Banca Transilvania reported a 27% year-over-year increase in net profit to 2.5 billion Romanian lei (RON) for the first half of 2026, exceeding its 20% return on equity target with a 22% ROE. The group’s individual bank unit contributed 2.14 billion RON to net income, while total revenue reached 3.31 billion RON.
Loan growth accelerated to 8% at the group level, with total loans rising to 122 billion RON. Net interest income climbed 6.3% to 4.2 billion RON, though net interest margin edged down to 3.88% from 3.92% in 2025. Fee and commission income surged 18% to more than 900 million RON, driven by transaction volumes and digital adoption.
The bank’s cost-to-income ratio stood at 45% including turnover tax, or 39.7% excluding it, reflecting disciplined expense management. Personnel expenses rose 7.8% at the group level, while the cost of risk remained low at 70 basis points. Total assets grew 4% to 233 billion RON.
Digital payments platform BT Pay saw mobile NFC payments increase 24% and transfer volumes rise 26%, positioning it as a broader financial ecosystem for savings and investments. CEO Ömer Tetik noted the second quarter delivered strong business generation despite macroeconomic challenges.
Guidance for 2026 includes full-year net loan growth exceeding 10%, supported by large corporates and mid-sized companies in the second half. The bank expects its cost-to-income ratio to stabilize or improve, with net interest margin remaining above 310-320 basis points. Fee and commission income growth is projected to match first-half performance, while staff costs are expected to rise modestly for the remainder of the year.
Banca Transilvania plans to issue additional non-preferred senior debt in the fourth quarter, following a €1 billion issuance in April. The bank’s shares were last quoted at $37.32, down 0.27% on the day, with a 52-week range of $27.16 to $40.20.
