Banca Transilvania net profit up 17.7 pct in first half of the year

Romanian lender Banca Transilvania Monday reported a first-half net profit of RON 212 million (EUR 48 million), up 17.7 percent on the year, fueled by a rise of the net interest margin.

At the end of June, BT recorded a brute profit of RON 246.1 million, up 17.5 percent on the year, and its total assets accumulated RON 32.056 billion. Operational income increased by 24 percent to RON 907 ,million, and the credit balance reached RON 19.77 billion, up 3.8 percent compared to last year. The deposit balance advanced 4.3 percent to 26.9 percent, so the proportion difference loans and deposits is at 73.5 percent.

BT signed 66,300 new loans in the first six months, worth in total RON 5.2 billion, for individuals and companies. In total, the bank has 1,76 million clients, a number that has remained stable.

“The first semester of 2014 brought considerable growth for Banca Transilvania, the retail segment granting loans in value of RON 956 million. As far as companies are concerned, the bank awarded 12,400 new loans, with an average exposure of RON 450,000 per client”, according to the press release.

BT removed NPL’s from its balance sheet worth RON 320 million. NPL’s with debts older than 90 days represent 12.3 percent of BT’s total credit portfolio, under the industry average. The bank provisioned RON 256 million in the first six months, reaching a total provision balance of RON 2.47 billion, down slightly from last year, when it reached 2,49 million, due to costs of cleaning the balance sheet.

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The bank’s solvency currently stands at 14.16 percent, given the profit recorded in the first semester.

“We are please with the results of our bank in the first half of the year. With a cost/income balance currently dropping and a prudent coverage of provisions, we are ready for the market’s challenges, on all our segments. The high liquidity we offer, the solid capital base and the consolidated, efficient management team that works for us give us the confidence that we will continue to grow and motivate us to watch carefully for any opportunity that may arise”, according to Horia Ciorcila, president of BT’s board.