Banca Transilvania grows net profit 14% in 2023

The bank’s operating income increased by an annual 20.1% to 6.437 billion lei last year, Banca Transilvania said in an audited financial statement filed with the Bucharest Stock Exchange on Monday.

Operating expenses saw an annual 10.3% rise last year, reaching 2.935 billion lei.

At the end of 2023, Banca Transilvania’s assets totalled 161.78 billion lei, up 20.8% on 2022.

Loans and advances to customers reached 71.55 billion lei in 2023, up by almost 12.8%, while deposits increased by 15.4%, to 134.4 billion lei.

The bank's non-performing loan (NPL) ratio was 1.98% at end-2023, while the coverage of NPLs with provisions amounted to 203%.

Banca Transilvania Financial Group, which also comprises Moldovan lender Victoriabank, BT Leasing Transilvania IFN, BT Investments, BT Direct IFN, BT Building, BT Microfinantare IFN, BT Leasing MD, BT Asset Management, Improvement Credit Collection, VB Investment Holding and Idea Bank, posted a net profit of 2.984 billion lei in 2023, up 19.94% year-on-year. The group's assets totalled 169.169 billion lei at the end of last year, up by an annual 20.4%.

In the coming months of 2024, Banca Transilvania will take over OTP Bank Romania, part of Hungarian financial services group OTP, for 347.5 million euro ($377.2 million). OTP Bank Romania holds a 2.64% market share, while Banca Transilvania's market share currently stands at almost 20%.

Banca Transilvania's shares traded 0.08% lower at 26.2 lei on the Bucharest bourse as of 1226 CET on Tuesday.

(1 euro=4.96830 lei)