Banca Transilvania, solid business growth in the first semester

 ● Financial results as of June 30, 2017 ●

The first semester of this year meant for the Banca Transilvania Financial Group a positive period of organic growth, with a focus on efficiency and simplification, in line with the proposed strategy for 2017.

The net profit of Banca Transilvania is 496 million lei, and that of Banca Transilvania Financial Group, of 513 million lei. BT Group ended the first half of this year with assets of RON 53.4 billion, of which the bank holds RON 53.2 billion. Net loans – including leasing – represent 54% of the assets of Banca Transilvania Financial Group.

Between January and June this year, at gross level and before recording the out-of-balance sheet withdrawals, Banca Transilvania's loans increased, as a balance, by 5%, on all the bank's business lines. In the first 6 months, BT granted 80,000 new loans to individual, SME and Corporate customers, which means over 700 loans processed and approved daily by BT, representing a total of over 6 billion lei, an amount with which the bank contributed to the growth of the Romanian economy.

Almost 45% of the companies founded this year in Romania – namely, approximately 34,000 out of about 80,000 – opened an account with Banca Transilvania in the first 6 months of the year.

"Our results confirm the internal forecasts provided in this year's budget and we are pleased that our role as financier of the Romanian economy grows with the progress made by each BT business line and materialized through the 80,000 new loans granted. Banking is changing radically, with a very high speed and understanding these things we are running a complex program of technology and digitization, with the aim of simplifying our business and our relationship with customers. We invest in online platforms and flows, but at the same time we are also attentive to risks, in order to be a digitized network bank as close as possible to what our customers want. In the next period, we hope to see a higher level of predictability of public policies, which will lead to a much higher pace of public and private investments, to which we would like to join, as a bank of entrepreneurs", says Horia Ciorcilă, President of the Board of Directors, BT.

The growth of Banca Transilvania through business lines and niche strategies. Information for the first semester of 2017:

• SME & microcompanii: the number of BT active customers in this segment increased by over 18% compared to the same period last year, to almost 230,000. The first six months of the year meant, compared to June 2016, +47% more volume on investments (1.6 billion lei in 2017, respectively 1.1 billion lei, in 2016, a result partially determined by the resegmentation of BT business lines). Also this semester, Banca Transilvania Financial Group launched BT Mic, a company dedicated to financing small businesses. In 4 months of activity, it financed with 90 million lei about 2,000 micro-enterprises. The start-up completes BT's role of supporting entrepreneurs in Romania, the segmentation of corporate clients at Banca Transilvania being the following: micro, SME, corporate clients and large corporate clients.

• Retail Banking: At the end of June 2017, Banca Transilvania had almost 3 million cards, with a volume of 22 billion lei, an amount traded in the first 6 months of the year. BT card payments in total transactions exceeded, in number, 60%. The number of contactless payments increased compared to the same period of last year by 4.7 times, in number and 5.9 times in value. The bank granted almost 35,000 loans (non-card), and a significant increase compared to June 2016 was registered for loans of current needs: +24% in value, respectively +14% numerically. Through the STAR loyalty program, dedicated to customers with BT shopping cards, the bank has partnerships with over 10,000 locations in the country and over 320,000 STAR cards issued, out of over 330,000 BT credit cards. Banca Transilvania launched this year the SHOPPING APPLICATION STAR.card, respectivelythe BT contactless watch, which can be used for payments instead of the card. Since 2017, the bank has diversified the communication with customers, through the Livia robot, which offers non-stop, through Facebook Messenger or Skype, information about the current account, products and services.

• Corporate Banking: BT follows, including through this business segment, the bank's strategy, focusing on digitalization, specialization and improving the customer experience. This semester, the implementation of the differentiated approach between Large Corporate and Middle Corporate clients, with dedicated teams, was completed. The first six months of the year meant, in addition to granting loans (new production amounting to 2.8 billion lei) and cash management transactions (customer turnovers reached the figure of 72 billion lei, and the share of non-risk revenues in total revenues increased by 5.4 percentage points compared to the first semester of 2016), the following novelties: implementation of the digital signature system in the relationship with Large Corporate customers; the possibility of automatic reconciliation of statements of account through BT Ultra ERP, respectively the extension – for a larger range of customers – of the electronic invoice entry platform for the factoring service. At the same time, BT has made its presence felt in the syndication and capital market market, participating in reference transactions.
• Banking services and products through internet banking and mobile banking: 900 thousand BT customers use internet banking from Banca Transilvania, and over 300 thousand customers, mobile banking.
• Simplifying access to products and services from customers: BT's strategy in this regard contributed to the growth rate of operating fee income by 12.7%, as a result of the increase in volumes carried out through BT.

 Other information:

• Banca Transilvania has contributed in the last 5 years with taxes and other contributions to the state budget in its own name and for its employees or customers amounting to over 2.1 billion lei, of which 165 million lei in the first semester of 2017.
• Banca Transilvania continued to get involved in the life of the community, contributing in the first part of this year with 13.4 million lei, to financial and entrepreneurial education programs, sports, culture, respectively social causes.

• The bank's solvency is 18.35%, not including the result of the first half of 2017.
• The rate of non-performing exposures BT (according to the European definition) is 8.1% and the coverage with total provisions of non-performing exposures is 65%.

Information for BT shareholders:

The report for the first semester of 2017, drawn up in accordance with the provisions of Article 113 letter C of the CNVM Regulation No.1/2006 on issuers and securities transactions, will be available on the BT website (Page Shareholders / Financial Results) starting with August 10, this year.

The financial statements as at 30.06.2017 and 30.06.2016 are revised; those related to 31.12.2016 are audited.