Banca Transilvania Q3 net profit up 30 percent to RON 265 mln on growing trading income

Newsroom 29/10/2012 | 15:46

The net profit of Banca Transilvania (BT) soared 30 percent in the first three quarters to RON 265 million (EUR 59 million), sustained by higher income from financial operations and increased lending activities. The bank remained prudent and decided to increase provisioning of the loan book although it has a low volume of bad loans.

The net operating income added 13 percent to RON 1.1 billion (EUR 244 million), while expenses rose by 13 percent to RON 616 million (EUR 137 million). The lender increased its personnel expenditure to extend the bank’s activity.

BT registered a 38 percent increase of the trading income to RON 100 million (EUR 22 million). The net interest income added 9 percent to RON 708 million (EUR 157 million), while the net commission income rose by 11 percent to RON 358 million (EUR 80 million).

“The financial results of the nine months confirm our expectations and the positive trend we are on, despite adverse events in the market,” said Horia Ciorcila, president of the Administration Board at BT.

BT increased the loan provisioning by 30 percent to RON 277 million (EUR 50 milion), out of which RON 2 million covered the non-performing loans (NPLs). The Romanian lender has maintained the NPLs under control at 10.9 percent. The average NPL rate in the Romanian banking system reached close to 17 percent by June.

Lending moved up by 12 percent to RON 17.1 billion (EUR 3.8 billion), while deposits registered a 13 percent hike to RON 22.6 billion (EUR 5 billion). The corporate sector accounted for 64 percent of BT’s loan book.

The loan to deposit ratio stood at 76 percent, while the solvency ratio reached 11.27, above the minimum requirements of the central bank. BT’s assets gained 12 percent to RON 29 billion (EUR 6.4 billion).