BANCA TRANSILVANIA September 2015 Financial Results · CHF loan portfolio conversion successfully...

BANCA TRANSILVANIA

September 2015 Financial Results

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

1

AGENDA

2

Banking Sector Dynamics

YTD Sep’15 Highlights

Performance in YTD Sep’15

Overview of Business Lines

BT Financial Group

1

2

3

4

5

ROMANIAN BANKING SECTOR – 2015

briefing

3

● The Romanian banking system stays solid:

● average CAR at 18%

● NPL ratio markedly improved to less than 13% from cca. 22% in 2013

● Top 7 banks hold ~66% of total assets / Top 3 banks ~40%

● The non-government loans rose by 2% ytd, as the increase of the RON

component (by 11.2% ytd) counterbalanced the decline of the FX

component (by 5.2%)

BANKING SECTOR DYNAMICS YTD SEP’15 highlights PERFORMANCE IN YTD SEP’15 OVERVIEW OF BUSINESS LINES BT FINANCIAL GROUP

20.3%

21.6% 21.9%

20.4%

19.2%

15.3%

13.9% 13.9%

12.8%

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

NPL ratio, % source: NBR

355

354

362

353 352351

364

361

363

-4.3%

-5.3%

-0.9% -1.0%-0.7% -0.6%

0.5%

2.4%

3.1%

340

345

350

355

360

365

-6%

-4%

-2%

0%

2%

4%

6%

8%

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

total bank net assets source: NBR

BANK ASSETS RETURN TO GROWTH

4

net assets

in RONbn

net assets

%YoY

Bank assets growth pace

picking up in 2015

NPL continue to decline,

dropping below 13% as of June


LENDING IN RON

pushes the credit activity back into positive after a

long time

5

90 9093

100

105

119117

114111 111

6000%

7000%

8000%

9000%

10000%

11000%

12000%

13000%

3Q14 4Q14 1Q15 2Q15 3Q15

loans non-government

, RONbn source: NBR

RO

N l

oans

FX loans

Lending inches into positive territory

for the first time since Feb 2013

Loans in domestic currency

remain the credit activity driver

4.2%

1.3

%

-0.2

%

-1.3

%

-3.3

%

-3.3

% -2.7

%

-3.9

%

-4.5

%

-3.3

%

-3.4

%

-0.1

%

0.6

%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15

loans non-government

, %YoY source: NBR


6

BANKING SECTOR DYNAMICS YTD SEP’15 HIGHLIGHTS PERFORMANCE IN YTD SEP’15 OVERVIEW OF BUSINESS LINES BT FINANCIAL GROUP

Banca Transilvania’s

business development and financial

performance

at the end of third quarter 2015

7

PR

OFIT

ABIL

ITY

Mil. RONYTD Sep’15 (unaudited)

YTD Sep’14 (unaudited) *

∆

Operating income 1,453.6 1,430.9 1.6%

Operating expenses (717.6) (613.2) 17.0%

Gross profit before provisions 735.9 817.8 -10.0%

Net income 313.0 322.6 -3.0%

EPS RON 0.104 0.108 -4.5%

Cost of risk (%) 1.9% 2.9% -33.6%

NIM (%) 2.9% 3.4% -0.5 pp

ROE (%) 11.2% 13.3% -1.9 pp

Cost-to-income ratio (%) 49.4% 42.8% 6.6 pp

CR

ED

ITA

CT

IVIT

Y

Sep’15 Dec’14 ∆

Gross loans to customers 23,848.5 20,020.0 19.1%

Deposits from customers 32,527.2 30,045.5 8.3%

Loans-to-deposits ratio 73.3% 66.6% 6.7 pp

NPL ratio 9.5% 10.9% -1.4 pp

CA

PIT

AL

Total equity 3,860.5 3,702.0 4.3%

Tier 1 capital ratio (profit included) 14.9% 15.5% -3.9 %

Total capital ratio (profit included) 16.1% 17.3% -6.9 %


YTD SEP’15

highlights

* with full guarantee fund contribution booked as of 1st H 2014

BUSINESS PERFORMANCE YTD SEP’15

at a glance

8


Total assets at RON 39.4 bn

10.6% YTD

● Healthy growth of the loan portfolio across all business line

● Partial switch from AFS portfolio to other assets categories (due to banks

&loans)

● Continued growth of deposit base by 6%

Capital adequacy ratio at 16.1% ● Strong capital base, supporting both organic and inorganic growth

Net fees and commissions at RON

324 mn 8.4% Y/Y

● Driven by increased number of operations and additional cross-sell

● Operational revenues grew by 11% in 9m of 2015

CoR on a sound path

by 40bp Q/Q● In the third quarter, the YTD CoR decreased to 1.9%, from 2.3% in Q2 2015

Net profit at

RON 313mn 3% Y/Y

● Operating income positively influenced by increase in commission income

and trading income

● The results of the first 9 months in 2015 were influenced by one-off

expense items linked to Volskbank integration process

Cost/income at 49.4%

● Cost to income was negatively influenced by one-off type of expenses and

by the change regarding the booking of the Deposit Guarantee Fund

contribution

● Without the one-off expenses above, Cost/Income stays at 46%

854

299

94

184

613

442

53

323

827

324

114

188

718

362

60

313

0%

10000%

20000%

30000%

40000%

50000%

60000%

70000%

80000%

90000%

Detailed Income and Expense Structure, RONmn

YTD

Sep 2

014

YTD

Sep

2015

net interest income

net feeincome

net tradingincome

other netincome

operatingexpenses

cost of risk income tax net profit

-3% +8% +17% -18%+22% +2% +14% -3%

9


PROFIT & LOSS ACCOUNT STRUCTURE

balance evolution of different income and expense items

2.6 2.6 2.8

10.2 10.010.5

0%

200%

400%

600%

800%

1000%

1200%

1400%

Sep 14 Dec 14 Sep 15

Loans to Companies, RONbn

SM

Es*

corp

ora

tes

12.8

14.3

13.312.3

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Loans to Companies, RONbn

RON81% FX19%

10

4.8 4.7

6.6

2.5 2.7

4.0

0%

200%

400%

600%

800%

1000%

1200%


Loans to Households, RONbn

consu

mpti

on

housi

ng

7.3 7.5

10.6

oth

er

Loans to households up by 45%

Y/Y, also on regained confidence

Higher proportion of investment

loans to companies

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Loans to Households, RONbn

RON75% FX25%

*SMEs identified according to internal classification rules


LOAN STRUCTURE

2.9 3.6 3.9

6.9

7.8 8.0

0%

200%

400%

600%

800%

1000%

1200%

1400%


Deposits from Companies, RONbn

SM

Es*

corp

ora

tes

9.8

11.411.9

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Deposits from Companies, RONbn

RON73% FX27%

2.5 2.9 4.2

15.015.7

16.5

0%

500%

1000%

1500%

2000%

2500%


Deposits from Households, RONbn

curr

ent

accounts

deposi

ts

17.518.6

20.7

Deposits from households

continue the growth path

Deposits from companies remain

stable

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Deposits from Households, RONbn

RON57% FX43%

*SMEs identified according to internal classification rules


DEPOSIT STRUCTURE

11

12

● Banca Transilvania continued the conservative

provisioning policy, providing a sound coverage

ratio for its PAR 90 portfolio

● NPLs ratio at the lowest level in the last 4 years

● Retail and SME related NPLs stay on a decreasing

trend75% 77% 81% 77%

11.3%

12.6%

10.9%

9.5%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

12 13 14 Sep 15

0%

20%

40%

60%

80%

100%

120%

NPL ratio and NPL coverage

NPL coverage with provisions and mortgage collaterals

NPL coverage with provisions

NPL ratio


NPL RATIO AT 9.5%

13


● Sound organic growth of 13% during 9 months of

2015

● CHF loan portfolio conversion successfully

completed in August

Banca Transilvania is number 1 in Romania in

terms of the transactions turnover on its cards

portfolio with a market share of 19.4%; a total

card portfolio of close to 2.5 million (9% up

against H1 2014)

● BT 24 and mobile banking remained top priority 6.28 6.32

6.80

7.47

8.45

500%

550%

600%

650%

700%

750%

800%

850%

900%

950%

1000%

11 12 13 14 Sep 2015

Retail Loan Portfolio, RONbn source: BT

loans transferred

from VBR2.13

Retail loan portfolio reached RON

10.6bn in September 2015

10.58

RETAIL BANKING

14

● Banca Transilvania continued its specific focus on

the SME business sector, processing over 15,000

new loans in 9 months of 2015

The portofolio of attractive cash management

facilities, tailored on SME needs, boosted the

number of SME client accounts to 260,000

BT continued its partnership with DFIs, offering

special loan and guarantee products to its SME

clients

● Agriculture, Healthcare and European Structural

Funds are on BT radar as specialized sectorial

approaches

SME loan portfolio up by 9%

2.81, 1.81

2.512.48

2.58

2.81

160%

180%

200%

220%

240%

260%

280%

11 12 13 14 Sep 2015

SME Loan Portfolio, RONbn source: BT


SME BANKING

CORPORATE BANKING

15

● Corporate loans inflexioned at country level

during this spring, evolution determined by the

acceleration of the real economy and attractive

funding costs

BT was present with lending facilities especially in

the industrial manufacturing and agribusiness

segments

BT continued to play an important role as co-

lender of EU structural funds eligible projects

Corporate loan portfolio stable

above RON 10bn

7.61

8.74

9.889.97

10.46

700%

750%

800%

850%

900%

950%

1000%

1050%

1100%

11 12 13 14 Sep 2015

Corporate Loan Portfolio, RONbn source:

BT


BANCA TRANSILVANIA FINANCIAL GROUP

full array of financial services

16

Total assets: 89 RON mn






Total assets: 39.4 RON bn Total assets: 8.3 RON bn

As of 30.09.2015:

TLV SHARES

on Bucharest Stock Exchange

17

2.63

5/1

/15

19/1

/15

2/2

/15

16/2

/15

2/3

/15

16/3

/15

30/3

/15

13/4

/15

27/4

/15

11/5

/15

25/5

/15

8/6

/15

22/6

/15

6/7

/15

20/7

/15

3/8

/15

17/8

/15

31/8

/15

14/9

/15

28/9

/15

12/1

0/1

5

26/1

0/1

5

9/1

1/1

5

1.6

1.8

2

2.2

2.4

2.6

TLV price performance YTD 2015

111

103

160

30/1

2/1

4

22/1

/15

11/2

/15

3/3

/15

23/3

/15

10/4

/15

4/5

/15

22/5

/15

12/6

/15

2/7

/15

22/7

/15

11/8

/15

31/8

/15

18/9

/15

8/1

0/1

5

28/1

0/1

5

95

105

115

125

135

145

155

165

175TLV vs. equity indices, reb. 30/12/14

STOXX Europe 600

BET

TLV

Price 09/11/15 RON 2.63

No. of shares 3,026mn

Market cap RON 7,958mn

Price change 59.9%YTD

Price change 70.2%YoY

Min YTD 2015 RON 1.621

Max YTD 2015 RON 2.670


18

PR

OFIT

ABIL

ITY

Mil. RONYTD Sep’15 (unaudited)*

YTD Sep’14 (unaudited)**

∆



Gross profit before provisions 766.1 837.9 -8.6%

Net income 2,296.2 338.1 579.1%

EPS RON 0.76 0.11 568.5%

Cost of risk (%) -0.10% 3.44% -102.8%

ROE (%) 54.16% 13.5% 302.3%

Cost-to-income ratio (%) 55.5% 43.6% 27.4%

CR

ED

ITA

CT

IVIT

Y Sep’15 Dec’14 ∆

Gross loans to customers 27,801.3 20,332.1 36.7%

Deposits from customers 35,644.1 29,994.9 18.8%

Loans-to-deposits ratio (%) 78.0% 67.8% 15.1%

CA

PIT

AL

Total equity 5,931.8 3,797.3 4.3%

Tier 1 capital ratio (profit included) (%) 20.3% 15.8% 28.4%

Total capital ratio (profit included) (%) 21.3% 17.6% 21.5%


YTD SEP’15 HIGHLIGHTS – consolidated figures

*with bargaining gain, preliminary calculation, subject to adjustments in accordance with IFRS 3 **with full guarantee fund contribution booked as of 1st H 2014

ANNEX I INCOME STATEMENT

19

IFRS, individual, RONmn * YTD Sep'15 YTD Sep'14 ∆

Net interest income 826.8 853.9 -3.2%

Net fee and commission income 324.4 299.3 8.4%

Net trading income 114.3 93.7 22.0%

Other net income 188.0 184.1 2.1%


Personnel expenses (372.9) (332.4) 12.2%

D&A (40.6) (44.0) -7.8%

Other operating expenses (304.2) (236.7) 28.5%


Cost of risk (362.4) (442.0) -18.0%

Net income before taxation 373.5 375.8 -0.6%

Income tax expense (60.5) (53.2) 13.8%

Net income after taxation 313.0 322.6 -3.0%

* The financial information as at 30 September 2014 and 30 September 2015 has not been audited or reviewed

ANNEX II BALANCE SHEET

20

IFRS, individual, RONmn * Sep-15 Dec-14 ∆

Cash & cash equivalents 3,937.7 4,226.0 -6.8%

Placements with banks 4,188.5 2,216.1 89.0%

Loans to customers, net 21,431.2 17,517.2 22.3%

T-bills & securities 8,864.8 11,068.0 -19.9%

Fixed assets 344.5 360.1 4.3%

Participations 431.8 74.9 476.8%

Other assets 198.9 157.3 -26.4%

Total assets 39,397.4 35,619.5 10.6%

Deposits from banks 737.7 133.3 453.2%

Deposits customers 32,527.2 30,045.5 8.3%

Loans from banks and FIs 1,308.8 949.1 37.9%

Subordinated loan 403.8 394.7 2.3%

Deferred tax liabilities 42.7 43.7 -2.2%

Other liabilities 516.7 351.3 47.2%

Total liabilities 35,536.9 31,917.6 11.3%

Shareholders’ equity 3,860.5 3,702.0 4.3%

* The financial information as at 30 September 2014 and 30 September 2015 has not been audited or reviewed

ANNEX III INCOME STATEMENT

21

IFRS, consolidated, RONmn * YTD Sep'15 YTD Sep'14 ∆

Net interest income 1,031.8 882.2 16.9%

Net fee and commission income 354.9 311.4 14.0%

Net trading income 126.8 89.9 41.0%

Other net income 207.6 200.9 3.3%


Personnel expenses (486.1) (348.2) 39.6%

D&A (66.0) (50.3) 31.2%

Other operating expenses (402.8) (248.1) 62.4%


Cost of risk 18.1 (445.2)

Bargaining gain 1,575.5

Net income before taxation 2,359.8 392.7 500.9%

Income tax expense (63.7) (54.6) 16.6%

Net income after taxation 2,296.2 338.1 579.1%

* The financial information as at 30 September 2014 and 30 September 2015 has not been audited or reviewed.Including the bargaining gain, preliminary calculation, subject to adjustments in accordance with IFRS 3 .

ANNEX IV BALANCE SHEET

22

IFRS, consolidated, RONmn * Sep-15 Dec-14 ∆

Cash & cash equivalents 4,476.7 4,234.2 5.7%

Placements with banks 3,139.4 2,224.3 41.1%

Loans to customers, net 25,066.6 17,663.0 41.9%

T-bills & securities 10,602.7 11,078.6 -4.3%

Fixed assets 466.4 412.3 13.1%

Participations 0.0 0.0

Other assets 281.0 183.6 53.0%

Total assets 44,032.8 35,795.9 23.0%

Deposits from banks 180.6 133.3 35.5%

Deposits customers 35,644.1 29,994.9 18.8%

Loans from banks and FIs 581.6 1,052.7 -44.8%

Subordinated loan 403.8 394.7 2.3%

Deferred tax liabilities 42.0 41.0 2.3%

Other liabilities 1,248.8 381.9 227.0%

Total liabilities 38,101.0 31,998.7 19.1%

Total equity 5,931.8 3,797.3 56.2%

* The financial information as at 30 September 2014 and 30 September 2015 has not been audited or reviewed Including the bargaining gain, preliminary calculation, subject to adjustments in accordance with IFRS 3 .

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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BANCA TRANSILVANIA September 2015 Financial Results · CHF loan portfolio conversion successfully...

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