Ömer Tetik, BT: "We will reach the assumed budget through sustained work, but without any major issues"

Following the release of Banca Transilvania Group's financial results for the first half of 2025, the bank organized a video conference with investors in August 2025, during which Ömer Tetik, CEO of Banca Transilvania, referred to the impact on BT following the doubling of the turnover tax.

Background:

As of July 1, 2025, the turnover tax paid by banks in Romania has increased from 2% to 4%, and the measure will be maintained in 2026.

Impact on BT:

The impact of the turnover tax doubling amounts to approximately RON 500 million for Banca Transilvania, but it does not change BT's plans in terms of reaching its budgeted targets for 2025. In 2024, the bank's contribution to the budget related to the turnover tax amounted to around RON 270 million.

BT CEO's statements during the videoconference held with the bank's investors & analysts:

• Notwithstanding the exceptional events of the first quarter of 2025 and what might happen in the coming months, we still believe that the budget, which was presented and approved by the shareholders in April, and which is our target, will be met.
• When we look at the business growth and revenue figures, we are confident that we will achieve these figures through sustained work, but without any major issues.
• We have had some exceptional situations; we also have potential recoveries or adjustments to our provisions. We do not expect the provisions or the provision expenses to increase exponentially. As far as the level of provisions is concerned, as I said, we aim to keep them within the assumed budget, which is around RON 600 million.
• With the new changes to the tax code, there is also some pressure on the VAT, of a few percentage points, but still significant. We noticed that transactions accelerated at the beginning of the summer. Now, when we look at the figures for the third quarter and when we release them, the figures will still be solid. However, we believe that both households and the market will adapt to the new conditions, to the new reality.
• I think there will be more competition, although we may not see the same figures as in the last two years. Overall, we believe that the real estate market will be quite active in the future and, given the measures taken by regulators, including the National Bank of Romania, we do not expect a significant increase in the debt ratio, which is quite low, so we do not see the risk of a major real estate crisis that could affect the market through recoveries.
  
  

Banca Transilvania forecasts for 2025, compared to 2024: +14% assets (to RON 210 billion), +19% gross loan balance (to RON 104 billion), +11% net profit (to RON 3.9 billion).