BUCHAREST (Romania), November 13 (SeeNews) – Romania's Banca Transilvania [BSE:TLV] said its net profit rose by 25.5% year-on-year in the first nine months of 2018, reaching 979 million lei ($236 million/210 million euro).
"We are pleased that we have been able to combine the organic growth and the profitability with a rapid integrating process of the Bancpost business and customers. Our priority was and remains the customer experience with regard to our banking services, combined with the financial support to the economy. This is why we focused on the responsible business growth and on investments in technology and digitalization," Banca Transilvania's CEO Omer Tetik said in a statement
The bank's operating income rose 17% on the year to 2.42 billion lei in the first nine months of 2018.
At the end of September the bank's assets totalled 64.7 billion lei, up 9% year-on-year.
Net loans increased to 32.5 billion lei in the first nine months of 2018, up 8.7% on the year. During the review period, the bank granted over 155,000 new loans to individuals, SMEs and corporate customers.
Deposits from customers rose 7% year-on-year to 52 billion lei in the nine months through September. The bank's loan-to-deposit ratio stood at 66% at the end of September.
Non-performing loans formed 5.74% of Banca Transilvania’s total loan portfolio at the end of September, while their coverage with related provisions and mortgage collateral remained at a comfortable level of 88% and in line with the bank’s risk appetite.
At the group level, Banca Transilvania, which also comprises BT Asset Management, BT Direct, BT Securities, Factoring company and Medicredit, posted a net profit of 1.24 billion lei in the first half of 2018, up 49.6% on the year. Group assets totalled 76.5 billion lei at the end of September.
Blue-chip Banca Transilvania is the largest Romanian privately-owned bank. It booked a net profit of 1.186 billion lei in 2017, down 3.46% compared to 2016.
In mid-October, the bank said its shareholders have approved the merger with Bancpost which will take place on December 31. Banca Transilvania acquired Bancpost from Greece's Eurobank Group in April 2018 and currently holds over 99% of Bancpost's share capital.
Banca Transilvania's shares traded flat at 2.3550 lei on the Bucharest Stock Exchange as at 1221 CET on Tuesday.
(1 euro=4.6599 lei)
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