Transilvania Bank has posted a net income of RON 65 million for the first half of 2011, almost double to the RON 33 million recorded in the first semester of 2010. Net trade incomes increased by 20 percent and net interest income increased by 2 percent from RON 491 million in the first half of 2010 to RON 500 million. Net fee and commission incomes totaled RON 177 million, without significant changes. The operating result decreased year on year from RON 390 million to RON 380 million in the first half of 2011, risk provisions were reduced from RON 330 million in the first half of 2010 by RON 34 million, to RON 295 million.
Operating expenses increased by 9 percent to RON 366 million in the first half of 2011. This development was attributable to higher deposit insurance contributions, extension of Transilvania Bank branches and the 5 percent increase in VAT. Personnel expenditures have also gone up, from RON 164.5 million in the first half of 2010 to RON 175 million. The cost/income ratio has been kept at an acceptable level of 49 percent. The loan-to-deposit ratio is 0, 70 at June 30 2011. Transilvania Bank fits in a tier 1 ratio of 12 percent.
Loans portfolio increased by 7 percent to RON 14.263 million in the first half of 2011. A share of 62 percent is made of loans for companies, while 38 percent represent loans for individuals. Provisions increased by 19 percent from 19 percent, from RON 1.356 million in the first half of 2010 to RON 1.611 million in the first half of 2011. This was attributable to the deteriorating economic context. The non-performing loans (NPL) ratio is 8.3 percent of total loan portfolio, in the first half of 2011.
Transilvania Bank (BT) is the largest domestically owned private bank in Romania and was the eight-largest by total banking assets with a 5.9 percent market share at end-2009. BT is listed on the Bucharest stock exchange and ownership is widespread with the EBRD being the largest shareholder with a 14.61 stake at end-2009.