Banca Transilvania grows profit by 58% in 2010

Romanian lender Banca Transilvania posted a net profit of EUR 23.2 million in 2010, 58 percent higher than the one posted in 2009, the bank has announced. The increase was mainly due to revenues from interests and to the strict cost control, according to the bank. “2011 will be full of challenges, in an unsure national and international environment. We expect to see the peak in non-performing loans and decreasing margins,” said Robert Rekkers, general manager of Banca Transilvania. The bank had to create around EUR 152.3 million in provisions in 2010. Without provisions, Banca Transilvania's profit would have been of EUR 184.5 million, 27 percent up on 2009. The bank's non-performing loans make 7.37 percent of its total portfolio of loans. Banca Transilvania's assets grew by 11 percent, to EUR 5.14 billion. The bank managed to grow its loans portfolio by 10 percent during 2010, mostly due to the increase in loans for the corporate sector – which were up 61.8 percent. Banca Transilvania runs 536 outlets across Romania and manages 805 ATMs. editor@romania-insider.com