The first quarter of this year brought positive financial results for Banca Transilvania and saw the bank move into the final phase of preparing new online platforms, so we can be there for customers anytime and anywhere, through our branch network and digital access.

Banca Transilvania’s net profit is 246 million lei, while the Banca Transilvania Financial Group’s net profit is 267 million lei. In the first 3 months of this year, the bank granted 36,000 new loans to retail, SME and corporate clients.

Horia Ciorcila, Chairman of BT’s Board of Directors, said: “It was a good start to the year, with results in line with our objectives and expectations. Given Romania’s economic outlook, we are confident about continuing our ambitious plans to grow and consolidate the bank and the BT Group. We are alert to opportunities in the local banking market and are investing in digitalization. Our focus remains on strengthening customer relationships, improving efficiency and increasing the bank’s market value.”

Banca Transilvania’s operating highlights at the end of Q1 2017:

• Banca Transilvania’s net profit is 246 million lei, and the Banca Transilvania Financial Group’s net profit is 267 million lei;
• The Banca Transilvania Group ended Q1 2017 with assets of 52.1 billion lei, of which 51.9 billion lei are the bank’s; net loans account for 54% of the Group’s assets;
• Fees and commissions from core operations grew by 11.1%;
• BT’s operating efficiency remains at a comfortable level;
• On a gross basis, before write-offs, BT’s loans increased by 3% across all business lines in January–March 2017;
• The loan-to-deposit ratio was 73% at the end of Q1 2017;
• The bank launched BT Mic, a platform for micro-entrepreneurs, underscoring the bank’s commitment to supporting this segment of Romania’s economy. To date, BT Mic has received over 3,000 loan applications.
• Over 820,000 customers now use Banca Transilvania’s internet banking, and almost 300,000 access BT’s products and services via mobile banking.

BT’s programs to support growth in operating income remained a focus for the bank’s top management, contributing to higher fee and trading income. Banca Transilvania has also invested—and continues to invest—in process automation and digitalization, aiming to offer the best possible customer experience.

Other financial information:

• Banca Transilvania has a portfolio of 2.9 million cards, which generated transactions up by almost 23% compared with the same period last year. The bank’s market share by card transaction volume is over 19%. Through the Star loyalty program, Banca Transilvania has a portfolio of 331,000 credit cards.
• The NPE ratio under the EBA definition was 9.22% as at March 31, 2017.
• The coverage ratio with total provisions for exposures classified as NPE under the EBA definition is 64%.
• The bank’s capital adequacy ratio, including Q1 2017 profit, is 19.3%; excluding profit, it is 18.52%.
• Banca Transilvania continued its community involvement in the first part of this year as well, providing almost 5 million lei to programs in areas such as financial and entrepreneurial education, sports, culture and social causes.

Banca Transilvania informs its shareholders that the Report for Q1 2017, 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 April 26.

The financial statements as at March 31, 2017 and March 31, 2016 are not audited or reviewed.