During 9M 2025, Banca Transilvania recorded NII growth of 19% YoY, NFCI increase of 9%, net banking income growth of 17%, and a net income to majority of RON 2.27bn, down 15% YoY.
Starting off at the top of the P&L, net interest income (NII) amounted to RON 4.7bn, growing by 19% YoY. Unlike other regional banks, especially the ones that are part of the EU, and particularly the Eurozone, the Group is recording strong growth rates. It should be noted that, as the largest bank in Romania, it is directly affected by the interest rates set by the National Bank of Romania, even to a larger extent than other, smaller banks. Since the rates were maintained at high levels (unlike the ECB, which has already cut rates significantly), the revenue & profitability growth for Romanian banks continues. The increase in NII came due to sustained commercial activity, mainly related to higher lending to individuals and companies, and increased revenues from debt instruments valued at amortized cost.
While the Group does not provide NIM numbers, it could be said that high NIM levels definitely supported revenue expansion. On the Group level, total loans amounted to RON 104bn, growing by 8% YTD and 11% YoY, below NII growth, implying that higher NIM levels also positively impacted NII development. The loan growth was driven by both organic increases and the integration of OTP Bank’s portfolio.
Moving on to net fee and commission income (NFCI), it amounted to RON 1.34bn, growing by 9% YoY. The main drivers of NFCI growth were the following: firstly, higher transaction volumes, reflecting greater client activity. Secondly, growth in card-related fees and payment commissions, linked to increased usage of digital channels and retail payments. And lastly, the expansion of lending and trade finance operations, which raised commissions from loan origination and guarantees. As such, it could be said that the growth was mainly organic and volume-driven, with fee generation keeping pace with the Bank’s broader commercial expansion.
Banca Transilvania Group key financials (9M 2025 vs. 9M 2024, RONm)
Source: Banca Transilvania Group, InterCapital Research
As a result, net banking income amounted to RON 8.47bn, growing by 17% YoY. The growth here was supported by the already mentioned NII & NFCI growth, but was also supported by strong trading income, which amounted to RON 880m, growing by 36% YoY, due to favorable market conditions and active treasury operations. In terms of OPEX, it amounted to RON 4.58bn, growing by 27% YoY. This growth was supported by several factors. Firstly, personnel expenses growth, which increased by almost 10% YoY to RON 2bn, was supported both by higher employee headcount (+7% YoY) and rising wages due to inflation. Secondly, other op. expenses growth of almost 30% to RON 1.5bn, primarily as a result of the inclusion of the turnover tax, which added RON 315.5m to the Group’s OPEX. Next up, higher depreciation & amortization, which grew by 11% YoY to RON 415m, due to IT and infrastructure investments. Also worth noting are higher admin. expenses (part of other op. expenses), due to the Group’s expansion and digitalization efforts.
Moving on to impairments and provisions for credit risk, the Group recorded RON 473m of them, up 91% YoY, primarily due to higher lending volumes, integration of OTP Bank’s portfolio, as well as due to their cautious stance amid a slowing macroeconomic environment and persistent inflation pressures. This increase is also visible in two other indicators: the cost of risk and the NPL ratio. Cost of risk stood at app. 60 bps during 9M 2025, up 20 bps YoY. On the other hand, the NPL ratio increased slightly (0.09 p.p.) to 2.56%, remaining broadly stable and low despite the Group’s strong loan growth and portfolio expansion following the OTP Bank Romania integration.
Lastly, the net income to majority amounted to RON 3.19bn, declining by 15% YoY, unlike the rest of the results. However, it should be noted that the decline is more due to the high base recorded during 9M 2024, as Banca Transilvania recorded a bargain gain of RON 807m during the purchase of OTP Bank Romania and BT Building S.R.L.. Excluding the one-off effect, the Group’s 9M 2025 net income to majority grew by 5.4% YoY. Taking a quick look at the balance sheet, besides the loans already mentioned above, deposits are also important for the Bank’s business, representing the other side of the coin to loans. On the Group level, deposits to customers amounted to RON 168.2bn, increasing by 0.2% YTD and 5.2% YoY. By segment, retail deposits amounted to RON 110.5bn, representing 65.6% of all deposits, while corporate deposits amounted to 34.4%, or the rest. In terms of growth, retail deposits increased by 1.8% YoY while corporate deposits declined by 2.7% YoY. The slight growth recorded was supported by organic customer base expansion and increased transactional activity. The increase was also supported by continuing digitalization and deposit-gathering capabilities of subsidiaries, incl. Victoriabank and Salt Bank. Lastly, the rise in deposits also came due to higher household savings following sustained wage growth and prudent liquidity management by corporate clients.
Banca Transilvania Group key financials (Q3 2025 vs. Q3 2024, RONm)