1 2018 financial results
BANCA TRANSILVANIA H1 2018 financial results August 10th 2018 Clasificare BT: Uz Intern
Slide 2: Disclaimer
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 her
Slide 3: Agenda
Agenda 1 Banking sector dynamics 2 H1 2018 Highlights 3 Performance in H1 2018 4 Overview of business lines 5 BT Financial Group a Financial statements 2 Clasificare BT: Uz Intern
Slide 4: Bank assets growing at the fastest pace since 1Q12
Bank assets growing at the fastest pace since 1Q12 Bank assets Loan quality total bank net assets, RONbn, % NPL ratio (EBA), % source: NBR source: NBR 44 0 432 12% 428 20.2% 42 0 406 10% 9.6% 399 16.2% 8.7% 394 394 40 0 15.7% 8% 7.5% 13.5% 13.5% 380 378 377 6.4% 38 0 370 11.3% 6% 363 10.0% 5.1% 361
Slide 5: Lending reaches RON 242bn at the end of June
Lending reaches RON 242bn at the end of June Private loans maintain their robust Positive contribution across all segments growth during the first semester %YoY source: NBR YoY, RONbn source: NBR 9% 20 7.4% non-financial corporate loans 6.8% financial corporate (excl. MFIs) loans 6.6 6.1% household
Slide 6: RON denominated loans make up 65% of all lending in Romania
RON denominated loans make up 65% of all lending in Romania LCY loans continue to grow at double-digit Companies have also been switching YoY rates to LCY loans RONbn source: NBR 158 structure by currency as of June 16000% source: NBR 151 146 10 0% FCY loans 143 14000% 137 14% 90 % 130 24% 126 122 3
Slide 7: The real economy & investment cycle
The real economy & investment cycle Deceleration converging towards Deterioration of the public finance potential Investments vs. consumption source: Statistics Office Budget deficit / GDP (%, s.a) source: Eurostat 20 60 6 4 15 40 2 10 20 0 1Q 11 1Q 12 1Q 10 1Q 13 1Q 14 1Q 16 1Q 17 1Q 18 1Q 15 1Q 06
Slide 8: The financial economy
The financial economy The normalization of the financing costs, given the post-crisis monetary cycle (FED and NBR) and the macroeconomic equilibria challenges The resilience of the FDIs The flattening of the yield curve FDIs (12M cumulative) source: NBR The sovereign spread (10Y – 6M) source: NBR 12
Slide 9: Banca Transilvania's business development and financial performance in H1 2018
Banca Transilvania’s business development and financial performance in H1 2018 BankingBT: Clasificare sector dynamics Uz Intern H1 2018 Highlights Performance in H1 2018 Overview of business lines BT Financial Group
Slide 10: H1 2018 Highlights
H1 2018 Highlights H1 2018 H1 2017 ∆ Net interest income RONmn 1,011.7 886.3 14.2% profitability Net fee and commission income RONmn 302.6 273.9 10.5% Operating expenses RONmn (707.7) (614.2) 15.2% Gross profit before provisions RONmn 715.9 640.0 11.9% Net income RONmn 662.7 496.1 33.6% Cost of risk
Slide 11: Business performance H1 2018 at a glance
Business performance H1 2018 at a glance Total assets at RON 62.9bn Balance sheet consolidation Capital adequacy ratio at More efficient capital structure, supporting organic 22.41% and non organic growth Net fees and commissions at Increased number of operations and additional cross- RON 303mn +10.
Slide 12: Trends in income structure
Trends in income structure RONmn H1 2017 H1 2018 +14.2% 1,012 886 +15.2% 708 614 +10.5% 303 274 +4.2% 103 107 Net interest income Net fee and Net trading income Operating expenses commission income 11 BankingBT: Clasificare sector dynamics Uz Intern H1 2018 Highlights Performance in H1 2018 Overview
Slide 13: Loan portfolio structure
Loan portfolio structure Loans to households, RONbn Loans to companies, RONbn 17.4 16.0 16.7 0.0 15.0 0.0 4.8 4.3 8.4 8.9 10.7 11.2 8.2 8.5 Dec’17 Jun’18 Dec’17 Jun’18 Other Housing Consumption SMEs Large corporates 77% 23% 81% 19% RON FX RON FX *SMEs identified according to internal classification
Slide 14: Deposit structure
Deposit structure Deposits from households, RONbn Deposits from companies, RONbn 32.9 18.7 30.4 17.8 13.1 7.7 11.3 7.8 19.1 19.8 11.0 10.0 Dec’17 Jun’18 Dec’17 Jun’18 Current accounts Deposits SMEs Large corporates 54% 46% 70% 30% RON FX RON FX *SMEs identified according to internal classification r
Slide 15: NPL ratio at 2.95%
NPL ratio at 2.95% Banca Transilvania continued to provide a sound coverage ratio for its PAR 90 portfolio 127% 127% 122% 119% 121% 117% 54% 45% 45%46% 46% 40% 40% 49% 33% 43% 51% 77% 81% 79% 78% 74% 70% 2013 2014 2015 2016 2017 H1 2018 NPL coverage with mortgage collaterals NPL coverage with provis
Slide 16: Retail banking
Retail banking retail loan portfolio reached RON 17.4bn as of Jun 2018 17.4 16.7 • 38,000 non-card retail loans disbursed in 15.1 H1 2018 13.6 3.3 • Market share for retail loans at June 2018 - 14.11% 7.5 6.8 • 3.20 mn active cards; BT is the market leader, both in terms of number of cards, as 10.3
Slide 17: SME banking
SME banking SME loan portfolio at RON 4.8bn and 254,000 active clients 4.8 4.3 3.2 3.1 • Banca Transilvania continued its specific 0.3 2.5 2.6 focus on the SME business sector, offering close to 9,500 new loans in H1 2018 2.8 2013 2014 2015 2016 2017 H1 2018 Loans transferred form VBRO SME loans 16
Slide 18: Corporate banking
Corporate banking corporate loan portfolio reached RON 11.2bn 11.0 11.1 11.2 10.7 10.0 0.9 9.9 • Sectorial specialization is a main focus • BT is present with lending facilities especially in the industrial manufacturing and agribusiness segments 10.1 2013 2014 2015 2016 2017 H1 2018 Loans transferr
Slide 19: Banca Transilvania Financial Group
Banca Transilvania Financial Group as of 30.06.2018* Total assets: RON 62.9bn Total assets: RON 9.7bn Total assets: RON 3.7bn Total assets: RON 114mn Total assets: RON 146mn Total assets: RON 892mn Total assets: RON 264mn AuM: RON 3,945mn *Total assets for Bancpost are computed under IFRS; Total ass
Slide 20: H1 2018 Highlights – consolidated figures
H1 2018 Highlights – consolidated figures H1 2018 H1 2017 ∆ Net interest income RONmn 1,276.5 923.0 38.3% Net fee and commission income RONmn 361.9 295.0 22.7% Operating expenses RONmn (1,088.8) (677.3) 60.8% profitability Gross profit before provisions RONmn 1,027.3 664.7 54.6% Net profit RONmn 864
Slide 21: Annex I: income statement H1 2018 – individual figures
annex I income statement H1 2018 – individual figures IFRS individual, RONmn H1 2018 H1 2017 ∆ Net interest income 1,011.7 886.3 14.2% Net fee and commission income 302.6 273.9 10.5% Net trading income 107.1 102.8 4.2% Other net income 2.2 (8.7) Operating income 1,423.6 1,254.2 13.5% Personnel expen
Slide 22: Annex II: balance sheet H1 2018 – individual figures
annex II balance sheet H1 2018 – individual figures IFRS individual, RONmn Jun 2018 Dec 2017 ∆ Cash & cash equivalents 6,318.0 6,637.7 -4.8% Placements with banks 4,545.3 5,302.3 -14.3% Loans to customers, net 31,352.2 29,914.0 4.8% T-bills & securities 18,454.0 16,115.7 14.5% Fixed assets 561.5 533
Slide 23: Annex III: income statement H1 2018 – consolidated figures
annex III income statement H1 2018 – consolidated figures IFRS consolidated, RONmn H1 2018 H1 2017 ∆ Net interest income 1,276.5 923.0 38.3% Net fee and commission income 361.9 295.0 22.7% Net trading income 96.4 120.3 -19.9% Other net income 381.3 3.6 10393.8% Operating income 2,116.1 1,341.9 57.7%
Slide 24: Annex IV: balance sheet H1 2018 – consolidated figures
annex IV balance sheet H1 2018 – consolidated figures IFRS consolidated, RONmn Jun 2018 Dec 2017 ∆ Cash & cash equivalents 8,937.6 6,637.7 34.6% Placements with banks 5,210.6 5,348.1 -2.6% Loans to customers, net 37,889.6 30,249.0 25.3% T-bills & securities 21,321.4 16,096.2 32.5% Fixed assets 812.5
Slide 25: Banca Transilvania HQ
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/compa