● Financial results as at 30 June 2017 ●

The first half of this year was a positive period for the Banca Transilvania Financial Group, marked by organic growth and a focus on efficiency and simplification, in line with the strategy set for 2017.

Banca Transilvania’s net profit stands at RON 496 million, and the Banca Transilvania Financial Group’s at RON 513 million. The BT Group ended the first half of the year with total assets of RON 53.4 billion, of which the bank accounts for RON 53.2 billion. Net loans — including leasing — represent 54% of the Banca Transilvania Financial Group’s assets.

In January–June this year, on a gross basis and before recording write-offs, Banca Transilvania’s loan book increased by 5% across all business lines. In the first 6 months, BT granted 80,000 new loans to retail, SME and corporate clients, averaging over 700 loans processed and approved per day, for a total of over RON 6 billion, supporting growth in the Romanian economy.

Almost 45% of the companies set up this year in Romania — approximately 34,000 out of around 80,000 — opened an account with Banca Transilvania in the first 6 months of the year.

“Our results are in line with the internal forecasts built into this year’s budget, and we are pleased that our role as a financier of the Romanian economy is growing in step with the progress made by each BT business line, reflected in the 80,000 new loans granted. Banking is changing at speed, fundamentally, and with this in mind we are running a comprehensive technology and digitization program, to simplify our business and our relationship with clients. We are investing in online platforms and processes while keeping a close eye on risks, so that we are a digital network bank as close as possible to what clients want. In the period ahead, we hope to see greater predictability in public policies, leading to a much faster pace of public and private investment, which we would like to join, as the bank of enterprising people,” said Horia Ciorcilă, Chairman of the Board of Directors, BT.

Growth at Banca Transilvania through business lines and niche strategies. Highlights for the first half of 2017:

• SMEs & micro businesses: the number of active BT clients in this segment rose by over 18% versus the same period last year, to almost 230,000. Compared with June 2016, the first six months saw a 47% increase in new lending volumes (RON 1.6 billion in 2017 versus RON 1.1 billion in 2016, partly driven by the resegmentation of BT’s business lines). Also in this half-year, the Banca Transilvania Financial Group launched BT Mic, a company dedicated to financing small businesses. In 4 months of activity, it financed around 2,000 microenterprises with RON 90 million. The start-up complements BT’s role in supporting Romanian entrepreneurs; Banca Transilvania’s corporate client segmentation is as follows: micro, SME, corporate and large corporate clients.

• Retail Banking: At end-June 2017, Banca Transilvania had nearly 3 million cards, with RON 22 billion transacted in the first 6 months of the year. Card payments accounted for over 60% of all transactions by number. The number of contactless payments increased 4.7 times versus the same period last year, and 5.9 times by value. The bank granted almost 35,000 non-card loans, while personal loans posted significant growth versus June 2016: +24% by value and +14% by number. Through the STAR loyalty program for BT shopping cardholders, the bank has partnerships with over 10,000 locations nationwide and has issued over 320,000 STAR cards, out of more than 330,000 BT credit cards. This year, Banca Transilvania launched the STAR.card shopping app, as well as the BT contactless watch, which can be used to pay instead of using the card. Since 2017, the bank has diversified communications with clients through the Livia bot, which provides round-the-clock information via Facebook Messenger or Skype on current accounts, products and services.

• Corporate Banking: Through this business as well, BT is pursuing the bank’s strategy, focusing on digitization, specialization and enhancing the client experience. In this half-year, the differentiated approach to Large Corporate and Middle Corporate clients — with dedicated teams — was completed. In addition to loan origination (new lending came to RON 2.8 billion) and cash management transactions (client turnover reached RON 72 billion, and the share of non-risk revenues in total revenues increased by 5.4 percentage points versus the first half of 2016), the period also brought the following developments: rollout of digital signature in dealings with Large Corporate clients; the ability to reconcile bank statements automatically via BT Ultra ERP; and expansion of the electronic invoice submission platform for the factoring service to a wider range of clients. BT was also active on the syndicated loans and capital markets, taking part in landmark transactions.
• Banking services and products via internet banking and mobile banking: 900,000 BT clients use Banca Transilvania’s internet banking, and over 300,000 clients use mobile banking.
• Simplifying client access to products and services: BT’s strategy in this area supported a 12.7% increase in operational fee income, driven by higher volumes processed through BT.

 Other information:

• Over the past 5 years, Banca Transilvania has contributed taxes and other payments to the state budget, on its own account and on behalf of employees or clients, totaling over RON 2.1 billion, of which RON 165 million in the first half of 2017.
• Banca Transilvania continued to be involved in the community, contributing RON 13.4 million in the first part of this year to financial and entrepreneurial education programs, sports, culture and social causes.

• The bank’s capital adequacy ratio is 18.35%, excluding the first half of 2017 result.
• BT’s non-performing exposure (NPE) ratio (as per the European definition) is 8.1%, and total provision coverage of NPEs is 65%.

Information for BT shareholders:

The H1 2017 report, prepared in accordance with the provisions of Article 113 letter C of CNVM Regulation No. 1/2006 regarding issuers and securities operations, will be available on BT’s website (Shareholders/Financial results page) starting 10 August this year.

The financial statements as at 30 June 2017 and 30 June 2016 are reviewed; those as at 31 December 2016 are audited.