Banca Transilvania profit decreased by 9.5% to 240 million RON

Banca Transilvania announced a net profit of RON 240 million in the first 9 months of this year, 9.5% lower than the same period last year, when net income was 265 million RON.

Banca Transilvania press release, October 31, 2013:
 
“Banca Transilvania, 4% higher gross profit for the first 9 months of the year 

Banca Transilvania’s gross profit for the first nine months of the year amounted to RON 284.50 million, a 4% increase as compared to last year’s equivalent period. The net profit as at 30.09.2013 was RON 240.24 million. These results rely on a continuous organic growth: +5% on the loan book, +3% operational income, +2% assets, +5% deposits from clients and 1.65 million active clients.

“Banca Transilvania’s results for the first nine months of year confirm that BT’s business model is appropriate for current times: loans increased by 5%, operating income, number of active clients and total assets are also on the increase. Q3 was particularly good in terms of our lending activity, the RON 850 million growth versus end of last year, being booked mainly between July and September. BT’s lending-revival policy yields positive results and restates Banca Transilvania’s commitment to finance the local economy. Our immediate objectives for the forthcoming period reside in the further development of our lending activity, in encouraging lending in RON and supporting start-ups, SMEs and individuals.” Horia Ciorcilă, Banca Transilvania’s Chairman declares.

In accordance with the financial results as at 30.09.2013, Banca Transilvania’s operating income was 3% higher, i.e. RON 1,147.73 million – at the end of Q3 2013, as compared to the same period last year (RON 1,117.20 million). The positive result was generated especially by promoting lending in Q3, 2013. The number of operations through BT accounts grew by 7.34% in contrast to the same period last year. The number of active clients – individuals and companies, featured an ascending trend– from 1.56 million clients as at 30.09.2012, to almost 1.65 million clients as at 30.09.2013.

Net impairment losses on financial assets reached 280.54 million lei, at the same level with the previous year. Cost/income ratio was 50.76% as at 30.09.2013, namely a 1% improvement being registered in the last quarter of 2013. Banca Transilvania’s assets reached 30,286.69 million lei end of Q3 2013, 2% higher than the amount recorded as at 31.12.2012.

The Bank’s loan portfolio amounts to RON 18,416.62 million lei, 5% higher than at the end of 2012. The portfolio, predominantly in LEI, has the following business line breakdown: 51% are loans granted to companies with a yearly turnover exceeding 1 million EUR, and almost 50% are represented by SME and retail loans. Non-Performing loans (PAR 90) stand for 13.22% of the bank’s total loan portfolio. Specific provisions and mortgage collateral ratio for non-performing loans is 122% remaining at a relatively constant level for the last two years. BT applies the same conservative provisioning policy, as embraced at the beginning of the financial crises, this strategy having as result the consolidation of our financial stability. The balance of loan provisions is 2,354.44 million lei, as at 30 September 2013, vs. 2,111 million lei, end of 2012.

Total resources from BT customers, in the first 9 months of 2013, rose with 5% vs. end of 2012, amounting to 24,419.90 million lei.

In 2013 Banca Transilvania issued EUR 30 million subordinated convertible bonds and signed a new subordinated loan agreement amounting to EUR 25 million. Also, in October 2013 BT signed a guaranteeing facility with the European Investment Fund dedicated to micro companies.

The capital adequacy ratio remained also at a comfortable level of 12.40% – nine month profit included (unaudited). “