BT maintained itself on profit in 2014 too – RON 448 M. Results fall into recent quarters evolution

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At the end of 2014, Banca Transilvania’s total assets reached RON 35,645 million. The bank registered last year a net profit of RON 448.1 million, a 19.5 percent increase comparing to the previous year, with a loan portfolio balance 5.3 percent higher than at the end of 2013, according to bank’s financial report, a press release informs.

In 2014, Banca Transilvania (BT) granted 146,000 new loans to companies and retail clients, totalling over RON 9.095 million.

„In 2014, continuing our local investment policy, we decided to embrace new challenges, such as the acquisition of Volksbank Romania. For the future, we will maintain a pragmatic and entrepreneurial attitude, focusing on profitable growth opportunities both for the bank and at Group level. We will preserve the endeavour to increase efficiency and support the Romanian economy, attentive and cautious to the challenges raised by the current economic environment in Romania and in the neighbouring region,” Horia Ciorcila, Chairman of Banca Transilvania’s Board of Directors said.

The operational income amounted to RON 1,996 million in 2014, 20 percent higher compared to the similar period of last year, when it amounted to RON 1,659 million. BT’s positive results were supported by activity streamlining and cost control initiatives, which together with the overall business growth lead to an improvement of the cost to income ratio in 2014 by more than 14 percentage points versus 2013, notably 41.92 percent.

The number of active clients – both individuals and companies – increased by 7.4 percent compared to the same period last year, from 1.76 million to 1.89 million clients.

BT ended 2014 with a portfolio of 2.34 million cards, generating transactions 16.7 percent higher than for the same period of last year. The credit card portfolio increased by 21 percent within the last 12 months. The year 2014 brought consistent figure increases in the retail segment for BT, with granted loans exceeding RON 2,099 million. In terms of companies, during 2014 the bank granted approximately 22,000 new loans.

At the end of last year, the loan portfolio balance reached RON 20,020 million, whereas deposits from clients amounted to RON 30,046 million, resulting in a loan to deposit ratio of 66.6 percent. BT continues to record a very comfortable liquidity level, with a quick ratio of 55.28 percent, considerably better than the banking market average.

Non-performing loans (NPL), PAR >90 represent 10.87 percent of BT’s credit portfolio end of 2014, being below the average of the Romanian banking system. In order to maintain provision coverage for NPLs even after fully provisioned loans had been written off, BT registered in 2014 net provision expenses for assets and lending commitments of RON 638 million, resulting in NPL coverage with related provisions and mortgage collateral by more than 126.5 percent, value which has been relatively stable over the past two years. The total provision balance as at 31.12.2014 amounts to RON 2,474 million, representing 12.4 percent of total loans.

 

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