BUCHAREST (Romania), August 13 (SeeNews) – Romania's Banca Transilvania [BSE:TLV] said its net profit rose by 34% year-on-year in the first half of 2018, reaching 662.7 million lei ($163 million/142 million euro).
"Our market position, our extremely solid financial standing, and the available resources, allow us to grow as a business and to further contribute to the economic development of Romania," Banca Transilvania's management board chairman, Horia Ciorcila, said in a statement accompanying the bank's unaudited first-half financial statement on Friday.
The bank's operating income rose 14% on the year to 1.42 billion lei in the first six months of 2018.
At the end of June the bank's assets totalled 62.8 billion lei, up 6% year-on-year.
Net loans increased to 31.3 billion lei in the first half of 2018, up 5% on the year. During the first six months of 2017, the bank granted 100,000 new loans to individuals, SMEs and corporate customers.
Deposits from customers rose 3% year-on-year to 50.2 billion lei in the six months through June.
The loan-deposit ratio decreased to 66% in the first half, from 71% at the end of June 2017.
Non-performing loans accounted for 5.58% of Banca Transilvania’s total loan portfolio at the end of June, while their cover with related provisions and mortgage collaterals remained at a comfortable level of 85% 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 864 million lei in the first half of 2018, up 69% on the year. Group assets totalled 75.3 billion lei at the end of June.
Blue-chip Banca Transilvania is the largest Romanian privately-owned bank. It booked a net profit of 1.186 billion lei in 2017, down 3.46% compared to 2016.
Banca Transilvania's shares were traded flat at 2.32 lei on the Bucharest Stock Exchange as at 1022 CET on Monday.
(1 euro=4.6607 lei)
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