Banca Transilvania: 1Q looks ok, but note sharp capital drop

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Banca Transilvania: 1Q looks ok, but note sharp capital drop

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Banca Transilvania

1Q looks ok, but note sharp capital drop

Earnings Review

OK 1Q numbers supported by core revenue 26 May 2026

We thought Banca Transilvania’s 1Q26 results looked ok overall, with a RON1.1bn net High Grade Credit

income and a 20% RoE. Pre-impairment profit increased notably on the year, to Romania

RON1.6bn (+23% yoy, -7% qoq), supported by strong core revenue (NII+fees) (+7% yoy). Banks

NII of RON2.1bn (+6% yoy, -2% qoq), which was a touch lower on qoq, but notably Katharine Lennon

higher on the year. We note an +11% yoy increase in the loan book, which offset margin Research Analyst

pressure. Fees were RON440mn (+15% yoy, +9% qoq), reflecting growth in commissions MLI+44 (UK)20 7995 6148

from treasury and inter-bank operations and client transactions. Costs were more katharine.lennon@bofa.com

resilient on both the quarter and the year, at RON1.5bn (+3% yoy, +1% yoy), with a lower Richard Thomas

Research Analyst

contribution to the bank deposit guarantee fund and bank resolution fund offset BofASE (France)

increases in personnel expenses and the turnover tax. richard2.thomas@bofa.com

Luis Garrido, CFA

2ppts drop in total capital ratio on risk weightings ResearchBofASE (France)Analyst

The total capital ratio (binding level) dropped sharply in 1Q26, to 20.65% (-2ppts qoq). luis.garrido@bofa.com

As previously guided by the company, this reflected the expiration of transitional

arrangements (from January 2026) relating to two parts of the bond portfolio: i)

adjustment for bonds recognised at FVOCI in the portfolio (~50% of the ~RON70.8bn

portfolio at end-1Q26) and ii) risk weightings tied to foreign currency treasury bills. This Banca Transilvania: Credit Update in