BT's financial results as of March 31, 2021: a good sign of the recovery of the economy

Ömer Tetik, General Manager, Banca Transilvania:

"BT ran with the engines running in the first quarter,

which can be seen in the record number of grants awarded".

• Nearly 48,000 loans were granted in the first 3 months of the year, worth 3,947 million lei. Of these, 45,700 were for individuals - for housing and personal needs.
• BT serves 3.1 million individual customers, 352,000 SME & Micro customers and over 10,600 corporate customers.
• 1.9 million customers are digitised, of which over 1.2 million use BT Pay, +79% compared to Q1 2020.
• The number of phone payments doubled in Q1 2021 compared to the same period last year, reaching 12.3 million.
• 64% is the increase in the number of internet card transactions in Q1 2021 compared to Q1 2020.
• The bank has 70.64% Romanian shareholders and over 33,000 Romanian individual shareholders.
• BT continued its plan to modernise its network of branches during the first part of the year, at a rate of one branch per week.

Banca Transilvania's results for the first three months of the year are encouraging and a sign of recovery of the Romanian economy after the challenges of 2020.

Banca Transilvania Financial Group's assets reached RON 110.9 billion at the end of the first quarter and loans increased to RON 43.09 billion. Customer deposits reached 93.19 billion lei: of these, 64.22 billion lei are individual savings and 28.96 billion lei are company deposits.

The consolidated net profit of Banca Transilvania Financial Group is 656.33 million lei, of which the bank's net profit is 581.26 million lei.Subsidiaries and equity investments contributed approximately 75 million lei to the profitability of the BT Group. The bank's operating efficiency reached 45.61% calculated with an annualized impact of the contribution to the Bank Deposit Guarantee Fund and the Resolution Fund.

"We see encouraging signs,Romania's economy has recovered well in the first three months of the year, but the challenges have not gone away. We now depend on the pace of vaccination, but also on travel and consumption restrictions in other European countries and in the world, and the pace of recovery will be directly correlated with that of the major economies in the European Union. We are optimistic, but remain on guard and keep close to our credit clients and those who need financing to support their business, consumption and economy. Banca Transilvania has been running on high steam in the first three months of the year, which can be seen in the record number of loans granted", says Ömer Tetik, CEO, Banca Transilvania.

The non-performing exposure ratio, according to the EBA indicator, is 3.73% as at 31 March 2021. The total provision coverage of non-performing exposures according to EBA standards is 131%. The bank's solvency is 23.82% and includes the profit for the quarter just ended. Fitch Ratings maintained Banca Transilvania's long-term funding rating (IDR) at "BB+", with a negative outlook, as well as its viability rating (VR) at "bb+".

The balance of real estate/mortgage loans is RON 13.8 billion, and of SME loans approximately RON 17.8 billion. The bank has reached 4.4 million cards in its portfolio, of which more than 530,000 are credit cards.

BT's plans for 2021 approved by shareholders. The Year of Recovery

At the BT Annual General Meeting of Shareholders on April 28 this year, shareholders approved the Board of Directors' proposal for closing 2020, profit distribution, as well as an increase in shareholders' equity by 573.8 million lei.

The bank's 2020 results support BT's role as a main pillar of the economic recovery in 2021. For this year, Banca Transilvania has set the following targets:

• +11.3% assets, up to 115 billion lei;
• 49.3% cost/income for operational efficiency;
• +7.9% gross lending;
• 47.9% loans/deposits;
• +11.6% total resources from clients.

BT's investment budget for 2021 is 400.88 million lei and will be allocated to IT projects, cards, digital initiatives and network. At Banca Transilvania, this year's headline is Relaunch. BT wants to play a major role in supporting companies, people and the economy.