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ANNUAL REPORT

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Preliminary Results FY 2009 02.02.2010

Annual General Shareholders Meeting 28.04.2010

Annual Financial Statements IFRS FY 2009 29.04.2010

First Quarter Results 2010 29.04.2010

Registration Date 14.05.2010

Half - Year Financial Statements 2010 09.08.2010

Third Quarter Results 2010 27.10.2010

FINANCIAL CALENDAR

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Banca Transilvania is the bank for entrepreneurial

people in Romania.

Our mission, as a privately owned Romanian bank,

is to support the business environment development

through innovative products and services offered

with professionalism. We believe in a mentality

aimed at finding solutions for our clients. There is

soul and energy in everything we do, motivated by

the respect for our clients and a responsibility for

the community.

MIssIoN stAtEMENt

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ANNUAL REPORT

2 0 0 9Financial Calendar

Mission Statement

Highlights

Chairman and CEO Statement

Corporate & SME Banking

ClubulÎntreprinzãtoruluiRomân(TheRomanianEntrepreneursClub)

Retail Banking

Cards

InternetBanking

The Healthcare Division

Risk Management

Internal Audit System

Compliance

Sustainable Banking

EnvironmentalPerformance

CorporateSocialResponsibility

Human Resources

Marketing & Communication

Public Relations

Operations and IT

Main Subsidiaries

BTLeasingTransilvaniaIFNS.A.

BTSecuritiesS.A.

BTAssetManagementS.A.I.S.A.

MedicreditLeasingIFNS.A.

BTDirectIFNS.A.

Financial Section

Auditor’sReport

tABLE oF CoNtENts

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2

3

5

6

8

10

12

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25

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26

29

31

33

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35

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ANNUAL REPORT

2 0 0 9HIGHLIGHts 2009 - IFRs

Income statement

TotalAssetsLoans,netCustomers’depositsShareholders’equityShareCapital

200919,613,03011,481,75914,989,1991,838,0341,176,237

200817,148,72510,884,90112,097,0911,656,3371,149,595

thousandRON

NetinterestincomeImpairmentlossonloans,netNetcommissionincomeForeignexchangeincome,netGeneraladministrativeexpensesNetprofitfromcontinuingoperations-fromdiscontinuedoperations

Profitfortheyear

2009754,329490,784370,805143,201717,123136,71548,894

136,715

2008592,684157,564381,15469,511

743,263359,987240,233

359,987

thousandRON

Data about Bt shares

OutstandingcommonsharesNominalvalue(RON)BookvaluepershareMarketcapitalization(mil.RON)

HighLowClosingPrice

Earningspershare(EPS)-yieldpershare*-dividendpershare**Price-earningratio(PER)Pricetobookvalue(PBV)Operatingresultpershare

20091,086,337,883

1.001.67492,313

2.40.612.13

0.3031-

7.031.27

0.0570

200810,596,961,830

0.10.16372,776

0.910.2540.262

0.03530.0047

7.431.60

0.0374

*)computationsareperformedagainstthenetprofit+otheramountsdistributedtotheshareholders(issuepremiums,conversionpremiums,otherreserves)**)calculatedaccordingtodividendsdistributed

NumberofemployeesBranchesandagenciesATMs

POSs

20096,126

515766

12,613

20086,466

482763

10,292

Additional Information

Balance sheet

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Chairman’s and Chief Executive officer’s statement

Everybodyknewthat2009wouldbeachallengingyear.Strategiesneededtobereconsidered,

businessmodelsreviewedandworkingtoolsrenderedmoreefficient.

2009hasbeena yearof consolidation forBancaTransilvania.Ouroperatingprofitwas96

percenthigherthanin2008andthecost-incomeratioimprovedto55percentversus70percent

theyearbefore.

Liquidityremainedatcomfortablelevel,withloantodepositratiobelowoneandastrongposition

intermsofraiseddepositsonthedomesticmarket.Wemaintainedcapitalrequirementsathigh

standards(14percent),significantlyabovethe8percentminimumlimitimposedbytheNational

RegulatoryAuthority.

Tocopewithbusinessenvironmentuncertainties,weimplementedacoherentandaggressive

provisioningpolicy,withenhancedprotectivemeasuresovertheloanportfolio.Additionalloan

lossprovisionsagainstfutureeconomicdeteriorationwerecreated,non-deductiblesaccounting

for17.6percentoftotalprovisions,whileEUR126millionwasthetotalamountallocatedfor

theincreaseinnetriskcost.

BancaTransilvaniarealizedthattimehascometoadapt,reinforcingtherangeofservicesand

making room for innovativebusinessproducts. In this context, flexibilityandcustomer facing

solutionswerekeywordsforBTtoreclaimmarketshare,meetrevenueandmargintargets.

The Anti-Crisis Platform was designed, setting the foundation for opportune services, much

neededinthemarketplacefloodedbyconcerns.Wefacilitatedaccesstofinancingresources,

improvedcash-flowandreducedoperationalcosts.

In this unsettled economic environment it is important to create strong partnerships with the

public sectors. The National Guarantee Fund for SMEs is our business associate in two

importantprojects.ApremiereontheRomanianbankingmarket,Creditul Gata Garantat-the

ReadySecuredLoan-isaco-brandedproductdesignedtosolvetheentrepreneurs’liquidityand

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All in all, we can say that 2008 was a year of strategy adjustment, BT consolidatingits market position. Efficient management of operational expenses, increased riskmanagement and constant communication with the market were just a few mitigationmeasures taken to tackle the effects generated by the economic upheaval.

As for 2009, discussions will revolve around the deployment of thecapital we hold, the duration and sources of our funding, the qualityof the assets. We will continue to monitor the soundness of loanportfolio and aspects pertaining to liquidity and risk management.We will pay great attention to cost reduction and try to constantlymould on market realities.

The bank and its clients are part of the real economy; therefore BT isnot immune to the crisis. However, being flexible, prudent andcapable to adjust our business model to the new market conditions,we feel that we will be able to safely pass these turbulent times.

Moreover, counting on the valuable support of our strategic partnersand shareholders, we remain committed to sustain the localeconomy, being the largest privately-owned bank with majorityRomanian capital.

Horia Ciorcila Robert C. RekkersChairman Chief Executive Officer

7

collateraldifficulties,providingfinancingbasedonstateguarantees.Thesecondproject-Prima

Casa- isaprogramcreatedbytheRomanianGovernment inordertoexpandthemortgage

lendingpace.BTenrolledintheprojectandplacedEUR30millionintotal.

Another aspect revealed by the crisis was the importance of financial support from the EU,

materializedintheformofstructuralfunds.Furthertothese,BThasdecidedtosetupanother

importantplatform- theEU Structural Funds Platform.Ourclientsareprovidedwithadvisory

servicesandco-financingforbusinessturnaroundornewinvestmentprojects.

All our 2009 endeavors benefited from the EBRD’s ongoing support as shareholder and

businesspartnerandwewelcomed thearrivalofnewkey shareholders, IFC -aWorld Bank

Division-andBankofCyprus.

Steeledbyachallenging2009,wecautiouslylookat2010.Weareawarethatthiswillnotbe

aneasyyear,butBT,astheBankforEntrepreneurialPeople,willcontinuetoactwithcourage,

intelligenceand responsibility, relyingonsoundstakeholdersandpartners,professional team

players,localapproachandloyalcustomers.

HoriaCiorcila RobertC.Rekkers

Chairman ChiefExecutiveOfficer

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CoRpoRAtE & sME BANkING

TherowofconsecutiveyearswithtremendousGDPgrowth,withboomingsectorsandoptimistic

investmentprojects,wasinterruptedin2009whenRomaniahadtosuddenlyfaceacontractionof

therealeconomy.

Withinsuchcontext,ourmindsetalwaysreadyforchangeprovedtobeavaluabletool.Building

onourqualityastheBankofRomanianEntrepreneurs,BancaTransilvaniarapidlyupgradedthe

businessmodeladaptingtonewconditions,meetingmarketexpectations.2009missionstatement

wasPROACTIVENESS.

ThefirstresultwastheAnti-Crisis Platform for SMEs,anintegrated

solution,basedonthreepillars:

(1)Loan Restructuring Facilities-toimproveclients’cash-flow;

(2)SME Banking Subscription-toreduceoperationalcosts;

(3)Romanian Entrepreneurs Club-toprovideadvisoryservicesfor

businessturnaround.

Othernewproductsshapedaccordingtoneedsshoredupthis

platformmid2009.Thus,Creditul Gata Garantat (the Ready

Secured Loan)wasarealalternativeintimesofgreatconcern,

solving theentrepreneurs’ liquidityandcollateralproblems.

This co-branded one-stop-product, in partnership with the

NationalLoanGuaranteeFundforSMEs(FNGCIMM)provided

accesstoloansbasedonthestateguarantee.

Ourcommitmentinhelpingourcustomerscontinuetheirbusinessevenamidsteconomicuncertainty

continued in the lastpartof2009,when the fundamentals foranother importantproject -EU

StructuralFundsPlatform-wereset.Ourendeavorhasbeentoofferconsultancyandco-financing

andwehavebeenactivelyinvolvedintherespectiveawarenesscampaigns.

Also,asyearbeginningsareusuallyapprehendedtobeslowerperiodsformostbusinesses,we

Over2,900ReadySecuredLoansweregrantedby

BTfromJunetoDecember2009

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launchedIesirea din iarna (Getting through winter)asolutionofferedtoimproveclients’cash-flow,

anddealwithadversebusinessconditionsduringthefirstmonthoftheyear.

Besidesadaptingourbankingproductstohelpclientsweatherthecrisis,wealsostreamlinedthe

bank’sstrategyintermsofcustomerriskprofileinordertobuildamorerobustSMEclientbaseand

acquirecorporateclientswithseminalbusinessmodels.

Alltheseactionsprovedsuccessful,thenumberofcorporateandSMEclientsgrewlastyearby6%

to194,100,corporateplacementsbeing14%abovethe2008value,whileintermsofdeposits,

werecordedayear-on-year17%growth.

Furthermore,thepreviousyearmissionstatamenttocapitalizeourpositionasoperationalfriendly

bankwaskept.Thus,wemanagedtohaveoneofthebestcashcollectionservices(over-the-counter,

ATM,directdebit),but,mostimportantly,wehavebecomeavaluedpartnerforRomanianutility

suppliers. Invoicepayment cooperationagreementswithmajornationaland regional suppliers

weresigned,creatingtrafficinBT’sunitsandsubsequentbusinesswithourretailcustomers.

Inallouractionsweaimed to improveoperational efficiency in sales,by valuingour relevant

expertiseinSMElendingandbycultivatingtheentrepreneurialspiritofoursalespeoplespecifically

intheareaofowninitiativeandabilitytoidentifycross-sellingopportunities.

Corporate Loan Portfolio as at 31.12.2009

40.4%

35.3%

0.3%

24.0%

39.7%

41.1%

0.4%

18.8%

Corporate Loan Portfolio as at 31.12.2008

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Clubul Întreprinzãtorului Român - CIR (the Romanian Entrepreneurs Club)

Trainingsessionsontopicsofinteresttothebusinesscommunity,networkingprograms,assistance

inapplyingforEUstructuralfundsandfinancial&bankingconsultancyserviceswerefrontlinesin

our2009activity.

The Club counted almost 12,000 members at the end of 2009, with approximately 1,800

newcomersovertheprevious12months.

In2009,theClubappliedforEUstructuralfunds,eitherasmainapplicantorasco-participant.

Asmostoftheprojectswereapprovedwemanagedtoraisesignificantfunds,provingonceagain

thatweactuponourstatements.

The website www.btclub.ro was upgraded, with new tools and functions in order to increase

attractivenessandaccessibility.

InJune2009,theproduct“Site-ul meu pe BT Club” (My site on BT Club)waslaunchedfor

companiesthatdidnothavetheirownwebsite.Asaresult,213webpagesweredesignedandare

currentlyhostedontheCIRsite.

Furthermore, Google partnered with CIR to grant 100 RON vouchers for Google AdWords

campaigns,whichwereusedbyapproximately130companies.

training programs and Events

Morethan360trainingsessionswereorganized,sincetheClubwasestablishedthreeandahalf

yearsago.41eventswereheldin2009andprofessionalspeakers,eitherfromBancaTransilvania

orconsultingcompaniestookthefloor.6,000participantsattendedtheseseminarsin21towns,

gettingacquaintedwithboththetraditionalbusinesstopicsandthechallengesimposedbythe

21stcentury.

Feed-backprovidedbyparticipantsencouragedustostrengthenoureffortsinthisarea.Thus,the

Clubestablished“mobileconsultingoffices”insixtowns,offeringsupporttoSMEswhichwould

liketotakeadvantageoftheEUstructuralfunds.

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Furthermore,CIRenteredaspecialpartnershipwithGoogle,organizing“GooglecomestoCluj”

event,withlivebroadcastingontheClub’swebpageandover1,500Internetuserstunedin.

The Club also organized 4 events under the auspices of the “First European SME Week”

(May6-14,2009)andaspartofthe“GlobalEntrepreneurshipWeek”(November16-22,2009).

Alltopicswerereceivedwithgreatinterest,especiallytheEUstructuralfunds.

the Networking program

Theprogramwaslaunchedbackin2008,supportingnationwidenetworkingamongCIRmembers

andofferingexclusivebenefits.

Accreditedmembersbenefitedfromdiscountsthatrangedfrom1%to50%,grantedbyover130

partnersacrossthecountryandcoveringalargevarietyofproductsandservices.

partnerships

Newcollaborationswithconsultingfirmswereestablished,amongthemEurocenterManagement

Network,PNOGrantConsultants,Ecocare,CBCTraining,RomanianTrainingInstitute,Codecs,

DeKlausen,Rentrop&Straton,EcartorShoreBankInternationalandUPCBusiness.Thelatter

co-sponsoredthreeofthe2009events.

Consultancy and newsletter

TheClubprovidesbothfinancialandbankingconsultancy,aswellasotherservicestoitsmembers,

viathetollfreenumber0800800466,bye-mailandthroughitswebsitewww.btclub.ro.

Also,awiderangeoftopicsofinterestforentrepreneursaroundthecountryareapproachedand

debatedinnewsletterssenttotheClub’smembers.

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REtAIL

Loans and Deposits, simple products

Overthepast10years,BancaTransilvania’sfocusonRetailBankinghasbeenreinforcedyearafter

yearsothatendof2009,theretailcustomerbasecountedonemillioneighthundredthousand

clients.Theextensivegrowth in termsofclientnumberwascomplementedby intensivegrowth

strategies,theaveragenumberofproductsperclientdevelopingfrom2.12to2.37,thatisa12%

increase.

Weprovidedloananddepositpackageswithfeaturestriggeredbytheeconomicbackground.

Newmortgageloansandupdatedhomeequitylendingproductswerelaunched,aimedatraising

retailcustomers’appetiteforcredit,giventheabruptconsumptiondownslope.

Moreover,tosupplyourclientswiththe

necessary funds and simultaneously

sustain the real estate market, we

enrolled, in partnership with the

National Guarantee Fund, in the

Prima Casa Program. As part of this

project, we managed to grant 753

loans,equivalentofEUR30million.

In 2009, people’s behavior faced

amigration from consumerism to savings. Backed by our retail business focus, expertise and

reputation,wecontinuedtoembraceadispersedliquiditymodelandaheterogeneouscustomer

breakdown,preservingaloantodepositratioconstantlybelowone.Furthertothis,during2009,

our retail deposits grew by 24%, standing for 66% of total

deposits.

Combined services, lined up with market requirements

In 2009 we expanded the channels to insurance products.

The Savings and Protection Plan,launchedinpartnershipwith

AEGON Romania, met the requirements of a savings-prone

and risk-averse market. This co-branded financial solution

combinedtheadvantagesofasavingsaccountwiththoseofa

lifeinsurancefacilitywithinacustomizedinvestmentprogram.

12

2009 Retail Loan Portfolio

17.01%

6.71%

30.42%

20.93%

20.32%2.63%

1.98% housing

mortgage

home equity

consumer loans

card loans

car loans

other

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Card platform

BeingthefourthlargestissuerinRomania,wemaintainedourkeyplayerpositionwithstraightforward

andclient-friendlyproducts.14%marketsharereflectsthatcardshaveremainedastayingpower

forBT,withaportfolioof1,700,000.Morethanthat,wearemarketleadersforpremiumcards

undertheVisabrand(Platinum&Gold),withalmost10,000issuesendofDecember2009.

Due to an extensive purpose range, VISA ELECTRON gained the status of Daily Card. The

1,200,000portfolioandthe22.7%increaseinPOSpurchasesduringthesecondhalfof2009

wereamongthemainreasonstoreceivetwoimportantawardswithintheNOCASHGALA,9th

edition:The Best Sold Debit Card & The Shopping Card of the Year.Furthermore,Visaconfirmed

thecommercialvalueofourVisa – Your Daily Cardusagecampaign,byselectingBTforasuccess

storycasestudy.

13

2005 2006 2007 2008 2009

642,933893,677

1,706,8741,609,8731,181,318

Number of BT CARDS issued Number of Issued Cards

1,181,318

642,933

0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,000

2005 2006 2007 2008 2009

1,706,8741,609,873

893,677

salary cards

premium cards

MasterCard Forte

EURO<26

Business cards

MasterCard vs Visa

BT Cards Portfolio 2009

0

200,000

400,000600,000

800,0001,000,000

1,200,000

1,400,0001,600,000

1,800,000

2006 2007 2008 2009

MasterCard

Visa

1%

8%

5%4% 2%

80%

Maestro Direct

Credit Cards vs. Debit Cards 2009

Number of ATMs and POSs

2,850

4,646

10,292

12,613

356 528 675 763 766

7,321

0

2000

4000

6000

8000

10000

12000

14000

2005 2006 2007 2008 2009

POSsATMs

91%

9 %

credit cards

debit cards

Credit Cards vs. Debit Cards 2009

Number of ATMs and POSs

2,850

4,646

10,292

12,613

356 528 675 763 766

7,321

0

2000

4000

6000

8000

10000

12000

14000

2005 2006 2007 2008 2009

POSsATMs

91%

9 %

credit cards

debit cards

ANNUAL REPORT

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In its turn,MasterCard is theothermilestone

inourportfolio,withatotalof325,000cards

reflectedparticularlyinthe144,000issuesin

2009.

Besides the cards for retail customers, we

developed VISA BUSINESS SILVER CREDIT

CARD & VISA BUSINESS GOLD CREDIT

CARD. These cards provide easy access to

money for any type of payments, as well as

additional advantages such as travel assistance services, emergency cash, medical and legal

assistance.

Internet Banking - Bt 24 OurInternetBankingprovideseasyaccesstobankingservicesandproductsandincludesmany

featurestohelpcustomersmanagetheiraccountsonline.

Basedon feedbackandsuggestionsprovidedbyourcustomers,wecontinued to improve the

relevanceparametersofdisplayedinformationintheapplicationreports,especiallywithrespectto

cardaccountsandpaymentstatus.Also,weextendedthenumberofpredefinedpaymentorders,

whichsimplifiesthepaymentprocessandbringscostreductionforclients.

ThenumberofInternetbankingsubscribersincreased1.6

times as compared to the previous year, reaching over

127,000associateusersforanumberofcloseto119,000

subscribers.

Ourclients’constant interest inInternet-Bankingusageis

confirmedbythenumberoftransactions,whichincreased

bymore than80%in2009against2008,aswellasby

thevalueoftransactionsprocessedviaBT24whichgrew

rapidlywithapproximately50%ascomparedto theyear

before.

14

salary cards

premium cards

MasterCard Forte

EURO<26

Business cards

MasterCard vs Visa

BT Cards Portfolio 2009

0

200,000

400,000600,000

800,0001,000,000

1,200,000

1,400,0001,600,000

1,800,000

2006 2007 2008 2009

MasterCard

Visa

1%

8%

5%4% 2%

80%

Maestro Direct

ANNUAL REPORT

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Bt 24 Advantages

@ Privacy and securityKeepaccountssafeandsecure

@ SwiftnessCheckaccountbalance,transfermoney,paybillsinminutes

@ Key featuresManageaccountsandsavetimeandmoney.

paymentorderpredefinition/import/export

accountstatementviewandprintoptions

accountbalancegraphs

@ Switch to e-statementsReceivebankaccountandcreditcardstatementsonline:convenient,fastandpaperfree

@ AlertsStayincontrolofaccounts.

key Figures

•

•

•

BT 24 Figures BT 24 Figures

73,087

1.5 mn

119,316

2.8 mn

Total number of registered clients

Total number of transactions

2008 2009 2008 2009

7.3 bn

0.6 bn

12.26 bn

0.8 bn

Total transaction value in RON

Total transaction value in FCY/EUR equiv.

15

BT 24 Figures BT 24 Figures

73,087

1.5 mn

119,316

2.8 mn

Total number of registered clients

Total number of transactions

2008 2009 2008 2009

7.3 bn

0.6 bn

12.26 bn

0.8 bn

Total transaction value in RON

Total transaction value in FCY/EUR equiv.

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tHE HEALtHCARE DIvIsIoN

In2009BancaTransilvania’sHealthcareDivisioncontinued

tosupporttheRomanianhealthcareprofessionalsoffering

a customized range of products and services via a

specialized teamofphysiciansandfinancialconsultants.

The initial packages -Rezident, Specialist, Praxis –were

supplemented with other specialized products targeting

dentaltechnicians.

OurHealthcareDivisionendedtheyearwithacustomer

baseofmorethan18,000clients,managingaportfolio

ofover8,000loanstotalingaboutEUR100million.

ThebusinessmodelofourHealthcareDivisionrelieson:

•apackageoffourlendingproductsexclusivelydedicatedtotheHealthcaresector;

•specializedsalespeople-doctors&financialconsultants-andcreditanalysts;

•anetworkofconsultingcompanies,whichoffersupportforopeningamedicalpracticeor

receivingtheauthorizedindividualstatus;

•anetworkofaccountingfirms,offeringfiscalassistance.

In2009BTwastheofficialbankoftheRomanianSocietyofCardiologyandRomanianHeart

Foundation, for the support offered in fighting cardiovascular diseases. Moreover, during the

Medica GalaorganizedbytheRomanianCollegeofPhysicians,wewererewardedwithThe Best

Banking Initiativeprize.

AnotherimportantachievementfortheHealthcareDivision

wastheEUR50millionfacilityfromIFCtofinancetheprivate

healthcaresectorinRomania,availablealsotomediumsize

clinics,andindividualpractitioners.Thiscreditlineunderlines

thatBancaTransilvania’sendeavortoassisttheimprovement

of the Romanian healthcare system is recognized by top

internationalplayers.Furthermore, thecontributionsof the

HealthcareDivisiontotheoperational incomeofthebank

havebecomesignificant.

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RIsk MANAGEMENt

2009wasmarkedbytheglobaleconomiccrisis.Mostbankssufferedfromthevolatilemarket

surroundingsand thebulkof the corporate sector showedpoor financial results inall sectors

duetothesharpdownturnoftherealeconomy.WhiletheeconomiesofFranceandGermany

emergedfromrecessionfasterthanexpected,otherWesternandCEEcountriesendedtheyear

withsevereshrinkagesofGDPs.

The international banking system was under constant pressure, caused by substantial non-

performingloanswhichhadanadverseeffectonthelendingcapacity.Tacklingthischallenge

became themainconcernofbanksallover theworld.CentralBanks interfered,adjusting the

monetarypolicy,reducinginterestratesanddevelopingprogramstoensurethenecessaryliquidity.

Butastheyearendedconcernsaboutsovereignandcommercialdebtscontinuedtofuelanxiety,

triggeringacontinuedreluctanceofinvestors.

Within this macroeconomic context, the Romanian National Bank initiated several support

measurestoensuretheliquidityoftheRomanianbankingmarket,keepinginflationandexchange

ratevolatilityundercontrol.

Ifgovernmentsand financial supervisingauthoritiesplaced theirattentiononmeasuresmeant

tocombatandbalancesystemicmalfunctions,BancaTransilvaniaadapted itsbusinessmodel

enhancingtheriskmanagementframeworktobetterassisttheorganizationtoadequatelyprocess

andreportriskrelatedinformation.

Formally,BancaTransilvaniaclassifiesriskintothefollowingmaincategories:(1)creditrisk,(2)

liquidityrisk,(3)marketriskwithitsmaincomponents:(3.1)currencyriskand(3.2)interestrisk,(4)

operationalriskand(5)reputationalrisk,(6)compliancerisk.Infact,thebank’sendeavorsareto

assesandrecognizethepotentialriskrelatedtoanysingletransactionoroperation,quantifying

theirimpactintermsofcapitalrequirements.

Severalscenariosandtheirimpactoncapitaladequacywereregularlyscreenedandoverall2009

targetsweredefinedaccordingly.

Themainriskmanagementprinciplesfollowedbythebankwhendefiningitsyearlystrategy:

•Financialstabilityprotection:limitingtheimpactofpotentialadverseeventsoncapital

andincome;

•Independentperspective:riskmanagement,aswellasthelegalandcompliancefunctions

operatefullyindependently,ensuringtheintegrityofthebank’scontrolprocesses;

•Investmentsdiversificationtoavoidriskconcentration;

•Uniformapproachofriskmonitoringwithinthebankanditssubsidiaries;

•Constantreviewofriskscenariosadaptedtocurrentsituations.

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Risk Management system

Credit risk

Oneof themaindecisions promptedby the economic surroundings in the first part of 2009

waslinkedtoBT’slendingapprovalprocesswhichwasshiftedtoheadquarterlevel,thatiscredit

authorityatbranchnetworklevelwastemporarysuspended.Afterthenecessaryaccommodation

processtothenewmacroeconomicconditionswascompleted,i.e.adjustmentoflendingpolicies,

product termsandconditionsandeligibilitycriteria, thebranchnetwork regainedgradually its

lending approval limits. Today, additional monitoring and early warning systems have been

implemented,toavoidadverseeffectscausedbynegativedevelopmentsoftheexisting,aswellas

newlyacquiredportfolio.

Thebasiccreditriskmanagementcomponentssuchas:

•individualcounterpartyratingsystem;

•transactionriskassessmentsystem;

•regional/sectoralconcentrationlimits;

•pricingmethodologybasedonrisks;

wereenhancedby:

•anactivemanagementofloanportfolio;

•newpost-approvalmonitoringsystems(reports&on-sitevisits);

• stringent credit risk provisioningpolicy, includingnon-deductibleprovisions (from the

fiscalperspective),countingfor17.6%oftotalloanprovisions,accordingtoRAS.

Market risk

Inordertoreducemarketrisksinherenttofinancialoperations,theBankadoptedaprudentbut

proactiveapproachtoprotectexpectedtransactionprofitsfromanymarketvolatilityininterestand

exchangerates.

18

Risk Management Department

Corporate Credit Risk Analysis

Risk Inspection

Department

Risk and Monitoring

Department

Operational Risk

Department

Risk Analysis and

ReportingOffice

Operational Risk Monitoring and

InspectionOffice

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BancaTransilvaniafine-tuneditssecuritiesportfoliobyconcentratingonlessvolatile,liquidand

well-dispersed(intermsofmaturityandriskprofile)assets.

Although,BancaTransilvaniadoesnothaveaValue-at-Risksystem,simulations(stresstests)are

constantlyperformedtoprepareforunforeseeablemarketswingsandtoproperlymanagethis

risk.Theroleofstresstestingistoenhanceapro-activemanagement,especiallyastheprofileset

bythebankforthemarketriskis“low/conservative”.Asageneralstrategy,BToptsforplainvanilla

operations,strictlylimitinganyopenpositions.

During2009theNationalBankofRomaniaactivelyusedoneofitsmainmonetarylevers,reducing

theinterestreferenceratefrom10%to8%andpreparingafurtherdecreaseinJanuary2010to

7.5%.Thesedecisions,intendedtostimulatetheeconomiccome-back,wereimmediatlytranslated

by Banca Transilvania which acted as trend setter among the commercial banks, diminishing

lendingrates.

Liquidity risk

Theannualliquiditymanagementstrategysetsprudentialratiolimitsandguidelinesforthebalance

sheetstructure,soastoensurecompliancewiththebestpracticesandthespecificnorms,while

balancingthemaintenanceofsufficientliquiditywithprojectedoperationalprofit.

Liquiditymanagementrelieson3components:

•Strategic Component-balancesheetstructureandannualliquiditymanagementstrategy,

withoptimallevelsofratiosassumedbythebankduringtheyear;

•Management Component-monitoringandapprovingtheshortandmediumtermactions,

onamonthlyandquarterlybasis;

•Operational Component-dailyactionswithinpre-definedcompetencelimits;

IntermsofliquidityratiosobservedbyBT,especiallycashandcashequivalents,liquidassetsto

totalassetsandtheloan-to-depositratioareofutmostimportance.Theirlevelsarepermanently

monitoredand theAssetsandLiabilityCommitteemeetsanddiscussesonaweeklybasis the

actionstobetakentokeeptheseratioswithinthelimitssetbytheannualliquiditystrategy.

Fromaliquidityriskperspective,makinguseofitslargenetwork,thebankalwaysfocusedonraising

retaildepositsinsteadofwholesalefunding.BTtraditionallyreliedonthisbroadretaildepositors’

base,constantlymaintainingaloantodepositratiobelowone.

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Furthermore,2009wasmarkedbyashiftinconsumerbehavior,triggeredbythefastexpanding

crisis. In thisclimate,peoplespent lessandsavedmore.Thisnewsituationwasclearly toBT’s

benefit,causingretaildepositstorecordastaggeringincreaseof22%yoy.

Moreover, the National Regulatory Authority reduced the minimum reserve requirement on

deposits both in RON and foreign currency, making available more liquidity to the domestic

economicsystem.Preferringasoundriskprofile,BToptedforsafeandliquidinvestments,placing

availablefundsinTreasuryBillswithanadequatematuritymix,consequentlyboostingtheweight

ofliquidassetsintotalassets.

operational risk

BTdevelopedan internalmechanism toautomaticallygenerate reportsonanyevent thatcan

beclassifiedaccording tooperational riskdefinitionsbasedon itsownoperational riskevents

statistics,national regulations, international standards, recommendationsand systemstatistical

data.

Besidestheelectronicmonitoringtoolsverifyingthecompliancewithoperationalriskmanagement

procedures,aspecializedteam,partoftheOperationalRiskDepartment,performson-sitecontrols

ratingthequalityofoperationalriskmanagementateachunit/department.

Banca Transilvania is continuously building new features to its operational risk management

system:

•Ensuring that thebank-levelpoliciesandproceduresarewrittenaccordinglywith the

operationalriskmanagementprinciplesandcontrols;

• Performing operational risk assessment for the bank’s products and processes and

identifyingtheaggregatelevelofresidualriskfortheseelements;

•Modelingandmaintainingthebusinesscontinuityplan;theprimarysolutionsite(Data

Center)isfullybackedbythesecondaryone(DataRecoveryCenter);theDisasterRecovery

Site isabletosustainall theBank’smainactivities;specificbusinesscontinuityplansfor

eachsubsystemareinplacetestedonaregularbasis;

•Continuouslyenhancingoperationalriskmanagementforbettercapitalallocation;

•Limitingtheeffectsofoperationalrisk,viaspecificinsurancepolicies.

In termsof capital allocation to cover theoperational riskourbankused for2009 thebasic

indicatorapproach(BIA).

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Reputational risk

TheefficientmanagementofreputationalriskrepresentsakeymarkerofBT’sstrategy,impacting

thebank’sfinancialpositionatalessforeseeablelevel,onshort,mediumandlongterm.

Monitoringof this typeof risk isbasedonspecific ratiosand takes intoaccount the reporting

of reputational riskeventsaffecting themanagementandsupervision functionof thebank.By

adoptingsuchmeasures,BT takesaction towardsanefficientmanagementofpotentialevents

generatingreputationalriskandsetsupclearobjectivesinordertocounteractthisrisk,toprevent

brandawarenessdepreciationandlossofcustomerconfidence.

Compliance risk

Theyear2009wasimpactedbytheNBRprojecttargetingtheimplementationofcreditinstitutions’

activitymanagementframework,theinternalprocessofcapitaladequacyassessment,aswellas

outsourcingconditions.

TheelementofnoveltybroughtbythisregulationapprovedinSeptember2009isthedefinitionof

compliancefunctionandofcompliancerisk.

Compliance risk awareness has determined to rethink organizational and management

structuresbycreatingthecompliancecoordinationfunction,bydraftingandapplyingassessment

methodologies forcompliance risk,byusingactivityperformance ratiosandbyassigningnew

complianceriskresponsibilitiesrelatedtothemanagementandsupervisionfunction.

TheimplementationofthisprojectistobefinalizedbytheendofH12010.Thiswillrendermore

efficient thecompliance riskmanagementprocess,as it isdefinedby theNBRRegulationno.

18/2009.

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INtERNAL AUDItsYstEM

Banca Transilvania’s Internal Audit Department conducts the internal audit of the Group’s

operations,contributingtotheoptimalmanagementofallsystems.TheDepartment’sactivities

arebuiltontheAnnual Audit PlanapprovedbytheBoardofDirectors.

TheAuditDepartmentensurestheproperconductoftheGroup’soperations,beingresponsible

fortheoverallsupervisionofinternalsystems.

Theaudit unitwithin Banca Transilvaniaworks to apply best practices, performing risk based

auditsonpastdatainspections.Auditsarenotonlylimitedtoverifyingandcontrollingdeficiencies,

buttheyalsopointoutcomplianceandriskmanagementproblemsandmakerecommendations

forrequiredfutureactions.

Audit Reporting and subordination

TheAudit Committeewasestablishedtostreamlinetheauditprocess.Thecommitteemeetsevery

monthanddiscussesimportantmattersrelatingtointernalauditing,basedonreportsprepared

bytheauditunit.Functionally,theauditreportsarehandedoverbothtotheAuditCommitteeand

ExecutiveManagementtoassessthefindingsandprovidethebestlinesofreaction.

The internal audit procedures are designed and updated to ensure the communication flow

betweentheBoard,AuditCommittee,thebank’sExecutiveManagementandtheexternalfinancial

auditor.

22

GeneRAlShARehOldeR’SMeetInG

BOARD OF DIRECTORS

Executive Management Committee

Audit Committee

InternalAudit

Department

ExternalAuditor

Committeefor InternalAssessment

ANNUAL REPORT

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Internal Audit principles within Banca transilvania

Permanence

• Independence

• Objectivity & Impartiality

• Integrity & Professional Competence

• Confidentiality

Internal Audit Ratings within Banca transilvania

•Excellent –risks&processesarecorrectlycontrolled

•Satisfactory–minorproblems,risks&processescontrolledadequately

•Marginally satisfactory-significantproblems,stillacontrollevelofrisks&processes

•Unsatisfactory –seriousproblems,risks&processescontrolledinadequately;

Unacceptable –majorproblems,risks&processesarenotcontrolled

CoMpLIANCE

Anti-Money Laundering, know-Your-Customer & Counter terrorism Financing Legislation

Thecrisishasmadecertainfinancialsystemsmorevulnerabletomoneylaunderingandterrorist

financingthreats.Inthisgloomycontext,theriseof“intelligent”criminalsandmoneylaunderers

renderedsuchactivitiesmoreandmoredifficulttodetectinspiteoftheirapparentlegitimacy.

Compliance with money laundering obligations is one of the greatest challenges nowadays.

Governmentsand supervisoryauthoritiesworldwideare introducingnew lawsand regulations

imposingnewrequirementsinordertoprovidearobustdefenseagainstmoneylaundering.

Amajorissuetobeaddressedbyfinancialinstitutionsistheneedtocomplywithenhancedanti-

money laundering and suspicious transaction reporting laws. Thus, the compliance agenda

formostbanksandfinancial institutionshasrapidlyshiftedfromanarbitrarycommitment toa

mandatoryone.

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Inlightofthenewlegislation,BTgrantsfurtherattentiontothe“compliancefunction”,underlining

its role in assisting the management bodies in the identification, assessment, monitoring and

reportingof compliance risk, ensuring the complianceorganizational structure, reviewingand

draftingtheinternalregulationstoproperlyimplementcompliancestandards.

In2009,wecontinuedsupervisingtheimplementationofthe3rdEuropeanDirective(Directive

2005/60/EC) on the prevention of the use of the financial system for the purpose of money

launderingandterroristfinancing,therequirementsofwhicharetransposedintoNBRRegulation

no. 9/2008 and Law no. 656/2002. Through the application of these regulations, the client

portfolio of Banca Transilvania is reviewed and updated in accordance with the new legal

requirementsconcerningbeneficialownersandpoliticallyexposedpersons.

kYC and AML systems

definingandprioritizingKYCdataqualityrequirements:workingcloselywithregulatory

expertsinanti-moneylaunderingcomplianceanddatamanagement;

focusing on key areas:criticalKYCdatafieldsnecessarytodetectunusualtransactions,

identifyand risk-ratecustomersandprevent financialcrime;gettingparticipation fromkey

personnelincompliance,operations,ITandfrontoffice;

sustaining data quality over time: once the data has been cleansed and integrated,

developsustainedmeasurestoensurethatdataqualitycontinuestomeetorexceedrequired

levelsovertime.Thesemeasuresshouldincludedatamonitoringprograms,developmentof

appropriatepoliciesandprocedures,andcontrolimplementationsforallkeysystems;

assigning individual responsibilitytotheinvolvedpersonnel.

In summary,dataqualityanddata integrationplaya crucial role in renderingKYCandAML

strategiesfunctional,engagingquicklyandcomprehensivelyproactiveresponses.

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Problemnoticed

Actiontaken

Crisissolved

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sUstAINABLE BANkING

Environmental performance

BancaTransilvaniadecidedtobeasupporterofenvironmentalinitiatives,acorporatecitizenwho

believesinefficientlyimplementingacoordinatedenvironmentalriskmanagementframework.

BancaTransilvania’senvironmentalapproachfocusesontwodimensions:

1.Defining,controllingandreducingitsownenvironmentalimpactarisingfromoperationalactivity:

•Electricitymanagement;

•Water&paperconsumption;

•Useofnaturalventilationsystemsvs.airconditioning.

Proactive solutionsareacknowledgedbyBancaTransilvaniaemployees,whovoluntarilymake

efforts tominimize theenvironmental impactsof their dailyactivitiesatwork. Since2008,BT

started the renovation of the headquarters building to optimize the consumption in terms of

electricity,water,fuel,gas,paperandotherwaste.

2.Sustainablebankingviaproductsandservices:

•Financingrenewableenergy;

•Energyefficiencyplatform;

•Environmentinvestments.

In2008,BancaTransilvaniaproposedtoengageitscustomersandpartnersinadvancing

smarterenergyefficiencypractices.Inlinewiththiscommitment,BT’s2009aimwastoframethe

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Environmental risk management policy

Environmental initiatives implementation

Reduce environmental impact

Promote environmental related business

Energy Efficiency

electricity management

water & paper level reduction

natural ventilation system

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environmentalimpactsregardingfinancedprojectsandsupportclientstominimizetheundesired

environmentaleffects.

Withinthiscontext,anewriskevaluationmodel,ascreeningprocess,wasdesignedtoidentify

thepotentialenvironmentalissuesassociatedwithaproject,soastorecognizeboththenegative

aspectsofcertainundertakings,aswellaspositiveoutcomes.

EnergyEfficiencyfacilitiesatcompetitiverates,withgrantsforsuccessfulfinalizationoftheinvestment

wereofferedtoourclients.Wealsoprovidedfreetechnicalassistancefortheseprojects,withon-

linesupport,thecustomers’soleconcernbeingtheircommitmenttowardsviableenergysaving

solutions.

Withitsspecializedbankingproductsandservices,BancaTransilvaniawillcontinuetosupport

innovativetechnologiesandenergysavingprojectstocontributetomaintaininganecologically

balancedenvironment.

Corporate social Responsibility

BancaTransilvaniapreservedinatransparentandethicalmannerits2009socialinvolvement,

regardlessoftheeconomicenvironment.

ThemostimportantprojectcontinuedtobeClujul areSuflet,whichhasgainedbynowitsown

identity.Withover twoyearsofexperience, theproject reaching thematurity stage,managed

to engage as many Cluj citizens as possible. This undertaking in partnership with Romanian

Foundation for Children, Community and Family - Cluj (FRCCF), helped and supported over

500teenagerstoreintegratesocially.InadditiontothedirectmaterialaidofferedbyBT,during

September –December2009 for eachpaymentwithaBT card,1RONwasdonated to the

Foundation.

BT’stotaldonationswereRON450,000,ofwhichRON250,000viaFundatiaTransilvaniaand

therestasaconsequenceofthecardpaymentcampaign.

26

Wemanagedtoassist:

115studentstoimprovetheirgrades

26studentstopasstheirfinals

41youthstoqualifyforajob

69teenagerstofindajob

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OureffortswereacknowledgedbyForbesmagazine,whichplacedBTthirdin2009amongstthe

mostgenerousRomaniancompanies.WealsoreceivedtheExcellencyawardgrantedbyTVRCluj

for“efficientmanagementofemotionalcapitalandcivicspirit”atMediaExcellencyawards.

Clujul areSufletwasaninspirationnotonlyforClujcitizensbutforourBucharestcolleagues

aswell.Theyhelpedthelessfortunate,withasmallscaleundertaking,butwithgreataffective

impact.NewfurniturewassuppliedtoFundeniHospital,PediatricOncologyDepartment,sothat

thechildrencouldenjoyanewcolorfulenvironment.

social welfare

Beforemajorholidays (suchasChristmas,Easter,March1st– thebeginningofspring,March

8th – International Women’s Day) the bank’s ground floor becomes a charity bazaar, where

theheadquartersemployeescanpurchasecardsandornaments,whichareskillfullycraftedby

childrenwithspecialneeds(eitherphysical,psychologicalorsocial).BT’smanagementstrongly

supportstheseactivitiesandtheemployeesenjoyacquiringbeautifulhandicrafts,whilemakinga

contributiontoprovidinglittleartistswithabetterfuture.

Community projects

Banca Transilvania also provides support for students via “Student Plus” program. Highly

attractiveplatform,allowingyouthswithOmnipassandVisaElectronEuro<26cardstobenefit

fromcertainpricediscounts(suchaspublictransportation)matchingtheirlifestyle.Wewerejoined

inthisundertakingbyprestigiouslocalinstitutions,suchastheTechnicalUniversity,Babeş-Bolyai

UniversityandtheLocalTown-HallandCouncil.

CsR in the medical field

BancaTransilvaniaofferedsupporttothemedicalsector,evenmoresosinceBThasadedicated

businesslinetoassisttheRomanianmedicalsystem.Weencouragedandhelpedaseriesofspecific

programs,thuscontributingtothesuccessofcertainphysician’sinitiativeswithentrepreneurialspirit.

27

Projects:

FirstprivategeriatricscenterinArad

StateoftheartmedicalimaginginGiurgiu,Galaøi,SatuMare,

Baia Mare and Piteşti Hospitals

FirstprivategastroenterologycenterinCluj-Napoca

FirstdentalchairinasmallvillageinTulcea

FinancingaprivatestemcellbankinBucharest

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CsR for entrepreneurs

Support the Romanian businesses!showedourcommitmentandinvolvementinthesociallifeof

Clujcitizens,supportingthejumpstartofmicro-businesses.Togetherwiththeonlinepublication

HotNews.ro,weorganizedacontestmeanttorewardthebestbusinessinitiative,andsowedid.

“Carry me, mommy”hadgreatimpact,asitproposedaneasyandinventivewaytohelpyoung

motherscarry theirbabies,byusingbabyslings.BTwilloffersupportviafinancialconsultancy

services,designofaprofessionalsiteandpromotiononGoogle AdWords.

CsR for employees

InOctober 2009, BTorganized the11th editionof the running contest –Crosul BT, by now

an official trademark of the bank, which had Gabriela Szabo, multiple international athletics

champion,asspecialguest.The4kmracewasheldforamateursportsmenandBTemployees.

Dear participants,

I was happy to learn that the tradition of this running

competition was revived. This is why I will be by your side

at the start line, to get to know you and cheer you on.

I look forward to giving the official start to this wonderful health

training program!

All the best,

Gabi Szabo

28

BT’ssocialresponsibility“comesfrom

theinside”,fromitsteamdrivenby

involvement,commitmentandproactive

attitudecombinedwithresponsibility.

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HUMAN REsoURCEs

Evenif2009broughtashiftinHRpriorities,BTcontinuedtofocusonefficienthumanresource

services, so that the bank’s near term objectives could be balanced with long term business

requirements.

Withcompaniesandbankinginstitutionsreducingtheirworkforce,wewerereadytoadaptquickly

tothechangingbusinesspriorities,retaininganddevelopingourexistingemployees’corebase.

To be among the winners, the executive management, together with our HR Department

consideredthebestpracticestoprovideamovingforwardbalancedapproach,byincludingboth

costreductionmeasures,andsmartinvestmentsintalentsaswell.

Staffprofile

Skill and competence were our assets in times

of crisis. 2009 human resources strategy was

centered on key personnel. Communication,

initiative and talent were rewarded and

encouraged,soastomaintainBT’scompetitive

edge.

hRinfigures:2008vs.2009

29

Gender Breakdown

male

female

23.7%

76.3%

Staff Average Age

2003

34.5

2004

32.2

2005

31.1

2006

30.6

2007

31.1

2008

31.2

2009

33.24

Headcount Evolution

2003 2004 2005 2006 2007 2008 2009

staff numbernewcomers

TotalHeadcount

ActiveEmployees

Dec 2008

6,507

6,036

Dec 2009

6,126

5,285

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Withinthiscontext,theactivityofBT Academycapitalizedontheexistingtalentpool,identifying,

retainingandrewardingviatrainingprograms,theemployeesthatmakeadifference.

Financialanalysisandcreditriskmanagementwerethetwomaintrainingdirectionsof2009.650 corporate and SME division employeeswereengagedinspecifictrainingprogramsmoderated

byoutsidespeakersandBTspecialists.Theseminarsweretargetedatraisingemployees’awareness

withrespecttoBaselIIrequirementsandcompliancewiththevastarrayofregulationsimposedby

thesupervisionauthority.

A solid operational risk management training platform was built up by the top management

togetherwithComplianceprofessionals,soastosupportthehighvelocitychangesimposedbythe

2009climate.Consequently,850colleaguesattendedtrainingsessionsonfraudidentification

andprevention,know-your-customerandoperationalriskmanagement.

Asproductsandservicessetusapartfromourcompetitors,wedevelopedmultiplecoursesmeant

toenhanceouremployees’customercareskills.Training on products and servicescomprises

alargerangeofsessionsprovidedtoourstafftobecomethoroughlyaccustomedwiththebest

possiblepracticestoensurecustomersatisfaction.

HRDepartmentwithinBancaTransilvaniaiscontinuallybeingchallengedtoprovidemanagement programsintendedtoraiseexpertise,efficiencyandcompetenceofkeypersonnelandenhance

communicationskillsandinterpersonalrapportsatdifferenthierarchicallevels.Asaresult,MBA

programs,leadershipandcommunicationcourseswereimplementedduring2009.

30

Reinforcing “BT Spirit”

Professionaland

risk aware

Teamwork

Human capital•retention•performance management•training

Staffreallocation/re-qualification

Reinforcing BT Spirit Teamwork

Professional & risk aware

Human capital

Staff reallocation &

re-qualification

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MARkEtING AND CoMMUNICAtIoN

TheBank for Entrepreneurial Peopleconceptcontinuedtobepromotedduring2009throughout

allmarketingprojectsrolledoutbyBancaTransilvania.Notonlydidweconveytothepublicthe

messagethatBTsupportsentrepreneurialpeople,butwealsoacted“entrepreneurial”throughlarge

scaleadvertisementcampaignsandspecific,punctualactivities,beingbothinnovativeandefficient.

TheacknowledgementofoureffortswasreflectedinaSynovate studywhereBancaTransilvaniawas

placedamongthefivemostwell-knownbrandsinRomania,intheBanking–Insurancecategory.

As the crisis determined several banking players to retreat our two

TV campaigns promoting the SME dedicated products: Banking Subscription and the Ready Secured LoanmonopolizedtheTV

communication(93%).

In times of great difficulty, BT offered

supporttosmallentrepreneurs,extending

productswithadvantageousfeestructures,

the Fairy Man cutting banking expenses

forSMEs.

The Banking Subscription Campaign

enjoyedtheattentionofthepublic.Over

12,600 new subscriptions were entered

fromFebruary toAugust 2009, accounting for 27%of total

subscriptionsgrantedsinceproductlaunch.

The campaign for the Ready Secured Loan,productdeveloped togetherwith theNational

GuaranteeFund for SMEs,oneof the first private-publicpartnerships inRomania launched to

defendSMEsagainst thehostilemacroeconomicenvironment,had theexpected impacton the

market.ThisCampaignwasrewardedwiththeprestigiousSilvereffieaward,BT’s4thEffieprize.

This is thehighesthonourfor thefinancialbankingsector in2009(as therewasnoGoldEffie

winner),basedonadcampaignefficiency.

Whilethemarketingactivityforcorporateclientsfocusedmainlyontheirneedstoovercomethe

crisis,retailcustomerstargetwasaimedmainlytoenhancetheuseofproductsandservicesalready

existingintheportfolio:cards,BT24.

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Cardswereagainstarproducts,asignificantpartofthemarketing

activitytargetedthissegment.VISA ELECTRON,Your Daily Card Campaignpositionedtheuseofcardsasaday-by-day

instrument,even forsmallpayments. In fact, increase inPOS

cardusagefulfilledourexpectationsfor2009andrecordeda

22.7% rise in December 2009 vs. June 2009.

Besidesthe“classical”promotiontools,over400ATMswere

redesignedtodisplayspecificcampaignlogos.

DuringtheWin in 3 Moves!campaign,theFairy Manoffered

prizes to customerswhoused threeoutof fiveBTproducts.

Thisprogramcontributed significantly to the intensiveuseof

productsbytheexistingcustomerbase.

Moreoverin2009,westrengthenedtheconceptof“The Bank for utilities”. Pay your bills at Banca Transilvaniawaslaunchedforourcustomerstomakebillpaymentaneasy,linefreeactivity.

Theco-brandedBT - Western Unioncampaignmadeproof

ofsimplicityandreliabilitytothebestofourcustomers.Thus,

themarketshareonthissegmentincreasedto20.35%.

Inonlinemarketing,wecontinuedto improveInternetbrand

awarenessandsales.

Anewtypeofonlinecommunicationwasinitiatedbycreatinga

BTprofileonFacebook,thelargestsocialnetworkingwebsite.

OurpresenceinthistypeofenvironmentenhancesBT’sonline

visibility,placingthebankinthespotlight.

WeweretheBank for Entrepreneurial peopleontheInternet

aswell.HundredsofRomanianentrepreneursbenefitedfrom

advertisingspaceinGoogleAdWords,followingthe Google Friend Campaign.

AnotheringeniousinitiativewasBT-Daily Planner,anonline

applicationhelpingourclientstoefficientlymanagetheirdaily

tasks.

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public relationscontinuedtosupporttheBank’sintegratedcommunication,focusingonthe

relationshipwiththemass-media.Foraconsistentandtransparentcommunication,severalpress

releases were sent per week, thus ensuring an outstanding information flow between Banca

Transilvaniaandthepress.Thetopicscoveredinformationonthebank’sfinancialresults,business

line results, financings received from strategicpartners (IFC,EBRD),

partnerships,Clubul Întreprinzătorului Românactivities.

Internal communication played an important role in Banca

Transilvaniatoo,greatemphasisbeingplacedonkeepingour

employeespermanentlyupdated.

PR strategy in2009 targetedawareness and reputation

preservation,aswellasthepromotionofBTastheBank

forEntrepreneurialPeople.

Integrated communication was the key to success in 2009, achieved by

efficient means, via marketing and PR initiatives, in environments meant to

createvisibilityandbrandawareness.

33

During2009,thesitehad1,644,742solevisitorswith

5,402,288logins

www.bancatransilvania.rowasviewed14milliontimes

Eachvisitlastedinaverage2minutes

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opERAtIoNs AND It

2009 main achievementsWehadagoodbusinessevolutionin2009,markedbytheincreaseandconsolidationofmarket

shareinseveralsegments(domesticpayments,cards,debitinstruments)reachingvaluescloseto

15%.

Duetotechnicalstaffwithhighlevelexpertise,wesucceededindevelopingadequateITsupport,

whilemaintaininglowoperationalcosts.

WorthmentioningisthechangeoftheCardSystemITplatformandtheacquisitionofExadataV2

equipmentprovidedbyOracle&Sun,inordertoincreaseperformancerelatedtoDataWarehouse

andMIS.

2010 priorities and objectivesFortheyeartocome,weintendtodevelopnewandmoresophisticatedbankingproductsoffered

viavariousdistributionchannels.Therefore,itisessentialtoincreaseefficiencyandperformancein

ourcorebankingsystemtosupportthebank’sintensivegrowthandthehightransactionvolumes,

butalsotocomplywiththesuperiorqualitystandardssetforourclients,theNationalBankand

theAuditors.

Ouroperationalinitiativesconsistin:

business reengineering,throughactivitycentralizationandcostcontrolusinge-channels;

quality managementintermsofproductsandservicesandproductlifecycles.

In terms of technologies, we analyze the opportunity of implementing a new, scalable Core-

BankingsystemandanenhancedInternetBankingsolution.

AmongourITstrategicgoals,wemention:

customerserviceenhancement,expressingoureffortstorespondtocustomerneedsina

timelyandeffectivemanner;

alignmentandagility,becausewesetprioritiesbasedonbusinessdriversandweadaptto

changingcustomerneeds;

financialcontribution, for thepurposeofaccuratecostestimationandefficient resource

allocation;

updatedtechnologyinordertoensureconfidentiality,securityanddataintegrity;

enterprisearchitecture,meaningourattemptstosimplifytheenvironmenttoensurestable

andefficientperformanceforcrucialapplications.

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MAIN sUBsIDIARIEs

Bt Leasing transilvania IFN s.A.

Withover14yearsofexperience,staffprofessionalismandclient-tailoredfinancialsolutions,BT

Leasingoffersaccessibleandadvantageous funding for theacquisitionofgoodsbymeansof

financelease.

In2009,BTLhad2,475clientsservicedvia25branchesthroughoutthecountry.Ourbusiness

modelisstrategicallyconnectedtoBancaTransilvania’s,creatinginter-groupsynergyandcross-

sellingopportunities.

TheleasingproductsaredesignedascomplementarytoBT’sbankingoffer:

•LeasingStandard–basicproduct;

•LeasingRapid-designedforcorporateclients;

•LeasingTakeandGo-bothforretailandcorporateclients;

•RefinanceLeasing-uniqueproductfullyadaptedtotheclient’sneeds;

•Lease-Back/Cash In -productwhichallowscompanies toenjoy thebenefitsofworking

capital,whilestillusingthe“Sale&Leaseback”goods;

Ourcontinuedsuccessinthemarketin2009washighlightedbytheincreaseinsharecapitalRON

3,643,321,reachingRON39,910,314,whiletheturnoverrosetoRON43,276,225,comparedto

RON38,368,887attheendof2008.

Bt securities s.A.

2009activity startedwith clear cut,well-definedobjectives, so as to reflect the consolidation

processontheprimarycapitalmarket.Increasingmarketshare,raisingefficiency,improvingrisk

managementactivity,anddevelopingtheITinfrastructure,inordertoaccommodatethesubstantial

workloadweretheguidingprinciplesthroughouttheyear.

IntermsofmarketshareandnetworkBTSecuritieswasamongtheleadinginstitutions.Inthearea

ofstocktradingandbrokeragehousesonBucharestStockExchange,BTSwasranked1stin2009,

withamarketshareof9.87%.Moreover,16RomanianCountiesarecoveredbyBTSecurities

network,themostextensiveplatformofanybrokeragecompanyinRomania.

In2009,BTSecuritiesmaintaineditsstatusastheonlyintermediaryinRomaniawhichofferedits

clientsmarginanddirecttransactionsontheViennaStockExchange(WienerBörse).

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ANNUAL REPORT

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36

Capital market development fully confirmed the accuracy of the company’s market research

reports,encouragingitsspecialiststocontinueonthesamepath.

BTScarriedonitsstrategybyactiveinvolvementontheprimarycapitalmarket,bymeansof:

issuing municipal bonds for Alba-Iulia Town Hall & County Council, Focşani, Orãştie and

NãvodariTownHalls;

winning the tender for financing Botoşani Town Hall;

finalizingfivepublictenderoffersinitiatedbydifferentlistedcompanies;

startingtheinitialpublicoffering,followedbylistingontheBSE,for3internationalairports:

“Henri Coandã” in Bucharest, “Mihail Kogãlniceanu” in Constanøa and “Traian Vuia” in

Timişoara.

Bt Asset Management s.A.I. s.A.

BTAssetManagement,thebiggestequityfundmanagerontheRomanianmarket,rankedfourthin

theassetmanagementbusinesswithamarketshareof5.5%.Itspecializesinfundandindividual

investmentaccountsmanagement.

Attheendof2009,theassetsunderthecompany’smanagementamountedtoRON171milion,

representinga136.52%risecomparedto2008.Thenumberofclientsalsoincreasedtoover

6,500in2009.

In2009,therewasasignificantboostinmanagedassets,onthebackgroundoftheincreased

attractivenessofourproductsgiventheirappealingyields.

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•

•

YIELD, 2009

BTObligatiuni

BTClasic

BTIndex

BTMaxim

14.01%

25.84%

50.11%

62.78%

AssetsunderManagement

Numberofclients

2008

72,355,608

2,237

2009

171,135,214

6,521

%

136.52

191.51

ANNUAL REPORT

2 0 0 9

37

Medicredit Leasing IFN s.A.

Establishedin2003asanon-bankingfinancialinstitution,MedicreditLeasinghasmanagedto

gainthestatusofleaderontheprivatemedicalmarket,witha54%marketsharein2009interms

ofmedicalequipmentleasing.

Over theyears, thecompany succeeded inaddressingdifferentneeds,whetherclientswished

to expand existing medical businesses or required technical-financial solutions for a start-up

company.

Medicredit Leasing provides to its customers integrated technical-financial solutions through

packageoffers,consistingoftechnicaladviceonmedicalequipment,businessandmanagerial

consultancy,followedbyfinancialsupport.

BancaTransilvaniabecameashareholderin2006,increasingitsparticipationto57.39%in2008.

Startingwith2010MedicreditLeasingisfullyownedbyBT,thebankcompletingitsproductoffer

fortheHealthcareDivision,addingleasingfacilitiestothebankingproductsandservices.

Duetoitsexpertiseinthemedicalfieldandtrustgainedamongstphysicians,Medicreditextended

itsactivitycountrywidein2009servicing29largeclinics,5newscreeningcenters,aswellasa

newmultidisciplinarymedicalcenter.

Bt Direct IFN s.A.

Specializedinconsumerfinance,BTDirectportfoliodynamicsin2009showedatotalfinancing

valueofRON16.3millionfor7,767newcontracts,withthefollowingbreakdown:RON6million

financeleasingagreementsandRON10.3millionlendingcontracts.

BTDirectcollaborateswith460partnerstoresandfinancesover18,600clients.

FINANCIAL HIGHLIGHTS, 2009

Totalincomefromfinancingoperations

Totalincome

Grossprofit

Taxonprofit

Netprofit

2009

5,931,218

6,581,418

1,548,816

203,480

1,345,336

2008

4,805,492

5,403,547

432,885

252,588

180,297

RON