BT’s positive results are driven by growth in the customer base, transactions and operating activity

Banca Transilvania sustained its first-quarter performance into the second quarter. The positive trend was supported by growth in the consolidated portfolio of net loans and lease receivables, up 4.3% versus December 31, 2023 and 13.4% versus June 30, 2023, reaching 78.8 billion lei, as well as by the increase in customer deposits on a standalone basis, up 3.4% from December 31, 2023 and 13.5% from June 30, 2023, to 139 billion lei. Banca Transilvania recorded net profit of 1,810 million lei, 42.6% higher than in the first six months of the previous year.

BT delivered value for individuals and businesses:

• BT extended 11 billion lei in financing to companies and 4 billion lei to individuals.
• Through IMM Invest Plus, the bank granted financing of over 2.4 billion lei in the first half.
• The number of active customers continued to grow, reaching 4.3 million. The bank attracted approximately 300,000 new customers in the first half of the year, of whom around 46,000 are companies.
• Banca Transilvania remains among the largest taxpayers.  In the first part of the year, it contributed approximately 900 million lei to the state budget through taxes and social contributions, including the turnover tax.

BT’s results grew steadily in the first half of the year, driven by the expansion of our customer base, transactions and operating activity. Beyond organic growth, integrating OTP România into the Banca Transilvania Financial Group, which we started in August, is a priority for us in the period ahead. We continue to develop the BT Group across all segments in which we operate, accelerate financial inclusion in Romania and aim to deepen our relationship with Romanians working abroad. Our objective is prudent, sustainable growth. As for the domestic and international economic environment, we are cautious so we can be prepared for any context; economic growth remains uncertain in many parts of the world and macro indicators are volatile.
Ӧmer Tetik, Chief Executive Officer, Banca Transilvania

Financial results for the first half: 

• The assets of the Banca Transilvania Financial Group increased to 177.9 billion lei (+5.2% versus December 31, 2023 and +16.2% versus June 30, 2023), while loans reached 78.8 billion lei (+4.3% versus December 31, 2023). 
• The contribution of subsidiaries and equity investments to the profitability of the BT Group rose by 7.4% (over 335.8 million lei) compared with H1 2023.
• On a standalone basis, the provisions balance reached 4.5 billion lei, up 4% versus December 31, 2023, broadly in line with loan growth.
• Customer deposits at Banca Transilvania reached 139 billion lei (+3.4% versus year-end 2023). Individuals hold 90.6 billion lei at BT, up 5% from December 2023, and legal entities 48.4 billion lei.
• The bank-only gross loans-to-deposits ratio is 57.3%.
• BT’s non-performing loan ratio under the EBA definition was 2.10% at June 30, 2024. On a consolidated basis, net expenses with impairment, expected credit losses for assets and provisions for other risks and loan commitments increased to 55 million lei, 15.6% higher than in the first half of the previous year, while still resulting in a cost of risk below 1% (0.13%).
• The BT Financial Group’s net consolidated profit is 2,145.9 million lei (+35.7% versus H1 2023), of which the bank’s profit is 1,810.1 million lei (+42.6% versus the first six months of 2023).
• The BT Group’s operating income reached 4.6 billion lei (+24.5% versus the first half of 2023).
• The bank’s cost-to-income ratio was 45.03%, calculated including the annualized impact of contributions to the Deposit Guarantee Fund and the Resolution Fund.
• The bank’s net interest income was up 31.3% versus the first half of 2023.
• Net fee and commission income increased by 15.4% year-on-year, on the back of higher activity at BT.
• At the bank level, net trading income reached 372 million lei, up 31.4% compared with the first half of 2023.
• Banca Transilvania’s capital adequacy ratio at June 30, 2024 was 27.84%, including profit.

Banca Transilvania paid cash dividends of 1 billion lei from 2023 profit, with a yield of almost 4%, following the resolution of the April 2024 General Meeting of Shareholders, from which over 55,000 shareholders benefited.

Status of acquisitions in Romania: OTP Bank România and BRD Pensii
In the first part of the year, the Banca Transilvania Group took further steps toward growth through acquisitions in Romania, both in banking and in complementary areas.

• Banca Transilvania & OTP Group: In February 2024, BT signed with OTP Group the agreement to acquire the Romanian subsidiaries: OTP Bank România, OTP Leasing România, OTP Asset Management România, OTP Factoring România, OTP Consulting România, OTP Advisors România and Fundația OTP Bank România. At the end of July 2024, following receipt of the necessary regulatory approvals, Banca Transilvania announced completion of the acquisition. The integration of these subsidiaries into the Banca Transilvania Group is now under way, while the acquisition of one of the subsidiaries, OTP Asset Management, is pending regulatory approval.
• BT, BRD-Groupe Societe Generale and Societe Generale Assurances: In May 2024, the Banca Transilvania Group reached an agreement to acquire BRD Pensii, a company operating in Romania in mandatory private pensions (Pillar II) and voluntary pensions (Pillar III). The acquisition requires approval from the Financial Supervisory Authority in Romania.