Banca Transilvania becomes the second largest bank in Romania by assets; Over RON 1.2 bn profit in 2016


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Banca Transilvania (BT)’s net profit amounts to RON 1,233 million last year, whereas that of the Group amounts to RON 1,282 million, according to the financial results report, a press release informs.

At the same time, BT ended the 2016 with assets totaling RON 51.95 billion, of which RON 51.8 billion represents the stand-alone figure of the bank. Thus, BT assets have exceeded those of BRD, at the end of last year, both at group and at bank level. Thus, Banca Transilvania is the second largest bank in Romania by assets.

As regards BRD, its assets at group level reached RON 51.88 billion, and RON 50.65 billion – at bank level, according to financial data for last year.

“2016 represented a new phase in consolidating the BT Group (…). Our growth path will be prudent and responsible, aware of the multiple challenges of the local and European economic environment. On the other hand, we believe that the market consolidation process will continue and we are open to and interested in potential acquisitions, however, any such decision has to be rational and to make sense, adding value to our business,” Horia Ciorcila, Chairman of BT’s Board of Directors declared, adding: “I would like to thank our shareholders, clients and employees for their trust and involvement – both for the positive results so far, as well as for the 23 years of existence celebrated by our bank on February 16”.

BT’s operating efficiency confirms the trend of 2016, with a cost/income ratio at 41 percent. Excluding the impact of RON 185 million from the Visa Europe transaction, the cost/income ratio stays at a comfortable level of 44 percent.

BT granted close to 18,000 new loans to the SME sector in 2016. From January to December 2016, gross loans, excluding the write-offs, grew by 10.3 percent across all business lines.

“In 2016, we achieved good results in terms of organic growth and profitability, one year after the merger with and integration of Volksbank Romania. (…) Although we do have high targets and ambitious plans, we maintain a prudent lending policy and an adequate provision coverage with respect to exposures,” Ömer Tetik, Banca Transilvania’s CEO, said.

As at December 31, 2016, Banca Transilvania counts a portfolio of 2.82 million cards, generating transactions 25 percent higher compared to the similar period of the previous year. The bank’s market share in terms of card transaction volume is 20 percent. BT counts 329,000 credit cards enrolled in the STAR loyalty program.

Non-performing loans PAR >90 represent 4.62 percent of Banca Transilvania’s total loan portfolio, a significant improvement compared to the 9.75 percent as at the end of 2015; NPE according to EBA definitions stands at 9.84 percent as at December 2016. The coverage of non-performing loans with related provisions and mortgage collateral remains at a comfortable level of 117.47 percent and in line with the bank’s risk appetite.

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