Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — FY2015 Earnings Presentation
29 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 12, 2016
Slide 1: BRD Group Results Full-Year and 4th Quarter 2015
BRD GROUP RESULTS FULL-YEAR AND 4TH QUARTER 2015 12 FEBRUARY 2016
Slide 2: Disclaimer
DISCLAIMER The preliminary consolidated and separate financial position and income statement for the year ended December 31, 2015 were examined by the Board of Directors on February 10, 2016. The financial information presented for the year ended December 31, 2015 and comparative periods has been pr
Slide 3: Content
CONTENT CHAPTER 01_INTRODUCTION CHAPTER 02_MACROECONOMIC AND BANKING ENVIRONMENT CHAPTER 03_FULL-YEAR AND 4TH QUARTER 2015 GROUP RESULTS CHAPTER 04_CONCLUSIONS 12 FEBRUARY 2016 | P.3
Slide 4: 2015: Net Profit of RON 467 Million, Intensified Commercial Activity
2015: NET PROFIT OF RON 467 MILLION, INTENSIFIED COMMERCIAL ACTIVITY Net profit of RON 467m in 2015, significantly higher against 2014 thanks to a reduced net cost of risk and further measures of cost control Net profit of RON 87m in Q4-2015 (+3x versus Q4-2014) on declining operating expenses 2015:
Slide 5: BRD Group Key Figures
BRD GROUP | KEY FIGURES Q4-2014 Q4-2015 Variation 2014 2015 Variation Net banking income (RON m) 657 647 -1.4% 2,623 2,507 -4.4% Operating expenses (RON m) (368) (344) -6.6% (1,328) (1,297) -2.3% Gross operating income (RON m) 289 304 5.1% 1,295 1,210 -6.6% Financial results Cost of risk (RON m) (24
Slide 6: Macroeconomic and Banking Environment
CHAPTER 02 MACROECONOMIC AND BANKING ENVIRONMENT 12 FEBRUARY 2016 | P.6
Slide 7: Favourable Macroeconomic Context
FAVOURABLE MACROECONOMIC CONTEXT GDP EVOLUTION 2015 GDP estimated to rise by 3.6% versus 2014 mostly due to expanding domestic demand. 3.9% 3.5% 3.6% 3.0% 2015 end CPI reached -0.9% vs. 2014 end, crossing into negative territory starting with June following the extension of the VAT rate cut 1.1% to
Slide 8: Banking Sector: Growth of Loans' Outstanding Is Picking Up
BANKING SECTOR: GROWTH OF LOANS’ OUTSTANDING IS PICKING UP BANKING SYSTEM DEPOSITS (RON bn) 8.1% deposits growth at 2015 end vs. 2014 end: yoy* 270 +8.1% 249 6.0% higher individuals’ savings, indicating 231 prudent behavior 122 110 +10.8% 99 10.8% growth in companies’ deposits, sustained mostly by t
Slide 9: Banking Sector: Steady Decline of NPL Ratio
BANKING SECTOR: STEADY DECLINE OF NPL RATIO BANKING SECTOR LOSS 2 INDICATOR* 21.9% 18.2% 14.3% 15.0% 13.9% 11.7% Dec-11 Dec-12 Dec-13 Nov-14 Dec-14 Nov-15 3 4 Lower NPL ratio in the banking system compared to the years 2012-2013 helped by write-off operations and sale of impaired receivables Coverag
Slide 10: 2015 and 4th Quarter Group Results
CHAPTER 03 2015 AND 4TH QUARTER GROUP RESULTS 12 FEBRUARY 2016 | P.10
Slide 11: Larger Individuals' Customer Base
LARGER INDIVIDUALS’ CUSTOMER BASE EVOLUTION OF ACTIVE INDIVIDUAL CUSTOMERS* +14,000 yoy increase in the number of active (x 1000) individual customers (+40,000 increase at +14k constant methodology) 2,144 2,102 2,117 Higher equipment rate (number of products per active client) of individual customer
Slide 12: Individuals' Loan Production: Consolidation of Positive Trend
INDIVIDUALS’ LOAN PRODUCTION: CONSOLIDATION OF POSITIVE TREND INDIVIDUALS’ LOAN PRODUCTION (RON m) Q4-15 vs 2015 vs Strong annual increase of loan production in Q4-14 2014 2015 and Q4-2015 due to both housing and 1,422 1,374 unsecured consumer loans: +38.0% +21.8% 1,246 1,125 1,095 New housing loans
Slide 13: Expansion of the Deposits' Base
EXPANSION OF THE DEPOSITS’ BASE DEPOSITS (outstanding amounts, RON bn) Deposits on a growing trend compared to 2014 end, with both retail and non-retail yoy* clients showing material propensity to save 41.1 +13.9% 36.1 36.0 Expansion of household deposits in line with 17.4 +19.2% the bank’s strategy
Slide 14: YoY Evolution of Revenues Still Affected by Low Interest Rates
YOY EVOLUTION OF REVENUES STILL AFFECTED BY LOW INTEREST RATES Narrowing net interest margin in 2015, given the QUARTERLY NET BANKING falling interest rates context: INCOME (RON m) yoy 657 647 -1.4% Historically low interest rates… Average ROBOR 3M: 1.33% in 2015 Net interest from 2.53% in 2014 marg
Slide 15: Quarterly Net Banking Income: Shift to Growth Confirmed
QUARTERLY NET BANKING INCOME: SHIFT TO GROWTH CONFIRMED Steadily expanding net banking income on a quarterly basis QUARTERLY NET BANKING Positive trend of net interest margin INCOME (RON m) thanks to deposit re-pricing and growth of retail loan portfolio +2.1% +2.2% +2.4% 634 647 606 620 More broad-
Slide 16: Strict Cost Management
STRICT COST MANAGEMENT Strict cost management resulting in further QUARTERLY OPERATING decline in operating expenses: EXPENSES (RON m) yoy 368 -6.6% 344 Quasi stable staff costs in 2015, but by 0.9% lower excluding one-off item (employer 174 -4.0% contribution for the Free Shares Programme) 167 Savi
Slide 17: Asset Quality
ASSET QUALITY A relatively balanced loan portfolio from a market GROSS LOANS – December 31, 2015 mix perspective: BREAKDOWN BY SEGMENT & CURRENCY (RON bn) 60% on individuals segment 40% on companies’ segment 12.3 15.3 Individuals RON Gradual transition towards RON as dominant 15.5 Companies FX curre
Slide 18: Moderate Increase of Coverage Ratio and Declining Cost of Risk
MODERATE INCREASE OF COVERAGE RATIO AND DECLINING COST OF RISK COST OF RISK EVOLUTION (RON m) Highlights: Provisioning efforts focused on SMEs 2,131 373 400 1,943 311 350 Resilient risk profile for individuals 263 300 1,223 1,215 212 250 883 200 Net cost of risk evolution 658 150 2015 net cost of ri
Slide 19: Self-Funded on a Standalone Basis
SELF-FUNDED ON A STANDALONE BASIS Consolidation of net loans/deposits ratio: 66% at NET LOANS AND DEPOSITS (RON bn) 2015 end versus 76% at 2014 end, due to strong 108% deposit collection and reduction of FX net 4 0 .0 102% 1 0 0.0 % loans/deposits from 110% at 2014 end to 83% 3 5 .0 3 0 .0 79% 76% 8
Slide 20: Capital Adequacy Safely Above Requirements
CAPITAL ADEQUACY SAFELY ABOVE REQUIREMENTS Basel 2 Basel 3 Basel 3 Solid capital base composed of high quality Tier 1 eligible instruments: share capital, retained Group Dec-13 Dec-14 Dec-15 earnings, reserves Capital adequacy ratio 16.8% 18.5% 18.2% Capital adequacy safely above regulatory Own fund
Slide 21: Conclusions
CHAPTER 04 CONCLUSIONS 12 FEBRUARY 2016 | P.21
Slide 22: Conclusions
CONCLUSIONS In 2015, BRD registered substantial rise in profitability, expansion of the individual customer base and consistent progress on strategic and sound client segments – individuals and large corporate clients. Going forward in 2016, BRD is ready to take advantage of improved credit demand,
Slide 23: Q&A Session
Q&A Session 12 FEBRUARY 2016 | P.23
Slide 24: Appendix
APPENDIX 12 FEBRUARY 2016 | P.24
Slide 25: BRD Key Figures for Bank Only
BRD | KEY FIGURES FOR BANK ONLY Q4-2014 Q4-2015 Variation 2014 2015 Variation Net banking income (RON m) 619 617 -0.2% 2,498 2,386 -4.5% Operating expenses (RON m) (346) (323) -6.8% (1,255) (1,221) -2.7% Gross operating income (RON m) 273 295 8.1% 1,243 1,164 -6.3% Financial results Cost of risk (RO
Slide 26: BRD Stock Price Performance
BRD STOCK PRICE PERFORMANCE 13.0 4,000 Market capitalisation 12.0 EUR 1.6bn 3,500 3,000 11.0 2,500 10.0 2,000 9.0 1,500 8.0 1,000 7.0 500 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 2016
FINANCIAL CALENDAR FOR 2016 11th February: Preliminary 2015 financial results 11 February: Annual press conference 12 February: Presentation of the preliminary financial results for 2015 (conference call and webcast) 14th April: General Shareholders Meeting 14th April: Publication of the 2015 Board
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 transfer an
Slide 29: Thank You
THANK YOU Investor Relations Tel. : +4 021 380 47 62 Email : investor@brd.ro Homepage: www.brd.ro 12 FEBRUARY 2016 | P.29
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