Banca Transilvania Sa · BVB:TLV
Banca Transilvania Sa — Q3 2023 Earnings Presentation
33 slides from Banca Transilvania Sa's earnings presentation, Nov 13, 2023
Slide 1: Banca Transilvania
9) BANCA TRANSILVANIA
Slide 2: Disclaimer
The information contained in the present Banca Transilvania undertakes no obligation to document has not been independently verified update publicly any of them in light of new and no representation or warranty expressed or information or future events. None of Banca implied is made as to, and no re
Slide 3: Net Profit for the first 9M 2023 while ROE exceeds 25%
LARGEST RETAIL AND ACTIVE ROMANIAN DIGITALIZED RETAIL BRANCHES ALL OVER COMMERCIAL BANK IN ROMANIA CUSTOMERS CLIENTS ROMANIA Net Profit for the first 9M 2023 while ROE exceeds 25% at the bank level Efficient operating platform (CIR), while continuing to drive the digitization of processes and custom
Slide 4: Macroeconomic Landscape
1 Macroeconomic Landscape
Slide 5: Consolidation of the investment cycle in the context of tempered inflationary pressures
20 16 Romania UE 14 15 12 10 10 9.2 5 8 2.7 6 0 0.0 4 4.9 3Q 19 2Q 21 1Q 23 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 2Q 23 -5 2 0 -10 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Sep-18 May-19 Sep-19 May-20 Sep-20 May-21 Sep-21 May-22 Sep-22 M
Slide 6: The YoY pace of lending slowed down in 3Q
30 12 Romania Euro Area Romania Euro Area 25 10 20 8 15 6 8.5 10 4 5 2 0.8 0.2 0 0 0.0 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Sep-19 Sep-18 May-19 May-20 Sep-20 May-21 Sep-21 May-22 Sep-22 May-23 Sep-23 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Sep-18 May-19 May-21 Sep-19 May-20 Sep-20 Sep-21 May-22 Sep-22 May
Slide 7: The YoY pace of deposits continued its acceleration in 3Q
25 18 Romania Euro Area Romania Euro Area 16 20 14 12.5 12 15 10 9.9 10 8 6 5 4 2 -0.7 0.2 0 0 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Sep-21 Sep-18 May-19 Sep-19 May-20 Sep-20 May-21 May-22 Sep-22 May-23 Sep-23 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Sep-20 Sep-23 Sep-18 May-19 Sep-19 May-20 May-21 Sep-21 Ma
Slide 8: Strong asset quality and robust capitalization of the banking sector
25 25 PL CZ HU RO 20 20 18.83 15 17.34 15 10 10 5 2.65 5 Romania EU 0 0 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 4Q 09 3Q 10 2Q 11 1Q 12 4Q 12 3Q 13 2Q 14 1Q 15 4Q 15 3Q 16 2Q 17 1Q 18 4Q 18 3Q 19 2Q 20 1Q 21 4Q 21 3Q 22 2Q 23 Source: National Bank of Romania (NBR) Sou
Slide 9: Business Performance
2. Business Performance
Slide 10: Key financial indicators
Net interest income, RONmn 3,099.5 2,616.4 18.5% 3,793.5 3,145.7 20.6% Net fee and commission income, RONmn 815.2 727.1 12.1% 941.7 852.4 10.5% Operating expenses, RONmn (2,135.0) (1,999.3) 6.8% (2,533.3) (2,171.4) 16.7% Pre-provision operating profit, RONmn 2,506.3 1,847.4 35.7% 3,095.3 2,256.4 37.
Slide 11: Net interest income and operating income
+18.5% 4.00% 3.44% 2.83% 2.97% 3.04% 2.54% 3,100 2,616 2018 2019 2020 2021 2022 Sep’23 +12.1% -10.1% 727 815 502 451 211 -195 Net interest Net fee & Net trading Net gain/loss from 66.78% income commission income income fin. assets 9M 2022 9M 2023 Net interest income Net trading income Net fee & comm
Slide 12: Retail and SME loans and deposits
other other 0.05 0.09 +6.6% Dec/22 Sep/23 Sep/23 RON 28.9bn RON 30.8bn +11.0 % Sep/23 Dec/22 Sep/23 RON 30.1bn RON 33.4bn *SMEs identified according to internal classification rules Financial Results Q3 | 13th November 2023 12
Slide 13: Loans and deposits evolution
+6.2% Sep/23 Dec/22 Sep/23 RON 77.9bn RON 82.7bn +13.6% Sep/23 Dec/22 Sep/23 RON 38.6bn RON 43.9bn *SMEs identified according to internal classification rules Financial Results Q3 | 13th November 2023 13
Slide 14: Retail lending shows a more vivid evolution as the new production picked up (+13%)
Retail lending shows a more vivid evolution as the new production picked up (+13%) +6.59% +6.20% 30.8 82.7 28.9 77.9 26.9 68.4 24.0 23.0 60.3 21.2 50.9 41.7 2018 2019 2020 2021 2022 Sep’23 2018 2019 2020 2021 2022 Sep’23 +9.13% +7.22% 5.8 5.3 3.6 4.4 4.7 3.2 3.5 3.7 4.1 2.9 3.0 2.6 2018 2019 2020 20
Slide 15: More than RON 16bn new production
more than RON 16bn new production +7.65% +12.28% 8.2 8.8 22.0 24.7 6.8 6.1 16.2 5.5 13.4 5.0 12.6 12.7 2018 2019 2020 2021 2022 Sep’23 2018 2019 2020 2021 2022 Sep’23 • Upgrading of operational capabilities (cash- • Strong credit origination activity pooling, swift for corporates, EBICS implementati
Slide 16: Risk
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Slide 17: Cost of risk and expected credit losses
BT – Stand Alone BT – Group +7.0% +4.9% 1.93% 4.31 4.74 0.04 4.52 0.06 4.02 0.05 0.09 3.61 3.94 0.05 1.35 0.10 1.63 1.25 1.56 1.78% 1.27 1.48 0.90% 1.71 1.79 1.64 1.70 0.68% 1.51 0.69% 1.56 0.59% 0.43% 0.59% 0.41% 0.37% 1.08 1.20 1.16 1.26 0.79 0.80 0.42% 0.25% 2021 2022 Sep’23 2021 2022 Sep’23 2018
Slide 18: NPL ratio and coverage
195 198 166 57 47 44 41 38 33 133 94 98 83 84 87 88 76 80 2018 2019 2020 2021 2022 Sep’23 2018 2019 2020 2021 2022 Sep’23 *Total ECL to EBA NPL NPL coverage with mortgage collaterals NPL coverage with provisions 4.36% 3.09% 2.79% NPL Ratio (EBA) NPL (PAR 90) 3.46% 3.46% 2.71% 2.00% 2.44% 2.22% 1.77%
Slide 19: Capital adequacy and buffers
22.94% 22.94 ---------- 7.07 18.74% 16.3% 15.87% CET1 NBR 10.87% 5.00 ---------- 11.11% 8.0% 2.87 18.2% 61.2% Min CET1 8.00 NBR Min CAR TSCR* OCR** CAR NBR Label CET1 Capital Retained earnings and reserves Tier 2 Capital Other STAND-ALONE BASIS, NBR COMPUTATION FRAMEWORK, TRANSITIONAL, PROFIT INCLUD
Slide 20: The second re-tap of EUR 190 million in August 2023
Other(5.02) 8.91 10.25 Equity Due from banks 17.86 9.05 Other (4.04) The second re-tap of EUR 190 million in Cash and Cash eq. Due to banks (0.36) August 2023 concluded the Loans and subdebt implementation of the EUR 1 billion MTN 50.15 Securities program approved in October 2022. 126.59 As per Sep’
Slide 21: Sustainability
Sustainability
Slide 22: Healthcare and agriculture financing
IN HEALTHCARE MARKET SHARE IN BANK IN ROMANIA WITH MARKET SHARE IN FINANCING MARKET HEALTHCARE FINANCING A DEDICATED DIVISION AGRICULTURE FINANCING NUMBER OF VALUE OF NUMBER OF VALUE OF CUSTOMERS NEW LOANS CUSTOMERS NEW LOANS DEPOSITS LOANS DEPOSITS LOANS Financial Results Q3 | 13th November 2023 22
Slide 23: Events for local entrepreneurs and renewable energy financing
In June-September, BT hosted 3 events dedicated to local entrepreneurs in Bucharest, Cluj, and Timisoara, with over 420 participants. Themed Renewable Energy: Technical Solutions and Financing Opportunities, these sessions featured panels on green energy production and energy efficiency solutions fo
Slide 24: Digital
Slide 25: STUP – One stop shop for Entrepreneurs
MEMBERS IN THE PARTICIPANTS TO ONE-ON-ONE ENTREPRENEURS ACCESSING COMMUNITY EVENTS MEETINGS STUP SOLUTIONS STUP – One stop shop for Entrepreneurs One-stop-shop for entrepreneurs Sprint in Entrepreneurship First steps in business: from establishment to financial analysis Stup Unplugged Online solutio
Slide 26: BT Financial Group
BT Financial Group
Slide 27: BT Financial Group
*Values refer to Idea Group Financial Results Q3 | 13th November 2023 27
Slide 28: Appendix
7 Appendix
Slide 29: Income statement – bank
Net interest income 3,099.5 2,616.4 18.5% Net fee and commission income 815.2 727.1 12.1% Net trading income 451.5 502.1 -10.1% Other net income 275.1 1.2 >100% Personnel expenses (1,208.1) (1,022.1) 18.2% D&A (298.6) (257.5) 15.9% Other operating expenses (628.3) (719.8) -12.7% Income tax (expense)
Slide 30: Balance sheet – bank
Cash & cash equivalents 17,859.0 12,645.2 41.2% Placements with banks and public institutions 8,911.7 6,634.9 34.3% Loans to customers, net 68,436.6 63,450.0 7.9% T-bills & securities 50,153.7 45,823.0 9.5% Fixed assets 1,181.5 1,161.0 1.8% Right-of-use assets 616.6 696.8 -11.5% Investments in assoc
Slide 31: Income statement – group
Net interest income 3,793.5 3,145.7 20.6% Net fee and commission income 941.7 852.4 10.5% Net trading income 524.8 553.2 -5.1% Other net income 368.5 (123.5) Personnel expenses (1,450.4) (1,211.0) 19.8% D&A (331.5) (286.9) 15.5% Other operating expenses (751.4) (673.5) 11.6% Income tax (expense)/rev
Slide 32: Balance sheet – group
Cash & cash equivalents 19,780.8 14,540.7 36.0% Placements with banks and public institutions 8,036.3 5,567.3 44.3% Loans to customers, net 72,607.0 68,013.5 6.8% T-bills & securities 51,901.9 47,191.3 10.0% Fixed assets 2,082.5 1,835.0 13.5% Right-of-use assets 420.3 488.0 -13.9% Investments in ass
Slide 33: Investor relations contact
30 – 36, Dorobantilor Street, Cluj-Napoca, Romania +40 264 407 150 | +40 264 301 128 investor.relations@btrl.ro