Banca Transilvania (BT), the third biggest lender in Romania by assets, increased its net profit by 51% in the first quarter (Q1) compared to the same period of 2015, to EUR 51 million.

The bank’s operating income went up by 10.7%, reaching EUR 134.5 million, on increased lending and a higher number of operations by the bank’s clients.

“The number of operations through BT accounts grew by over 13% as compared to the same period of 2015, while the income from operating commissions was 16% higher,” according to a press release.

As at March 31, 2016, Banca Transilvania’s portfolio counted 2.6 million cards, generating transactions almost 25% higher relative to the similar period of the previous year. The bank’s market share in terms of card transaction volume was 19%.

Banca Transilvania also granted almost 35,000 new loans to companies and individuals, totaling some EUR 310 million. Its net loan portfolio went up by 1.5% compared to end-2015, reaching EUR 5.73 billion at the end of March. The total assets amounted to EUR 10.3 billion.

“The first quarter of 2016 features sound, sustainable growth of the lending activity and number of operations. Our target is to use the background provided by our solid financial statements in order to invest in new projects, modernize the network, digitize, automate, and modernize flows, so that our bank becomes a convenience store. We wish to increase our income through higher volumes, without raising the costs for clients,” said Omer Tetik, Banca Transilvania’s CEO.

Banca Transilvania significantly increased its business last year, after taking over Volksbank Romania. The two banks merged at the end of the year. Banca Transilvania made a record net profit of EUR 544 million, including one-off gains from the Volksbank acquisition.

Banca Transilvania’s shareholders approved the distribution of some EUR 270 million worth of dividends from last year’s profit and a share capital increase of EUR 139 million. They also green-lighted a EUR 41 million investment program, which focuses on the bank’s network and IT systems.

Banca Transilvania’s biggest shareholder is the European Bank for Reconstruction and Development (EBRD), which holds 11.5% of its shares. Local investment fund SIF Moldova owns an 8% stake, pension and investment funds managed by NN have almost 6%, and the International Finance Corporation (IFC) holds close to 5%. The bank’s founder and chairman Horia Ciorcila also holds about 4% of its shares.

Banca Transilvania is listed on the Bucharest Stock Exchange and has a capitalization of EUR 1.83 billion. Its shares have gained 11% since the beginning of this year.

Andrei Chirileasa, andrei@romania-insider.com