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Romania's Banca Transilvania 2016 net profit halves

Romania's Banca Transilvania 2016 net profit halves Banca Transilvania Author (Wikicommons) License: All rights reserved.

BUCHAREST (Romania), February 16 (SeeNews) – Romania's Banca Transilvania [BSE:TLV] said on Tuesday it booked a net profit of 1.23 billion lei ($290 million/273 million euro) in 2016, as compared to a record-high 2.41 billion lei in 2015 following its merger with Volksbank.

“In 2016, we achieved good results in terms of organic growth and profitability, one year after the merger with and integration of Volksbank Romania,” Banca Transilvania CEO Omer Tetik was quoted as saying in a statement. "Although we do have high targets and ambitious plans, we maintain a prudent lending policy and an adequate provision coverage with respect to exposures."

Almost 175,000 new loans were granted to retail, SME and corporate clients in 2016, the bank said in a press release.

The bank's operating income reached 2.82 billion lei during 2016, up 2.47% from the previous year.

At the end of 2016, its assets amounted to 51.7 billion lei, up 9.36% from end-2015. Net loans amounted to 27.2 billion lei - up by 8.38% as compared to the end of 2015. The loan-deposit ratio increased to 70% in 2016, up from 65% at the end of December 2015, whereas the cost-income ratio dropped to 41%.

Non-performing loans accounted for 4.62% of Banca Transilvania’s total loan portfolio at end-2016, down from 9.75% at end-2015. The coverage of non-performing loans with related provisions and mortgage collaterals remains at a comfortable level of 117.47% and in line with the bank’s risk appetite.

During 2016, the bank booked net expenses with depreciation adjustments and provisions of 654.2  million lei, including the impact of write-offs amounting to 1.99 billion lei. The largest portion of the provisions booked as expenses in 2016 serves the lender's endeavor to enhance the quality of its assets and is in line with the bank’s conservative approach in terms of credit risk management, the lender said.

In January 2016, Banca Transilvania wrapped up a merger with Volksbank Romania (VBRO), which it bought from Osterreichische Volksbanken AG, Groupe BPCE, DZ Bank AG and WGZ Bank AG.

At group level, Banca Transilvania, which also includes BT Asset Management, BT Direct, BT Leasing, BT Securities, Factoring company, BT Finop Leasing and Medicredit posted a net profit of 1.28 billion lei in 2016, down 47.63% on the year.

In July, Banca Transilvania increased its share capital by 620 million lei , by issuing 620 million shares with a nominal value of 1 leu. Also in July, the bank opened a third branch in Italy's capital Rome, in Villanova area.

Blue chip Banca Transilvania is the largest Romanian privately-owned  bank. Its shares were trading down 0.20% to 2.5450 lei on the Bucharest Stock Exchange, BVB, at 1313 CET.

(1 euro=4.5226 lei)

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