Romania's leading bank Transilvania reports 70% stronger earnings in Jan-Sep

Banca Transilvania (BVB: TLV), the largest financial group by assets in Romania, reported a net profit of RON 3.9 bln (EUR 780 mln) in the first nine months of this year, up 70% y/y.

The group took over the local subsidiary of the Hungarian bank OTP Bank in July this year.

The group's market capitalisation is nearly RON 26 bln (EUR 5.2 bln) after its shares rose by 43.8% y/y compared to a 19.5% y/y advance of the blue chips index BET.

Subsidiaries and equity participations contributed over RON 391 mln to the BT Group's profitability, while gains from acquisitions contributed RON 807 mln to the BT Group's net profit, according to a note to investors.

The companies acquired from OTP in Romania contributed RON 92 mln to the consolidated net income of the BT Group.

Separately, there was a bargaining gain from the acquisition - namely RON 675 mln, which was not taxable. The gain on acquisition was determined as the difference between the price paid and the fair value of assets and liabilities of acquired OTP entities at the closing date when Banca Transilvania became the owner of these entities.

BT Group's assets rose by 18% ytd to RON 200 bln (EUR 40 bln) at the end of September, while net loans and receivables from leasing surged by 24.6% ytd to RON 94 bln (EUR 19 bln).

BT's loan-to-deposit ratio stands below the market's average at 58.02% at the end of September 2024.

Consequently, return on equity (ROE) improved compared to September 2023 and reached a level of 29.34%.

(Photo source: the company)