BUCHAREST (Romania), August 10 (SeeNews) – Romania's Banca Transilvania [BSE:TLV] said on Thursday its net profit rose by 8% year-on-year in the first half of 2017, reaching 496 million lei ($127 million/109 million euro).
"Our results confirm the internal growth estimations for this year and we are pleased to see that our role in the Romanian economy grows with every progress achieved by each of our business lines. This progress translates also in the 80,000 new loans which have been granted this year to our customers," Banca Transilvania's management board chairman, Horia Ciorcila, said in a statement accompanying the bank's unaudited first-half financial statement.
Looking ahead, the bank will continue to contribute to a faster pace of public and private investments, counting on predictable public policies, Ciorcila added.
The bank's operating income rose 12% on the year to 1.26 billion lei in the first six months of 2017.
At the end of June the bank's assets totalled 53.2 billion lei, up 3% year-on-year.
Net loans increased to 28.7 billion lei in the first half of 2017, up 5% on the year. During the first six months of 2017, the bank granted 80,000 new loans to individuals, SMEs and corporate customers.
Deposits from customers rose 4% year-on-year to 43.5 billion lei in the six months through June.
The loan-deposit ratio increased to 71% in the first quarter, compared to 66% at the end of June 2016.
Non-performing loans accounted for 8.1% of Banca Transilvania’s total loan portfolio at end-June, while their cover with related provisions and mortgage collaterals remained at a comfortable level of 65% and in line with the bank’s risk appetite.
In July, the bank sold a portfolio of non-performing exposures that had been previously written-off, for 95.9 million lei.
At the 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 512.7 million lei in the first quarter of 2017, up 7% on the year. Group assets totalled 53.97 billion lei at the end of June.
Blue-chip Banca Transilvania is the largest Romanian privately-owned bank. It booked a net profit of 1.23 billion lei in 2016, as compared to record high 2.41 billion lei profit in 2015 following its merger with Volksbank.
In January 2015, 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.
Banca Transilvania's shares were traded 2.37% lower at 2.47 lei on the Bucharest Stock Exchange as at 1101 CET on Thursday.
(1 euro=4.5687 lei)
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