Banca Transilvania's operating profit increased by 96% in 2009 vs. 2008. BT continued to manage prudently and efficiently its four main business lines - large companies, SMEs, individuals, and the Healthcare Division, adapting to a difficult economic environment.

Operating income: over LEI 1,293 million, increasing by 27% vs. 31.12.2008; Gross operating profit before provisions: LEI 610 million, 96% higher vs. last year; Net credit risk cost: LEI 533 million for 2009;  Gross profit after provisions: LEI 86.02 million, exceeding by lei 1 million the forecasted gross profit; Net profit: LEI 61.9 million; Cost/income ratio: 55%, improved vs. 70% in 2008 Loan/deposit ratio: 0.81, BT continuing to maintain this ratio below 1(0.93 end of 2008); CAR (profit included) stays at 14%, well above the limit imposed by the NBR; Total assets: LEI 19,472 million, increasing by 14% vs. 31.12.2008; Total Loan Placements, gross: LEI 12,171 million, 8.5% higher vs. 31.12.2008; NPL: 4.8% of loan portfolio;  Number of client operations: 28% higher vs. 2008.

Robert C. Rekkeers, Banca Transilvania CEO, stated: "Within a difficult and stringent economic environment which marked the whole 2009, we achieved the gross profit assumed before our shareholders. It was the year of maturity for Banca Transilvania, both as faced challenges and as experience on the financial-banking market. We focused on aggressive provisioning policy, risk management, loan portfolio quality, and strict cost control. We adjusted by seizing opportunities and by launching the Anti-Crisis Platform for our clients".

Strong partners, such as the EBRD and IFC - World Bank Division - continued to offer substantial support to Banca ransilvania in 2009, while Bank of Cyprus joined our team, becoming an important shareholder.

I. 2009 Financials
Banca Transilvania total assets reached LEI 19,472 million, standing for a 14% increase in 2009. Loan/deposit ratio as at 31.12.2009 remained below 1, notably at 0.81, proving once again the bank's excellent liquidity. BT maintained its strong position in terms of raised deposits on the domestic market, up by 23% in 2009. As for Banca Transilvania's investments in treasury bills, the attained value was above LEI 2.4 billion. CAR recorded a comfortable level of 14%, profit included, which exceeded the 8% minimum required by the NBR.
Own funds increased by LEI 62.9 million, as a result of USD 21.7 million bonds conversion into shares in December 2009. Treasury shares related profit (used in the conversion) amounted to LEI 10.7 million;

BT's loan portfolio, denominated mainly in lei, maintained a stable and balanced structure, with less than 4% exposure to the real estate sector. Total loan volume reached LEI 12,171 million, as at 31.12.2009 with the following breakdown: 58. 44% company loans, 41.56% individuals.

Loan related provisions balance grew by 225%, reaching LEI 755 million in 2009, based on a risk management strategy well-adapted to the current economic environment. Precisely because Banca Transilvania anticipates that 2009 difficulties will continue in 2010 as well, it decided to create non deductible provisions, in addition to deductible ones, the former accounting for 18% of 2009 total loan provisions balance.

Net credit risk cost reached LEI 533 million in 2009, loan coverage ratio attaining a prudential level of 6.1%, while the NPLs were 128% covered by total provisions.

Operating profit was 96% higher than in 2008, mounting from LEI 311 million to LEI 610 million. Operating income as at 31.12.2009 leveled LEI 1,293 million, being 27% higher than 2008 value. This was mainly due to the increase of the net interest margins and higher transaction volumes.

The number of client operations in 2009 vs. 2008 went up by 28% - the increase being influenced by card operations which were 33% higher in number against 2008 - related income growing by 13% mainly due to larger operations number. Banca Transilvania maintained reasonable level of charges and continued to be the bank for utilities, attribute enhanced by an extensive unit network and new partnerships with service suppliers.

2009 Overall Cost/Income ratio of 55% improved vs. 70% end 2008, as well as vs. 62% in H1 2009. Operating expenses decreased to LEI 683 million in 2009, against LEI 709 million, end of 2008.

In 2009, Fitch Ratings affirmed Banca Transilvania at "BB-", with stable outlook. The NBR's assessments last year resulted in positive feedback as concerns Banca Transilvania's activity.

II. 2009: Launching the Anti-crisis Platform; Strategic partnerships; More customers; Card activity success; Prima Casa program
??????? The Anti-crisis Platform was launched in 2009 by Banca Transilvania, in order to help clients face with less difficulty the constringencies of the current economic environment. The platform encompasses products already existent in BT's portfolio, but also new products and well-adjusted services, such as the „Company loan restructuring facility" or the „Ready Secured loan for SMEs", launched in collaboration with the FNGCIMM. Moreover, in January 2010, BT extended the Anti-Crisis Platform by bringing on the market "Getting through winter" facility, a company-designed product with a 3-month grace period during the first semester of 2010, consisting in partial or full postponement in loan installments and interests.

Another new product is the „Savings and Protection Plan", launched in cooperation with AEGON Romania. This product meeting the requirements of a savings-prone and risk averse market, is a co-branded financial solution which combines the advantages of a savings account with those of a life insurance facility within a customized investment program.

??????? Strategic partnerships: In October 2009, International Finance Corporation (IFC), a World Bank Division, extended to Banca Transilvania a EUR 50 million loan facility, amount targeting the Health Care Division for the purpose of developing and improving medical services in Romania. In November 2009, IFC became a BT shareholder in percentage of 3,6%, following the conversion into shares of bonds in amount of USD 20 million held with BT ever since 2005.

??????? Active client portfolio grew by 150,000 new customers, total client base reaching 1,370,000 according to the bank's internal active client definition, respectively 2 million, under the NBR standards.

??????? Banca Transilvania has become the largest VISA card issuer in Romania, with a market share of 22% and over 1,300,000 Visa cards issued;

??????? Prima Casa - Banca Transilvania had very good results within this program, by granting approximately 600 loans in total amount exceeding EUR 27 million. Due to this outstanding achievement, the initial limit of EUR 17 million was extended by an additional EUR 10 million in October 2009, respectively by EUR 15 million - in January 2010.

Robert C. Rekkers stated: "We started 2010 with courage and trust in our own forces. We are aware that this will not be an easy year for anyone, especially in its first part, anticipated to be to be a difficult period for the clients and banking system. We, as the Bank for Entrepreneurial People, will act responsibly and efficiently, backed by a bold strategic plan, adapted to the current circumstances. In 2010 we still rely on our strengths: capital, liquidity, sound stakeholders, professional team, local approach, loyal customers and tailored offer."

The report with financial statements as at 31.12.2009 is available here.