Banca Transilvania (BT) financial results as at September 30, 2020

Banca Transilvania statement:

BT’s Financial Results as at September 30, 2020

Banca Transilvania, ready to Support the Recovery of the Economy

Banca Transilvania has had a significant contribution to the recovery of the economy in Q3, after the shock generated by the first pandemic wave.

 BT’s loan balance grew by RON 1.1 bn. during the third quarter, reaching RON 40.1 bln.

 The Bank has granted more than 7,000 financing facilities via the government program IMM Invest, counting now over 18,000 SME clients with loans.

 The retail business line added 30,900 loans in Q3, of which 2,600 real-estate loans, counting now more than 750,000 credited retail clients.

 As always, the Bank focused on supporting retail, SME and mid-corporate clients, enforcing the economy’s baseline and an appropriate credit risk dispersion.

“Although trends are less than favorable due to the pandemic, we remain optimistic and confident in the forthcoming recovery of the economy. We aim at increasing the lending granted by BT, in the most responsible and efficient way, supporting the economy and the bank’s growth.

The current context, which has undoubtedly affected the whole world and possibly some developed economies to a larger extent, also brings new opportunities for Romania, an important advantage for us because nobody knows the market better as a Romanian bank” – said Mr. Ömer Tetik, CEO of Banca Transilvania.

Financial Results as at September 30, 2020

At the end of the third quarter of 2020, Banca Transilvania Financial Group´s assets reached RON 100.4 billion, loans went up to RON 41.9 billion, including financial lease loans, and deposits from customers reached RON 83.9 billion, of which RON 58.7 billion are retail savings and RON 25.2 billion company savings.

The Bank’s efficiency ratio stays at a comfortable level of 45.25%. BT Group’s net consolidated profit is RON 1,056.76 million, out of which the Bank’s profit amounts to RON 901.49 million.

Subsidiaries and equity participations contributed with over RON 155 million to the BT Group’s profit.

Non-performing exposures, according to EBA, amount to 3.59% as at September 30, 2020.

The total provisions coverage ratio, as per the applicable EBA standards, is 124%. If the collateral is also taken into account, the coverage ratio amounts to 131%.

The bank’s CAR is 20.01% (profit for the year excluded) and 21.80% (profit for the year included).

The current context was translated into the provisioning methodology and level according to the specific prudent and preventive approach of Banca Transilvania.

BT has made methodological changes in terms of provisioning, in line with the recommendations of the NBR and EBA.

Considering potential future effects of the health and economic crisis, the cost of risk at the end of Q3, 2020, was 1.68%.

During the first 9 months of 2020, the provision balance grew by 16.2% up to RON 2,944 million, as compared to the end of 2019 (RON 2,533 mil.).

The Bank counts approx. 2.9 million Retail clients, 329,000 SME & Micro clients and more than 10,400 active corporate clients.

The report for Q3, 2020, prepared in accordance with the provisions of Article 67 of Law. No. 24 / 2017 on issuers of financial instruments and market operations is available on BT’s website, under Investor relations, starting with November 13, 9:00 o’ clock.

The financial statements as at 30.09.2020 and 30.09.2019 are not audited or reviewed, whereas the financial statements as at
31.12.2019 are audited.