Lending, business activity and operating income at BT increased sharply

• Romanians have continued to make plans this year: almost 63,000 loans were granted by Banca Transilvania in the first 3 months of the year, totalling 6.357 billion lei. Lending was up 61% versus the first quarter of 2021.

• The bank’s loan book increased by 2.5 billion lei, or +5%, compared with the end of last year.

• The number of customers continued to grow, with more than 3.6 million customers now banking with BT, of whom 3.3 million are individuals and 390,000 are companies.

• The bank’s operations posted solid growth: transactions by retail and corporate customers across all BT channels were up 35% compared with the same period last year.

• The bank launched Code Crafters, a company that increases its capacity to develop IT solutions.

At the end of the first quarter, BT Financial Group’s assets reached 128.3 billion lei, and net loans rose to 58.6 billion lei. Customer deposits amounted to 107.42 billion lei - of which 71.77 billion lei are households’ savings and 35.65 billion lei corporate deposits -, resulting in a loan-to-deposit ratio of 58.4%.

BT’s consolidated net profit is 400.33 million lei, of which the bank’s is 307.52 million lei. Subsidiaries and equity participations contributed approximately 92.82 million lei to BT’s profitability. The bank’s cost-to-income ratio reached 50.64%, calculated with the annualised impact of the contribution to the Bank Deposit Guarantee Fund (FGDB) and the Resolution Fund.

• The bank’s net interest income increased by 22% versus the first quarter of 2021, driven by loan growth.
• Net fee and commission income rose by 21%, on the back of higher activity at BT.
• The expense with the bank’s contribution to FGDB increased by 75%, to 143 million lei, negatively impacting the result for the first quarter of this year.
• The bank maintained a very prudent provisioning policy.

Ömer Tetik, Chief Executive Officer, Banca Transilvania, said: „Romania started the year full of uncertainties and more challenging than ever. 2022 brought macroeconomic turbulence, a complicated regional geopolitical situation, rising prices and logistical issues. In this environment, Banca Transilvania has shown that it can support, regardless of context, customers’ plans, both through higher lending and through investments in technology. The bank’s activity and revenues are ahead of estimates and the budget, and the net result is in line with the budget. We are pleased that Romanians have continued with their plans, and BT has delivered sustained growth in lending and operations.

The non-performing exposures (NPE) ratio under the EBA definition is 2.91% as at 31 March 2022. Coverage of non-performing exposures with total provisions under EBA standards is 179%. The capital adequacy ratio is 21.23% and includes the profit for the quarter.

Ongoing digitalisation at BT

• The bank has almost 3 million unique digital customers.
• BT Pay has reached the milestone of 2 million people using the app. Every other card issued by Banca Transilvania is in digital format, enrolled in BT Pay. This year also brought the launch of a new feature in BT Pay, an overdraft available 100% online.
• For entrepreneurs, the bank launched the BTPOS App, which turns a merchant’s Android device into a POS that accepts contactless payments by card, phone or other payment accessories. 43,000 companies have more than 80,000 BT POS terminals.
• The number of cards issued increased: the bank now has 4.8 million cards in its portfolio, of which more than 570,000 are credit cards.

Closing of the Tiriac Leasing transaction, expected in the first part of this year

Closing of the transaction between the Tiriac Group and Banca Transilvania with respect to Tiriac Leasing is expected in the first part of the year. BT announced the acquisition agreement in January this year.

Status of the integration of Idea::Bank into BT Financial Group: first services for Idea customers

The integration of Idea::Bank into the BT Group continued in the first part of the year, and the bank announced its first services available to Idea customers. The integration is ongoing until 13 June this year, when the assignment to BT of the contracts concluded by Idea::Bank with its customers will be completed.

BT for Ukrainians

Banca Transilvania stands with Ukrainians and is involved by providing financial solutions, communications in Ukrainian, job offers and donations.