Banca Transilvania: preliminary financial results as at 31 December 2023

Financing the companies and retail clients, increasing the operational activity, and attracting new customers were the growth drivers for BT in 2023

2023 was a challenging year. After the long pandemic period and with Romania in the immediate vicinity of a conflict zone, the costs for the population and companies increased. In spite of these challenges, Banca Transilvania assumed its role as a leader and groundbreaker, ensuring the increase of the quality of its services, customer care and the necessary support for the growth of the national economy.

• BT financed corporate clients with RON 23 billion and retail clients with RON 10 billion.  
• Over 270,000 new loans were granted last year.
• The bank was the largest partner in government programmes launched during 2023, with over RON 3.35 billion in funding.
• The number of active customers reached 4.2 million. The bank attracted 623,000 new customers in 2023, of whom 93,000 are corporate customers and 530,000 are retail customers.
• The corporate tax paid by BT to the state in 2023 amounted to almost 2% of all corporate taxes received by the state from companies in Romania. The total taxes paid by Banca Transilvania in 2023 exceed RON 1.2 billion.
• Within a period of five years, from the end of 2018 until the end of 2023, BT has doubled its assets, loans and deposits and increased its active customer base by almost 50%.

"We have accelerated Banca Transilvania Group's growth in 2023, counting as usual on high volumes. Corporate and retail financing, increased operational activity and attracting new customers were the bank's growth drivers last year, generating economies of scale and increased efficiency and enabling us to offer to our clients increasingly better conditions in all respects. We are here to further support the economy’s development, contribute to people's prosperity and increase financial inclusion. The bank's profitability will help us deliver our plans, pursue BT Group's growth in all the segments in which we are active and expand into new ones", declares  Horia Ciorcilă, Chairman of the Board of Directors, BT.

Assets BT Financial Group's assets reached RON 169.2 billion at the end of last year. Credits increased to 75.6 billion lei and deposits customers reached 138.1 billion lei. Net profit BT Financial Group's consolidated net income is RON 2,984.5 million, 20% higher than in 2022, of which the bank's net income is RON 2,491 million, 14% higher than in 2022. Operating profit of the bank increased to 3,501.7 million lei, 29.8% higher than in 2022. Eoperational efficiency BT, reflected in the cost/income ratio, improved to 45.6% due to good cost management and business efficiencies through digitisation of processes.

Business lines, evolution in 2023

• The number of cards reached 6 million and the number of cards’ transactions performed in 2023 increased by 22% compared to 2022.
• BT has over 3.7 million unique digitized customers, representing 89% of total active customers.
• The number of payments made via phone increased by 48% in 2023 compared to 2022.
• More than 16,000 people have bought houses with BT’s help, the loans granted amounting to approximately RON 4.7 billion. The balance of mortgage loans amounts to RON 18.7 billion and increased by 10% compared to December 2022, representing 25% of the loan portfolio.
• 110,000 consumer loans amounting to RON 4.4 billion were granted in 2023.
• The bank granted more than 21,000 new loans, which totaled RON 5.6 billion, to more than 441,000 SME & Micro clients. The number of new loans granted by the bank increased by almost 6% in 2023 compared to 2022, with the largest increase in the Large Corporate and SME segment.  
• The gross loans’ balance, at the bank level, increased by almost 13%, of which a significant growth of more than 15% is represented by corporate loans. More than half of the increase was composed of working capital loans. The volume of loans granted to retail clients increased by almost 9%.

Other financial information for Banca Transilvania

The non-performing exposure ratio is 1.98% as of 31 December 2023 and the total provisioning coverage of non-performing exposures stands at 203%. As of December 2023, ROE exceeded the banking system average of 20.4%, reaching 24.4% on an individual basis. BT's capital adequacy ratio, profit included, stands at 23.58%, and, excluding the profit for 2022, is 21.61%.

From 2023, the bank is rated by two international rating agencies, Moody's and Fitch. In a context of increasingly stringent capital requirements both in Romania and the European Union, these accreditations support BT's efforts to maintain the best possible cost of capital.

Banca Transilvania Financial Group continues its consolidation

• BT Leasing & Țiriac Leasing merged in 2023. The merger had a positive impact on the business: BT Leasing reached 25,000 customers and a portfolio of EUR 500 million.
• BT Mic has reached RON 1 billion in balance and has over 18,000 clients, making it the largest microfinance company in the country.
• BT Asset Management reached RON 4.5 billion Assets Under Management and BT Maxim was the best performing equity fund in Romania in 2023.
• BT Capital Partners was Co-Lead Manager for Hidroelectrica's EUR 1.9 billion IPO and Lead Manager of the consortium that brokered Cluj County Council's first capital market financing amounting to EUR 75.6 million.
• BT Pensii is in the top 3 voluntary pension providers by number of new customers attracted. In 2023 there were nearly 15,000 participants.
• With 200,000 active cards, BT Direct became the largest card issuer in this sector in 2023.
• Code Crafters continued to expand its ability to deliver solutions used in the banking industry, by growing both its team and diversifying its technologies.

2024: 

• Agreement to acquire OTP Bank Romania and its subsidiaries in Romania 

Banca Transilvania signed an agreement with OTP Group in February 2024 to acquire OTP Bank Romania and its subsidiaries in Romania. The transaction completion is expected in a few months, after receiving the regulatory approvals, and the total transaction price to be paid by BT is EUR 347.5 million. OTP Bank Romania has a 2.64% market share, more than 440,000 customers, 1,800 employees and almost 100 branches.

• Victoriabank acquired BCR Chișinău

Victoriabank, the bank in the Republic of Moldova, part of the BT Group, completed the acquisition of BCR Chisinau in January 2024.

• Idea::Broker de Asigurare became BT Broker de Asigurare

Idea::Broker de Asigurare, the company acquired by BT Leasing from Idea::Leasing in 2023, became BT Broker de Asigurare in February 2024. The Group has ambitious plans for this segment, starting with this year.


Investors wishing to participate at the conference call on the preliminary financial results for 2023, organized by BT on 28 February 2024, at 16:00 (Romanian time), should send a request by email to the following address: investor.relations@btrl.ro.

The preliminary 2023 financial results (including in editable format) are available on the BT/Investor Relations website on 26 February 2024, from 18.00 (6 PM – Romanian time). The 31.12.2023 preliminary financial statements are not audited or reviewed and the 31.12.2022 financial statements are audited.