BT’s message
to shareholders

Intro

The bank's drivers in 2023: Financing BUSINESSES and the population, increasing operational activity and attracting new customers

Dear shareholders,

Looking back to 2023, we can say that it was a good year for Banca Transilvania Group, in which we strengthened our leadership. Our growth has been faster than the market, our contribution to the increase of financial inclusion, to the digitalization of Romanians and to the creation of jobs has continued. Our master plan was to consolidate the leading position of Banca Transilvania, which reached more than 21% of the market, and to grow the business of the other companies of the BT Group in a sustainable way.

We have achieved economies of scale and increased efficiency, allowing us to offer our customers even better terms in every respect. We have also reached several round figures: 4 million customers, 6 million cards in circulation and 10,000 employees.

Moody’s and Fitch

From 2023, we benefit from dual international ratings from Moody's (which awarded the Bank an investment grade credit rating due to its robust capitalization, strong profitability, and significant liquidity) and Fitch Ratings (which reaffirmed BT's long-term rating at BB+ with a stable outlook and its viability rating at bb+). In light of increasingly stringent capital requirements in Romania and the European Union, their review supports our efforts to maintain the best possible cost of capital.

The economic environment has been volatile and uncertain, both internationally and domestically. The Romanian economy grew by around 2% last year, half the 2022 figure, and below the forecast at the beginning of 2024. However, it has also performed well, with inflation down from 16% (2022) to 6.7%, the RON interest rates and the exchange rate all stabilizing. As a financial Group, we continued to support the Romanian economy, population, and entrepreneurs, contributing to the financial education and inclusion of Romanians.

BT's business performance, in figures

Financing companies and the population, increasing operational activity and attracting new customers were the driving forces of our bank last year.

BT Financial Group's assets reached RON 169.2 billion at the end of 2023.
The consolidated net profit of the Group was RON 2.98 billion, 20% higher than in 2022. The Bank's net profit was RON 2.49 billion, 14% higher than in 2022. The bank's operating profit increased to over 3.5 billion RON, almost 30% higher than in 2022.
BT's operational efficiency, as measured by its cost/income ratio, improved to 45.6%, driven by good cost management and business efficiencies from digitalization.
Maintaining the pace from 2022, we continued to support our customers with funding, with more than 270,000 loans granted.
The Bank was the largest partner in the government programs launched in 2023, with more than RON 3.35 billion in financing.
The number of active customers reached 4.2 million. The Bank attracted 623,000 new customers during the year, of which 93,000 were companies and 530,000 individuals. In other words, these figures represent an average of 1,700 new customers per day.
We set a historical record with 8 million transactions in a single day through all our channels (November 2023), twice as many as on a standard day.

169.2 BN
RON

BT Group's
Assets

2.98 BN
RON

BT Group's
Net Profit

>3.5 BN
RON

Banca Transilvania’s
Operating Profit

Banca Transilvania and the capital market

2023 was one of the best years for the Romanian stock market, whether we look at the capitalization of listed companies, the total traded value, liquidity or the BET index, which rose by more than 30%. Banca Transilvania was again one of the best performers on the stock market.

Last year, we saw the largest increase in shareholders, with more than 7,800, meaning that by the end of 2023, the Bank had more than 51,000 shareholders.
Banca Transilvania's market capitalization exceeded RON 19 billion, reaching new historic highs on the Bucharest Stock Exchange.
We have launched no less than five bond issues, which have helped to ensure an optimal level of funding for the banking business, which is separate from customer savings, in line with European standards for the sector.
The Bank received the maximum Vektor rating for investor and shareholder communication in 2023, as assessed by the Romanian Investor Relations Association.
BT received the "Best Communication with Journalists by an Issuer in 2023" award at the BVB Awards following nominations from the press.

M&A

In recent years, we have demonstrated our openness to investment opportunities that will contribute to BT Group's growth in all segments, following the success of other acquisitions and mergers. In recent years, we have acquired three banks - Volksbank Romania, Bancpost and Idea::Bank - from investors in Austria, Greece and Poland, giving us a combined market share of almost 7%. In addition to banks, we have also acquired companies whose activities are complementary to banking. Speaking of leasing, for which we have big plans, we have so far acquired three companies in this sector, Țiriac Leasing (2022), Idea::Leasing (2021) and ERB Leasing (2018).

2023 was prolific in this respect, with a leasing merger under the BT Leasing umbrella, an acquisition in the Republic of Moldova by Victoriabank, part of the BT Group, completed in 2024, as well as the negotiation phase for Banca Transilvania's acquisition of OTP Bank Romania and its subsidiaries in our country.

BT Leasing and Țiriac Leasing were merged into a single company in January 2007
The merger of the two market leaders has had a positive impact on the business by increasing and diversifying the customer base, with BT Leasing reaching 25,000 customers and a portfolio of EUR 500 million. We aim to be the preferred leasing solution for the automotive market, with leading services for businesses and entrepreneurs.
Victoriabank (Republic of Moldova) acquired BCR Chișinău
In 2023, we saw opportunities for expansion in the Republic of Moldova through Victoriabank, one of the leading banks in the neighboring country, which is part of the Banca Transilvania Group. Also last year, Victoriabank signed a firm commitment to acquire all of BCR Romania's shares in BCR Chișinău. The acquisition took place in early 2024 and marked a first in the market, a local bank acquiring another Moldovan banking institution outright. The acquisition confirms Victoriabank's mission to strengthen its position in the banking market, to be a supporter of the Moldovan economy and to contribute to increasing synergies with Romania and the European Union.
First steps towards BT's acquisition of OTP Bank Romania and its subsidiaries in Romania
After several months of negotiations in 2023, we reached an agreement with the OTP Group, which was officially signed in Bucharest in February 2024, for the acquisition of OTP Bank and its subsidiaries in Romania. We are at the stage of awaiting regulatory approvals to complete the transaction, after which the integration of the acquired entities into Banca Transilvania Group will follow.

We are here to further support the development of the economy and contribute to people's prosperity. The Bank's profitability helps us to deliver on our plans to grow the BT Group in all the segments in which we operate and to expand into new ones. We are using the scale of our business and our large customer base to deliver better and more efficient services.

Looking at the last five years, 2018 - 2023, our bank has doubled its assets, loans and deposits, and our active customer base has grown by almost 50%, with 2023 contributing significantly to these results.

We invite you to read this Annual Report, which describes one of the best years in BT's history and the Banca Transilvania Group's impact on the economy and society.

Thank you for your trust in Banca Transilvania Group.

Horia Ciorcilă

Chairman of the Board of Directors

Banca Transilvania

Ömer Tetik

Chief Executive Officer

Banca Transilvania

31 DEC 2024

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BT’s message to shareholders