The first fruits of the replication of Banca Transilvania's business model in the Republic of Moldova, at Victoriabank

+10% number of clients, +26% portfolio of loans for individuals and +30% cards issued

Banca Tranilvania and Victoriabank take stock of Victoriabank's achievements, one year after BT entered its shareholding and the formation of the strategic partnership with the European Bank for Reconstruction and Development, aimed at supporting entrepreneurs and the economy of the Republic of Moldova.

The year 2018 meant for Victoriabank, the third largest bank in Moldova, both a reconfiguration of the business and strategy, as well as positive results. The number of customers is higher by almost 10%, reaching over 620,000. The loan portfolio for individuals increased by 26% and reached 844 thousand Moldovan lei, meaning approximately RON 211 thousand. Also, Victoriabank registered an advance on cards: the number of cards issued in 2018 compared to 2017 increased by 30% and reached approximately 310,000 cards in circulation.

"Banca Transilvania, by coming to Victoriabank, marked the beginning of a new chapter in the development of the banking system and the business environment in the Republic of Moldova. BT's involvement was and is viewed with great interest. In this first year in which we are teaming, a plan of reorganization of the bank has been implemented, by implementing at Victoriabank the best practices of BT regarding customers, products and services, technology and the team, and the results have not delayed to appear", states Victor Turcan, Chairman of the Board of Directors, Victoriabank.

"Transilvania Bank's priorities at Victoriabank have been so far to ensure the transparency of the activity, to support entrepreneurs and individuals, to develop alternative banking channels, to improve services and products, respectively to integrate the teams of the two banks. We are glad that the first fruits of the replication of the BT business model at Victoriabank appeared", declaresBogdan Plesuvescu, President of the Steering Committee, Victoriabank.

Transparency of Victoriabank's activity:

• As a result of observing the recommendations of the National Bank of Moldova (NBM) regarding the transparency of victoriabank's shareholding structure, the NBM Executive Board lifted the intensive supervision regime of Victoriabank at the beginning of 2018.
• The business lines were reorganized, respectively the operations and lending activities were centralized.
• Victoriabank is the first bank in the Republic of Moldova to launch a platformfor online presentation and sale of the assets in the bank's possession, as a result of the enforcement procedures. The total amount of goods bought through it doubled in 2018, compared to 2017.
• Victoriabank has implemented a debt recovery strategy, aimed at decreasing the volume of non-performing loans in the portfolio; they decreased by about 10 mil. euro.
• Victoriabank's financial and prudential position improved significantly in 2018. The regulatory requirements according to Basel 3, as transposed by the National Bank of Moldova, as well as the financial reporting requirements according to IFRS 9, have been successfully implemented. Victoriabank's solvency is over 30%, and the coverage with IFRS provisions of non-performing loans is 40%.
  
  

Supporting entrepreneurs by replicating BT products: CPAG (Free First Year Account), free package of services for new companies; ROFG (Rapid Ordinary Without Guarantees), a product designed especially for SMEs, respectively PSGB (Bank Guarantee Letters Ceiling) for customers who permanently participate in auctions. Over 500 entrepreneurs from the Republic of Moldova have benefited so far from these products.

Supporting the population through products, services and facilities:      

• Victoriabank started, in August 2018, a new stage in the development of lending to individuals in the Republic of Moldova through the following facilities:

- Relaunch of the real estate loan and of the unsecured consumer loan, respectively guaranteed.

- Extension of the financing term for the guaranteed consumer loan, up to 10 years, and for the real estate one, up to 25 years, which means the much lower monthly rate.

- Acceptance, besides salary, of other forms of income to obtain loans: dividends, income from foreign activities, etc.

- Zero commission for granting credits, the monthly management fee is no longer a percentage of the loan balance, and the file analysis fee is paid after the loan approval.

- Introduction of high standard consumer protection contracts.

• The launch of the First House loans: Victoriabank granted, between March and December 2018, over 200 such loans.
• Launch of VB Lunch Card, which replaces the classic meal vouchers. It has the characteristics of a contactless bank card. Between July and December 2018, over 9,000 such meal cards were contracted to be issued, with which you can pay in about 430 seats.
  
  

More modern services due to investments in technologies

• Launch of the new version of the Mobile Banking application, VictoriaMobile
• Victoriabank has extended from 2 to 14 the number of cash-in ATMs located in Chisinau, Balti and Cahul. Individual and corporate customers can replenish their cards at Victoriabank ATMs with Moldovan lei, dollars or euros.
  
  

Facilities for the clients of Banca Transilvania Financial Group:

• One-off and reduced fee for transferring money from Victoriabank to BT: 10 euro/transaction, regardless of the amount sent in lei, euro, Swiss francs or british pounds.
• Operations in Moldovan lei at 150 BT agencies in Cluj-Napoca, Bucharest, Iasi, Suceava, Botosani and Timisoara: currency exchange at the exchange office, withdrawals and deposits of money.
• The possibility of paying the leasing payments for BT Leasing Moldova through Victoriabank – online or in units.
  
  

2018 meant the integration of Victoriabank into the Banca Transilvania Financial Group, including in terms of human resources. Over 300 people attended courses and meetings with the BT team in Romania and the Republic of Moldova. In addition, the 1,300 employees of Victoriabank have access to the eLearning platform of Banca Transilvania.

Banca Transilvania and the European Bank for Reconstruction and Development have over 70% of the share capital of Victoriabank.