Romanian lender Banca Transilvania sees net profit boost, but higher lending provisions

Romanian lender Banca Transilvania posted a net profit 40 percent higher in 2012 compared to 2011, of around EUR 72 million. The bank saw its operational revenues up by 10 percent, to some EUR 345 million, with the increase mainly fueled by a 12 percent hike in financial operation revenues, a 15 percent increase in net revenues from commissions, and a 5 percent surge in net revenues from interest. “We will propose to our shareholders to capitalize the profit we made so that we continue to grow and support the Romanian economy,” said Horia Ciorcilă, president of Banca Transilvania's board (in picture). Operational expenses were also 10 percent higher, mainly because of the bank's organic growth, and the evolution of the EUR/RON exchange rate, the bank announced. We are happy with the results, especially as they were obtained against the background of high volatility and multiple uncertainties in the local and European environment,” Ciorcila further added upon presenting the results. The provision expenses for assets and other debts stayed almost flat compared to 2011, at some EUR 85 million, while net provision expenses on lending in 2012 were slightly higher year-on-year, at some EUR 82.7 million. The total value of provisions on lending was of EUR 475 million at end – 2012. The bank's assets were of some EUR 6.6 billion at end – 2012, 15 percent higher than the year before, when expressed in local currency. The loans portfolio stayed the same, and mostly in the local currency, with a level of EUR 3.8 billion. Over half – 64 percent – was made up of loans for companies, and the rest to individuals. Non-performing loans, with arrears over 90 days, made 11.3 percent of the portfolio. The bank managed to attract 14 percent more deposits from clients in 2012, which ended with a stock of EUR 5.1 billion in deposits. The bank has 1.67 million active clients who generated 221 million operations in 2012. Banca Transilvania, with a stock market capitalization of some EUR 500 million on the Bucharest Stock Exchange, is controlled by EBRD – 14.6 percent, Bank of Cyprus, 9.6 percent - the largest stakes in the bank. The SIF investment funds hold packages of less than 5 percent, the same as the bank's president and founder Horia Ciorcila. editor@romania-insider.com