Banca Transilvania posts net profit of 1.8 billion RON, up 42.6 percent in the first half of 2024

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 percent higher compared to 31 December 2023 and 13.4 percent 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 percent higher compared to 31 December 2023 and 13.5 percent higher compared to 30 June 2023, reaching RON 139 billion. Banca Transilvania’s net profit amounted to RON 1,810 million, +42.6 percent compared to the first six months of 2023.

“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:

• and equity participations to BT Group’s profitability increased by 7.4 percent (more than RON 335.8 million), compared to H1 2023.

• Banca Transilvania’s customers deposits reached RON 139 billion (+3.4 percent compared to 31 December 2023). Households’ deposits amount to RON 90.6 billion, +5 percent 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 percent.
• BT’s nonperforming loans ratio, measured according to the EBA indicator, is 2.10 percent as at 30 June 2024. Net impairment charges on financial assets and other provisions, at consolidated level, increased to RON 55 million, +15.6 percent 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 percent compared to 30 June 2023), of which the Bank’s net profit amounted to RON 1,810.1 million (+42.6 percent compared to 30 June 2023).
• BT Group’s operating income amounted to RON 4.6 billion (+24.5 percent vs. 30 June 2023).
• The bank’s cost-to-income ratio reached 45.03 percent, 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 percent higher than the that incurred during the first six months of 2023.
• Net fee and commission income increased by 15.4 percent 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 percent compared to the first half of 2023.
• Banca Transilvania’s Capital Adequacy Ratio, as at June 30, 2024, is 27.84 percent 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 percent, following the decision of the General Meeting of Shareholders held in April 2024. Over 55,000 shareholders benefited from this decision.