Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q1 2023 Earnings Presentation
27 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, May 15, 2023
Slide 1: BRD Group Results 1st quarter 2023
BRD GROUP RESULTS 1st quarter 2023 | 15.05.2023
Slide 2: Disclaimer
DISCLAIMER The preliminary consolidated and separate financial position and income statement for the period ended March 31, 2023 were examined by the Board of Directors on May 11, 2023. The financial information presented for the period ended March 31, 2023 and comparative periods has been prepared
Slide 3: Introduction
1 INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Dynamic commercial momentum and high rates driving revenues growth
DYNAMIC COMMERCIAL MOMENTUM AND HIGH RATES DRIVING REVENUES GROWTH Robust lending activity with strong contribution from corporates Portfolio growth +11.2% y/y at Mar 2023 end Excellent performance on top corporates segment, building on strong sectorial expertise Corporate loans +28% y/y at Mar 2023
Slide 5: Macroeconomic Environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: Increasingly resilient economy, inflation bite easing
INCREASINGLY RESILIENT ECONOMY, INFLATION BITE EASING GDP GROWTH Robust economic growth 7.3% Romanian economy accelerated in Q4 2022 (+4.5% y/y vs. +3.7% y/y 5.8% 6.4% 5.5% 5.1% in Q3’ 2022, gross series), with +5.1% y/y increase in households 4.7% 4.5% 4.1% 5.3% 4.7% 4.3% 4.5% 3.6% 3.5% 3.7% consum
Slide 7: Softening interbank rates amid good liquidity conditions
SOFTENING INTERBANK RATES AMID GOOD LIQUIDITY CONDITIONS NBR on hold for the moment, given inflation decline After ten monetary policy rate hikes (575 bps in total, since the start of INTEREST RATES the tightening cycle in October 2021) amid larger and lengthier inflation pressures from global cost
Slide 8: Diverse and extended programs in support of the economy
DIVERSE AND EXTENDED PROGRAMS IN SUPPORT OF THE ECONOMY National Recovery and Resilience Plan Main RRP objectives target green and digital transitions, while strengthening healthcare, education, social cohesion and inclusion Improving the institutional capacity to absorb European funds and respe
Slide 9: Solid banking sector, sound levels of indicators
SOLID BANKING SECTOR, SOUND LEVELS OF INDICATORS ROMANIAN BANKING SYSTEM NPL AND NPL COVERAGE RATIOS Solvency and liquidity coverage ratios above European average 66.1% 65.4% 63.3% 60.7% Capital adequacy ratio at 21.8% at December 2022 end, compared to 55.6% 56.2% 57.7% 58.5% EU 23.3% at 2021 end (v
Slide 10: 1st Quarter 2023 BRD Group Results
3 1ST QUARTER 2023 BRD GROUP RESULTS
Slide 11: Ongoing digital transformation initiatives, efficiency improvement actions
ONGOING DIGITAL TRANSFORMATION INITIATIVES, EFFICIENCY IMPROVEMENT ACTIONS FURTHER INCREASED USAGE OF E-CHANNELS ENHANCED DIGITAL JOURNEY 1.16m YouBRD users at Mar 2023 end, +42% y/y Q1 2023 highlights 5.8m nb of transactions via YouBRD & MyBRD, +25% y/y vs Q1 2022 increased store ratings to 4.5 o
Slide 12: Robust lending activity across the board
ROBUST LENDING ACTIVITY ACROSS THE BOARD Strong dynamic of corporate lending Loans to SME up by +30.4% vs March 2022 end NET LOANS active support for more than 750 SMEs under IMM Invest Plus (end of period amounts, RON bn) program, with the value of new loans granted reaching RON Y/Y 825m in Q1 20
Slide 13: Solid and diversified deposit base
SOLID AND DIVERSIFIED DEPOSIT BASE Continued yearly expansion of deposit base Higher inflows in term deposits from individuals and increased RON denominated resources from large corporates, in a context of DEPOSITS elevated and competitive remuneration rates (end of period amounts, RON bn) large c
Slide 14: Strong net interest income and trading result
STRONG NET INTEREST INCOME AND TRADING RESULT Continued NII growth momentum, up +20.6% y/y in Q1 2023 supported by dynamic volumes and higher interest rates NET BANKING INCOME (RON m) outstanding loans, up by + 11.2% y/y at Mar-23 end avg. ROBOR 3M, +345 bps y/y in Q1 2023 Y/Y …partially tempere
Slide 15: Below inflation opex increase given rigorous management of cost base
BELOW INFLATION OPEX INCREASE GIVEN RIGOROUS MANAGEMENT OF COST BASE Staff costs, +9.1% y/y in Q1 2023, on the impact of price effect driven by increase of wages and other benefits OPERATING EXPENSES (RON m) adjustments decided during Q2’22 …partially compensated by the decreasing trend, though at a
Slide 16: Stable asset quality despite high inflation and interest rates
STABLE ASSET QUALITY DESPITE HIGH INFLATION AND INTEREST RATES NET COST OF RISK Q1 net cost of risk at 8 bps NCR for Q1 close to nil as a result of stable performing portfolio, relatively limited new defaults and good recovery performance *Note: CoR (bps) in quarter is annualized NPL RATIO NPL ratio
Slide 17: Strong capital position, MREL compliance ensured
STRONG CAPITAL POSITION, MREL COMPLIANCE ENSURED Solid high quality capital base SOLVENCY RATIO CAR of 21.9% at March 2023 end Regulatory own funds composed of Tier 1 and Tier 2 capital +242bp -387bp Tier 2 capital consists of EUR 250m subordinated loans +419bp -206bp -26bp The year on year variatio
Slide 18: Conclusions
A CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 19: Conclusions
CONCLUSIONS BRD remained a close partner for its customers and the Romanian economy, as highlighted by the robust commercial performance across the board outstanding financing volumes on corporate segment, both on SMEs and top corporates resilient lending activity on retail, in an overall slow
Slide 20: Q&A Session
.) Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 21: Appendix
6 APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE - KEY FIGURES BRD STOCK PRICE PERFORMANCE FINANCIAL CALENDAR FOR 2023 GLOSSARY – CLIENT SEGMENTATION
Slide 22: 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 Q1-2023 Q1-2022 Change Net banking income 935 810 +15.5% Operating expenses (508) (460) +10.5% Gross operating income 427 350 +22.2% Financial results N
Slide 23: BRD Standalone | Key Figures
BRD STANDALONE | KEY FIGURES (1) Variations at constant exchange rate; (2) Bank only, including impact of prudential filters in Sep-17 and Dec-17; RON m Q1-2023 Q1-2022 Change Net banking income 893 765 +16.7% Financial results Operating expenses (487) (437) +11.2% Gross operating income 407 328 +24
Slide 24: BRD | Stock Price Performance
BRD | STOCK PRICE PERFORMANCE 9,000 24.0 Market capitalisation 8,000 22.0 EUR 1.7 bn 7,000 20.0 6,000 18.0 5,000 16.0 4,000 14.0 12.0 3,000 10.0 2,000 8.0 1,000 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
Slide 25: Financial Calendar for 2023
FINANCIAL CALENDAR FOR 2023 8th February: Preliminary 2022 financial results 27th April: General Shareholders Meeting for approving the 2022 annual financial results 12th May: Presentation of the 1st quarter 2023 financial results 3rd August: Presentation of the 2nd quarter and 1st half 2023 financi
Slide 26: 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 27: 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 2023 Earnings Presentation on 6ix