Banca Transilvania profit up in H1 2015

Newsroom 11/08/2015 | 12:34

At the end of the first half of the year, Banca Transilvania (BT) posted a 5 percent increase in net profit to RON 190 million (EUR 43 million) in the first half of 2015, compared to 181 million in the first half of 2014, shows a company press release.


BT’s gross profit of RON 226.31 million (EUR 51.28 million), 8 percent higher against H1 2014.

The statement says the number includes “the impact of accounting standards which are applicable starting with January 2015”, the new accounting rule IFRIC 21 „Taxes” from the International Accounting Standards Board (IASB). “Without such accounting rule change, the gross profit of H1 2015 would have been RON 266.81 million,” the statement reads.

The bank’s total assets went up by 8.4 percent compared to the end of 2014, reaching RON 38,601 million, while the operating income reached RON 965.5 million (11 percent higher year on year).

During the first half of the year, the loan portfolio balance amounted to RON 22,255 million (up 13.4 percent against December 2014), whereas customer deposits reached RON 31,917 million (up 6.2 percent against December 2014).

Non-performing loans represent 9.84 percent of Banca Transilvania’s credit portfolio, falling below the 10 percent threshold for the first time within the last years.

NPL coverage with related provisions and mortgage collateral stands above 119.21 percent, value which has been relatively stable over the past two years.

The number of active clients – both individuals and companies – increased by 9 percent compared to the same period last year, from 1.76 million to 1.92 million clients.

The number of operations through BT accounts was 10 percent higher versus the same period of 2014, with a fee income increase exceeding 9 percent. The bank boasts 4 transactions per second with BT cards, amounting to 1.1 million BT transactions per day.

Banca Transilvania ended H1 2015 with a portfolio of 2.39 million cards, generating transactions 18.02 percent higher than in the similar period of last year. The bank’s market share in terms of card transaction volumes reached 17.9 percent. BT has 240,000 credit cards, enrolled in the STAR loyalty program.

Net interest margin improved from 2.80 pp end of Q1 2015, to 2.85 pp at full H1 2015 level.

With reference to the balance sheet, the weight of subsidiaries (including Volksbank Romania) represents 14 percent of total group assets. The positive difference is reflected mainly at loan portfolio basis, which amounts to RON 26.8 billion at group level. In terms of liabilities, the positive difference is also concentrated around customer-related activities, clientele deposits counting for RON 35.6 billion. The equity of BT Financial Group was at the end of June 2015, at RON 5.79 billion. Banca Transilvania counts over 6,000 employees, 550 units and 1.92 million active clients. The bank’s strategy is supported by international shareholders, among which the European Bank for Reconstruction and Development (EBRD) and IFC, a member of the World Bank Group.

Natalia Martian

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