Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — Q3 2021 Earnings Presentation
27 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Nov 5, 2021
Slide 1: BRD Group Results 3rd quarter and 9 months 2021
BRD GROUP RESULTS 3rd quarter and 9 months 2021 | 05.11.2021
Slide 2: Disclaimer
DISCLAIMER The consolidated and separate financial position and income statement for the period ended September 30, 2021 were examined by the Board of Directors on November 3, 2021. The financial information presented for the period ended September 30, 2021 and comparative periods has been prepared
Slide 3: Introduction
INTRODUCTION BRD GROUPE SOCIETE GENERALE
Slide 4: Dynamic Business Performance
DYNAMIC BUSINESS PERFORMANCE Accelerated loan growth Corporate loan portfolio Very robust performance on corporate segment +19% vs September 2020 end Strong upward trend on individuals Individual loan production, +48% vs 9M 2020 Housing loan production, +40% vs 9M 2019 Client savings maintaining a g
Slide 5: Macroeconomic Environment
2 MACROECONOMIC ENVIRONMENT
Slide 6: Romanian economy engaged on a recovery path, inflation peaking up
ROMANIAN ECONOMY ENGAGED ON A RECOVERY PATH, INFLATION PEAKING UP Strong rebound of GDP in Q2 2021 GDP expanded by +1.9% q/q (seasonally adjusted) in Q2 2021, while annual growth printed to +14.4%, close to expectations. Domestic demand has once again become a contributor to economic GDP GROWTH expa
Slide 7: Higher interest rates
HIGHER INTEREST RATES NBR commences rate hiking cycle, joining regional central banks To support the economy in the context of unfolding COVID-19 epidemic, the central bank reduced the monetary policy rate four times from March 2020 to January 2021, by 125 bps in total, to 1.25%. INTEREST RATE ENVIR
Slide 8: Approved recovery and resilience plan, a chance to foster growth
APPROVED RECOVERY AND RESILIENCE PLAN, A CHANCE TO FOSTER GROWTH National Recovery and Resilience Plan The Romanian Government has adopted in April 2021 the National Recovery and Resilience Plan (RRP), for the implementation of which are allocated EU funds of EUR 29.2 bn (EUR 14.3 bn subsidies and
Slide 9: A very solid Romanian banking sector
A VERY SOLID ROMANIAN BANKING SECTOR ROMANIAN BANKING SYSTEM NPL AND NPL COVERAGE RATIOS Strong capital and liquidity positions Loan to deposit ratio at 68% at Jun-2021 end, up from 66% as of 2020 63.3% 63.8% EU 58.5% 60.7% end (vs 122% at 2008 end) 55.6% 57.7% 56.2% 57.7% 44.3% Average liquidity co
Slide 10: 3rd Quarter and 9 Months 2021 BRD Group Results
3 3RD QUARTER AND 9 MONTHS 2021 BRD GROUP RESULTS
Slide 11: Firmly committed to digital transformation
FIRMLY COMMITTED TO DIGITAL TRANSFORMATION ACCELERATING DIGITAL DELIVERIES Remote onboarding Online consumer lending Two essential services for individual customers now available 100% online FAST ADOPTION OF DIGITAL HIGHLY REACTIVE CUSTOMER CONTINUED TRANSFORMATION OF CHANNELS INTERACTION CENTER THE
Slide 12: Dynamic all over the board lending activity
DYNAMIC ALL OVER THE BOARD LENDING ACTIVITY NET LOANS (end of period amounts, RON bn) Y/Y Very robust corporate financing activity 33.7 +7.8% 31.2 30.7 SME loans’ strong growth of +27.8% y/y 10.5 8.8 +18.8% Active participation in IMM Invest Program with over RON 1 bn 8.7 approved loans for more tha
Slide 13: Consolidating our broad saving base
CONSOLIDATING OUR BROAD SAVING BASE SAVINGS (end of period amounts, RON bn) Y/Y Continued solid deposits’ collection 53.8 +11.9% 48.1 50.0 Higher corporate deposits, +21.5% y/y, driven by both large corporates (+26.6%) and SMEs (+15.9%) 19.0 +21.5% 15.6 16.2 Retail deposits up by +7.4% y/y +7.4% 32.
Slide 14: Higher revenues despite lower market rates
HIGHER REVENUES DESPITE LOWER MARKET RATES NET BANKING INCOME (RON m) Rising 9M revenues Y/Y NBI, up by +1.2% y/y in 9M 2021, reflecting the positive dynamic of +1.2% 2,308 2,335 commercial activity Other income 220 218 -0.6% Net fees and 528 580 +9.9% Positive influence on NII of broad based volume
Slide 15: OPEX evolution mainly reflecting digital transformation investments
OPEX EVOLUTION MAINLY REFLECTING DIGITAL TRANSFORMATION INVESTMENTS Contained increase in OPEX (+0.7%y/y in 9M 2021 OPERATING EXPENSES (RON m) Y/Y excluding FGDB&RF and IT costs) +2.7% reflecting the continuous structural optimization effort 1,188 1,220 Contributions to - +14.1% 43 49 FGDB & FR 527
Slide 16: Asset quality remains at comfortable levels
ASSET QUALITY REMAINS AT COMFORTABLE LEVELS GROSS LOANS – September 30, 2021 breakdown by segment and currency (RON bn) Loan portfolio market mix 67% on individuals 33% on corporate segment Consolidation of RON lending Share of RON denominated loans at 70.8% (vs 69.7% as of September 2020 end) Trend
Slide 17: Cost of risk close to zero
COST OF RISK CLOSE TO ZERO COST OF RISK* EVOLUTION Net cost of risk at 13 bps in Q3-21 210 631 198 461 160 137 313 110 102 Q3 NCR close to zero, reflecting costs incurred on performing 60 30 portfolio mainly given total exposure increase, partially offset by net 10 23 11 13 -40 gains on default port
Slide 18: Capital position
CAPITAL POSITION High quality capital base SOLVENCY RATIO CAR of 27% at September 2021 end Regulatory own funds composed solely of Tier 1 capital -154bp +333bp -264bp -34bp increase in own funds on a yearly basis driven by the incorporation of 2020 profit (net of dividends according to GSM resolut
Slide 19: Conclusions
rs) CONCLUSIONS BRD GROUPE SOCIETE GENERALE
Slide 20: Conclusions
CONCLUSIONS Romanian economy showed a strong rebound in Q2 2021. Some risk on the short term perspectives arose from pandemic resurgence, but on the long run the PNRR should be a strong factor of support for Romania’s structural growth Within this improving, though still volatile context, BRD de
Slide 21: BRD | Stock price performance
BRD | STOCK PRICE PERFORMANCE Market capitalisation 20.0 9,000 EUR 2.6 bn 8,000 18.0 7,000 16.0 6,000 14.0 5,000 12.0 4,000 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 largest d
Slide 22: Q&A Session
6 Q&A SESSION BRD GROUPE SOCIETE GENERALE
Slide 23: Appendix
APPENDIX BRD GROUP – KEY FIGURES BRD STANDALONE - KEY FIGURES 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 Q3-2021 Q3-2020 Change 9M-2021 9M-2020 Change Net banking income 798 796 +0.2% 2,335 2,308 +1.2% Operating expenses (394) (388) +1.5% (1,220) (1,188) +2
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 Q3-2021 Q3-2020 Change 9M-2021 9M-2020 Change Net banking income 743 756 -1.8% 2,215 2,189 +1.2% Operating expenses (368) (365) +0.6% (1,146) (1
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 Société Générale - Investor Relations
BRD GROUPE SOCIETE GENERALE - INVESTOR RELATIONS +4 021 380 47 62 | investor@brd.ro; www.brd.ro
BRD Groupe Société Générale — Q3 2021 Earnings Presentation on 6ix