ANALYST REPORT February 20, 2017

Banca Transilvania: strong 2016 results, decent outlook for 2017E

Banca Transilvania reported its 2016 results on Friday (17 February) and held a conference call to discuss the financial results. During the call, management presented some estimates for 2017E and also regarding the dividends, but no exact numbers were disclosed. The dividend indications seem to point towards a lower cash dividend (although the market’s expectations of 4.5% look achievable, in our view) vs. the stock dividend. Overall, the results and the call both confirm our view on the bank, which remains a good investment for exposure to Romanian GDP growth. An eventual faster expansion via acquisitions would add more to the growth, although nothing has been disclosed yet in this respect.