INVESTORS & ANALYSTS TELECONFERENCE
Financial results as of December 31, 2024
April 8, 2025
patriabank.ro
WELCOME TO PATRIA BANK TELECONFERENCE - 2024 FINANCIAL RESULTS
Valentin Vancea | Georgiana Stanciulescu | Răzvan Prodea | Răzvan Pașol |
Deputy General | Deputy General | Manager, Capital | |
General Manager | |||
Manager, Financial | Manager, Risk | Markets and IR Division | |
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AGENDA
- Patria Bank in 2024
- Macroeconomics context
- Main results in 2024
- Commercial and operational developments
- Digitalization
- 2025 Budget
- Patria Bank shares and bonds
- Shareholders and management
- Q&A
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DISCLAIMER
This presentation is not and nothing in it should be construed as an offer, invitation or recommendation with respect to Patria Bank S.A. ("PBK"), or an offer, invitation or recommendation to sell or a solicitation of an offer to buy PBK shares or other financial instruments.
Nothing in this presentation and nothing in it shall form the basis of any contract or commitment. This presentation is not intended to be based on advice or recommendations to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor.
All investors should consider this presentation in consultation with a professional advisor of their choice when deciding whether an investment is appropriate.
Patria Bank S.A. has prepared this presentation based on information available to it, including information derived from public sources that has not been independently verified. No representation or warranty, express or implied, is made as to the objectivity, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein.
This presentation should not be considered a comprehensive representation of Patria Bank's business, financial performance or results.
This presentation may contain forward-looking statements. These statements reflect Patria Bank's current knowledge and its expectations and projections regarding future events and can be identified by the context of such statements or words such as "anticipates", "believes", "estimates", "expects", "intends", "plan", "project", "target", "may", "will", "would", "could" or "should" or similar terminology.
Patria Bank undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances that occur after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions may not materialize, and unforeseen events and circumstances may affect the final financial results. The projections are inherently subject to substantial and numerous uncertainties and a wide range of significant commercial, economic and competitive risks.
As a result, the final results obtained may differ materially from the forecasts, and the variations may be material.
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PATRIA BANK IN 2024
Best operational year of the last five years
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2024 - BEST OPERATIONAL YEAR OF THE LAST 5 YEARS
In 2024, Patria Bank recorded the highest levels in the last five years for three main operational indicators: performing loans, new loan sales and attracted sources.
- New loan sales - this shows the Bank's ability to attract customers and generate growth. New loan sales reached RON 1.4 billion in 2024, with a remarkable increase of 70% compared to the previous year
- Commercial funding- indicates customer confidence and the Bank's ability to finance itself efficiently; raising stable deposits contributes to a healthy interest margin. The balance of commercial funding reached RON 3.7 billion, registering an increase of 18% compared to 2023, a sign of customer confidence and the ability to mobilize resources.
- Performing loans - reflects the performance of the sales activity within the Bank. The balance of performing loans reached RON 2.4 billion at the end of 2024, representing an increase of 16% compared to 2023.
New loan sales (RON mill.)
Commercial funding (RON mill.)
Performing loans exposure (RON mill.)
1,370
2,903
3,309 3,444 3,122
3,686
2,177
2,370
1,087 | |
823 | 968 |
804 |
1,9572,037
1,679
2020 | 2021 | 2022 | 2023 | 2024 |
2020 | 2021 | 2022 | 2023 | 2024 |
2020 | 2021 | 2022 | 2023 | 2024 |
6 Source: National Bank of Romania
2024 - OPERATING RESULTS
- New loans amounting to RON 1.4 billion:
- 1,226 companies financed by Patria Bank in 2024, to support the entrepreneurial environment
- 2,597 retail customers financed by Patria Bank in 2024 (+18% vs. 2023).
- Three times higher lending activity in the SME segment
- Strategic focus on Green Lending, especially in the renewable energy segment
- Diversification of sales towards the food industry in the AGRO segment
- Participating in infrastructure projects through trade finance activity.
- 7,108 new customers in 2024, +8% vs. 2023
- 4,741 granted loans in 2024, +10% vs. 2023
- 7,409 new Internet Banking subscriptions in 2024,
+21% vs. 2023 - Acquisition of a portfolio of performing loans from Alior Bank - 3,200 customers with consumer loans denominated in RON amounting to RON 69 million. The transaction contributed both to the growth of the Bank's consumer loan portfolio and to the increase in the number of individual customers.
7 Source: National Bank of Romania
MACROECONOMICS CONTEXT
Signs of slowdown and turmoil in economy
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ROMANIA: MACROECONOMICS CONTEXT
- Romania's economy grew by 0.9% in 2024 and in Q4 the Gross Domestic Product (GDP) rose by 0.7% compared to the same quarter of 2023 and by 0.8% compared to the previous quarter, (National Institute of Statistics provisional data).
- Real GDP growth was unexpectedly slow in 2024 and is likely to remain subdued in 2025 as economic activity could be negatively impacted by fiscal consolidation and weak external demand.
- Romania is currently at 79% of the European Union average in terms of GDP/capita, surpassing several countries such as Slovakia, Hungary, Greece and Croatia, and being at a level comparable to Poland and Estonia. The level of GDP/capita in relation to the European Union average has increased from 54% in 2013 to 79% today.
- The public deficit for 2024 rose to 8.7% of GDP (compared to 5.6% in 2023) and the 2025 target is an ambitious one, i.e. 7.0%. This target requires additional fiscal adjustment measures to be achieved.
- Inflation (CPI) has remained around 5% in 2024, and the forecast indicates a gradual decline towards 3.1% by the end of 2026.
2020 | 2021 | 2022 | 2023 | 2024 | 2025F | |||||||
5.7 | 5.3 | 4.1 | ||||||||||
2.6 | 2.1 | 1.3 | 1.9 | |||||||||
0.9 | ||||||||||||
0.4 | 0.4 | |||||||||||
-3.7 | ||||||||||||
-5.7 | ||||||||||||
RO GDP | EU GDP | |||||||||||
CONSUMER PRICE INDEX
4.9 5.1
4.6
5.3 | |||||||||||||||||||||||||||
4.6 | |||||||||||||||||||||||||||
4.4 | |||||||||||||||||||||||||||
3.8 | 3.2 | ||||||||||||||||||||||||||
3.1 | 3.0 | 3.1 | |||||||||||||||||||||||||
Actual | Forecast | ||||||||||||||||||||||||||
Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | Q 1 | Q 2 | Q 3 | Q 4 | |||||||||||||||||
2 0 2 4 | 2 0 2 4 | 2 0 2 4 | 2 0 2 5 | 2 0 2 5 | 2 0 2 5 | 2 0 2 5 | 2 0 2 6 | 2 0 2 6 | 2 0 2 6 | 2 0 2 6 |
9 Source: National Institute of Statistics, Eurostat, National Bank of Romania
INTEREST RATES
- NBR decided to reduce the monetary policy interest rate in 2024, from 7.0% to 6.5% and this level has been maintained so far based on the still high inflationary pressures.
- Most analysts estimate that the interest rate cut cycle could resume only towards the end of 2025, amid still high inflation and significant macroeconomics imbalances.
- The surplus liquidity in the money market decreased significantly in the second half of 2024, which led to an increase in interbank interest rates. In early 2025 liquidity returned to an upward trend, and this surplus is expected to be maintained in the coming months.
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7
6
5
4
Jan-24 Apr-24 Jul-24 Oct-24 Jan-25
Inflation (%) ROBOR (%) IRCC (%)
10 Source: National Bank of Romania