Banca Transilvania (TLV) investor relations material

Strategic ambitions and future plans

• Aims to reach EUR 100 billion in assets by 2030, doubling current size through organic growth, operational efficiency, and selective M&A, while maintaining leadership in banking, asset management, capital markets, pensions, and micro-lending, with a focus on Romania and diaspora engagement.

• Targets over 7.5 million customers, primarily Romanian, expanding subsidiary contributions to 21% of group assets and 37% of profitability by 2030, and doubling active retail clients to 6 million.

• Digital transformation is central, with BT Pay and BT Go driving customer acquisition, engagement, and onboarding, including for diaspora and non-residents, and AI adoption enhancing efficiency and customer experience.

• Committed to a cost-to-income ratio in the low 40s, over 20% ROE, and a balanced dividend policy with a payout ratio up to 50%, while investing in technology and human capital for sustainable growth.

• Expansion abroad is mainly through digital platforms and diaspora-focused services, with no immediate plans for foreign bank acquisitions.

Financial guidance and performance

• Delivered an average 21.4% ROE, 15% CAGR in EPS, and 90 bps cost of risk, with a net interest margin of 360 bps, adapting well to changing interest rate environments.

• Group assets grew from 48 billion lei in 2015 to 225 billion lei in 2025, targeting 520 billion lei by 2030, with profitability consistently above 20% ROE except during the pandemic.

• Achieved 4.7x asset growth and 3.5x earnings growth over the past decade, with a 16.8% CAGR in assets and 15% CAGR in profit.

• Maintains a strong capital adequacy ratio above 20%, robust risk management, and NPL ratios around 2.4%, with a clear focus on proactive workout strategies.

• Dividend payout ratios ranged from 35.6% to 67.1%, aiming for a 50/50 split between cash and shares, subject to regulatory and market conditions.

Business developments and innovation

• Retail banking focuses on deepening customer relationships, increasing relevance in daily banking, and expanding into non-traditional services, with a goal of over 6 million active retail customers and doubling the retail loan book.

• BT Pay surpassed 5 million active users, integrating asset management, pensions, and insurance products, and enabling digital onboarding for diaspora and non-residents.

• Entrepreneurial and SME segments benefit from digital onboarding, end-to-end SME loans, and advisory hubs, with 680,000 legal entity customers and over 100,000 companies financed.

• Large corporate business achieved double-digit growth, leading in project finance, syndications, and factoring, supporting strategic sectors like infrastructure, energy, and M&A.

• Investment subsidiaries (pensions, asset management, capital markets) are rapidly growing, with BT Asset Management leading in market share and digital distribution, and BT Capital Partners targeting more IPOs and international investor inflows.