Banca Transilvania (TLV) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 was RON 3,267.3 million consolidated (down 16.4% YoY), with total assets up 3.0% consolidated since December 2024.

• Loan book grew over 22% in the first nine months, with retail loans up over 10% and corporate loans also exceeding market growth.

• Major business combinations included the acquisition and merger of OTP Bank Romania S.A. and BCR Chisinau S.A., consolidating market position in Romania and Moldova.

• Mortgage lending now represents 58% of the retail portfolio, with aggressive growth in online lending via BT Pay.

• Deposit base increased by over 7%, with strong customer trust in local currency (RON) and core CASA accounts at 42%.

Financial highlights

• Net interest income rose 20.2% individually YoY, reaching RON 5,957 million for the nine months ended September 30, 2025.

• Net fee and commission income increased 12.1% individually YoY, reaching RON 1,221 million.

• Operating expenses increased 16.4% individually YoY, with turnover tax contributing to higher other operating expenses.

• Cost-to-income ratio increased due to higher operating and integration costs, standing at 44.26% individually.

• EPS decreased by 15.0% YoY, at RON 2.93 for the nine months.

Outlook and guidance

• Moody’s upgraded long-term deposit and issuer ratings, reflecting strong capitalization and profitability.

• Management maintains a conservative approach to credit risk and capital adequacy, monitoring macroeconomic risks including inflation and fiscal changes.

• Fiscal measures in Romania (VAT, turnover tax, dividend tax increases) expected to support deficit correction by up to 3.3% of GDP by 2026.

• Loan book expected to grow high single digits next year, with continued focus on infrastructure, energy, and agriculture.

• Net interest margin above 300 basis points seen as sustainable, with no major changes in monetary policy anticipated.