Banca Transilvia net profit up 35 percent y/y to RON 131 mln in 2011 on increased lending

Net profit of Banca Transilvania (BT) surged 35 percent y/y to RON 131.8 million in 2011on Romanian accounting standards due to growth in lending, improved net interest income and lowered provisioning costs. BT’s assets increased by 19 percent y/y to RON 25.7 billion.

Operational revenue remained stable at RON 1.48 billion, while expenses gained 8 percent y/y to RON 766 million, to support the lender’s development. Cost to income ratio stood at 51.6 percent at end-2011.

Provisioning has been reduced by 20.5 percent y/y to RON 531 while the net cost of credit risk was cut by 23 percent y/y to RON 461 million.

“The annual financial results have been predictable given that Q3 2011  was the bank’s best quarter in the last there years,” said Horia Corcila, president of the administration board at BT. Corcila says this year will mark a continuation of the growth pattern started three years ago.     

BT has boosted its loans portfolio by 15 percent y/y to RON 15.3 billion, while bad loan ratio stood at 8.6 percent. Corporate lending accounts for 63 percent of the bank’s portfolio and retail lending totals 37 percent. Deposits grew by 17 percent last year ensuring optimum liquidity as the loans to deposit ratio stood at 0.76 percent. The bank’s solvency rate was 11.8 percent.    

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In 2011, the share capital of BT was increased by RON 303 million to RON 1.77 billion, mainly from cash reserves.

The lender added 20 new branches taking the national bank network to 553 units last year, as banking operations for clients increased by 11 percent y/y in 2011.

Ovidiu Posirca