BT financial results as at June 30, 2024

BT's positive results underpinned by the growth of the customers’ base, volume of transactions and operational activity

During the second quarter Banca Transilvania continued the performance of the first three months of 2024. The positive evolution was based on the increase in the portfolio of net loans and lease receivables, at consolidated level, which were 4.3% higher compared to 31 December 2023 and 13.4% higher compared to 30 June 2023, reaching RON 78.8 billion, as well as by the increase in customers’ deposits, at individual level, which were 3.4% higher compared to 31 December 2023 and 13.5% higher compared to 30 June 2023, reaching RON 139 billion. Banca Transilvania's net profit amounted to RON 1,810 million, +42.6% compared to the first six months of 2023.

BT has created value for people and businesses:

• BT financed companies with RON 11 billion and retail clients with RON 4 billion.
• Through IMM Invest Plus, the bank has granted over RON 2.4 billion in the first semester.
• The number of active customers continued to grow and reached 4.3 million. The bank attracted around 300,000 new customers in the first half of the year, of whom around 46,000 were companies.
• Banca Transilvania continues to be one of the biggest tax payers in the country. In the first six months of the year, it contributed with approximately RON 900 million to the State budget through the payment of taxes and social security contributions, including the turnover tax.

BT's results grew steadily in the first half of the year, underpinned by the growth of the customers’ base, volume of transactions and operational activity. Beyond the organic growth, the integration of OTP Romania into the Banca Transilvania Financial Group, which we have started in August, represents a priority for us in the upcoming period. We are continuing the development of the Group in all business segments in which we operate, we are accelerating financial inclusion in Romania and we are looking to develop our relationship with Romanians working abroad. The objective is a prudent and sustainable growth. Regarding the local and international economic environment, we remain cautious in order to be prepared for any context. Economic growth is still uncertain in many parts of the world and macro indicators are volatile", declares Ӧmer Tetik, Chief Executive Officer, Banca Transilvania.

First semester financial results:  

• Banca Transilvania Financial Group's assets increased to RON 177.9 billion (+5.2% compared to 31 December 2023 and +16.2% compared to 30 June 2023), while loans reached RON 78.8 billion (+4.3% compared to 31 December 2023).  
• The contribution of subsidiaries and equity participations to BT Group's profitability increased by 7.4% (more than RON 335.8 million), compared to H1 2023.
• The outstanding provisions amounted to RON 4.5 billion on an individual basis, +4% compared to 31 December 2023, maintaining the increase within the loans evolution limits.
• Banca Transilvania's customers deposits reached RON 139 billion (+3.4% compared to 31 December 2023). Households’ deposits amount to RON 90.6 billion, +5% compared to 31 December 2023, while companies have deposits amounting to RON 48.4 billion.
• The gross loans/deposits ratio, at bank level, stands at 57.3%.
• BT's nonperforming loans ratio, measured according to the EBA indicator, is 2.10% as at 30 June 2024. Net impairment charges on financial assets and other provisions, at consolidated level, increased to RON 55 million, +15.6% compared to the 30 June 2023, but still generating a cost of risk smaller than 100bps (13bps).
• Banca Transilvania Financial Group's consolidated net profit totaled RON 2,145.9 million (+35.7% compared to 30 June 2023), of which the Bank's net profit amounted to RON 1,810.1 million (+42.6% compared to 30 June 2023). 
• BT Group's operating income amounted to RON 4.6 billion (+24.5% vs. 30 June 2023).
• The bank's cost-to-income ratio reached 45.03%, an indicator calculated with an annualized impact of the contribution to the Bank Deposit Guarantee Fund and the Resolution Fund.
• The bank's net interest income is 31.3% higher than the that incurred during the first six months of 2023.
• Net fee and commission income increased by 15.4% compared to the same period of last year, sustained by the BT's business growth.
• Net trading income stands at RON 372 million on an individual level, + 31.4% compared to the first half of 2023.
• Banca Transilvania's Capital Adequacy Ratio, as at June 30, 2024, is 27.84% with profit included

Banca Transilvania distributed cash dividends amounting to RON 1 billion from the 2023 profit to its shareholders, with a yield of almost 4%, following the decision of the General Meeting of Shareholders held in April 2024. Over 55,000 shareholders benefited from this decision.

Acquisitions status in Romania: OTP Bank Romania and BRD Pensii
During the first six months of the year, Banca Transilvania Financial Group took further steps towards its growth through the acquisitions made in Romania, both in banking and in complementary areas. 

• Banca Transilvania & OTP Group: In February 2024, BT signed an sale-purchase agreement with OTP Group to acquire the Romanian subsidiaries of OTP: OTP Bank Romania, OTP Leasing Romania, OTP Factoring Romania, OTP Consulting Romania, OTP Advisors Romania and OTP Bank Romania Foundation. On 30 July 2024, having received the authorities’ approvals, Banca Transilvania announced the completion of the acquisition. The acquisition of OTP Asset Management is in the approval stage from the authorities. Integration of these subsidiaries into Banca Transilvania Financial Group started immediately and is currently undergoing.
• BT, BRD-Groupe Societe Generale and Societe Generale Assurances: Banca Transilvania Financial Group reached an agreement in May 2024 to acquire BRD Pensii, a company active in Romania in the field of mandatory (Pillar II) and optional (Pillar III) private pensions. The acquisition requires the approval of the Financial Supervisory Authority in Romania.