Banca Transilvania's net profit in 2011 grew by 35% as compared to 2010, amounting to RON 131,87 million. Gross profit was 38% higher, growing from RON 135,02 million to RON 185,77 million. The main factors leading to these results were interest income & loan book growth, lower expenses with provisions and cost optimization.

• Net Profit: RON 131,87 mill. (35% higher vs. 2010);
• Gross profit after provisions: RON 185,77 mill. (38% higher vs. 2010);
• Net provision expenses: RON 531,77 mill. (17% lower vs. 31.12.2010);
• Total assets: RON 25.745 mill. (19% higher vs. 31.12.2010);
• Gross loans: RON 15.358 mill. (15% higher vs. 31.12.2010);
• 2011 figures represent BT's preliminary financial results (RAS).

Horia Ciorcila, BT's Chairman stated: "We are pleased that Banca Transilvania was a winner in 2011, outperforming the budget and re-confirming the positive trend in its activity. Annual results were predictable, considering that the third quarter of 2011 was the best period for the bank within the last 3 years. We are prepared for 2012 and we will continue our prudent and sound growth. We believe in our mission to support the local economy and entrepreneurs, especially because we are the largest credit institution with majority Romanian capital and the 3rd bank in Romania".

In 2011, operating income maintained the same level as in 2010, amounting to RON 1.484,28 million. Further to the growth of the bank's activity, operating expenses increased by 8%, from RON 711,98 million (2010) to RON 766,74 million (2011). Cost/income ratio was 51,65%, BT continuing to apply cost optimization measures.

Banca Transilvania lowered net provision expenses from RON 640 million in the previous year to RON 531,77 million in 2011. Net credit risk cost amounted to RON 461 million in 2011, compared to RON 598 million in 2010.

BT's total assets grew by 19% to RON 25.745 million as at 31.12.2011, compared to RON 21.589 million at the end of the previous year.

Banca Transilvania continued its lending activity in 2011: the bank's loan book reaching lei 15.358 million at 31.12.2011, 15% higher than at the beginning of the year. The structure of the portfolio is: 62,95% loans to companies and 37,05% to individuals. In terms of lending currency, 63,72% of loans are in lei and 36,28% are in FCY. Non-performing loans, which are more than 90 days overdue, represent 8,62% of BT's total loan portfolio. Total provisions for loans increased from lei 1.356 million in 2010 to lei 1.806 million, out of which lei 354 million represent fiscally non-deductible provisions, additionally set aside by the bank as a consequence of the prudential credit risk management approach. Non-performing loans are adequately covered by provisions, with a ratio of 108,94%.

BT continued to raise deposits, maintaining a comfortable liquidity level; the loan/deposit ratio was kept at 0,76, with a 17% increase in terms of resources from clients in 2011. The bank's solvency ratio is 11,87%, profit included.

The overall number of client operations increased by 11% in 2011 compared to 2010, while the card related segment registered a 16,9% growth.

In 2011, Banca Transilvania underwent another share capital increase. At the end of last year the share capital level reached lei 1.773.658.066, with an increase of lei 303.057.068, by capitalizing net profit reserves and cash contribution.

Banca Transilvania opened last year almost 20 new agencies. At the end of 2011, BT had 553 locations, an extensive sales network, providing accessibility for clients.

Banca Transilvania can consider 2011 as a good year, a solid base for this year's business projects.