BUCHAREST (Romania), August 14 (SeeNews) – Romania's Banca Transilvania [BSE:TLV] said on Friday its net profit fell by 28% year-on-year in the first half of 2020 - to 607.4 million lei ($149 million/126 million euro).
Given the context created by the Covid-19 pandemic, the bank and the group results exceeded the expectations while maintaining a solid capitalization and a comfortable level of liquidity, the lender said said in an unaudited first-half financial report filed with the Bucharest Stock Exchange, BVB.
The bank's operating income fell slightly to 1.858 billion lei in the first half of 2020, compared with 1.877 billion lei in the like period of 2019. At the end of June, Banca Transilvania's assets totalled 93.9 billion lei, up from 87.43 billion lei at end-2019.
Net loans increased to 40.7 billion lei at end-June, compared to 40.35 billion lei at end-2019. The bank had over 2.9 million retail customers, 325,000 SME and micro customers and over 10,000 corporate customers as at end-June.
Deposits from customers reached 79.9 billion lei in the first half of 2020, compared to 77.03 billion lei at the end of last year.
Non-performing loans accounted for 4.35% of Banca Transilvania’s total loan portfolio at end-June, while their coverage with related provisions and mortgage collaterals remained at a comfortable level of 107% and in line with the bank’s risk appetite.
Considering the effect of the healthcare and economic crisis, the cost of risk during the first half of 2020 increased to 1.3%, compared to zero during the same period of 2019, the bank said. During January-June, the bank's outstanding balance of provisions reached 2.95 billion lei, up by 16.5% as compared to the end-2019 level.
Blue-chip Banca Transilvania is the largest Romanian privately-owned bank. Its net profit rose by 33% in 2019, reaching 1.62 billion lei.
Banca Transilvania Group, which also comprises Moldovan lender Victoriabank, BT Leasing Transilvania IFN, BT Direct IFN, BT Microfinanţare IFN, BT Leasing MD and BT Asset Management, posted a net profit of 690 million lei in the first half of 2020, down by 26% year-on-year. Group assets totalled 98.44 billion lei at the end of June, up from 91.72 billion lei compared to end-2019. The group employed 9,827 as at end June.
Banca Transilvania's shares traded 0.67% lower at 2.2250 lei on the Bucharest Stock Exchange as at 1145 CET on Friday.
(1 euro=4.8344 lei)
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