Banca Transilvania SA · BVB:TLV

Banca Transilvania SA — Merger or Acquisition (April 2015)

22 slides from Banca Transilvania SA's merger presentation, April 2015

  1. Slide 1: April 2015 – Acquisition of Volksbank Romania SA: Transaction overview

    April 2015 – Acquisition of Volksbank Romania SA Transaction overview

  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  Introduction  Transaction overview  Overview of financial information  High level integration plan 3

  4. Slide 4: Macroeconomic environment

    Macroeconomic environment GDP (%, Y/Y)  The GDP rose by 2.8% Y/Y in 2014, an 10% evolution determined by the dynamics 8.5% 7.9% 6.3% 7.3% of the domestic demand. 6% 4.2% 2.3% 3.4% 2.8% 2.5% 2.8% 3.3%  The private consumption increased by 2% 0.6% 4.5% Y/Y last year, while the government consumption

  5. Slide 5: 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 and 11.2% increase during 3.56% 2014. 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 benchmarks well at 10.87% NPL

  6. Slide 6: 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

  7. Slide 7: 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

  8. Slide 8: Presentation Topics

    PRESENTATION TOPICS  Introduction  Transaction overview  Overview of financial information  High level integration plan 8

  9. Slide 9: Transaction overview

    Transaction overview Transaction rationale  Banca Transilvania intends to consolidate its position within the Romanian banking market, benefiting from economies of scale, while preserving strong profitability, organic growth and prudential ratios.  The main points of focus for the acquisition are:

  10. Slide 10: Transaction overview

    Transaction overview Transaction scope and milestones  The transaction documentation was signed on 10 December 2014. The closing date of the transaction is 7 April 2015.  Banca Transilvania Financial Group acquired 100% of Volksbank Romania S.A. shares (Banca Transilvania has full control after cl

  11. Slide 11: Presentation Topics

    PRESENTATION TOPICS  Introduction  Transaction overview  Overview of financial information  High level integration plan 11

  12. Slide 12: 2014 Highlights

    2014 Highlights Total assets CCY structure Key Indicators Banca Volksbank (RON million) Transilvania* Romania** Total assets 35,620 12,361 Equity 3,702 713 Total loans and accruals 20,020 8,656 PAR 90 (%) 10.87% 9.16% Cost / Income (%) 41.41% 78.1% Cost of risk (%) 3.32% 0.99% NIM (%) 3.37% 2.07% Ca

  13. Slide 13: 2014 - Balance Sheet

    2014 - Balance Sheet Banca Vollksbank RON million Transilvania* Romania** Cash and cash equivalents 4,226 2,483 Placements with banks 2,379 418 T bills and securities 10,905 1,537 Loans to customers, net 17,517 7,677 Fixed assets and participations 435 158 Other assets 158 88 Total assets 35,620 12,

  14. Slide 14: 2014 - Income Statement

    2014 - Income Statement Banca Volksbank RON million Transilvania* Romania** Net interest income 1,138 267 Net commissions income 408 27 Other operating income 454 39 Operating income 2,000 333 Operating expenses 828 232 Profit before provisions 1,172 102 Provisions 667 2,006 Gross profit / (loss) 50

  15. Slide 15: Overview of financial information on closing date

    Overview of financial information on closing date Selected captions Volksbank Romania Volksbank Romania (RON million) at closing* eoy 2014** Subordinated loans - 723 Parent funding 2,857 4,069 Equity further to VB capital increases 2,795 713 in Q1 2015 Additional provisions as required by 890 BT, to

  16. Slide 16: Post merger highlights–preliminary estimations

    Post merger highlights–preliminary estimations Estimated BT individual* RON million post-merger Loans to customers, net 25,979 19,746 Due to customers 32,277 31,716 Net interest income 1,494 1,248 Net commissions income 489 441 Other operating income 334 326 Operating expenses 999 869 *BT individual

  17. Slide 17: Presentation Topics

    PRESENTATION TOPICS  Introduction  Transaction overview  Overview of financial information  High level integration plan 17

  18. Slide 18: Integration strategy was developed to ensure business continuity and synergy achievement

    Integration strategy was developed to ensure business continuity and synergy achievement  Enhanced customer experience Retail  Single portfolio of products in the merged bank Corporate &  Strong relationships with the clients SME  Common product and service offering Network  Unified branch netw

  19. Slide 19: A portfolio of over 20 projects have been already defined to implement the strategy

    A portfolio of over 20 projects have been already defined to implement the strategy Projects Portfolio Main projects IT migration Legal process for the merger Accounting Retail loans strategy Communication Finance & Controlling CHF loans Data warehouse Internal Audit Retail non-loan products strateg

  20. Slide 20: Integration program is managed by a strong team with VB engagement

    Integration program is managed by a strong team with VB engagement Program Management  Omer Tetik  George Calinescu  Luminita Runcan  Tiberiu Moisa  Mihaela Nadasan  Leontin Toderici  Gabriela Nistor  Andrei Dudoiu Program Office Communication Team Project Managers Dedicated BT teams Dedicat

  21. Slide 21: Five core values defined for the integration

    Five core values defined for the integration - customers and employees in the center Transparency Fairness 1 Customer and Employee 2 Focus 3 360° Communication Collaboration 4 21

  22. Slide 22: Banca Transilvania S.A.

    Banca Transilvania S.A. 8, G. Baritiu Street Cluj-Napoca, 400027 Romania Telephone + 40 264 407 150 Fax + 40 264 407 179 [email protected] 22

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