Horia Ciorcilă, Chairman of the Board of Directors, Banca Transilvania, gave an interview with Ziarul Financiar, reproduced in full below:

How did the first months of the year look for Banca Transilvania in terms of financial results? 

We started the year with positive financial results, with growth across all business lines, a higher number of customers and strong commercial activity. As a result, we see the bank’s net profit at RON 950.2 million, 25.6% higher than in the first quarter of 2025, group-level assets reaching RON 227 billion, and almost 140,000 new customers. The first months are a very good start to a year in which we will continue to build a strong bank that is relevant for customers and for Romania.

Why did BT borrow EUR 1 billion on the international markets? Are there plans for a broader presence on the international capital market through various instruments?

There were two reasons. The first is linked to BT’s strategy of diversifying its funding sources, and the second to European MREL requirements. It was not a decision driven by a need for liquidity, but one connected to the proactive and responsible management of our growth over the period ahead. The transaction was a record for BT and the largest bond issue in Central and Eastern Europe.

The very strong interest from international investors was an important encouragement. We saw confidence in our financial strength and in Romania’s economy, as well as recognition of BT as a relevant issuer among Europe’s banks. We will continue to access international markets when issued bonds bring long‑term value for the bank and for our shareholders.

Why were there recent changes on the Board of Directors?

There were changes on the BT Board of Directors because the term came to an end, as it does every four years. Shareholders recently voted on the new Board composition, and alongside those who were re‑elected we also have new colleagues — a sign of continuity as well as complementarity. This is also a good moment to express my appreciation for the contribution of the members whose term ended, and to thank them for their professionalism and commitment. At the same time, I wish every success to the colleagues who have joined the Board; their expertise will help us meet our objectives. For me, it is an honor to continue as Chairman of the Board, especially as we have bold plans for the Banca Transilvania Group.

BT Board of Directors for the 2026-2030 term (from left to right): Ivo Gueorguiev, Teodor Torgie, Mirela Bordea, Horia Ciorcilă, Gabriela Nistor, Florin Predescu‑Vasvari and Doru Lionăchescu

Is BT aiming to broaden its international shareholder base?

The bank’s shareholder structure already reflects a mix of institutional and individual investors, both Romanian and international. We are not pursuing a targeted expansion of the shareholder base by geography. What matters to us is the sustainable growth of the bank, strong governance and financial performance. When these are delivered consistently, as we have done so far, international investor interest follows naturally. Today, 80% of the bank’s capital is Romanian, and over the last year more than 8,800 people chose to invest in TLV shares. We have thus reached over 75,000 shareholders and investors — and it is a growing community.

What will be BT’s policy for profit distribution and dividends going forward? 

This year we will distribute to shareholders roughly one-third of the 2025 profit, of RON 1.4 billion, as cash dividends, with the remainder supporting the bank’s growth plans and capital strengthening. We will also grant bonus shares following the increase of the share capital by incorporating reserves.

We continue to have a balanced and prudent profit distribution policy that seeks both fair remuneration for shareholders and the maintenance of a solid capital base to support the future growth of the Banca Transilvania Group. The level of future distributions depends on the BT Group’s performance, the macroeconomic context and regulatory requirements.

How is the bank’s plan for 2026 changing/adapting in light of emerging geopolitical tensions — the war in the Middle East, disruption of oil routes, rising oil/gas prices, the return of inflation — with direct and indirect effects in Romania?

BT’s plan for 2026 remains solid and grounded in reality. In such moments, the role of a large bank is to remain prudent and prepared for multiple scenarios. 

We are continuing with BT’s strategic directions, we are well capitalized, have solid liquidity and a diversified business model, which allows us to navigate volatile periods without deviating from our long‑term objectives. The bank’s plan is for growth — a challenge, given a 23% market share and strong competition. The only option for the bank is to grow above the market average. In addition, we are consolidating the BT Group — we have both vertical and horizontal integration, we offer complementary products and services, and our subsidiaries are growing even faster than the bank, which is another strength.

The bank’s competitive advantage over the past 25 years has been speed of reaction, the ability to make quick decisions, to try new things or transactions others will not do. Today we have a highly experienced and loyal team, which gives us the confidence that we can continue even in difficult contexts like the one we are in now in Romania and at the macroeconomic level. We have reached where we are thanks to that combination. Our current size, complexity and regulation have, however, reduced our agility — and we need to improve that.

Preserving this entrepreneurial culture is vital for us and a constant priority, coupled, of course, with an impeccable reputation and honoring our commitments to partners, customers, our shareholders and society at large. 

We must be ready to act quickly, but we no longer have the sense of urgency we had years ago when we were much smaller. Today we need to innovate, cut bureaucracy and be patient for the right acquisitions. At the same time, it is important not to forget where we started and to remain modest and grounded.

How will the banking system continue to consolidate — is Banca Transilvania looking at another bank acquisition?

Consolidation of the banking system will continue; it is a natural trend in a growing, maturing economy in which there are still many small banks. Acquisitions make sense only when there is real complementarity and when the end result brings value to customers and to the economy. Banca Transilvania will defend its leadership position. We are looking at opportunities to grow both organically and through acquisitions. We will only consider acquisitions that make sense and will avoid strategic mistakes driven by excessive enthusiasm. Organic growth remains our priority.

What should the bank do — what should its balance sheet, valuation metrics and profit look like — to reach a market capitalization of EUR 10 billion?

The question comes at a time when Romania is demonstrating exactly the first condition for a EUR 10 billion market capitalization: macroeconomic predictability.

I believe the 2026 budget that has been presented is feasible and the essential premise. I would not like to make a prediction because we operate in a market like Romania, with serious budget deficit issues combined with an evident political crisis, which makes economic developments more complex. Our fundamentals are very solid and we believe that, to the extent we meet our targets and objectives, the market will recognize this, as it has so far.

How do you explain that BT — that banks — report rising profits when the economy is in recession?

Rising profits at BT and across the banking sector must be viewed in the industry’s specific context and the economic cycle. Banking has its own resilience mechanisms, and the results mainly reflect a solid balance sheet structure, very strong risk discipline and an interest rate environment that has supported net interest income. 

The deposit base remains stable and growing, giving banks a highly competitive source of funding. At the same time, loan demand, while selective, is healthy, and portfolio quality remains good. Low levels of non‑performing loans and prudent provisioning contribute to stable results. In a high‑rate environment, bank margins are more robust. This does not reflect higher risk, but a market structure in which banks are well capitalized and can efficiently manage the spread between rates on assets and liabilities. 

Not least, digitalization, operational efficiency and the investments made in recent years allow banks to operate with better‑controlled costs.

For BT, the results are the outcome of a diversified business model, a very large customer base and a prudent growth strategy. Profitability is the effect of a solid positioning, risk discipline and the ability to support the real economy. Profit must be related to the capital employed — that is, the capital shareholders have contributed over time. Viewed this way, banking is not a business that delivers above‑average returns, because shareholders have put up a lot of capital. More precisely, profit is large in absolute terms, but returns are normal, even below other sectors.

What are your question marks for 2026?

How will Central and Eastern Europe reposition itself in today’s geopolitical context?

How and when will the process of cutting bureaucracy begin?

How could fiscal and legislative predictability be ensured at least 2–3 years ahead?

When will real state reform begin, and the creation of a business environment attractive to local and international investors?

2026 is a year in which the questions matter as much as the answers.