"We have continued to grow steadily in all areas, both in terms of number of customers and transactions volume. We entered in the straight line with the integration of OTP Bank Romania, in a record timeframe. We are an integrated financial group both vertically, with complementary segments - from online apps to territorial units and ATMs, from cards issuing to POSs and wide acquiring capabilities to e-commerce and cash processing – and also horizontally, through the BT Group subsidiaries. This gives us a unique position both in terms of efficiency and synergies in the Romanian financial system. We continue our growth strategy for the benefit of our customers and shareholders because Romania needs solid banks to finance the economy", states Ӧmer Tetik, CEO, Banca Transilvania.

Financial results in the first nine months

Banca Transilvania Financial Group's consolidated net profit amounted to RON 3,9 billion, of which the bank's net profit amounted to RON 2.7 billion, as a result of the multidimensional growth of the business. Subsidiaries and equity participations contributed with over RON 391 million to the BT Group's profitability, while gains from acquisitions contributed with RON 807.4 million to the BT Group's net profit.

BT Group's assets reached RON 199.7 billion (+18.1% compared to December 31, 2023) while net loans and leasing receivables reached RON 94.2 billion (+24.6% compared to December 31, 2023). Total assets grew by 9.1% in the first nine months of the year, supported by a 9.2% increase in net loans granted to retail and corporate customers (compared to December 2023).

The Group's operating revenues amounted to RON 7.2 billion (+28.4% YoY), boosted both by organic growth and acquisitions. BT Group's operating expenses amounted to RON 3.4 billion (+34% YoY), impacted by the macroeconomic context marked by inflation and by the BT Group's growth.

Lending, transactions and financial inclusion

The outstanding loans to retail customers increased by 5.7% year-to-date, while the balance of loans to companies grew by 11.5% during the same period. The net loans and leasing receivables granted to retail and corporate clients at the BT Group level increased by 29.7% compared to the same period of last year, reaching RON 94.2 billion. The balance of net loans increased by 23% compared to the end of last year, while leasing receivables increased by 56.2%. 83% of the net loans and leasing receivables granted at the BT Group level are generated by Banca Transilvania.

Total loan portfolio of retail customers reached RON 33.2 billion. New production amounted to RON 6.2 billion in the first nine months of 2024. Over 18,000 loans were granted to SMEs, totaling over RON 5 billion, while RON 12 billion represents new loans granted to companies, with the gross corporate loan balance reaching RON 49.6 billion, at individual level.

Banca Transilvania's customers' deposits amounted to RON 142.8 billion (+6.2% compared to December 2023), of which 52% are term deposits. BT has now reached 6.6 million cards in its portfolio, of which ~ 4.2 million include digital cards enrolled in the bank's apps, mainly in BT Pay. Purchases made with the 6.6 million cards increased by 23% in value compared to September 2023.

In the first nine months of 2024, mobile payments saw an impressive increase of 38% compared to the same period of last year.

Other financial information

• ROE improved compared to September 2023 and reached a level of 29.34%;
• BT's provisions balance increased by 7.5% to RON 4.7 billion, compared to December 2023, when it totaled RON 4.4 billion;
• Cost of risk: 0.14%;
• The bank's cost-to-income ratio, calculated with an annualized impact of the contribution to the Bank Deposit Guarantee Fund and the Resolution Fund, remains at a comfortable level of 45.55%, despite the significant financial efforts the integration process of OTP Bank Romania into the Banca Transilvania Group implies and the effects of the turnover tax.
• BT's loan-to-deposit ratio stands at 58.02% at the end of September 2024.
• BT's capital adequacy: 26,26%, incorporating in the own funds the interim net profit for
  first semester of 2024;
• NPL rate, according to the EBA indicator, is 2.01%.

OTP Romania companies' contribution to Banca Transilvania Group results

The companies acquired from OTP in Romania contributed with RON 91.9 million to the consolidated net income of the Banca Transilvania Group. The bargaining gain from the acquisition - namely RON 675 million – is not taxable. The gain on acquisition was determined as the difference between the price paid and the fair value of assets and liabilities of acquired OTP entities at the closing date, when Banca Transilvania became the owner of these entities.