Profit of Romania's leading lender Banca Transilvania up 14% in 2023

Romania's largest bank by assets, Banca Transilvania (BVB: TLV), reported that its net profit increased by 14% y/y to nearly RON 2.5 billion (over EUR 500 million) and the return on equity reached 24.4% (4pp above the banking system's average) as the bank kept growing in terms of services, number of customers and lending.

At the group level, the net profit rose by 20% y/y to nearly RON 3 billion (EUR 600 million).

Banca Transilvania's market capitalization reached RON 20.9 billion on February 26 after its shares gained 1.24% during the trading day following the release of the FY23 results.

"The bank's profitability will help us deliver our plans, pursue BT Group's growth in all the segments in which we are active, and expand into new ones," said Horia Ciorcilă, Chairman of the BT Board of Directors.

Indeed, the bank's net loans rose nearly 13% y/y (to RON 71.6 billion) at the end of 2023 – twice as fast as the banking system's 6.4% y/y average. The non-performing loan (NPL) ratio was just under 2% at the end of 2023, compared to the 2.33% average for the entire banking system.

The bank's assets rose nearly 21% y/y to RON 11.8 billion.

Banca Transilvania said it financed corporate clients (new loans) with RON 23 billion and retail clients with RON 10 billion. The net loans increased by RON 8.1 billion.

(Photo source: the company)