Banca Transilvania: sustained organic growth in the first nine months of the year

OTP Bank Romania integration enters the home stretch

Banca Transilvania recorded positive results in the first nine months of the year, driven mainly by organic growth, customer activity and transactions.

The bank’s growth is reflected in the total number of transactions processed, up 30.7% versus the same period in 2023, as well as in the number of active customers, which reached 4.4 million.

We continued to deliver strong growth across the board, in both customers and transactions. We are in the home stretch with the integration of OTP Bank Romania, delivered in record time. We are an integrated financial group vertically — with complementary segments, from apps, branches, ATMs, merchant acquiring and e-commerce through to cash processing — and horizontally, through the BT Group companies. This gives us efficiencies and synergies that are unique in Romania’s financial system. We are continuing our growth strategy, for the benefit of customers and shareholders, because Romania needs large banks to finance the economy.

Ӧmer Tetik
Chief Executive Officer
Banca Transilvania

Financial results for the first nine months: 

• The consolidated net profit of the Banca Transilvania Financial Group was 3,907.5 million  lei, of which the bank’s was 2,708.9 million lei, as a result of growth across multiple dimensions of the business. Subsidiaries and equity stakes contributed over 391 million lei to BT Group profitability, and the gain on acquisitions contributed 807.4 million lei to BT Group net profit.
• BT Group’s assets reached 199.7 billion lei (+18.1% versus 31 December 2023), and net loans and lease receivables were 94.2 billion lei (+24.6% versus 31 December 2023).
• Banca Transilvania posted 9.1% growth in total assets in the first nine months of the year, supported by a 9.2% increase in net loans to individuals and companies (versus December 2023).
• BT Group’s operating income reached 7.2 billion lei (+28.4% y/y), reflecting both organic growth and acquisitions.
• BT Group’s operating expenses reached 3.4 billion lei (+34% y/y), reflecting both the inflationary macroeconomic context and the growth of BT Group.
  
  

Lending, transactions and financial inclusion:

• The value of BT loans to individuals increased by 5.7% versus the end of last year, while the balance of loans to legal entities expanded by 11.5%.
• At BT Group level, net loans and lease receivables to individuals and companies increased by 29.7% year-on-year, with outstanding balances reaching 94.2 billion lei. Net loans were up 23% versus the end of last year, while lease receivables rose 56.2%. 83% of group-wide net loans and lease receivables are originated through Banca Transilvania.
• On a standalone basis, retail customer financing stood at 33.2 billion lei. New loans granted amounted to 6.2 billion lei in the first nine months of 2024.
• More than 18,000 SME loans were granted, totalling over 5 billion lei.
• Corporate loan disbursements totalled 12 billion lei, with the gross loan portfolio on a standalone basis reaching 49.6 billion lei.
• Customer deposits at Banca Transilvania reached 142.8 billion lei (+6.2% versus the end of the previous year), 52% of which are term deposits.
• BT now has 6.6 million cards in its portfolio, of which approximately 4.2 million are also available as digital cards in apps, especially in BT Pay. Purchases made with these 6.6 million cards increased in value by 23% compared with the same period last year.
• In the first nine months of 2024, mobile phone payments increased significantly, by 38%, compared with the same period last year.
  
  

Other financial information:

• ROE improved versus the first nine months of last year, reaching 29.34%;
• BT’s provisions balance increased by 7.5%, to 4.7 billion lei, compared with the balance at the end of 2023, when it was 4.4 billion lei;
• Cost of risk: 0.14%;
• The bank’s operating efficiency, calculated including the annualised impact of contributions to the Bank Deposit Guarantee Fund and the Resolution Fund, remains at a comfortable 45.55%, despite the significant financial effort required by the integration of OTP Bank Romania companies into the Banca Transilvania Group and the turnover tax.
• BT’s loans-to-deposits ratio was 58.02% at the end of September 2024.
• BT’s capital adequacy ratio: 26.26%, with the net profit for the first half incorporated into own funds;
• NPL ratio under the EBA definition: 2.01%.

Contribution of the OTP Romania companies to Banca Transilvania Group results  

For two months — through 30 September 2024 — the entities acquired from OTP Group contributed 91.9 million lei of profit to Banca Transilvania Group’s results. The gain on their acquisition, namely 675 million lei, is not taxable. The acquisition gain was determined as the difference between the price paid and the share of the fair value of the assets and liabilities of OTP Bank Romania and the other OTP subsidiaries at the date on which Banca Transilvania became the owner.