In the first three months of this year, Banca Transilvania posted positive financial results, continued to be a partner to Romanian entrepreneurs, supported economic growth and invested to deliver a superior experience for its nearly 2.5 million active customers.

BT’s strategy is backed by strong international shareholders, such as EBRD, IFC – a World Bank Group member, and various investment funds. Banca Transilvania now has over 28,000 Romanian retail shareholders, and almost 55% of its capital is Romanian.

Banca Transilvania’s net profit was RON 366 million, and the BT Financial Group’s net profit was RON 389 million. In the first three months of this year, the bank granted 44,000 new loans to retail, SME and Corporate clients.

“It was a good start to the year, with results in line with expectations and a focus on the experience we offer customers across all our business lines. We made significant investments in renewing the network and in the digitalisation of our services” - said Ömer Tetik, Chief Executive Officer, Banca Transilvania.

BT, first-quarter results:

• BT Financial Group closed Q1 2018 with assets of RON 60.1 billion, of which the bank accounted for RON 59.6 billion; net loans represented 50.98% of the Group’s assets;
• Growth in net fee and commission income: 18.2%;
• BT’s cost-to-income ratio remains at a comfortable 47%;
• 44,000 new loans granted in January–March 2018;                                                
• The loan-to-deposit ratio stood at 65% at the end of Q1 2018.

Technology and digital

• At the beginning of this year, BT announced a collaboration with Personetics, a market leader in cognitive banking applications. Through this partnership, the bank will embed artificial intelligence into its services to offer customers a superior digital experience. The cognitive banking application will provide personalised, real-time financial support, will be integrated into the new BT24 Internet Banking and Mobile Banking, and will be launched mid‑year.
• BT Pay, the app for in‑store payments and money transfers by phone, launched at the end of January this year, has been downloaded by over 90,000 customers.
• Between January and March this year, BT®’s Livia chatbot provided over 200,000 answers via Facebook Messenger and Skype to questions about the bank’s accounts, products and services.   
• Over 400,000 people sought information in the first three months of the year through the Intreb BT platform on banking services, products and transactions. This is Banca Transilvania’s largest online financial education programme.

Other financial information:

• Banca Transilvania has a portfolio of 3.08 million cards, which generated transactions almost 34% higher than in the same period of the previous year. The bank’s market share by card transaction volume is over 20%. Through the STAR loyalty programme, Banca Transilvania has a portfolio of 388,000 credit cards.
• The ratio of non‑performing exposures (EBA) was 6.35% at 31 March 2018.
• Total coverage of non‑performing exposures (EBA) by provisions was 71%.
• The bank’s capital adequacy ratio, including Q1 2018 profit, was 19.23%; excluding profit, it was 18.15%.
• Banca Transilvania continued to be involved in community life in the first part of this year through programmes in areas such as financial and entrepreneurial education, sport, culture and social causes. Examples include almost 20 courses for entrepreneurs organised across the country by BT Club; support for the “Vreau sa fiu antreprenor” programme and for business accelerators; and major reforestation initiatives in which over 2,000 volunteers took part. BT is also the main supporter of Romanian basketball.

For shareholders: The report for the first quarter of 2018, prepared in accordance with Article 113 letter C of CNVM Regulation No. 1/2006 on issuers and securities operations, will be available on BT’s website (Shareholders/Financial results page), https://www.bancatransilvania.ro/actionari/rezultate-financiare/, starting 25 April this year. The financial statements as at 31 March 2018 and 31 March 2017 are not audited or reviewed.