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The bank’s activity during 2020 supports the role of the bank as main driver for the Romanian economy’s relaunch in 2021. Financial Results

Comunicat de presa 2021-02-25
The bank’s activity during 2020 supports the role of the bank as main driver for the Romanian economy’s relaunch in 2021. Financial Results

Preliminary Financial Results as at December 31, 2020 

  • BT's customers support strategy was reflected in the growth of the operations number and of the overall business.
  • More than 145,000 loans were granted funding the economy.
  • Companies were financed with over 9.5 billion RON and individuals with 5.3 billion RON.
  • The number of unique digitalized customers exceeded 1.7 million.


We have ended an atypical, unprecedented year and we are satisfied that our results exceeded the conservative forecasts of the initial budget. In 2020 we proved again that we have adapted and that we have an experienced and strong team, which can deliver great results even within such a complicated context. The most important thing, however, is that we kept our promises, that we contributed both to supporting the social areas, the local companies and the economy as a whole. For this forthcoming year we are optimistic about BT, paying attention to trends, but also to new opportunities. We maintain our firm commitment in contributing to the relaunch of the business environment - states Horia Ciorcila, Chairman of the Board of Directors, BT. 

2020 was a year of resistance and solidarity, during which Banca Transilvania launched several measures to support the bank’s customers, in addition to those announced through the public moratorium, postponed the loans’ installments and reduced fees and commissions. 2020 positive results are due mainly to the increase of the operations’ volume and the adequate cost management.

The assets of BT Financial Group amounted to 107.5 billion RON as at the end of 2020. The loans increased to 42.16 billion RON, whereas the deposits reached 90.94 billion RON, of which 61.94 billion RON are deposits of individual customers and 29 billion RON deposits of legal entities. The results for 2020 consolidate the already robust capitalization of Banca Transilvania, reaching an equity of 9.5 billion RON, +12% compared to 2019. Banca Transilvania has nearly 70% Romanian capital and more than 34,000 direct Romanian individual shareholders.

The net consolidated profit of Banca Transilvania Financial Group amounts to RON 1,457.12 million, of which that of the bank amounts to RON 1,197.31 million. The bank’s operating profit grew to RON 2,154.92 million. The bank has taken cost-effective measures without performing restructurings and despite a decline of the fees’ value, during a difficult year. The operational efficiency, measured by the cost / income ratio, was maintained at the comfortable level of 45.3%, due to a well run cost management and efficiency through digitalization of processes.

Supporting the Romanians and involvement in the community, in the context of COVID-19:

BT was the first banking institution to announce measures for it’s customers

  • More than 41,000 individual and legal entities clients had their installments deferred.  
  • Over 400,000 credit cards were exempted, for a 3 months period, from the payment of the monthly obligation due to the extended grace period.
  • Through IMM Invest, the government program in which Banca Transilvania was the main bank, the bank granted 10,000 loans, supporting companies counting over 70,000 jobs, especially in the following business fields: wholesale and retail trade, transportation and construction.

The lending continued   

  • BT granted 22,000 new loans, amounting to 2.9 billion RON, to over 9,500 SME & Micro customers.
  • The SME’s loan portfolio (according to the European definition of SMEs) reached 17.6 billion RON.
  • Over 10,200 Romanians bought a house with Banca Transilvania’s help, being financed during 2020 with approximately 2.5 billion RON.
  • The balance of the mortgage/housing loans reached 13.3 billion RON.
  • Over 67,300 consumer loans, amounting to 2.4 billion RON, were granted last year.
  • The balance of consumer loans reached 10.8 billion RON.

Remote banking has accelerated

  • 500,000 customers made their first online card transaction in 2020.
  • Almost 340 million transactions were made with BT cards in 2020, + 22% compared to 2019. 
  • 1.1 million people use the BT Pay application for everyday banking.

 

Community, BT people and network. BT, the first company to announce significant donations

  • During the state of emergency, the bank contributed with over 2 million EUR to the prevention and limitation of the pandemic, but also to increasing the access to testing and treatment. 
  • The bank maintained the pace of recruitment during the first half of 2020, compared to the period January-June 2019, employing 500 people in the team.
  • Almost 70 branches and agencies from 50 cities have been refurbished.  
  • BT Pay has contributed to the formation of new behaviors: contactless shopping at retailers, money transfers and donations, all performed through the mobile phone.

Other financial information:

The NPL rate is 3.46% as at December 31, 2020, and the coverage with total provisions of the non-performing exposures is 133%, according to the EBA indicator. The bank’s CAR is 19.94% (profit for the year excluded) and 22.23% (profit for the year included).