23 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 14, 2012
Slide 1: BRD 2011 Financial Results
BRD 2011 Financial Results Individual Financial Statements according to Romanian Accounting Standards February 14th, 2012 1
Slide 2: Content Agenda
Content Agenda Macroeconomic and banking environment Key business trends Financial performance 2
Slide 3: Content Agenda
Content Agenda Macroeconomic and banking environment Key business trends Financial performance 3
Slide 4: A timid economic recovery
A timid economic recovery GDP (Real Annual Growth ) Stronger than expected agricultural output had a favorable effect on GDP growth in H2 2011 1.8% But private consumption remained subdued 2009 2010 2011 E -1.3% And slowdown in European growth is to affect external demand, with a predictable negativ
Slide 5: A more constrained environment
A more constrained environment Impact of OUG 50 implementation interest rates to be either fixed or linked to an index (suppression of discretionary rates) elimination / cap of early reimbursement fees Increased contribution to the guarantee fund of deposits (from 0,2% in 2010 to 0,3% in 2011) and s
Slide 6: Agenda
Content Agenda Macroeconomic and banking environment Key business trends Financial performance 6
Slide 7: A powerful network, an enhanced operational efficiency
A powerful network An enhanced operational efficiency Number of branches (end of period) BRD is the first private bank by the number 930 930 937 937 of branches Actions of optimization are facilitated by the flexible structure of the network 2008 2009 2010 2011 Headcount (end of period) Operational
Slide 8: Robust business franchises
Robust business franchises Stock of active individual clients (x1000) Robust client base 2,379 + 43 2,334 2,279 2,236 Slightly decreasing trend in the number of active individual clients reversed in Q4 2011 2009 2010 Q3 2011 2011 Equipment rate individuals Focus on increasing equipment rate (number
Slide 9: An increased lending activity
An increased lending activity In a still difficult economic environment, Gross loans by segment (RON, bn) both loans to households and corporate +1.1% loans’ portfolios registered a growth 33.2 33.2 33.5 Maintained positions on credits to 17.2 17.1 17.2 households with a production mainly fueled by
Slide 10: Dynamic growth of deposits from individuals
Dynamic growth of deposits from individuals Deposits by segment (RON, bn) In a context of heavy price competition, commercial deposits grew by almost 1% in +0.9% 29.5 29.9 30.2 2011 14.9 15.2 15.0 Deposits from individuals up +3,5% vs end of 2010 (with term deposits being the major growth driver) 14
Slide 11: Lower than peers loans to deposits ratio
Lower than peers loans to deposits ratio Loans/deposits ratio-total (Bn RON) 33.2 33.5 33.2 117% 117% 29.9 30.2 29.5 115% 113% 111% 111% 2009 2010 2011 Loans Deposits L/D BRD L/D Banking system Key business trends 11
Slide 12: Content Agenda
Content Agenda Macroeconomic and banking environment Key business trends Financial performance 12
Slide 13: Revenues: decline of interest margin, but strong resilience of fees and commissions
Revenues : decline of interest margin, but strong resilience of fees and commissions Decrease in interest rates had a direct Net banking income (MRON) effect on net interest margin (sharp decrease in ROBOR rates in H1 2011) 3,538 3,416 3,227 FX and 3,053 424 Very good resilience of fees and 510 277
Slide 14: Cost base maintained under very strict control
Cost base maintained under very strict control Operating expenses (MRON) Operating expenses kept at the same 1,456 level as prior year 1,372 1,377 1,275 Other expenses Very limited increase in personnel 769 717 709 655 expenses, due notably to a 5% cut in headcount Staff expenses Compression of othe
Slide 15: Still high cost of risk, although reduced; lower than peers NPL ratio
Still high cost of risk, although reduced Lower than peers NPL ratio Net cost of commercial risk (b.p) Net cost of risk remained high, although 462 reduced as compared to 2010 370 309 Improving trend on households, but SME segment still affected by the difficult macroeconomic situation 141 2008 2009
Slide 16: Resilient net income
Resilient net income in M RON 2,010 2011 Var 11 /10 NET BANKING INCOME 3,538 3,227 -9% OPERATING EXPENSES (1,372) (1,377) 0% GROSS OPERATING INCOME 2,166 1,850 -15% Net cost of risk (1,563) (1,289) -18% OPERATING INCOME 603 561 -7% NET RESULT 501 465 -7% Financial performance 16
Slide 17: BRD comfortably profitable throughout the crisis
BRD comfortably profitable throughout the crisis 1,127 Net result BRD (MRON) 4,400 Net result Banking system (MRON) 779 501 465 816 2008 2009 2010 2011 -516 -766 2008 2009 2010 Sep-11 Financial performance 17
Slide 18: Strong capital base
Strong capital base Shareholders’ equity (MRON) Strong capital base, due a steadily 5,114 4,761 robust capacity of profit generation 4,397 4,454 34% ROE remains close to 10% 19% 12% 10% ROE 2008 2009 2010 2011 Capital adequacy ratio (*) standing well Solvability ratio above the minimum regulatory 14
Slide 19: Appendix
Appendix 19
Slide 20: Focus on subsidiaries: ALD - Operational vehicle leasing and fleet management
Focus on subsidiaries ALD - Operational vehicle leasing and fleet management Vehicles under In 2011, the estimated market 6,705 management 6,079 (number) share of ALD Romania is 18% 4,828 5,147 Fleet structure (December 2011) : 207 Corporate 222 240 236 clients (number) a) 5 316 -> Full Service Oper
Slide 21: Focus on subsidiaries: BRD Sogelease - Leasing
Focus on subsidiaries BRD Sogelease - Leasing Resilience of the activity despite the strong economic Gross profit ( MRON) recession translating into a still satisfactory gross profit 34 A key player in corporate asset 23 financing 14 Wide range of offers and financing solutions 2009 2010 2011 21
Slide 22: Focus on subsidiaries: BRD Finance - Consumer Finance
Focus on subsidiaries BRD Finance - Consumer Finance Sharp decrease in net cost of risk due to enhanced risk policy and recovery performances Evolution of results (MRON) 80.00 70.00 Improved profitability due to good 60.00 management of interest margin, 50.00 expenses and cost of risk 40.00 Net resu
Slide 23: Investors relationship
Investors relationship Phone : +4 021 - 301 61 33; Email : investor@brd.ro Disclaimer: Preliminary unaudited financial results 23