Banca Transilvania (TLV) Q4 2025 earnings summary

Executive summary

• Achieved strong growth in net interest and fee income, with consolidated net interest income up 16.8% and net fee income up 9.1% year-over-year, driven by organic expansion and M&A, notably OTP and Microinvest acquisitions.

• Pre-provision operating profit rose 19.6% year-over-year, but group net profit slightly declined by 1.5% to RON 4,660.7 million due to higher cost of risk, while individual net profit rose 16% to RON 4.10 billion.

• Maintained robust capital and liquidity positions, with group Tier 1 ratio at 17.14%, CAR at 22.71%, and liquidity coverage ratio at 784%.

• Active customer base increased to 4.4 million, with significant digitalization and expansion into investment and pension segments.

• Maintained leadership in customer satisfaction, with NPS 12 points above market average and sector-leading Net Promoter Score.

Financial highlights

• Q4 2025 net profit reached RON 1.4 billion, up 7% sequentially; full-year consolidated net profit was RON 4.66 billion, with individual net profit at RON 4.10 billion, up 16% year-over-year.

• Consolidated net interest income: RON 8,065.5 million (+16.8% YoY); net fee and commission income: RON 1,622.9 million (+9.1% YoY).

• Cost-to-income ratio at 44.4% including turnover tax, or 39.41% excluding it; improved to 44.39% in 2025.

• Loan book grew 23% (including OTP), or 13% organically; gross loans up 11.1% YoY; deposit growth at 8.8%, above GDP and market average.

• Total assets grew to RON 224.4 billion, up 8.4% from December 2024.

Outlook and guidance

• 2026 guidance: net loans +9%, deposits +6%, net interest income +7%, net fee income +13%.

• Cost-to-income ratio guided at 45-46% (including tax), below 40% (excluding tax); ROE expected to remain above 20%.

• Cost of risk guided at 70 basis points, with no major asset quality deterioration expected.

• Macroeconomic outlook: GDP growth 1.67%, inflation 4.3%, unemployment 6.0%.

• Fiscal consolidation and EU funding expected to support medium-term stability.