Banca Transilvania surpasses BRD as second-biggest bank in Romania, eyes new acquisitions

Banca Transilvania, one of the top three financial groups in Romania, posted a net profit of RON 1.28 billion (EUR 285 million) in 2016, some 48% lower compared to 2015. However, the 2015 result was highly influenced by the group’s acquisition of competitor Volksbank Romania, which brought it a EUR 370 million financial gain. Banca Transilvania’s total assets went up by 9.2%, to RON 52 billion (EUR 11.55 billion), as of December 31, 2016. The Cluj-Napoca-based group thus surpassed BRD-Groupe Societe Generale becoming the second-biggest bank in Romania in terms of assets. BRD group's total assets were RON 51.9 billion (EUR 11.52 billion) at the end of December 2015. “2016 represented a new phase in consolidating the BT Group and we are pleased that this year we delivered again better than promised,” said Horia Ciorcila, Chairman of Banca Transilvania’s Board of Directors. “We will continue to grow organically, financing the Romanian economy and making sure we value our competitive advantage of local decision-making. We believe that the market consolidation process will continue and we are also open to and interested in potential acquisitions. However, any such decision has to be rational and to make sense, adding value to our business,” he added. Banca Transilvania’s operating results improved in 2016. The group’s operating income went up by 4.65%, to RON 3 billion (EUR 664 million), and the operating expenses went down by 10%, to RON 1.26 billion (EUR 281 million). The operating profit thus went up by 19% to RON 1.72 billion (EUR 383 million). The risk costs also declined by 17.5%, to RON 658 million (EUR 146 million) as Banca Transilvania reduced the volume of its non-performing loans (NPL) to only 4.62% of its total loans portfolio, down from 9.75% in December 2015. The group's net loan portfolio increased by 8%, to RON 27.2 billion (EUR 6 billion). The group’s deposit base also went up by 8.8%, reaching RON 41.7 billion (EUR 9.27 billion). Banca Transilvania is one of the most valuable companies listed on the Bucharest Stock Exchange. Its market capitalization recently passed EUR 2 billion, the highest level ever, after the share price has gone up by a third in the last 12 months. editor@romania-insider.com