Banca Transilvania SA · BVB:TLV
Banca Transilvania SA — Q1 2015 Earnings Presentation
37 slides from Banca Transilvania SA's earnings presentation, 2015
Slide 1: Q1 2015 - Financial Results
BANCA TRANSILVANIA’ WA Q1 2015 - FINANCIAL RESULTS
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.
Slide 3: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2015 individual financial results 2014 financial results, consolidated Conclusions 3
Slide 4: Macroeconomic environment
Macroeconomic environment GDP (%, Y/Y) The GDP rose by 2.8% Y/Y in 2014, an evolution determined by the dynamics 10% 8.5% 7.9% 7.3% of the domestic demand. 6.3% 6% 4.2% 3.4% 3.3% The private consumption increased by 2.3% 2.8% 2.5% 2.8% 2% 0.6% 4.5% Y/Y last year, while the government consumption
Slide 5: Macroeconomic environment
Macroeconomic environment Current Account deficit - % of GDP The current account continued to 0% adjust in 2014: the deficit diminished -2% -0.8% -0.5% -1.1% -1.5% to 0.5% of GDP, a record low level for -2.0% -4% the past 25 years. -4.5% -4.6% -4.6% -4.5% -6% In January-February 2015 the current
Slide 6: Romanian Banking Systems – banking assets and NPLs
Romanian Banking Systems – banking assets and NPLs Total banking assets growth rates 5.01% 6% BT achieved 8.4% growth during 5% 2013, 11.2% asset increase during 3.56% 2014 and 1.2% for Q1 2015 3.50% 3.31% 4% 3% 2% 0.60% 1% -0.92% 0% 2009 2010 2011 2012 2013 2014 -1% NPL 21.87% 22.00% BT benchma
Slide 7: Romanian Banking System – loans and deposits
Romanian Banking System – loans and deposits RON non-government loans (RON bn) FX non-government loans (RON bn) 100,000 92,124 160,000 141,378 141,151 90,000 84,723 85,354 131,947 133,111 83,669 79,712 77,352 81,654 140,000 80,000 120,171 118,868 67,713 120,000 114,411 70,000 60,000 100,000 49,486 8
Slide 8: Romanian Banking System
Romanian Banking System Conservative and strong Central Bank Top 7 banks hold approx. 66% of total assets; Top 3 banks weight around 40% • End of 2014 the 40 banks operating on the market recorded a loss of RON 4.3 bn (for the end of 2013, the cumulative profit was corrected at RON 49 mill., com
Slide 9: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2015 individual financial results 2014 financial results, consolidated Conclusions 9
Slide 10: Banca Transilvania's growth path
Banca Transilvania’s growth path BT: market share evolution 10% 9.78% 8.9% 9% 8.1% 8% 7.3% 7% 6.3% 6% 5.9% 5.5% 5.4% 5% 4.7% 4% 3.9% UNITS 2.9% BT clients and units evolution 3% CLIENTS 600 3,000,000 535 540 2% 1.8% 2.0% 500 2,500,000 1% 400 2,000,000 300 1,500,000 0% 215 2002 2003 2004 2005 2006 20
Slide 11: Banca Transilvania on its home market
Banca Transilvania on its home market Source: NBR 11
Slide 12: 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 12
Slide 13: 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 540 branches and agencies Solid capitalization (CAR 17.83%, Q1 2015) and good funding structure Loan
Slide 14: Our rating
Our rating Fitch Ratings – BT rating reaffirmed, June 2014 Long term IDR BB- Short-Term B Outlook Stable Individual D Support 3 14
Slide 15: Shareholder structure, Q1 2015
Shareholder structure, Q1 2015 No. of shareholders No. of shares % Romanian capital 26,174 1,280,516,206 49.09 individuals 25,567 443,088,077 16.99 companies 607 837,428,129 32.10 Foreign capital 791 1,328,107,655 50.91 individuals 617 50,865,922 1.95 companies 167 1,277,241,733 48.96 TOTAL 26,965 2
Slide 16: Group structure
Group structure Banca Transilvania Leasing Consumer Banking services Brokerage Asset Finance management Business lines SME Corporate Retail 16
Slide 17: Geographical coverage
Geographical coverage Key statistics No. of units: 540 No. of customers: over 2.6 million Market shares, end of 2014 Market share by assets: 9.78% Deposits (lei): 13.77% Loans (lei): 14.99% 17
Slide 18: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2015 individual financial results 2014 financial results, consolidated Conclusions 18
Slide 19: Business Lines & Sectorial Approaches
Business Lines & Sectorial Approaches SME CORPORATE RETAIL Agriculture Healthcare EU Funds 19
Slide 20: Overview of business lines: Corporate Clients
Overview of business lines Corporate Clients Loans: Corporate Portfolio Breakdown, RON mil. well diversified portfolio in terms of type and 12,000 industry exposure; trade is slowly declining, while 9,882 9,975 10,079 10,000 manufacturing and agriculture are advancing; 7,612 8,736 8,000 domestic
Slide 21: Overview of business lines: SME Banking
Overview of business lines SME Banking SME Services SME Loan Evolution and Breakdown, RON mill. 3,000 20 SME-dedicated products 2,509 2,482 2,579 2,553 launched so far; 2,500 Loan portfolio reaching RON 2,553 2,000 1,805 mil. Q1 2015 1,500 over 260,000 active clients. 1,000 SME Loans 500 Rem
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
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 over 17,000 members • All these initiatives
Slide 24: Retail Banking
Overview of business lines Retail Banking Strategy Retail Loan Growth and Breakdown, RON mill. 8,000 7,562 7,467 6,797 6,278 6,321 The strategy for this year - 3 main 6,000 pillars: 4,000 To consolidate our Top 3 position in cards in Romania 2,000 Client segmentation More revenues from “operat
Slide 25: Retail Banking: Bank Cards & ATMs
Overview of business lines Retail Banking Bank Cards & ATMs Cards ATM POS 2nd largest issuer of credit/debit cards in 2,500,000 24,000 Romania over 2.3 million Visa and MasterCard issued 2,000,000 18,000 17.05% market share - cards issued 17.86% market share - transactions volume 1,500,000 12,
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
Slide 27: Overview by sector: Agribusiness
Overview by sector Agribusiness Strategy Approach Dedicated products for agriculture and Specialized team agribusiness Qualitative and technical overview Good cooperation with relevant Integrated chain overview authorities (Agriculture Ministry and guarantee funds), lending products design
Slide 28: Overview by sector: EU Structural funds
Overview by sector EU Structural funds Strategy Approach Consolidating BT position as EU funds Specialized team specialist Flexible financing products + consulting Enhancing partnerships with consultants Integrated services following the project acting in EU funds sector cycle Active mem
Slide 29: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2015 individual financial results Summary 2014 financial results, consolidated Conclusions 29
Slide 30: Summary Q1 2015
Summary Q1 2015 Net Profit & Assets Evolution (RON million) Net Profit: RON 151 million 37,000 500 36,058 Cost / Income: 41.74% 36,000 35,620 434 375 400 ROE: 16.92% 35,000 34,047 338 33,899 Loan portfolio: + 1.7% vs. Dec.14 34,000 300 212 32,924 33,000 200 32,066 32,000 103 152 100 31,000 3
Slide 31: Q1 2015 financial highlights - IFRS, bank only
Q1 2015 financial highlights - IFRS, bank only m RON 31.03.2015 31.12.2014 Δ (%) Cash and cash equivalents 4,642 4,226 9.8 Placements with banks 3,048 2,216 37.5 T bills and securities 9,957 11,069 -10.05 Loans to customers, net 17,811 17,517 1.7 Fixed assets and participations 426 435 -2.06 Other a
Slide 32: Q1 2015 financial highlights - Income statement
Q1 2015 financial highlights - IFRS, bank only Income statement m RON 31.03.2015 31.03.2014 Δ (%) Net interest income 254 276 -8.0 Net commissions income 100 91 10.0 Other operating income 193 58 232.5 Operating income 548 425 29.1 Operating expenses 229 199 14.9 Profit before provisions 319 226 41.
Slide 33: 2014 vs 2013 – IFRS, consolidated
2014 vs 2013 – IFRS, consolidated m RON 31.12.2014 31.12.2013 y/y Cash and cash equivalents 4,234 4,106 3.1% Placements with banks 2,387 1,761 35.5% T bills and securities 10,916 8,968 21.7% Loans to customers, net 17,419 16,578 5.1% Fixed assets and participations 412 412 Other assets 428 412 3.9%
Slide 34: 2014 vs 2013 – Income statement
2014 vs 2013 – IFRS, consolidated Income statement m RON 31.12.2013 31.12.2013 Y/Y Net interest income 1,176 1,023 15% Net commissions income 426 372 14.5% Other operating income 477 358 33.2% Operating income 2,078 1,753 18.5% Operating expenses 1,562 1,286 21.5% Provisions 684 414 65.2% Gross prof
Slide 35: Presentation Topics
PRESENTATION TOPICS Macroeconomic environment BANCA TRANSILVANIA on its home market Overview of business lines Q1 2015 financial results Summary 2014 consolidated financial results Conclusions 35
Slide 36: Conclusions
Conclusions We defend our position as 3rd bank in the system and we keep our entrepreneurial profile We aim a market share of 15% within 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 (espe
Slide 37: Banca Transilvania S.A. contact details
Banca Transilvania S.A. 8, G. Baritiu Street Cluj-Napoca, 400027 Romania Telephone + 40 264 407 150 Fax + 40 264 407 179 [email protected] 37