Romanian financial group Banca Transilvania reported a net profit of RON 267 million (EUR 59 million) in the first quarter of 2017, 15.5% higher compared to the result in the same period of last year.

The group’s operational revenues went up by 4%, to RON 647 million (EUR 143 million) while the operational expenses increased by over 15%, to RON 332 million (EUR 73 million). However, the increase in profit was mainly supported by the drop in risk costs. Banca Transilvania even had a small net revenue from the reversal of provision related to non-performing loans, while in the first three months of last year it recorded net charges of RON 60 million.

The group’s total assets reached RON 52 billion (EUR 11.43 billion) at the end of march 2017, up 0.24% compared to December. The group increased its loans to clients by 3.5%, to RON 28 billion (EUR 6.15 billion). During the first three months of 2017, Banca Transilvania granted almost 36,000 new loans to Retail, SME and Corporate clients.

“We had a good start this year, with results according to our objectives and expectations,” said Horia Ciorcilă, Chairman of banca Transilvania’s Board of Directors. “The outlook of Romania’s economic development encourages us to go on with our ambitious plans to grow and consolidate Banca Transilvania and the BT Financial Group.  We take advantage of the opportunities on the local banking market and invest in digitalization. At the same time, we will continue to focus on strengthening the relationship with our clients, on increasing our efficiency and the bank’s market value,” he added.

Banca Transilvania is has seen its share, which are traded on the Bucharest Stock Exchange under the ticker TLV, increase by 16% since the beginning of this year. The bank has thus reached a market capitalization of over RON 10 billion (EUR 2.21 billion), which makes it the third most valuable Romanian company listed on the Bucharest Stock Exchange.

Banca Transilvania surpasses BRD as second-biggest bank in Romania, eyes new acquisitions

editor@romania-insider.com