Romanian lender Banca Transilvania ups profit by 22% in first quarter

Romanian lender Banca Transilvania posted a net profit of around EUR 22.8 million in the first quarter of this year, up 22.6 percent on the same period in 2013. The bank’s assets increased by 2.7 percent year-on-year, to around EUR 7.3 billion.

The lender saw its loans up 2.5 percent compared to the end of 2013, to some EUR 4.3 billion, while deposits were also up 3 percent during the first quarter, to some EUR 5.9 billion. The bank lent some EUR 514 million in the first quarter of the year, in over 22,700 new loans.

The positive result was fueled by the cost control activities, and by more efficient activities, the bank said. The bank’s major objective this year is to increase revenues and create more efficient processes, as well as focus on the retail segment – loans for individuals and small companies, said Ömer Tetik, general manager of Banca Transilvania.

Non-performing loans make around 13 percent of the bank’s loans portfolio, while net expenses on provisions were of EUR 22.6 million in the first quarter. The total value of provisions on account for bad loans was of EUR 577 million at the end of March 2014.

Bank of Cyprus recently sold its entire 10 percent share package in Banca Transilvania in three deals on the Bucharest Stock Exchange, for some EUR 82 million.

This deal placed the bank’s value at some EUR 825 million, while its stock market capitalization was of EUR 888 million.

Banca Transilvania posted a net profit of around EUR 83.3 million in 2013, when the last three months of the year represented its best quarter for lending.

The bank’s shareholders include the European Bank for Reconstruction and Development EBRD, with 15 percent of its shares, SIF Moldova and SIF Oltenia, each with around 5 percent.

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