April 28th - Banca Transilvania · The information contained in the present document has not been...

BANCA TRANSILVANIA

March 2016 Financial Results

April 28th 2016

The information contained in the present 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.

Banca Transilvania cautions readers that no forward-looking statement that may be contained

in the present document is a guarantee of future performance and that actual results could

differ materially from those contained in the forward-looking statements. Forward-looking

statements speak only as of the date they are made, and Banca Transilvania undertakes no

obligation to update publicly any of them in light of new information or future events.

None of Banca Transilvania or any of its affiliates, advisors or representatives shall have any

liability for any loss howsoever arising from any use of this document or its content or

otherwise arising in connection with this document.

The present document does not constitute a public offer under any applicable legislation or an

offer to sell or solicitation of any offer to buy any securities or financial instruments or any

advice or recommendation with respect to such securities or other financial instruments.

DISCLAIMER

2

AGENDA

Banking Sector Dynamics

2015 Highlights

Performance in 2015

Overview of Business Lines

BT Financial Group

Financial Statements

1

2

3

4

5

A

3

ROMANIAN BANKING SECTOR – 2015

briefing

BANKING SECTOR DYNAMICS 2015 highlights PERFORMANCE IN 2015 OVERVIEW OF BUSINESS LINES BT FINANCIAL GROUP

4

● The Romanian banking system stays solid:

● average CAR at 17.5% in 4Q2015

● NPL ratio at 13.6% in Dec 2015

● The non-government loans marked an inflexion point in 2015 (up by 3%

ytd), due to the re-launch of the RON component (up by 19.7% ytd),

supported by the acceleration of the domestic demand and the decline

of the financing costs (the FX component declined by 9.9% ytd)

21.9%

20.4%

19.2%

21.5%20.7%

20.2%

16.2%15.7%

13.6%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

NPL ratio, % source: NBR

251

314

330

342

354

366362 364

377

25.06%

5.01%

3.56% 3.50% 3.31%

-0.92%

0.52%

3.61%

200

220

240

260

280

300

320

340

360

380

400

-5%

0%

5%

10%

15%

20%

25%

30%

2007 2008 2009 2010 2011 2012 2013 2014 2015

total bank net assets source: NBR

BANK ASSETS

expanded by 3.6% last year

net assets

in RONbn

net assets

%YoY

2015 marked the best growth in

in terms of bank assets since

2009

Loan quality continues to

improve as the NPL ratio dropped

dropped 7pp in 2015


5

NBR 1

stdefi

nit

ion

NBR 2

nd

defi

nit

ion

EBA

definition

GAP BETWEEN RON AND FCY LENDING

grew significantly over the first quarter

95

102

108110

114116

113

107 107

102

6000%

7000%

8000%

9000%

10000%

11000%

12000%

13000%

1Q15 2Q15 3Q15 4Q15 1Q16

loans non-government , RONbn source: NBR

RO

N l

oans

FCY l

oans

Lending activity up by 2.8% YoY in the

first quarter

Gap between loans in LCY (dominant)

and FCY grew to RON 12bn

-0.2

%

-1.3

%

-3.3

%

-3.3

% -2.7

%

-3.9

%

-4.5

%

-3.3

%

-3.4

%

-0.1

%

0.6

%

3.0

%

2.8

%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16

loans non-government , %YoY source: NBR


6

ROMANIAN ECONOMY

on an upward trend due to the domestic demand

GDP rose by 3.8% YoY in 2015

the highest pace since 2008

Strong acceleration of both

investments and consumption


7-8

-6

-4

-2

0

2

4

6

8

10

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

GDP, %YoY source:: Statistics Office (INS)

-50

-40

-30

-20

-10

0

10

20

30

40

50

60

-15

-10

-5

0

5

10

15

20

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Fixed investments Private consumption (rhs)

Private consumption vs. fixed

investments, %YoY source: Statistics Office (INS)

HIGH MACRO-FINANCIAL STABILITY

before the introduction of the Fiscal Act

Decline of the consumer prices due to

VAT cut

C/A and public finance deficits close

to record low levels


8-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Jan-1

3

Ma

r-1

3

Ma

y-1

3

Jul-1

3

Sep-1

3

No

v-1

3

Jan-1

4

Ma

r-1

4

Ma

y-1

4

Jul-1

4

Sep-1

4

No

v-1

4

Jan-1

5

Ma

r-1

5

Ma

y-1

5

Jul-1

5

Sep-1

5

No

v-1

5

Jan-1

6

Ma

r-1

6

consumer prices, %YOY source: Statistics Office (INS)

-16.0

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Current account (% GDP)

Public finance balance (% GDP)

C/A vs. budget deficits (%GDP) source: NBR,

Ministry of Finance

BANKING SECTOR DYNAMICS Q1 2016 highlights PERFORMANCE IN Q1 2016 OVERVIEW OF BUSINESS LINES BT FINANCIAL GROUP

BancaTransilvania’s

business development and

financial performance

In Q1 2016

9

Q1 2016 Highlights

PR

OF

ITA

BIL

ITY

Mil. RON Q1 2016 Q1 2015 ∆ EoY 2015

Operating income 599.1 541.3 10.7%

Operating expenses (270.8) (228.5) 18.5%

Gross profit before provisions 328.3 312.8 5.0%

Net profit 228.5 151.5 50.8%

EPS RON 0.063 0.050 25.2%

Cost of risk (%) 1.32% 2.84% -53.0% 1.9%*

NIM (%) 3.6% 2.8% 1.0 pp 3.0%

ROE (%) 15.3% 16.9% -1.6 pp 18.5%

Cost-to-income ratio (%) 45.2% 42.2% 3.0 pp 48.8%

CR

ED

IT

AC

TIV

ITY

Mar-16 Dec-15 ∆

Gross loans to customers 28,012.6 27,740.0 1.0%

Deposits from customers 37,084.4 38,395.3 -3.4%

Loans-to-deposits ratio 75.5% 72.2% 3.3 pp

NPL ratio 9.04% 9.75% -0.7 pp

CA

PIT

AL Mar-16 Dec-15 ∆

Total equity 6,362.1 6,117.8 4.0%

Tier 1 capital ratio (profit included) 16.9% 16.4% 3.1%

Total capital ratio (profit included) 18.2% 17.8% 2.1%

10


* actual cost of risk, without any reversals

BUSINESS PERFORMANCE 2016

at a glance


Total assets at RON 46.1 bn ● Enhanced ALM for higher efficiency

Capital adequacy ratio at 18.2%● Strong capital base, supporting organic and non organic growth, after

special dividend payout

Net fees and commissions at RON

116.5 mn 16.2% Y/Y● Driven by increased number of operations and additional cross-sell

CoR on a sound path ● CoR at 1.32% as compared to 1.9% as of end of 2015

Net profit at

RON 229 mn 50.8% Y/Y● Operating income positively influenced by increase in net interest

income, net fees and commission income and net trading income

Cost/income at 45.2%● Cost to income was positively influenced by increase in operating

revenues

11

PROFIT&LOSS ACCOUNT STRUCTURE

26

136

229

157

30

100

254

152

229

4060

271

1837

117

428

+22,3%

+16,2%

+68,4%

Net profitIncome taxCost of risk

+56,8%

-56,1%

Net interest income

+50,8%

Operating expenses

Other net operating

income

Net trading income

Net fee and commission

income

+18,3%

-88,4%

12


Q1 2016Q1 2015

LOAN STRUCTURE

Loans to households in line with

EOY 2015

Loans to companies in line with EOY

2015

*SMEs identified according to internal classification rules

8,32

5,28

0,04

Mar’15

7,49

4,60

Mar’16

2,85

0,04

13,76

8,18

5,53

0,05

Dec’15

13,64

consumptionhousingothers

Loans to Households, RONbn

11,04

3,06

Mar’15

12,53

10,01

2,52

Mar’16

14,25

Dec’15

14,10

2,96

11,29

large corporatesSMEs

Loans to Companies, RONbn

35%65%

RON FX

Loans to Households, RONbnLoans to Companies, RONbn

79%

RON FX

21%

13


DEPOSIT STRUCTURE

Deposits from households

continue the growth path

Deposits from companies

decreased in Q1 2016

*SMEs identified according to internal classification rules

Mar’16

23,6

18,0

5,5

Dec’15

23,3

18,2

5,1

Mar’15

19,2

16,0

3,1

DepositsCurrent accounts

Deposits from Households, RONbn

Mar’16

5,2

Mar’15

11,0

7,6

3,4

13,5

9,0

4,6

Dec’15

15,1

9,9

large corporatesSMEs

Deposits from Companies, RONbn

43%57%

FXRON

24%76%

FXRON

Deposits from Households, RONbn Deposits from Companies, RONbn

14


NPL RATIO AT 9.04%

2015 HIGHLIGHTS BANKING SECTOR DYNAMICS PERFORMANCE IN Q1 2016 OVERVIEW OF BUSINESS LINES BT FINANCIAL GROUP

● Banca Transilvania continued to provide a

sound coverage ratio for its PAR 90 portfolio

79%

40%

14

127%

81%

46%

13

122%

77%

45%

12

108%

75%

119%

15

33%

120%

Q1 16

42%

78%

NPL coverage with provisions

NPL coverage with mortgage collaterals

15

*For Financial Statements purposes the gross loans are netted by the unwinding adjustment; For coverage ratio purposes the respective adjustment is included in the total stock of provisions

Highlights – business lines


Retail

• BT 24 and mobile banking remain top priority

• Banca Transilvania has a 2.6 million card portfolio reaching a market share of 19%

SME & Corporate

• Banca Transilvania continued its specific focus on the SME business sector, processing over 3,870 new loans in Q1 2016

• BT continued its partnership with DFIs, offering special loan and guarantee products to its SME clients

• Agriculture, industrial manufacturing, Healthcare and European Structural Funds are on BT radar as specialized sectorial approaches

16

BANCA TRANSILVANIA FINANCIAL GROUP

full array of financial services

Total assets: 83 RON mn.

AuM: 2,590 RON mn.





Total assets: 46.1 RON bn

As of 31.03.2016:

17


PR

OF

ITA

BIL

ITY

Mil. RON Q1 2016 Q1 2015 ∆



Gross profit before provisions 332.3 320.6 3.7%

Net profit 231.1 159.1 45.2%

EPS RON 0.06 0.05 20.5%

Cost of risk (%) 1.1% 2.8% -60.1%

ROE (%) 15.3% 17.7% -13.5%

Cost-to-income ratio (%) 46.46% 42.9% 8.3%

CR

ED

IT

AC

TIV

ITY

Mar’16 Dec’15

Gross loans to customers 28,199.2 28,012.3 0.7%

Deposits from customers 37,000.3 38,301.7 -3.4%

Loans-to-deposits ratio (%) 76.2% 73.1% 4.2%

CA

PIT

AL

Total equity 6,499.0 6,240.8 4.1%

Q1 2016 Highlights – Consolidated figures

18

ANNEX I INCOME STATEMENT – Q1 2016

IFRS, individual, RONmn Q1 2016 Q1 2015 ∆

Net interest income 427.5 253.8 68.4%

Net fee and commission income 116.5 100.3 16.2%

Net trading income 36.9 30.2 22.3%

Other net income 18.1 156.9 -88.4%


Personnel expenses (151.5) (118.2) 27.8%

D&A (17.6) (13.2) 33.3%

Other operating expenses (101.7) (97.1) 4.8%


Cost of risk (59.6) (135.6) -56.1%

Net income before taxation 268.7 177.2 51.7%

Income tax expense (40.2) (25.7) 56.8%

Net income after taxation 228.5 151.5 50.8%

19

ANNEX II BALANCE SHEET – Q1 2016

IFRS, individual, RON mn Mar-16Dec-15

(audited)∆

Cash & cash equivalents 4,523.6 5,104.9 -11.4%

Placements with banks 1,979.79 3,782.5 -47.7%

Loans to customers, net 25,494.8 25,107.5 1.5%

T-bills & securities 13,211.5 12,389.4 6.6%

Fixed assets 412.1 409.5 0.6%

Participations 84.9 84.9 0.1%

Other assets 414.3 464.0 -10.7%

Total assets 46,121.0 47,342.7 -2.6%

Deposits from banks 252.1 388.4 -35.1%

Deposits customers 37,084.6 38,395.3 -3.4%

Loans from banks and FIs 743.4 985.1 -24.5%

Subordinated loan 407.2 416.4 -2.2%

Deferred tax liabilities 0.0 0.0

Other liabilities 1,271.6 1,039.7 22.3%

Total liabilities 39,758.9 41,224.9 -3.6%

Shareholders’ equity 6,362.1 6,117.8 4.0%

20

ANNEX III INCOME STATEMENT – Q1 2016

IFRS, consolidated, RONmn Q1 2016 Q1 2015 ∆

Net interest income 438.6 263.2 66.6%

Net fee and commission income 124.0 106.1 16.8%

Net trading income 31.3 28.1 11.0%

Other net income 26.9 164.0 -83.6%


Personnel expenses (158.3) (123.6) 28.1%

D&A (21.9) (16.0) 36.5%

Other operating expenses (108.2) (101.2) 6.9%


Cost of risk (59.0) (133.9) -55.9%

Bargaining gain 0.0 0.0

Net income before taxation 273.3 186.6 46.4%

Income tax expense (42.3) (27.5) 53.6%

Net income after taxation 231.1 159.1 45.2%

21

ANNEX IV BALANCE SHEET – Q1 2016

IFRS, consolidated, RONmn Mar-16 Dec-15 ∆

Cash & cash equivalents 4,527.7 5,109.1 -11.4%

Placements with banks 2,232.2 3,797.7 -41.2%

Loans to customers, net 25,605.6 25,225.6 1.5%

T-bills & securities 13,006.8 12,416.9 4.8%

Fixed assets 540.5 527.1 2.5%

Participations 0.0 0.0

Other assets 455.3 502.6 -9.4%

Total assets 46,368.0 47,579.1 -2.5%

Deposits from banks 252.1 388.4 -35.1%

Deposits customers 37,000.3 38,301.7 -3.4%

Loans from banks and FIs 854.2 1,129.7 -24.4%

Subordinated loan 407.2 416.4 -2.2%

Deferred tax liabilities 0.0 0.0

Other liabilities 1,355.2 1,102.0 23.0%

Total liabilities 39,869.0 41,338.3 -3.6%

Total equity 6,499.0 6,240.8 4.1%

22

Banca Transilvania HQ8, G. Baritiu Street, Cluj-Napoca

400027, Romania

+ 40 264 407 150

+ 40 264 407 179 /FAX

[email protected]

www.bancatransilvania.ro/en/investor-relations

www.bancatransilvania.ro

www.bt24.ro

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twitter.com/b_Transilvania

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