Banca Transilvania (TLV) Q1 2026 earnings summary

Executive summary

• Net profit after tax for Q1 2026 rose 30.1% year-over-year to RON 1,141 million, driven by organic growth, M&A activity, and strong interest and fee income.

• Over 150,000 new accounts opened in Q1, with robust growth in both retail and corporate segments.

• Market confidence reflected in EUR 1 billion bond issuance, Fitch rating upgrade to BBB, and dividend approval.

• Digital platforms BT Pay and BT Go drove customer engagement, with 24% YoY growth in mobile/NFC payments and 28% in fund transfers.

• Total assets grew 1.1% from December 2025, reaching RON 227 billion.

Financial highlights

• Net interest income rose 5.6% year-over-year to RON 2,071.4 million at group level; net fee and commission income up 15%.

• Pre-provision operating profit increased 22.6% year-over-year.

• Cost-to-income ratio at 48% (including turnover tax), dropping to 41.6% excluding it; improved from 49.65% sequentially.

• Gross loans increased 2.2% from December 2025; deposits from customers up 0.4%.

• NPL ratio (EBA) at 2.55%, up slightly from 2.40% at year-end.

Outlook and guidance

• 2026 budget targets: total assets growth 6.4%, loan growth 8.5%, profit before tax RON 5.1 billion.

• Guidance for net interest margin stable at ~350 basis points for 2026.

• Investments planned at RON 1,017 million, mainly for IT and digital, up 20.6% year-over-year.

• Loan growth expected to be led by mid-caps and large corporates, with continued investment-driven economic transformation.

• Cost of risk guidance maintained at 70-80 basis points, in line with budget.