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Banca Transilvania Highlights
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Presentation topics
Romania - macro picture
Banca Transilvania•Milestones•Strategic approach: a growth story•Achievements: market position•June 30, 2006 highlights (IFRS)•Stock performance•Plans
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Macro picture: a positive economic environment
Banca Transilvania
* estimates
FOREIGN INVESTMENTS IN ROMANIA (billion EUR)
1.14
1.29
1.12
1.62
3.3
5.2
6.2
0 1 2 3 4 5 6 7
2000
2001
2002
2003
2004
2005
2006*
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Banking Sector in Romania
Weight of non-governmental loans in GDP (%)
17.5%22%
27%
88%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
2004 2005 2006* UE
Market shares in the banking system/Total Assets (%)
87.6%
6.0% 6.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Banks with foreigncapital
Banks with local statecapital
Banks with local privatecapital
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Banking Sector in Romania
Evolution of banking assets in Romania (bn. EUR)
37.7
15.31
22.67
05
10152025303540
2003 2004 2005
Features:
39 banks (of which 6 foreign bank branches)
58% of banking assets held by top five banks
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Banca Transilvania: milestones
Established in 1994 as an alternative to state owned banks
First bank to be quoted on the Bucharest Stock Exchange - 1997;
In 2001 EBRD became shareholder of the bank, acquiring 15% of the share capital;
2002 – turnaround year:
2005 – year of quality growth
Management team Organizational structure Corporate identity
NEW
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Banca Transilvania: group strategy
Establishment and consolidation of Banca Transilvania Financial Group, the bank being the core business and synergies driver.
Cross-selling with subsidiaries:BT Asigurări (insurance);BT Leasing Transilvania (leasing);BT Securities (brokerage);BT Direct (consumer finance);BT Investments (investment vehicle);BT Asset Management S.A.I.Compania de Factoring
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750,000 customers
- 303 BT Units 51 Branches 249 Agencies 1 Rep. Office 2 exchange offices
- 473 ATM- 3, 802 POS- 790,489 cards
HEAD OFFICE
Strategy: nationwide network, close to the clients
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Strategy: Organic Growth
Risk Management
Assets growth targets
- Loans
- Equity investments
- Tangible and intangible assets growth to sustain the business expansion
Additional funding requirements
- Deposits
- Borrowings
- Capital
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Market shares - total assets 30.06.2006 vs 31.12.2005
3.7%4.5%
3.8%4.4%
3.9%5.3%
8.7%
15%
25.7%
4.9%
25.6%
15.48%
7.91%
5.57%4.34% 4.22% 4.08% 3.44%
4.22% 4.19%
0%
5%
10%
15%
20%
25%
30%
BCR BRD Raiffeisen ING Transilvania CEC Alpha BancPost HVB ABN Amro
31.12.2005
30.06.2006
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Strategic approach: three business lines,
Retail
CorporateMortgage loans
• 9.24% market share (June 2006)
Cards business
• 9.35% market share 790,489 cards (June 2006)
•460 ATMs
•3,802 POS
Effective cash management and collecting
Internet banking products
Rural Finance Project
one customer driven organization
SMEProfessional sales force
Dedicated SME financing programs
• start-up credit
• one hour credit for investments and working capital
12% market share
MARKET SHARE BY PRODUCTS30.06.2006 vs. 31.12.2005
3.75
8.8
4.4
4.52
4.67
8.96
6.38
3.9
9.24
4.67
5.97
4.47
9.35
3.83
6.44
4.06
0 5 10 15 20 25 30
Total customers
Loans, ROL
Loans, FCY
Mortgage loans
Consumer loans
Term deposits, ROL
Term deposits, FCY
Active cards
30.06.2006
30.12.2005
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BT Café – the first banking café in Romania;
BT Café – promoting Banca Transilvania Financial Group in a casual environment
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Banca Transilvania: Romanian Champion
– Local bank with an extended network – Entrepreneurial approach / fast decisions– Flexibility / efficiency – Significant market shares – Fast growth – Sustainability and support from
shareholders – Financial Group concept – Community Bank – Universal Bank
SMEs and Retail
Transilvania
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Balance Sheet, EUR mln. IFRS
(unconsolidated)
June 30, 2006
Dec. 31, 2005
June 30 2006/Dec. 31, 2005 (%)
growth
Cash and equivalents 33.06 27.36 121%
Accounts with banks and with NBR
438.54 351.09 125%
Loans & Leases, net 1,113.11 799.98 139%
Securities &participations 75.04 99.08 75.74%
Fixed Assets 54.83 45.65 120%
Other Assets 14.24 6.70 212%
Total Assets 1,728.82 1,329.86 130%
Customers’ deposits and due to banks
1,183.82 975.54 121%
Borrowings 345.64 211.96 163%
Other liabilities 27.62 17.71 156%
Shareholders’ equity 171.74 124.65 138%
Total Liabilities 1,728. 82 1,329.86 130%
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Total Assets
Dec. 2005: EUR 1,329.86 mln
June 30, 2006 vs. Dec. 2005 (IFRS unconsolidated)
Total Assets
June 30, 2006: EUR 1,728.82 mln
Assets, June 30, 2006
Cash and equivalent
2%
Other Assets1%
Accounts with banks and with
NBR25%
Fixed Assets3%
Loans, net65%
Securities and equity
participations4%
Assets, Dec. 2005
Accounts with banks and with
NBR26%
Other Assets1%Fixed Assets
3%Cash and equivalent
2%
Securities and equity
participations7%
Loans, net61%
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June 2006 vs. Dec. 2005 (IFRS unconsolidated)
Total Liabilities
Dec. 2005: EUR 1,329.86 mln
Total Liabilities
June 30, 2006: EUR 1,728.82 mln
Liabilities, June 30, 2006
Shareholders’ equity10%
Other liabilities2%Borrowings
20%
Customers’ deposits and due to banks
68%
Liabilities, Dec. 2005
Borrowings16%
Customers’ deposits and due to banks
74%
Shareholders’ equity9%
Other liabilities1%
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Profit & Loss Account, EUR mln. (IFRS unconsolidated)
June 30, 2006
June 30, 2005
June 30 2006/ June 30, 2005 (%)
growth
Net interest income 37.27 26.03 143%
Income from commissions, net 19.34 10.36 187%
FX income, net 6.94 4.87 143%
Other income 0.97 2.39 41%
Salaries and related expenses 23.70 13.79 161%
Other expenses 23.76 14.19 167%
Net Profit 11.39 10.81 105.37%
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Profit & Loss Account (EUR mln.)
Income June 30, 2006 vs. June 30, 2005, EUR mln.
2.39
4.87
26.03
10.36
0.97
6.94
37.27
19.34
0 10 20 30 40
Other income
Foreign exchangeincome, net
Income fromcommissions, net
Interest income,net
June 30, 2006
June 30, 2005
Expenses June 30, 2006 vs. June 30, 2005, EUR mln.
13.79
14.19
23.70
23.76
0 5 10 15 20 25
Salaries and relatedexpenses
Other expenses
June 30, 2006
June 30, 2005
Net profit, EUR mln.
11.39
10.81
0 2 4 6 8 10 12 14
June 30, 2006
June 30, 2005
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June 30, 2006
Dec. 2005
Outstanding common shares
2,367,330,0002,367,330,00
0
Nominal Value, RON
0.1 0.1
BT market capitalization, EUR mln
1,051 798.32
Stock price performance (RON) (yoy)
98.59%
Free float 60%
Average daily
turnover
EUR 1.5 mln
STOCK PERFORMANCE
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• “Bank of the year 2005” granted by “Bucharest Business Week” Magazine
• “The Best Banking Product” for the product “Credit 1 ORA” granted by “Piata Financiara”
• “Most Transparent Issuer on the Bucharest Stock Exchange in 2005” granted by “Saptamana Financiara”
• “Most dynamic issuer listed on the Stock Exchange” granted by BSE and Rasdaq
Awards 2005
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2006 – Plans
• We will continue our organic growth
• Strong focus on SME / Retail segments
• Network: more than 300 units
• Investments: EUR 30 mill.
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Contact details:
Banca Transilvania S.A.
Romania, Cluj-Napoca8, Baritiu St.E-mail: [email protected]: + 40 264 407 150Fax: + 40 264 407 179
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