Banca Transilvania sees net profit go up by 58 percent in 2010

Banca Transilvania (BSE:TLV) has reported a net profit worth EUR 97.85 million (EUR 23 million) for 2010, 58 percent more than in 2009 but 10 percent less than its initial target for last year. The hike was mainly generated by revenues from interest and a strict cost control, said bank representatives but it was also affected by a high level of loan loss provisions.

“In 2010 we focused on healthy development. It was a difficult year, but against this backdrop BT evolved in the Romanian banking system. We reached 1.5 million active customers and we came up with a responsible plan, adapted to these times,” said Robert C. Rekkers, general manager of Banca Transilvania.

He added that the management paid close attention to risk management, choosing to set provisions beyond the minimum required level. “All activities have been coordinated such as to integrate as well as possible the commercial side and risk management,” Rekkers added. Last year, the bank’s provisions reached RON 1.356 million almost doubling against 200

The bank’s cost and revenue ratio improved from 55 percent in 2009 to 48 percent last year while the credit and deposit ratio amounted to 0.78, against 0.81 in 2009. Bad loans, namely delays over 90 days in the payment of the instalments reached to 7.37 percent o the bank’s loan portfolio.

Last year Banca Transilvania increase its social capital by more than 35 pecent, to RON 1.47 billion.

Read more about

Filip & Company assists Banca Transilvania in the synthetic securitization deal with the European Investment Bank and the European Investment Fund

read more

Simona Bazavan