The net profit of Banca Transilvania (BT) increased by 53 percent to RON 106.9 million in the first nine months of 2011. The operational income in the same period totaled RON 1.09 billion, which is rather similar to the 2010 result. The bank’s asset value has increased to RON 23 billion in the same period of time.
The lender’s net interest income increased by 2 percent year to date, reaching RON 747.7 million. The commission income was RON 271 million at end September, and the revenue from financial operations decreased to RON 59 million from the RON 86 million recorded in the first nine months of 2010.
The operational expenses in the first nine months stood at RON 566 million, which is an increase of 8 percent compared to the similar period of 2010, due to the extensions of the banking network, that has currently reached 546 units. Other factors that impacted the level of expenses include the VAT increase, the increased contributions to the Deposits Guarantee Fund and the 5 percent increase in personnel expenditure.
The loan portfolio of BT increased by 12 percent in the first nine months , totaling RON 14.9 billion, with 62.2 of the volume being allocated for the corporate sector, while 37.7 percent representing retail clients. Meanwhile, the loan-deposits ratio was 0.78 at end-September 2011.
The net expenses with provisions decreased by RON 95.7 million, reaching RON 384 million at end September. The balance of provisions has increased to RON 1.69 billion, with RON 292 million being allocated voluntarily by Banca Transilvania for additional risk management.
The non-performing loan ratio, with due payments higher than 90 days, represented 8.67 percent of the total loans portfolio at the end the third quarter.
The solvency ratio of BT is 11.61, above the minimum requirements of the National Central Bank.