Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — H1 2023 Earnings Presentation
33 slides from Banca Transilvania SA's earnings presentation, Aug 28, 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: Macroeconomic Landscape
1 Macroeconomic Landscape
Slide 4: Romanian economy outperformed the CEE countries in 2Q
20 RO HU PO CZ 140 RO PL CZ HU 15 120 100 10 80 5 60 0 40 2Q 03 2Q 04 2Q 05 2Q 06 2Q 07 2Q 08 2Q 09 2Q 10 2Q 11 2Q 12 2Q 13 2Q 14 2Q 15 2Q 16 2Q 17 2Q 18 2Q 19 2Q 20 2Q 21 2Q 22 2Q 23 -5 20 -10 0 Jul-03 Jul-12 Jul-21 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-13 Jul-14 Jul-15 Jul-16
Slide 5: Inflationary pressures slowing down, improved risk perception
30 450 CZ HU PL RO 400 25 350 20 300 250 15 200 10 150 100 5 50 0 0 May-21 May-22 May-23 Jul-23 Jan-21 Mar-21 Jul-21 Jan-22 Mar-22 Jul-22 Jan-23 Mar-23 Sep-21 Sep-22 Nov-21 Nov-22 Jul-16 Jul-23 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 -5 Source: Eurostat Source: B
Slide 6: The non-government loans continued the slowing down in 2Q
40% Total RON FX 25% Household Corporate Total 20% 30% 15% 20% 10% 10% 5% 0% 0% Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 -5% -10% Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Dec-16 D
Slide 7: Consolidation of the positive climate on the banking sector
2.5 25 16 ROA ROE (rhs) 2.0 20 14 12 1.5 15 10 1.0 10 8 0.5 5 6 0.0 0 4 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 2 -0.5 -5 0 -1.0 -10 May-16 May-17 May-18 May-19 May-20 May-21 May-22 May-23 Nov-16 Nov-17 Nov-18 Nov-19 Nov-20 Nov-21 Nov-22 -1.5 -15 So
Slide 8: Business Performance
2. Business Performance
Slide 9: Key financial indicators H1 2023
Net interest income, RONmn 2,036.8 1,694.9 20.2% 2,528.5 2,031.4 24.5% Net fee and commission income, RONmn 528.9 465.8 13.5% 606.7 551.0 10.1% Operating expenses, RONmn (1,436.3) (1,213.6) 18.3% (1,694.3) (1,453.3) 16.6% Pre-provision operating profit, RONmn 1,557.6 1,124.0 38.6% 1,981.1 1,380.5 43
Slide 10: Net interest income and operating income
4.00% 3.44% 2.83% 2.97% 3.09% +20.2% 2.54% 250 00000 0% 2,037 200 00000 0% 1,695 2018 2019 2020 2021 2022 Jun’23 150 00000 0% -21.0% 100 00000 0% +13.5% 0.37% 466 529 358 283 500 00000 % 134 0% -149 - 500000 00% Net interest Net fee & Net trading Net gain/loss from 68.03% income commission income in
Slide 11: Loan portfolio by segment
other other 0.05 0.05 +1.4% Dec/22 Jun/23 Jun/23 RON 28.9bn RON 29.3bn +4.6% Jun/23 Dec/22 Jun/23 RON 30.1bn RON 31.5bn *SMEs identified according to internal classification rules Financial Results H1 | 28th August 2023 11
Slide 12: Deposits and customer funds
+4.0% Jun/23 Dec/22 Jun/23 RON 77.9bn RON 81.0bn +7.4% Jun/23 Dec/22 Jun/23 RON 38.6bn RON 41.5bn *SMEs identified according to internal classification rules Financial Results H1 | 28th August 2023 12
Slide 13: Retail lending moderately resumes impacted by inflation and interest rates
Retail lending moderately resumes impacted by inflationary pressures and increased interest rates +1.36% +3.96% 28.9 29.3 81.0 77.9 26.9 24.0 68.4 23.0 21.2 60.3 50.9 41.7 2018 2019 2020 2021 2022 Jun’23 2018 2019 2020 2021 2022 Jun’23 +6.94% +8.36% 5.6 3.5 3.6 5.3 3.2 4.7 2.9 3.0 4.1 4.4 2.6 3.7 20
Slide 14: More than RON 11bn new production
more than RON 11bn new production +3.39% +5.01% 8.2 8.4 22.0 23.1 6.8 6.1 16.2 5.5 13.4 5.0 12.6 12.7 2018 2019 2020 2021 2022 Jun’23 2018 2019 2020 2021 2022 2023 • Upgrading of operational capabilities and key • Continue to invest in digital initiatives to competences in corporate lending; integra
Slide 15: Asset Quality and Capital
a4 a7) 3
Slide 16: Cost of risk and expected credit loss
BT – Stand Alone BT – Group 1.93% +3.5% +0.2% 1.78% 4.16 4.52 4.52 4.02 0.05 0.09 0.07 0.05 3.61 3.94 0.05 0.10 1.32 1.57 1.25 1.56 1.27 1.48 0.90% 1.64 1.67 0.68% 0.69% 1.70 1.72 0.59% 1.51 1.56 0.59% 0.43% 0.42% 0.41% 1.08 1.12 1.16 1.16 0.13% 0.79 0.80 -0.05% 2018 2019 2020 2021 2022 Jun’23 2021
Slide 17: NPL ratio and coverage
195 192 166 57 47 44 41 38 33 133 94 98 83 84 87 89 76 80 2018 2019 2020 2021 2022 Jun’23 2018 2019 2020 2021 2022 Jun’’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% 2.36% 1.77
Slide 18: Capital adequacy and requirements
23.88% 23.88% Out of which: 8.01 ---------- 19.58% CET1 NBR 24.6% 15.87% 5.00 10.87% ---------- 53.8% 11.11% Min CET1 8.0% 2.87 NBR 18.0% 8.00 Min CAR TSCR* OCR** CAR NBR CET1 Capital Retained earnings and reserves Tier 2 Capital Other STAND-ALONE BASIS, NBR COMPUTATION FRAMEWORK, TRANSITIONAL, PROF
Slide 19: Balance sheet structure and bond issuance
Other(4.64) 5.31 10.45 Equity Due from banks Other(3.08)) 20.05 8.15 Cash and Cash eq. Due to banks (0.44) Loans and subdebt BT's debut bond issuance in international financial markets was launched in April 2023: EUR 500 million, SNP, 4NC3, MREL eligible bonds. Securities 49.48 The initial issuance
Slide 20: Sustainability
Sustainability
Slide 21: BT improved its ESG score in the Sustainalytics assessment
BT improved its ESG score in the Sustainalytics assessment during 2023 to 15.1 (Low ESG Risk), from a score of 17 Low ESG Risk in 2022, as a result of continuous commitment to integrate ESG factors in its activity. 2022 was the first year when BT estimated its financed emissions (i.e. the carbon foo
Slide 22: RON 1.6 billion in green loans granted
RON 1.6 billion in green loans granted 790 32 Green retail portfolio 30 58 1,888 1,778 510 212 7 10 368 34 1,103 129 40 4 49 457 330 273 2 2021 2022 Jun’ 2023 2021 2022 Jun’ 2023 Green Buildings Energy Efficiency Renewable Energy Mobility Special Climate ✓ Green loans granted to companies in 1H23 am
Slide 23: — wc J — = = i—|
— wc J — = = i—|
Slide 24: Digital banking for business clients
CLIENTS PAYMENTS EXTERNAL PAYMENTS Online current account opening in lei and foreign currency View transactions and generate statements Issuing and paying invoices Transfer money between own accounts & to business partners Upload documents - invoices, receipts, contracts Financial Results H1 | 28th
Slide 25: BT Pay app new features
UNIQUE CARDS IN BT PAY UNIQUE DIGITIZED PHONE IN VOLUMES TRANSFERRED WALLETS CLIENTS PAYMENTS THROUGH BT PAY BT Pay app – new features added constantly in order to offer easy and inclusive access to bank’s products & services BT Kiddo - a new card and dedicated BT Pay features for kids aged 10-14 an
Slide 26: BT Financial Group
BT Financial Group
Slide 27: BT Financial Group
*Values refer to Idea Group Financial Results H1 | 28th August 2023 27
Slide 28: Appendix
a Appendix
Slide 29: Stand-alone income statement
Net interest income 2,036.8 1,694.9 20.2% Net fee and commission income 528.9 465.8 13.5% Net trading income 283.1 358.5 -21.0% Other net income 145.0 (181.6) Personnel expenses (821.3) (693.8) 18.4% D&A (197.3) (167.7) 17.7% Other operating expenses (417.7) (352.1) 18.6% Income tax (expense)/revenu
Slide 30: Stand-alone balance sheet
Cash & cash equivalents 20,048.2 12,645.2 58.5% Placements with banks and public institutions 5,309.0 6,634.9 -20.0% Loans to customers, net 65,092.1 63,450.0 2.6% T-bills & securities 49,479.2 45,823.0 8.0% Fixed assets 1,167.4 1,161.0 0.5% Right-of-use assets 645.5 696.8 -7.4% Investments in assoc
Slide 31: Group income statement
Net interest income 2,528.5 2,031.4 24.5% Net fee and commission income 606.7 551.0 10.1% Net trading income 328.9 380.8 -13.6% Other net income 211.3 (129.4) Personnel expenses (979.4) (818.5) 19.7% D&A (218.3) (188.5) 15.8% Other operating expenses (496.7) (446.3) 11.3% Income tax (expense)/revenu
Slide 32: Group balance sheet
Cash & cash equivalents 22,762.6 14,540.7 56.5% Placements with banks and public institutions 4,227.7 5,567.3 -24.1% Loans to customers, net 69,460.7 68,013.5 2.1% T-bills & securities 51,754.3 47,191.3 9.7% Fixed assets 1,853.1 1,835.0 1.0% Right-of-use assets 446.5 488.0 -8.5% Investments in assoc
Slide 33: Contact investor relations
30 – 36, Dorobantilor Street, Cluj-Napoca, Romania +40 264 407 150 | +40 264 301 128 investor.relations@btrl.ro