Banca Transilvania, the largest bank in Romania, proposed to pay RON 819 million (EUR 172 million) worth of cash dividends to its shareholders, consistent with a yield of 8% at current share price.

The lender also plans to increase its capital with RON 401 million (EUR 84.4 million), from last year's net profit, and give new shares for free to its shareholders in the process. Each shareholder should thus get one new share for every 12 existing shares, according to the documents submitted to shareholders and published on March 20. Both steps are pending endorsement by shareholders.

Banca Transilvania recorded a net profit of RON 1.22 billion (EUR 261 million) in 2017, up by 3% over the previous year.

The bank's shareholders include the European Bank of Reconstruction and Development (EBRD), the International Finance Corporation (IFC), international funds managed by Franklin Templeton, local pension funds and investment companies (SIF). The biggest individual shareholder is Horia Ciorcila, one of the bank's founders, who is also chairman of the board.

editor@romania-insider.com

(Photo source: Banca Transilvania)