Romania's Banca Transilvania 9-mo net profit rises 29.8%

The bank’s operating profit increased by 14.2% on the year to 540.56 million lei in the first nine months of 2012, Banca Transilvania said in a statement.

Its cost/income ratio was 53% at the end of September. Net provision costs rose by 21.1% to 265.74 million lei in the nine months through September.

The blue-chip bank said its loan portfolio reached 17.15 billion lei at end-September. The share of bad loans in the bank’s portfolio was 10.93% in the review period.

Its deposit portfolio rose 13% from the end of 2011 to 22.68 million lei.

Assets rose to 29 billion lei at the end of September from 25.82 billion lei at the end of 2011.

“The nine-month financial results confirm our expectations and the positive trend we are experiencing despite some unfavourable events on the market,” Banca Transilvania’s board chairman Horia Ciorcila said in the statement.

The company is optimistic that it will achieve its targets, he added. Banca Transilvania projected in March a net profit of 334.7 million lei for the full year.

Following are figures from the company's nine-month report (in millions of lei):

The results are reported under the International Financial Reporting Standards (IFRS).

"We will assess further these financial statements but for the moment we see these results as neutral and keep our TP [target price]," Raiffeisen Capital & Investment Research said in a note to investors.

(1 euro = 4.5565 Romanian lei)