Banca Transilvania net profit soars 73 percent y/y to EUR 21 mln in Q1 on lower provisioning

Newsroom 10/05/2012 | 14:26

Net profit of Romanian Banca Transilvania (BT) gained 73 percent y/y to RON 91.8 million (EUR 21.1) in the first quarter of this year, as net provisioning expenses were cut by 27 percent y/y to RON 83.8 million ( EUR 19.3 million).

Operational income rose by 12 percent y/y to RON 393 million (EUR 90.9 million), while expenses gained 17 percent y/y to RON 200 million (EUR 46.2 million) in Q1. Cost to income ratio stood at 49 percent.

The lender’s net interest income rose by 4 percent y/y to RON 235 million (EUR 54.5 million), while net commission income was up 10 percent y/y to RON 98.4 million (EUR 22.7 million) and trading income rose by 31 percent y/y to RON 39 million (EUR 9.1 million).

The loan portfolio stood at RON 16.2 billion (EUR 3.75 billion), more than half in the corporate sector. Non-performing loans stood at 10.3 percent, while loan provisioning grew by 7 percent y/y to RON 1.7 billion (EUR 409 million), covering all the bad loans. Meanwhile, deposits rose by 4 percent y/y to RON 21 billion (EUR 4.8 billion). The lender has safely managed liquidity with a loan to deposit ratio of 0.77 percent.

BT’s assets rose by 4 percent y/y to RON 26.9 billion (EUR 6.2 billion). Its solvency rate stood at 12.73 percent, above the central bank’s requirements.