• From the first signs of the epidemic escalating in Romania, Banca Transilvania got fully involved in supporting clients financially and in backing the authorities, hospitals, NGOs and communities to mitigate the impact of the current situation.
• The Bank has over 2.9 million retail customers, 310,000 SME & Micro customers and more than 10,000 active corporate customers.
• BT is well prepared—financially, in terms of internal organization and through its market footprint—to support Romania’s economy.

The financial results for the first three months of the year show that in January and February this year the Bank focused on continued business consolidation and financing the real economy. From March this year, customer behaviour and the way banking is done were influenced by the start of the state of emergency. Also from March, the Bank reset its priorities, putting first the health of employees and customers, support for clients affected by the current economic and social context, and ensuring continuity of operations — through branches, agencies and self-banking.

Financial information

The assets of the Banca Transilvania Financial Group reached RON 96.6 billion at the end of the first quarter, while loans increased to RON 41.12 billion. Customer deposits came to RON 78.45 billion: of this, RON 54.72 billion are individuals’ savings, and RON 23.73 billion are corporate deposits.

The consolidated net profit of the Banca Transilvania Financial Group is RON 303.94 million, of which the Bank’s profit is RON 261.00 million. Subsidiaries and equity investments contributed around RON 43 million to BT Group’s profitability. The Bank’s cost-to-income ratio reached 54.47%, calculated including the annualized impact of contributions to the Bank Deposit Guarantee Fund and the Resolution Fund.

“We started the year strong, but after the first two months we began to adjust quickly to the new reality and focused entirely on supporting our clients, the economy, the authorities and communities. The BT team rose to the challenge in operating Romania’s largest payments and lending infrastructure even under these adverse conditions. We have a significant footprint in both the retail and SME markets and we embrace our role in supporting the economy. The Bank is well prepared, financially and organizationally, to support our customers and the community. The first-quarter results only confirm this once again.”, said Ömer Tetik, Chief Executive Officer, Banca Transilvania.

The non-performing exposure (NPE) ratio under the EBA definition was 4.1% at 31 March 2020. Coverage of non-performing exposures with total provisions under EBA standards is 104%. Including collateral, coverage is 128%. The Bank’s capital adequacy ratio excluding 2020 profit is 18.17%, and 18.70% including it. Fitch Ratings affirmed Banca Transilvania’s Long-Term Issuer Default Rating (IDR) at BB+ with a Stable Outlook, and its Viability Rating (VR) at bb+.

Financing Romanians in the first three months of the year

The Bank granted almost 16,000 fixed-rate loans to individuals. The outstanding balance of mortgage/home loans stands at RON 12.2 billion, and SME loans at approximately RON 16.6 billion. The Bank now has 4.1 million cards in its portfolio, of which almost 530,000 are credit cards.

The Bank has over 2.9 million retail customers, 310,000 SME & Micro customers and more than 10,000 active corporate customers.

At BT’s General Meeting of Shareholders held on 29 April this year, shareholders approved the proposal of the Board of Directors of Banca Transilvania regarding the closing of the 2019 financial year, profit allocation, as well as an increase in equity of approximately RON 1 billion.