Preliminary financial results as at December 31, 2020   

• BT’s strategy to support customers was reflected in growth in operations and business
• Over 145,000 loans were granted to support the economy
• Companies received financing exceeding 9.5 billion lei, and individuals 5.3 billion lei  
• The number of unique customers using digital channels exceeded 1.7 million

“We ended an atypical, unprecedented year and are pleased that our results surpassed the conservative forecasts in the initial budget. In 2020 we once again showed we can adapt and that we have an experienced, cohesive team able to handle even such a complex backdrop. Most importantly, we kept our promises and contributed both on the social side and by supporting local companies and the economy overall. This year we are optimistic about BT, attentive to trends and to opportunities that make sense. We remain firmly committed to helping relaunch the business environment”- Horia Ciorcila, Chairman of the Board of Directors, Banca Transilvania. 

2020 was a year of resilience and solidarity, in which Banca Transilvania rolled out its own measures to support customers, supplementing those announced under the public moratorium, deferred loan instalments and reduced fees. The positive results are mainly due to effective cost management and higher volumes of operations.

BT Financial Group’s assets reached 107.5 billion lei at the end of last year. Loans increased to 42.16 billion lei, while deposits reached 90.94 billion lei, of which 61.94 billion lei are from individual customers and 29 billion lei from legal entities. The 2020 results further strengthen Banca Transilvania’s already robust capitalisation, with equity of 9.5 billion lei, up 12% versus 2019. BT has almost 70% Romanian capital and over 34,000 direct individual investors.

Consolidated net profit of BT Financial Group is 1,457.12 million lei, of which the bank accounts for 1,197.31 million lei. The bank’s operating profit increased to 2,154.92 million lei. The bank took cost-efficiency measures without any restructurings and despite lower fee levels in a challenging year. Operational efficiency, measured by the cost-to-income ratio, remained at a comfortable 45.3% thanks to good cost management and process digitalisation.

Supporting Romanians and community involvement in the context of COVID-19

BT was the first bank to announce measures for customers:

• Over 41,000 individuals and companies benefited from repayment deferrals.  
• Over 400,000 cards were exempted for 3 months from the monthly payment obligation thanks to the extended grace period.
• Through IMM Invest, a government programme in which it was the main bank, BT extended 10,000 financings, supporting companies that account for over 70,000 jobs, mainly in wholesale and retail, transport and construction.
  
  

Financing continued:   

• BT granted 22,000 new loans, worth 2.9 billion lei, to over 9,500 SME & Micro clients.
• The SME loan portfolio (per the European definition of SMEs) reached 17.6 billion lei.
• Over 10,200 Romanians bought homes with the help of Banca Transilvania, being financed in 2020 with approximately 2.5 billion lei.
• Outstanding mortgage/real estate loans stand at 13.3 billion lei.
• Over 67,300 consumer loans worth 2.4 billion lei were granted last year.
• Outstanding consumer loans total 10.8 billion lei.
  
  

Remote banking accelerated:

• 500,000 customers made their first online card transaction in 2020.
• Nearly 340 million transactions were made with BT cards, +22% versus 2019.
• 1.1 million people use the BT Pay app for everyday banking.
  
  

Community engagement, team and network. BT, the first company to announce significant donations in the context of the pandemic

• During the state of emergency, the bank contributed over 2 million euros to prevention and containment of the epidemic, and to expanding access to testing and treatment.  
• The bank maintained its hiring pace in the first half of 2020 compared with January–June 2019, adding 500 people to the team.
• Nearly 70 branches and agencies in 50 localities were upgraded.   
• BT Pay helped shape new behaviours: contactless shopping at merchants, money transfers and donations, all by phone.
  
  

Other financial information:

The non-performing exposure ratio is 3.46% as at December 31, 2020, and total provision coverage of non-performing exposures is 133%, according to the EBA indicator. BT’s capital adequacy ratio is 19.94% excluding 2020 profit, and 22.23% including profit.