BUCHAREST (Romania), February 15 (SeeNews) – Romania's Banca Transilvania [BSE:TLV] said on Thursday its net profit fell by 3.46% year-on-year in 2017, to 1.186 billion lei ($315 million/255 million euro).
"We are glad that during 2017 we have maintained the bank's revenue and profitability on a growth path, which shows the trust of BT’s clients in us. Cost control and efficiency enhancements remain principal targets for Banca Transilvania in the forthcoming period," Banca Transilvania CEO Omer Tetik said in a statement accompanying the group's annual financial statement filed with the Bucharest Stock Exchange, BVB.
The bank's operating income fell 4.61% on the year to 2.67 billion lei in 2017.
At the end of 2017, the bank's assets totalled 59.3 billion lei, up 14.55% year-on-year.
Net loans increased to 29.9 billion lei in 2017, up 9.94% on the year, while deposits from customers grew 17% to 49 billion lei.
The share of non-performing loans (NPLs) in Banca Transilvania’s total loan portfolio was 6% at end-2017, while NPLs' cover with related provisions and mortgage collaterals remained at a comfortable level of 70% and in line with the bank’s risk appetite.
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 1.242 million lei in 2017, down 2.74% on the year. Group assets totalled 59.8 billion lei at the end of 2017, up 15% on the year.
"In 2017 the organic growth was according to our plans and strategy. The results demonstrate the solid financial situation of the bank and represents the base of our ambitious plans for this year. 2018 will be a year of organic growth, integration of Bancpost in our business and the beginning of the replication of our business model across the border, in the Republic of Moldova, at Victoriabank," said Hotia Ciorcila, head of Banca Transilvania board of directors.
On Wednesday, Banca Transilvania said it is launching the mandatory public tender offer for the minority stake it does not already own in Victoriabank, Moldova’s third-largest lender.
In November, Banca Transilvania announced it has reached an agreement with Eurobank Ergasias for the takeover of the Greek bank's subsidiaries in Romania for an undisclosed sum. The transaction is pending approval from the competition council.
Banca Transilvania's shares traded 0.65% lower at 2.2850 lei on the BVB as at 0934 CET on Thursday.
(1 euro=4.6588 lei)
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