Banca Transilvania profits gain 50.8 pct to RON 228.5 mln in Q1 over higher lending

Banca Transilvania has increased its operational activities in the first quarter of this year, which helped the lender increase its profits by 50.8 percent to RON 228.5 million.

Its operating income rose by 10.7 percent to RON 599.1 million.

BT has granted almost 35,000 new loans worth RON 1.3 billion to companies and individuals in Q1. Out of the total figure, the SMEs got 4,000 loans.

“Our target is to use the background provided by our solid financial statements in order to invest in new projects, modernize the network, digitize, automate, and modernize flows, so that our bank becomes a convenience store. We wish to increase our income through higher volumes, without raising the costs for clients,” said Omer Tetik the bank’s CEO.

The bank’s cost/income ratio dropped to 45.2 percent, while the loan to deposit ratio increased from 65 percent at the end of 2015 to 69 percent at the end of Q1.

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BT said that the non-performing loans represented 9 percent of its total loan book. Its assets amount to RON 46.12 billion, of which net loans RON 25.5 billion, on the increase by 1.5% as compared to the net loan balance at the end of 2015.

The shareholders of BT have decided to increase the share capital of the lender by RON 620 million through the issue of RON 1/share, following a meeting held Wednesday. The shareholders have also elected Doru Lionachescu, the founder chairman and principal partner of Capital Partners, which recently joined BT Group.

BT shares were up 1.3 percent to RON 2.73 on Thursday morning trading on the Bucharest Stock Exchange.

Ovidiu Posirca