Biggest financial group in Romania reports profit down by a third in the first nine months

Banca Transilvania (TLV), the biggest financial group in Romania by assets, recorded a net profit of RON 1.056 bln (EUR 218 mln) in the first nine months of this year, 33% lower compared to the same period of 2019.

The group’s operating income was down by 3.3% in the same period, to RON 3.26 bln (EUR 672 mln). Meanwhile, the operating expenses went up by almost 35%, to RON 2.05 bln (EUR 422 mln), mainly due to higher risk provisions for loans.

The bank’s standalone results followed roughly the same dynamic in the analyzed period. However, despite the challenging context, the group’s total assets went up by 9.5% in the first nine months, passing the RON 100 billion (EUR 20.6) bln threshold for the first time.

The group’s loan portfolio advanced by 3.8% in the same period, to RON 40.7 billion (EUR 8.4 bln). Meanwhile, the deposits from clients increased by almost 9%, to RON 83.9 bln (EUR 17.3 bln).

“Although trends are less than favorable due to the pandemic, we remain optimistic and confident in the forthcoming recovery of the economy. We aim at increasing the lending granted by BT, in the most responsible and efficient way, supporting the economy and the bank’s growth. The current context, which has undoubtedly affected the whole world and possibly some developed economies to a larger extent, also brings new opportunities for Romania, an important advantage for us because nobody knows the market better as a Romanian bank,” said Omer Tetik, CEO of Banca Transilvania.

(Photo source: the company)