Banca Transilvania SA · BVB:TLV

Banca Transilvania SA — Q3 2013 Earnings Presentation

33 slides from Banca Transilvania SA's earnings presentation, 2013

  1. Slide 1: Q3 2013 Financial Results

    Q3 2013 FINANCIAL RESULTS IFRS non-consolidated

  2. Slide 2: Disclaimer

    Disclaimer  THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THIS INFORMATION OR OPINIONS CONTAINED HEREIN.

  3. Slide 3: Presentation Topics

    PRESENTATION TOPICS  Macroeconomic environment  BANCA TRANSILVANIA on its home market  Overview of business lines  Q3 2013 financial highlights  Conclusions 3

  4. Slide 4: Macroeconomic environment

    Macroeconomic environment GDP  Second quarter GDP increased by 10% 8.5% 0.5% QoQ (seasonal adjustment) 7.9% 6.3% 7.3% and by 1.4% (sa) compared to the 5.1% 5.2% 6% 4.2% same quarter last year 2.2% 2.1% 2.3% 2% 0.7%  Total consumption increased by -2% 0.5% QoQ (sa) while imports -1.1% contracted by

  5. Slide 5: Macroeconomic environment

    Macroeconomic environment Current Account deficit - % of GDP 0%  In August the current account -2% -0.9% recorded a deficit of RON 160 bln. -1.9% -4% -3.8% due to higher deficits on the -4.2% -6% -4.5% -4.5% income and trading balance -8% -8.5% -8.5%  Year end estimates stand at a -10% -10.4% 0.9%

  6. Slide 6: Romanian Banking Sector, within the European context

    Romanian Banking Sector, within the European context 500 Weight in GDP (%) Assets Loans Deposits 421 400 336 300 200 114 104 116.5 105 94 100 84 69 68 52 50 47 39 32 0 Austria France Romania Czech Republic Poland 6

  7. Slide 7: Romanian Banking System

    Romanian Banking System Total banking assets growth rates 90% *BT achieved 14.5% growth end of 2012 and 2% for the 48.33% 60% first half of 2013. 30.58% 30% 5.09% 3.64% 3.54% 3.39% 0% 2007 2008 2009 2010 2011 2012 H1 2013 -2.89% -30%  BT benchmarks well at 22% D&L end of 2012 and 22.55% H1 2013. So

  8. Slide 8: Romanian Banking System: end of 2012

    Romanian Banking System: end of 2012  Conservative and strong Central Bank  Rather concentrated: Top 10 banks own ~ 78% of total assets, Top 3 banks own around 42% • End of 2012 indicates a cumulative loss of RON 2.1 bn., almost three times bigger than the loss registered for 2011 (RON 777 mil.).

  9. Slide 9: Presentation Topics

    PRESENTATION TOPICS  Macroeconomic environment  BANCA TRANSILVANIA on its home market  Overview of business lines  H1 2013 financial highlights  Conclusions 9

  10. Slide 10: Banca Transilvania on its home market

    Banca Transilvania on its home market 19.63% 19.27% 20.00% H1 2013 Q3 2013 18.00% 16.00% 25% Market share by total assets 14.00% 12.66% 12.76% 12.00% 10.00% 20% 19.27% 8.48% 8.57% 19% 8.00% 6.00% 4.00% 15% 2.00% 13.1%12.7% 0.00% BCR BRD Banca Transilvania 10% 8.5% 8.08% Dec-12 7.35% 7.1% 6.7% 6.85%6

  11. Slide 11: Our Business Model

    Our Business Model  Traditional banking  Diverse revenue streams  Broad spread of risk Successful track record  Wide branch coverage  Deposit funded  Romania HQ 11

  12. Slide 12: Banca Transilvania's strengths

    Banca Transilvania’s strengths  Strong roots in Romania, one of the least banked CEE countries  The leading SME bank… The Bank for Entrepreneurial People  Nationwide distribution network with 548 branches and agencies  Solid capitalization (CAR 12.4% - 30.09.2013) and good funding structure  Lo

  13. Slide 13: Our rating

    Our rating Fitch Ratings – BT rating reaffirmed, July 2013 Long term IDR BB- Short-Term B Outlook Stable Individual D Support 3 13

  14. Slide 14: Shareholder structure, Sept. 2013

    Shareholder structure, Sept. 2013 No. of shareholders No. of shares % Romanian capital 27,636 993,554,737 45.03 individuals 27,008 445,621,741 20.20 companies 628 547,932,996 24.83 Foreign capital 764 1,212,881,587 54.97 individuals 625 52,518,284 2.38 companies 139 1,160,363,303 52.59 TOTAL 28,400

  15. Slide 15: Group structure

    Group structure Banca Transilvania Leasing Consumer Banking services Brokerage Asset Finance management Business lines SME Corporate Retail 15

  16. Slide 16: Geographical coverage

    Geographical coverage Key statistics, Sept. 2013 No. of units: 548 No. of customers: over 2.2 million Market shares Market share by assets: 8.5% Deposits (lei): 11.3% Loans (lei): 12.5% 16

  17. Slide 17: Presentation Topics

    PRESENTATION TOPICS  Macroeconomic environment  BANCA TRANSILVANIA on its home market  Overview of business lines  Q3 2013 financial highlights  Conclusions 17

  18. Slide 18: Business Lines & Sectorial Approaches

    Business Lines & Sectorial Approaches SME CORPORATE RETAIL Agriculture Healthcare EU Funds 18

  19. Slide 19: Overview of business lines

    Overview of business lines Client base Sept. 2013 Corporate 11,500 SME 200,000 Retail 2,000,000 Healthcare Division 29,000 Total, NBR definition over 2,200,000 19

  20. Slide 20: Corporate Clients

    Overview of business lines Corporate Clients  well diversified portfolio in Loans: Corporate Portfolio Breakdown, RON mil. terms of type and industry exposure. Trade is slowly 10,000 9,369 declining, while manufacturing 8,000 8,736 and agriculture are advancing; 6,000 7,612  domestic currency lend

  21. Slide 21: SME Banking

    Overview of business lines SME Banking SME Services SME Loan Evolution and Breakdown, RON mill.  20 SME-dedicated products launched as of now; 3,000  Loan portfolio reaching 547 mil. EUR end of Sept. 2,500 2,590 2,440 2,000 2013 1,500 1,805  200,000 active clients end of Sept. 2013. 1,000 500 SME

  22. Slide 22: SME Banking: commitment to the SME sector

    Overview of business lines SME Banking Commitment to the SME sector • Starting with 2002, together with the reorganization of the sales activity by business lines, Banca Transilvania has positioned itself as the SME Bank in Romania • This strategic goal was supported by a SME specialized products an

  23. Slide 23: SME Banking

    Overview of business lines SME Banking • Besides specialized banking services, we have tried to provide to our SME clients training and networking opportunities, free of charge, via Clubul Intreprinzatorului Roman, club established in 2006 which counts now 17,000 members • All these initiatives brou

  24. Slide 24: Retail Banking

    Overview of business lines Retail Banking Strategy Retail Loan Growth and Breakdown, RON mill. 6,700  The strategy for this year - 3 main 6,600 pillars: 6,500 6,605  To consolidate our Top 3 position in 6,400 6,300 cards in Romania 6,278 6,321 6,200  Client segmentation 6,100 6,000  More revenue

  25. Slide 25: Retail Banking: Bank Cards & ATMs

    Overview of business lines Retail Banking Bank Cards & ATMs Cards ATM POS  3rd largest issuer of credit/debit cards in 2,000,000 20,000 Romania 1,800,000 18,000  over 1.9 million Visa and MasterCard issued 1,600,000 16,000  15% market share - cards issued 1,400,000 14,000  17.5% market share - t

  26. Slide 26: Overview by sector: Healthcare

    Overview by sector Healthcare Strategy Approach  Dedicated team (doctors and bankers)  Transparency – costs  Stability – terms and conditions  Special Credit Scoring System Design  Flexibility – product packages  First credit card only for doctors  Friendly and assertive people – common langu

  27. Slide 27: Presentation Topics

    PRESENTATION TOPICS  Macroeconomic environment  BANCA TRANSILVANIA on its home market  Overview of business lines  Q3 2013 financial highlights  Conclusions 27

  28. Slide 28: Key Indicators September 2013

    Key Indicators September 2013 Net Profit & Assets Evolution (Lei million) 1.0 30,287 30,500  Loans portfolio up by 5% vs. Dec’12 30,122 30,178 Net Profit (YTD) 0.8 29,578 Total Assets 0.6 29,010  Net Profit: LEI 240.2 RON million 28,968 29,000 0.4 26,926 240 321 265  ROE (annualized): 11.24% 0.2

  29. Slide 29: Q3 2013 financial highlights (IFRS non-consolidated)

    Q3 2013 financial highlights (IFRS non-consolidated) m RON 30.09.2013 31.12.2012 y/y Cash and cash equivalents 4,528 5,576 0.81 Placements with banks 1,068 1,305 0.82 T bills and securities 7,992 6,648 1.20 Loans to customers, net 16,062 15,457 1.04 Fixed assets and participations 441 444 0.99 Other

  30. Slide 30: Q3 2013 financial highlights: Income statement

    Q3 2013 financial highlights (IFRS non-consolidated) Income statement m RON 30.09.2013 30.09.2012 Y/Y Net interest income 811.07 708.51 1.14 Net commissions income 259.14 314.25 0.87 Other operating income 77.51 94.44 0.82 Operating income 1,147.72 1,117.2 1.03 Operating expenses 582.68 561.45 1.04

  31. Slide 31: Presentation Topics

    PRESENTATION TOPICS  Macroeconomic environment  BANCA TRANSILVANIA on its home market  Overview of business lines  Q3 2013 financial highlights  Conclusions 31

  32. Slide 32: Conclusions

    Conclusions  We defend our position as 3rd bank in the system and we keep our entrepreneurial profile  We aim a market share of 10 – 11% in 2 – 3 years, but we keep a strong eye on efficiency  We continue to support the Romanian economy, targeting both organic growth and portfolio acquisitions (e

  33. Slide 33: Contact details

    Contact details Mihaela Nadasan, Executive Manager FI & IR Banca Transilvania S.A. 8 G. Baritiu Street Cluj-Napoca, 400027 Romania [email protected] Telephone + 40 264 407 150 Fax + 40 264 407 179 33

Banca Transilvania — Q3 2013 Earnings Presentation on 6ix