Romania's Banca Transilvania Group nears EUR 1 bln net profit following OTP Bank acquisition
<p>Banca Transilvania (BVB: <a href="https://www.bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=TLV">TLV</a>), the biggest financial group in Romania, recorded substantial growth in 2024 through both organic expansion and the strategic acquisition of Hungarian group OTP’s subsidiaries in Romania.</p>

<p>At the end of 2024, <a href="https://www.bvb.ro/infocont/infocont25/TLV_20250228071527_Preliminary-Financial-Results-31-12-2024.pdf">Banca Transilvania Financial Group reported</a> total assets of RON 207 billion (EUR 41.6 bln), reflecting a 22.4% increase compared to the previous year. The acquisition of OTP Bank Romania contributed 9.6 percentage points to this growth.</p>

<p>The consolidated net profit of the group went up by 58% to RON 4.73 billion (EUR 950 mln), with Banca Transilvania alone generating RON 3.5 billion (EUR 710 mln), up 42% year-on-year. The group's subsidiaries and equity investments added RON 384.6 million to profitability, while gains from acquisitions contributed RON 815.7 million. Over a five-month period, the newly acquired OTP Group companies contributed RON 58.1 million in profit.</p>

<p><strong>Horia Ciorcilă, Chairman of the Board at Banca Transilvania</strong>, emphasized the bank’s commitment to sustainable growth:</p>

<p><em>“2024 was another strong year for Banca Transilvania and its subsidiaries, with growth exceeding market averages in financing, operations, and transactions. We expanded our presence through strategic acquisitions in banking, leasing, pensions, and asset management. While we remain optimistic about the future, we acknowledge the challenges of a volatile environment and will continue to invest in technology, innovation, and financial products to support the Romanian economy.”</em></p>

<h3>Strong growth accross all business lines</h3>

<p>Total group’s net loans and leasing receivables increased 27.5% to RON 96.4 billion.</p>

<p>Customer deposits grew 21.6%, reaching RON 167.8 billion.</p>

<p>Over 300,000 loans were issued in 2024, a 9.4% increase, with 135,000 being consumer loans.</p>

<p>Mortgage loans helped over 15,000 individuals purchase homes, totaling RON 4.5 billion in financing.</p>

<p>The gross loan portfolio rose 13.5%, with corporate lending growing by 17.5%, and retail lending increasing 7.9%.</p>

<p>Banca Transilvania also saw a 23% increase in card transactions, with the number of issued cards reaching 7 million, including those from OTP Bank Romania.</p>

<p>Mobile payments rose by 36%.</p>

<p>BT Pay transfers grew by 54%.</p>

<p>The group also expanded its leadership in key complementary financial sectors:</p>

<ul>
	<li>BT Capital Partners became the leading brokerage firm on the Bucharest Stock Exchange, with a 26.7% market share.</li>
	<li>BT Asset Management maintained its top position, surpassing RON 6 billion (EUR 1.2 bln) in assets under management, with over half of Romania’s new investors choosing its services.</li>
	<li>BT Leasing successfully merged with OTP Leasing, reaching 42,000 clients and managing assets of over RON 6.1 billion.</li>
	<li>BT Mic, the group’s microfinancing division, supported 10,000 entrepreneurs, increasing total financing by 27% to RON 1.27 billion.</li>
	<li>BT Pensii grew its managed assets by 33%, reaching RON 290.5 million.</li>
	<li>BT Direct expanded its customer base to 260,000 clients, with total assets exceeding RON 1.1 billion, up 20% year-over-year.</li>
</ul>

<p>At the end of 2024, the bank maintained a low non-performing loan (NPL) ratio of 2.07% and a provision coverage ratio of 206%. The return on equity (ROE) stood at 27.0%, significantly exceeding the banking sector average of 18.4%. The capital adequacy ratio reached 23.54%, reinforcing the bank’s financial stability.</p>

<p>With a customer base nearing 4.6 million, including 4.1 million retail clients and over 480,000 companies, Banca Transilvania further consolidated its leadership position in Romania’s banking sector.</p>

<h3>Positive evolution of TLV shares</h3>

<p>Banca Transilvania’s strong results in 2024 was also reflected in the evolution of the group’s shares, which recorded an increase of 30% in the last 12 months, compared with an increase of 11% for the BET index over the same period.</p>

<p>Including the dividends distributed in 2024, the TLV shares offered a total return of 36% in the last year, compared with a return of 18% generated by the BET-TR index.</p>

<p>Banca Transilvania’s market capitalization stood at RON 22.6 bln (EUR 4.54 bln) as of February 28. The TLV shares are trading at a P/E ratio of 5.6 and a P/B ratio of 1.6, based on the group’s 2024 preliminary results.</p>

<p><em>editor@romania-insider.com</em></p>

<p><em>(Photo source: the company)</em></p>