BT financial results as at 31 March 2019

Banca Transilvania, solid credit growth

in the first three months of this year

• 42,000 loans to companies and individuals were granted by BT in the first quarter of 2019.
• Over 2 billion lei were granted through loans to companies in Romania in the first 3 months of this year.
• Over 3 million transactions/day - the historical maximum reached by BT in February this year.
• Banca Transilvania has 63.7% Romanian capital.

After the successful completion of bancpost integration almost four months ago, at the end of 2018, Banca Transilvania started this year with positive financial results, continuing to support economic growth and the Romanian business environment. In February 2019, BT celebrated 25 years since its establishment, since a group of entrepreneurs from Cluj laid the foundations of one of the most successful stories of Romanian capital development.

At the General Meeting of Shareholders of BT, which took place on April 24th, the shareholders approved the proposal of the Board of Directors of Banca Transilvania regarding the distribution of the profit for 2018 by granting a gross dividend of 0.17 lei / share. This is based on the positive results of Banca Transilvania, as well as the surplus of BT's capital. Also, the shareholders approved the increase of the share capital by the amount of approximately 400.8 million lei through the issuance of as many free shares. Banca Transilvania has 63.7% Romanian capital and over 30,000 Romanian shareholders, individuals.

As of March 31, 2019, the assets of Banca Transilvania reached RON 75.9 billion, and the loans increased to RON 37.04 billion. Deposits of customers reached 62.7 billion lei, of which 43.45 billion lei are deposits of individual customers, and 19.24 billion lei are deposits of legal entities.

The net profit of Banca Transilvania is 436.07 million lei, as a result of streamlining and consolidating the business. In terms of operational efficiency, it is kept comfortably in Banca Transilvania, which is 47%, calculated with an annualized impact of the contribution to the Bank Deposit Guarantee Fund and the Resolution Fund. Starting with the financial year 2019, GEO 19/2019 entered into force, which regulates the calculation of the tax on assets for banking institutions. In accordance with the requirements of the International Financial Reporting Standards IFRIC 21 "Taxes", the bank may recognise the asset tax expense for the year 2019 only on December 31, 2019 because it depends on the value of the net financial assets as of December 31, 2019. Payments made during 2019 for the asset tax will be considered as advance payments until 31 December 2019, when the final asset tax for the financial year 2019 will be recognised. However, Banca Transilvania estimated an asset tax of RON 136 million for the financial year 2019. According to this estimate, taking into account a proportional calculation, if the bank were to register the effect of this tax for the 3-month period ended March 31, 2019, the net profit as at March 31, 2019 would reach RON 407.51 million. 

"We focused on completing as quickly and efficiently as possible the integration of Bancpost into Banca Transilvania precisely in order to focus on business and on supporting the Romanian economy and entrepreneurs. Our plan worked very well and we had a first quarter of solid credit growth and the number of transactions we made for our customers. BT's 42,000 loans to companies and individuals were granted in the first quarter of this year. In terms of transactions, in February we reached an all-time high of over 3 million/day." - says Ömer Tetik, General Manager, Banca Transilvania.

Supporting entrepreneurs, population and community in the first months of 2019:

• ≈18,000 fixed-rate loans were granted by the bank to individuals in the first quarter;
• 11 billion lei is the balance of mortgage loans / real estate;
• ≈16 billion lei is the portfolio of SME loans (according to the European definition of SMEs);
• 3.8 million cards have BT in its portfolio, which means 21% market share in terms of cards issued in Romania;
• 490,000 credit cards are in the portfolio of Banca Transilvania.

Significant investments in digitalization have visible effects in business:

• Every second, 8 transactions take place with the cards of Banca Transilvania. Nearly 61 million transactions were made in the first quarter of 2019 with BT cards;
• The BT Pay application has over 220,000 users. There is a continuous increase at transactional level: the number of phone payments and money transfers between users of the application is +32% in the first quarter of this year, compared to the last quarter of 2018;
• The number of BT24 Internet Banking users exceeded 1.18 million, +20% compared to the same period of last year, and the mobile banking one is 634,000, +55%;
• The volume of transactions through Internet Banking is +25%, and through Mobile Banking +101% compared to the same period of last year;
• Of the nearly 1,600 BT ATMs, nearly 370 are BT Express Plus multipurpose ATMs that allow for self-banking operations such as cash deposits or round the clock exchange. In the first three months of this year, the number of cash deposits through BT Express Plus exceeded 1,300,000, which means almost 450,000 cash deposits/month;
• Banca Translvania is increasingly ready for collaboration with fintechs: BT launched, in March this year,the BT Open Banking (BT Api Store) platform, which allows fintechs and other technology companies to test the integration with BT, in order to present the bank's services, such as: displaying balances online, transaction history and initiating transactions through external platforms to Banca Transilvania;
• The most recent step towards "going digital" was in April this year, when BT became one of the pioneers of Instant Payments in Romania. The service ensures non-stop the transfer of money (lei) in less than 10 seconds between the banks that adhere to this system.

Other financial information & Fitch rating:

• The rate of non-performing exposures, according to eba indicator, is 4.9% as of March 31, 2019;
• The coverage rate with total provisions of non-performing exposures according to EBA standards is 94%. Where guarantees are also considered, the coverage rate shall be 134 %;
• The solvency of the bank without the profit of 2019 is 18.67%, and if we include the profit, it is 19.67%;
• In January this year, Fitch Ratings confirmed Banca Transilvania's long-term financing rating (IDR) at 'BB+', with a stable outlook, respectively the level of the viability rating at the level of 'bb+'.

The report for the first quarter of 2019, drawn up in accordance with the provisions of Article 67 of Law No. 24/2017 on issuers of financial instruments and market operations, will be available on the website of Banca Transilvania, starting with April 25th, this year. The financial statements as at 31.03.2019 and 31.03.2018 are not audited or revised.