Last week, the largest bank in Romania, Banca Transilvania, published its FY 2025 results, and today, we’re bringing you the highlights. During 2025, Banca Transilvania recorded net interest income growth of 17% YoY, net fee and commission increase of 9%, net banking income growth of 16%, and a net income to majority of EUR 4.66bn, a slight 1.5% decline YoY.
Starting off with the net interest income, it grew by 17% YoY and amounted to RON 8.06bn, supported mainly by the loan volume production. Net loans amounted to RON 106.7bn in 2025, an increase of 10.7% YoY. While the Group did not publish the gross loan numbers, it did publish the gross loans to deposits ratio, amounting to 64.7%, an increase of 3.9 p.p. YoY, indicating a higher deployment of funding into lending activity.
At the bank level, gross loan growth was significantly higher, with total gross loans growing by 22.6% YoY. Retail loan balances increased by 26.7%, while corporate loans grew by 19.9%, which shows strong credit demand despite the Romanian National Bank’s key interest rate still remaining elevated at 6.5%. Retail growth was particularly driven by housing loans, which reached RON 24.9bn in 2025, an increase of 29.2% YoY and representing 23.6% of the total loan portfolio. At the same time, new loan origination volumes were 28.1% higher YoY, confirming strong underlying demand, although part of the balance growth also includes the integration of OTP Bank Romania’s loan portfolio following the Group’s acquisition in 2025.
On the other hand, NIM is not disclosed, but we estimate that it hasn’t changed much YoY, as again, the key interest rates have not declined on a YoY basis. Moving on, net fee and commission income grew by 9.1% YoY to RON 1.62bn, with fee and commission income growing by 13% YoY to RON 2.8bn, while fee and commission expenses increased by 18.6% to RON 1.22bn. The Group recorded strong transaction activity, with card transactions growing by 19% YoY, with over 8m cards issued, 5.7m unique cards enrolled in BT Pay / BT Go, and nearly 5m active consumers. The retail expansion also meant that more services, as well as more diverse services, could be provided to customers, increasing the NFCI.
As a result of these developments, net banking income amounted to RON 11.7bn, an increase of 15.9% YoY. In terms of OPEX, it amounted to RON 5.4bn, an increase of 12% YoY, with the primary growth driver being the additional tax on banking income (RON 491m, +73% YoY), as well as higher personnel expenses, which grew by 4% YoY to RON 2.7bn. Impairments and provisions increased by 25% YoY to RON 820m, due to strong loan growth, OTP portfolio integration, and slightly higher risk environment, even though the cost of risk remains low (59 bps). Also, the NPL ratio remains low, at 2.4 (2024: 2.07%). The Group also recorded a bargain gain of RON 121m in 2025, related to the integration of the acquired assets, but as the majority was already integrated in 2024 (EUR 815m of bargain gain), this number dropped, leading to a lower net income (-1.5% YoY to RON 4.66bn).
Banca Transilvania Group key financials (2025 vs. 2024, RONm)
Source: Banca Transilvania Group, InterCapital Research
Taking a quick look at the balance sheet, cash and current accounts with Central Banks (basically deposits held at the Central Bank) grew by 16.2% YoY to RON 25.5bn. Furthermore, placements with other banks grew by 21% YoY to RON 16.5bn. On the other side of the balance sheet, deposits from customers grew by 4.4% YoY to RON 175bn, while deposits from other banks declined by 68% YoY to RON 301m. Subordinated liabilities (bonds) grew by 4.5% YoY to RON 17bn.
Overall, the results are in line with expectations, and the Group continues to perform well, especially in Romania. The still elevated key interest rate means that higher interest rates will continue to be charged. Despite this being elevated, loan production still continues strongly, despite the fact that inflation remains higher as well, while GDP growth has largely slowed down, due to the Government’s efforts to curb the fiscal deficit. In this environment, Banca Transilvania, as the largest bank, is well positioned, and if inflation is tempered & fiscal deficit is fixed, further growth could be expected.