Solid organic growth post integration BT – Volksbank Romania. Financial results as at 31 December 2016
15 February 2017 Reading time 5:00 minutes

The results of Banca Transilvania obtained in 2016 confirm the positive trend of the beginning of the year and the exceeding of the budget for last year
● Financial results as at December 31, 2016 ●
- Banca Transilvania granted almost 175,000 new loans for retail, SME and corporate during 2016.
- BT's operational efficiency remained in the attention of the bank's management, given the growing number in terms of customers and transactions.
- Over 800 thousand customers use internet banking from BT, and almost 250 thousand customers use mobile banking. The bank continues to invest in automating and digitizing processes to improve the customer experience with the bank.
- Banca Transilvania granted almost 18 million lei in 2016 for social involvement and responsibility programs in areas such as financial and entrepreneurial education, volunteering, sports, culture and social causes.
- BT Club has provided financial education programs to over 8,000 local entrepreneurs through 60 seminars organized in 2016 across the country.
- Banca Transilvania enjoys the support of the shareholders, customers and team of BT Financial Group regarding the new brand concept, launched in 2016. The new identity suggestively expresses the idea of modernity, Romania, respect and energy, values with which BT identifies itself.
- Banca Transilvania Group finished 2016 with assets of RON 51.95 billion, of which RON 51.8 billion are related to the bank.
- Small entrepreneurs are also in the attention of Banca Transilvania, which will soon return with news about the new platform dedicated to them.
The operating income of Banca Transilvania reached RON 2,823.4 million, and the net profit reached RON 1,233 million, including the income from tax receivables postponed. At the level of Banca Transilvania Financial Group, the operating revenues reached RON 2,987 million, and the net profit reached RON 1,282 million. The bank's assets are of 51.77 billion lei, the net loans amount to 27.2 billion lei, and the resources attracted from customers are of 41.9 billion lei.
Horia Ciorcila, President of the BT Board of Directors, declares: "2016 meant a new stage of consolidation of the BT Group and we are pleased that it was a year in which we again surpassed the promises made to our shareholders. For us, it remains essential to constantly improve the relationship with customers, for which we will invest significantly in the latest technologies, aiming at maximizing the simplification of the business model. We will continue to grow organically by financing the Romanian economy, capitalizing on the competitive advantage of the local decision-making capacity in the future. We will do it prudently and responsibly, paying attentionto the multiple challenges of the local and European economic environment. On the other hand, I believe that the process of market consolidation will continue and we are open and interested in possible acquisitions, but any decision of this type will be rational, it will have to make sense for us, respectively to be complementary and to add value. I thank the shareholders, customers and employees for their trust and involvement – both for the positive results so far, as well as for the 23 years that the bank celebrates on February 16th".
Ömer Tetik, General Manager of BT, says: "In 2016 we managed to achieve good results in terms of organic growth and profitability, after a year of integration and merger with Volksbank Romania. We are a network bank, with trained people who, along with advanced technology, serve the needs of our customers. Even if we have high targets and ambitious plans, we maintain prudent lending policy and remain at an adequate level of coverage of exposures with provisions.
The results of The Transylvania Bank's current activity at the end of 2016:
- The net profit of Banca Transilvania is 1,233 million lei, and that of Banca Transilvania Financial Group is 1,282 million lei.
- Growth rate of operating fee income: 11.4%.
- BT's operational efficiency confirms the trend recorded in 2016, the cost/income ratio being 41%. If we exclude the effect of the Visa Europe transaction, which amounts to 185 million lei, the value of the cost /income indicator remains at a comfortable value of 44%.
- Banca Transilvania granted its SME clients almost 18,000 new loans during 2016.
- Between January and December 2016, at gross level, before recording the out-of-balance sheet withdrawals, BT loans increased by 10.3%, balanced on all business lines.
- The loan-to-deposit ratio is 70% at the end of 2016.
- As of December 31, 2016, Banca Transilvania has a portfolio of 2.82 million cards, which generated almost 25% higher transactions compared to the same period of the previous year. The bank's market share on the volume of card transactions is almost 20%. Through the STAR loyalty program, Banca Transilvania has a portfolio of 329,000 credit cards.
Other financial information:
- BT recorded on December 31, 2016 net expenses with impairment adjustments and provisions of RON 654.2 million (including the impact of the de-listing of RON 1,995 million); most of the provisions recorded as expenses during 2016 are mainly related to the operation of increasing the quality of assets and continue the bank's prudent approach to credit risk management.
- Non-performing loans, with arrears of more than 90 days, represent 4.62% of BT's total loan portfolio, a significant improvement from 9.75% at the end of 2015, and NPE according to EBA is 9.84% at December 2016.
- The coverage of non-performing loans with related provisions and mortgage guarantees is still at a comfortable level of 117.47%, according to the bank's risk appetite.
- The solvency of BT, taking into account the profit for 2016 is 18.52% (without profit it is 15.69%).
- The deferred tax receivable increased in December 2016 compared to june 2016 reporting (324,775 thousand lei). The increase is mostly due to the fact that in 2016 the deferred tax claim related to the gain from the acquisition of Volksbank Romania was recognized, taking into account all the existing conditions from a legislative point of view. The largest share of the mentioned amount represents the deferred tax receivable related to the gain from the acquisition.
The financial statements as at 31.12.2016 are not audited or revised; those related to 31.12.2015 are audited.
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