• BT granted almost 122,000 new loans across retail, SME and corporate in the first nine months of the year;
• BT’s operating efficiency continued its positive trend, with higher transaction volumes and lower costs for customers;
• The number of transactions processed through the bank: +15% versus the same period last year;
• Over 800,000 customers use BT internet banking, and more than 200,000 use mobile banking;
• The bank advanced its digital focus by launching features such as fingerprint authentication in BT24 Mobile Banking alongside an app upgrade; the CIP online platform for checking payment incidents online; the Divizia Pentru Medici platform; and one-time password via SMS for BT online card transactions;
• In the first nine months, Banca Transilvania allocated almost 15 million lei to community engagement and social responsibility programmes in areas such as financial and entrepreneurial education, volunteering, sports, culture and social causes;
• Since September this year, the bank has introduced a brand concept that reflects what BT represents today: a Romanian bank entering a new stage of development that supports local entrepreneurial spirit.

Banca Transilvania’s operating income reached 2,125.4 million lei, and net profit 657 million lei. At Banca Transilvania Financial Group level, operating income reached 2,240.4 million lei and net profit 698 million lei. The bank’s assets stand at 48.14 billion lei, net loans total 26.4 billion lei, and customer deposits 39 billion lei. Banca Transilvania continues to develop as a financial group together with its subsidiaries, which are performing well in their respective markets: investment banking, leasing, capital markets, operating leasing, consumer finance, etc. 

Ömer Tetik, BT’s Chief Executive Officer, said: „We are pleased that in the first nine months we continued the positive start to the year by providing financing and delivering growth, especially in retail and SME. The bank’s results are very good; we are recording profitability and operating efficiency. We are alert to new market opportunities; shortly we will expand into the microbusiness segment and we will use digital more and more to offer our customers a better experience”.

Banca Transilvania’s performance in the first nine months of 2016:

• Banca Transilvania’s net profit is 657 million lei, and the Banca Transilvania Financial Group’s net profit is 698 million lei.
• Fee and commission income grew by 15.3%;
• BT’s operating efficiency confirms the trend seen in the first half of this year, with a cost/income ratio of 40%. Excluding the effect of the Visa Europe transaction, amounting to 185 million lei, the cost/income ratio remains at a comfortable 43%.
• Banca Transilvania granted SME clients over 13,000 new loans in the first nine months of the year;
• Between January and September this year, on a gross basis and before recognizing write-offs, BT’s loans increased by 6.3%, balanced across all business lines — corresponding to 8.2% growth in Banca Transilvania’s organic balance sheet, excluding the portfolio taken over from Volksbank.
• Customers migrated from Volksbank Romania opted for almost 70,000 BT products.
• The loan-to-deposit ratio is 72% at the end of the first nine months of 2016;
• As at September 30, 2016, Banca Transilvania had a portfolio of 2.74 million cards, which generated transaction volumes almost 25% higher than in the same period of the previous year. The bank’s market share by card transaction volume is nearly 20%. Through the STAR loyalty programme, Banca Transilvania has a portfolio of 310,000 credit cards.

Other financial information:

• As at September 30, 2016, BT recorded net impairment and provision expenses of 510.1 million lei (including the impact of 1,719 million lei in off-balance-sheet derecognitions); most of the provisions booked as expense during the third quarter of this year relate primarily to the asset quality improvement exercise and reflect the bank’s continued prudent approach to credit risk management.
• Non-performing loans, over 90 days past due, account for 5.55% of BT’s total loan portfolio, a significant improvement from 9.75% at the end of 2015;
• Coverage of non-performing loans with related provisions and collateral remains at a comfortable level of 123.32%, in line with the bank’s risk appetite;
• BT’s capital adequacy ratio, taking into account profit for the first nine months of 2016, is 19.12% (16.91% excluding profit).
• Banca Transilvania has continued to engage in the community and, in the first nine months of this year, allocated almost 15 million lei. The main programmes are: Clujul Are Suflet (a foundation that helps young people with limited means continue their studies and find a job); Plantarea Padurii Transilvania (the third reforestation campaign with the help of volunteers); ABT Financiar (the largest financial education programme dedicated to children nationwide, attended by over 10,000 pupils); EMBA University of Hull (a 100% British business school operating in Cluj-Napoca, with the bank as one of the partners), support for Romanian basketball at federation, club and national team level, as well as BT Club (training for entrepreneurs, a programme for which the bank has allocated 10 million lei over 10 years).

The financial statements as at September 30, 2016 are unaudited and not reviewed; those as at December 31, 2015 are audited.