Romania’s Banca Transilvania doubles profit in first half of this year

Banca Transilvania has doubled its net profit in the first 6 months of this year, of EUR 15.71 million, compared to around EUR 7.5 million registered in the same period last year, according to the institution. In the first six months of 2011 the income from financial operations rose at Banca Transilvania by 20 percent over the same period last year, while the income from interest increased by 2 percent. The bank’s gross profit in the first half of this year amounts to EUR 20.39 million, while the net profit came to EUR 15.71 million, double than the one reported in the same period of 2010. Net provision expenses recorded in the first half of 2011 were EUR 70.58 million, while the bank's operating expenses increased by 9 percent, to EUR 87.56 million. As a result of strict cost controls and steady growth of profits, the cost/income ratio was maintained at a level acceptable for the bank, of 49 percent, according to the institution. At Banca Transilvania, the loan portfolio grew by 7 percent, mainly in RON, and the balance of provisions increased by 19 percent in the first six months of this year, due to the bank's focus on risk management, adapted to the current economic context. Also, the solvency ratio was at 12.09 percent, while the number of transactions increased by 10.85 percent in the first half of this year, compared to same period last year. Irina Popescu, irina.popescu@romania-insider.com (photo source: Romania-insider.com)