Brd Groupe Societe Generale Sa (romania) · BVB:BRD
Brd Groupe Societe Generale Sa (romania) — BRD Groupe Société Générale — FY2016 Earnings Presentation
32 slides from Brd Groupe Societe Generale Sa (romania)'s earnings presentation, Feb 10, 2017
Slide 1: BRD Group Results Full-Year and 4th Quarter 2016
BRD GROUP RESULTS FULL-YEAR AND 4TH QUARTER 2016 10 FEBRUARY 2017
Slide 2: Disclaimer
DISCLAIMER The consolidated balance sheet and profit and loss account for the period ended December 31, 2016 were examined by the Board of Directors on February 8, 2017. The financial information presented for the year ended December 31, 2016 and comparative periods has been prepared according to IF
Slide 3: Content
CONTENT CHAPTER 01_INTRODUCTION CHAPTER 02_MACROECONOMIC AND BANKING ENVIRONMENT CHAPTER 03_FULL-YEAR AND 4TH QUARTER 2016 GROUP RESULTS CHAPTER 04_CONCLUSIONS 10 FEBRUARY 2017 | P.3
Slide 4: 2016: Very Solid Financial Performance
2016: VERY SOLID FINANCIAL PERFORMANCE Net profit of RON 763m in 2016, +63.4% vs 2015 Increase in net banking income by +7.0% vs 2015 driven by growth in net interest income, higher fee and commissions income and VISA Europe transaction gain Operating expenses quasi stable vs 2015 reflecting ongoing
Slide 5: BRD Group | Key Figures
BRD GROUP | KEY FIGURES Q4-2016 Q4-2015 Variation 2016 2015 Variation Net banking income (RON m) 667 670 -0.4% 2,778 2,595 +7.0% Operating expenses (RON m) (356) (344) +3.5% (1,388) (1,385) +0.2% Financial results Gross operating income (RON m) 311 326 -4.5% 1,390 1,210 +14.9% Cost of risk (RON m) (
Slide 6: Macroeconomic and Banking Environment
CHAPTER 02 MACROECONOMIC AND BANKING ENVIRONMENT 10 FEBRUARY 2017 | P.6
Slide 7: Favourable Macroeconomic Environment
FAVOURABLE MACROECONOMIC ENVIRONMENT GDP GROWTH GDP growth estimated at 4.7% in 2016 versus 3.9% in 2015, driven by expansion of domestic 4.7% demand (essentially private consumption and 3.9% to a lower extent investments) 3.5% 3.1% 2016 year end CPI in negative territory, as expected, down -0.5% y/
Slide 8: Banking Sector: Higher Savings Rate, Modest Lending Growth
BANKING SECTOR: HIGHER SAVINGS RATE, MODEST LENDING GROWTH 7.3% deposit growth at 2016 end vs 2015 end: BANKING SYSTEM DEPOSITS (RON bn) yoy* 290 11.0% higher individuals’ savings 270 249 +7.3% 126 2.9% increase in companies’ deposits 110 122 +2.9% 1.2% higher gross loans pushed by loans granted 164
Slide 9: Banking Sector: Steady Decline of NPL Ratio
BANKING SECTOR: STEADY DECLINE OF NPL RATIO BANKING SECTOR NPL RATIO* Loss 2 NPL ratio EBA NPL ratio 21.9% 20.7% 18.2% 14.3% 13.9% 13.6% 9.9% Dec-11 Dec-12 Dec-13 Dec-14 Dec-14 Dec-15 Nov-16 3 4 Single digit NPL ratio at November 2016 end as portfolio clean up operations led to a continuous reductio
Slide 10: 2016 and 4th Quarter Group Results
CHAPTER 03 2016 AND 4TH QUARTER GROUP RESULTS 10 FEBRUARY 2017 | P.10
Slide 11: Strong Client Acquisition
STRONG CLIENT AQUISITION EVOLUTION OF ACTIVE INDIVIDUAL CUSTOMERS* Continuously expanding customer base over the (x 1000) last 2 years: +37k +14k +14k clients in 2015 +37k clients in 2016 Increased equipment rate (number of products per 2,102 2,117 2,154 active client) of individual customers due to
Slide 12: Robust Growth in Credit Origination
ROBUST GROWTH IN CREDIT ORIGINATION Production of loans to individuals remained on a INDIVIDUALS’ LOAN PRODUCTION (RON m) strong upward trend versus 2015, up by +11.2%: Q4-16 vs. 2016 vs. Q4-15 2015 further advance on unsecured consumer loans, 1,763 -5.1% +11.2% +20.3% vs 2015, thanks to rising dema
Slide 13: Deposits Growth with Positive Structure Shifts
DEPOSITS GROWTH WITH POSITIVE STRUCTURE SHIFTS DEPOSITS (outstanding amounts, RON bn) Overall deposits up +2.3% compared to December yoy* 2015 end 41.2 42.2 +2.3% retail deposits up +9.9% y/y while non retail 36.0 deposits contracted in a context of very 17.5 16.1 -7.9% comfortable liquidity situati
Slide 14: Broad-Based Full Year Net Banking Income Increase
BROAD – BASED FULL YEAR NET BANKING INCOME INCREASE NET BANKING INCOME (RON m) yoy 2,778 +7.0% NET BANKING INCOME (RON m) 2,595 yoy 670 667 -0.4% Net interest 1,586 +4.6% 1,516 income 396 407 +2.8% Net interest income Net fee and commissions 773 +3.1% -2.6% 750 Net fee and 193 188 commissions -10.8%
Slide 15: Net Banking Income Excluding Sale of Visa Europe Share Up 3.1%
NET BANKING INCOME EXCLUDING SALE OF VISA EUROPE SHARE UP +3.1% NET BANKING INCOME excl. non-recurring items (RON m) yoy 2,569 2,646 NET BANKING INCOME +3.0% excl. non-recurring items (RON m) yoy 665 663 -0.4% Net interest 1,516 1,586 +4.6% income Net interest income 396 407 +2.8% Net fee and +3.1%
Slide 16: Continued Disciplined Costs Control
CONTINUED DISCIPLINED COSTS CONTROL OPERATING EXPENSES (RON m) yoy OPERATING EXPENSES (RON m) 1,385 1,388 +0.2% yoy +3.5% 344 356 Staff expenses 655 688 +5.1% +5.9% Staff expenses 167 177 Other expenses 643 -1.2% 635 Other expenses +1.2% Contributions to 177 179 FGDB & FR* -26.0% 88 65 Q4-2015 Q4-20
Slide 17: Solid Operational Performance
SOLID OPERATIONAL PERFORMANCE GROSS OPERATING INCOME (RON m) GROSS OPERATING INCOME (RON m) +14.9% 1,390 1,210 131 Non recurring -4.5% 326 311 Non recurring 26 items COST/INCOME RATIO 5 4 items C/I ratio excl. non 321 -4.4% 307 GOI excl. non 53.9% 52.4% recurring items recurring items Q4 -2015 Q4 -2
Slide 18: Asset Quality
ASSET QUALITY Loan portfolio market mix GROSS LOANS - December 31, 2016 BREAKDOWN BY SEGMENT & 61% on individuals market segments CURRENCY (in bn RON) 39% on legal entities market segments 12.0 13.4 Consolidation of RON lending Individuals RON Share of RON denominated loans at around Companies FX 17
Slide 19: Cost of Risk and Coverage Ratio
COST OF RISK AND COVERAGE RATIO COST OF RISK EVOLUTION (in M RON) 2016 highlights Overall resilient risk profile for all non 2,500 600 2,083 legacy portfolios (retail and non retail) 2,000 1,883 500 Some residual impact from legacy NPL 400 portfolio sale activities 1,500 1,193 1,193 248 300 Further
Slide 20: Strong Net Income Growth, ROE at 11.8%
STRONG NET INCOME GROWTH, ROE AT 11.8% NET PROFIT (RON m) RETURN ON EQUITY 763 NET PROFIT (RON m) +63.4% 110 Net non +48.3% Net non 157 recurring items 11.8% 106 3 recurring items Non recurring 467 1.7% items 4 Net profit excl +50.4% 154 non recurring 22 7.8% 102 +46.6% items Net profit 0.4% 653 ROE
Slide 21: Self-Funded on a Standalone Basis
SELF- FUNDED ON A STANDALONE BASIS Slightly higher net loans to deposits at 67.6% at 2016 NET LOANS AND DEPOSITS (RON bn) end (versus 66.9% at 2015 end) on credit portfolio 107.8% growth 101.8% 40.0 100.0% 35.0 79.4% 76.0% Excess of liquidity primarily invested in Government 30.0 66.9% 67.6% 80.0% b
Slide 22: Strong Capital Position Supportive for Further Growth
STRONG CAPITAL POSITION SUPPORTIVE FOR FURTHER GROWTH Bank only Dec-14 Dec-15 Dec-16 Solid capital base composed of high quality Tier 1 eligible instruments: share capital, retained Capital adequacy ratio 17.2% 18.1% 18.9% earnings, reserves Own funds (RONm) 4,614 4,857 4,992 Capital adequacy ratio
Slide 23: Conclusions
CHAPTER 04 CONCLUSIONS 10 FEBRUARY 2017 | P.23
Slide 24: Conclusions
CONCLUSIONS BRD Group delivered a very good commercial and financial performance in 2016, marked by: Strong client acquisition dynamics Solid growth in credit origination mainly on retail and large corporate segments Increased core revenues Disciplined cost control Reduced cost of risk reflecting th
Slide 25: Recognized Excellence
RECOGNIZED EXCELLENCE Bank of the year on retail “The mobile application of the year”, “e-premiere“, best product market, Piata Financiara for our mobile banking application on the market - for our new MyBRD Mobile, MasterCard credit card, e-finance Number one on syndicated loan market, “Safest Bank
Slide 26: Q&A Session
Q&A Session 10 FEBRUARY 2017 | P.26
Slide 27: Appendix
APPENDIX 10 FEBRUARY 2017 | P.27
Slide 28: BRD | Key Figures for Bank Only
BRD | KEY FIGURES FOR BANK ONLY Q4-2016 Q4-2015 Variation 2016 2015 Variation Net banking income (RON m) 619 640 -3.2% 2,634 2,474 +6.5% Operating expenses (RON m) (335) (323) +3.7% (1,310) (1,310) 0.0% Gross operating income (RON m) 284 317 -10.4% 1,324 1,164 +13.8% Financial results Cost of risk (
Slide 29: BRD Stock Price Performance
BRD STOCK PRICE PERFORMANCE 13.0 Market capitalisation 4,000 EUR 1.8bn 12.0 3,500 3,000 11.0 2,500 10.0 2,000 9.0 1,500 8.0 1,000 7.0 500 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 domestic companies
Slide 30: Financial Calendar for 2017
FINANCIAL CALENDAR FOR 2017 9th February: Preliminary 2016 financial results and annual press conference 20th April: General Shareholders Meeting 20th April: Publication of the 2016 Board of Directors Report 4th May: Q1-2017 results publication 2nd August: H1-2017 results publication 3rd November: 9
Slide 31: 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 transfer an
Slide 32: Thank You
THANK YOU Investor Relations Tel. : +4 021 380 47 62 Email : investor@brd.ro Homepage: www.brd.ro 10 FEBRUARY 2017 | P.32
BRD Groupe Société Générale — FY2016 Earnings Presentation on 6ix