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Banca Transilvania’s gross profit in slight decline after nine months to almost RON 374 M

Banca Transilvania posted a gross profit of RON 373.5 million during the first nine months of the year, 0.6 percent lower compared to the same period of last year.

„The result includes the impact of accounting changes and regulations applied from January 1, 2015, in accordance to which the contribution to the Bank Deposit Guarantee Fund was fully booked at the time of its payment and was not amortized throughout the year. Also, Volksbank acquisition and integration related expenses are impacting the 9 month results,” a press release reads.

The bank’s assets were 10.6 percent higher compared to the end of 2014, reaching RON 39,397 million, while the operational income reached RON 1,453.6 million, being 1.6 percent above the level of the same period in 2014, when amounting to RON 1,430.9 million.

„We are currently focused on finalizing the integration of Volksbank Romania within the structure of Banca Transilvania, which is to take place at the end of the year, and also on adapting the Banca Transilvania Financial Group and our business lines to the new dimension resulting from this transaction,” Horia Ciorcilă, Chairman of Banca Transilvania’s Board of Directors, stated.

In the quoted period, Banca Transilvania approved and processed more than 113,200 new loans to companies and retail clients, including credit cards. The bank’s number of clients increased by 4 percent compared to the same period in 2014, from 1.88 million to 1.96 million.

“Banca Transilvania’s stable outlook has also been recently confirmed by Fitch Ratings, through the credit ratings assigned to the Bank, which reflect the sound level of capitalization, internal capital generation capability, asset quality, profitability and adequate provision coverage of non-performing loans,” Ömer Tetik, Banca Transilvania’s CEO said.

At the end of Q3 2015, the loan portfolio balance was 19.1 percent higher than at the end of 2014 (half of this growth being organic), despite the fact that the loan write-off process continued during this period (RON 520 million). During the same time frame, the total amount of customer deposits went up by 8.3 percent. Non-performing loans (Portfolio at Risk for than 90 days) represent 9.5 percent of BT’s total credit portfolio.

BT continued to focus on the SME sector in the first nine months of the year, having granted over 15,000 new loans to such clients. The financial institution closed the Q3 with a portfolio of 2.48 million cards, generating transactions levels 18.7 percent higher, relative to the similar period of 2014.


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