Romania's Banca Transilvania Q1 net profit climbs 35% y/y

The lender’s net interest income rose by an annual 28% to 1.325 billion lei in the first quarter, while its net fees and commissions income increased by 18% to 295.9 million lei, Banca Transivania said in a first-quarter financial report filed with the Bucharest Stock Exchange, BVB, on Friday.

"The beginning of the year is encouraging and shows that we are on the right track to reach our goals for 2024. Our focus stays on boosting volumes, reaching more clients, and securing new business across all segments, while simultaneously consolidating the companies within the Banca Transilvania Financial Group," said Omer Tetik, CEO of Banca Transilvania, in a statement accompanying the financial report.

The bank’s operating income reached 1.910 billion lei in January-March, increasing by 32.3% on the year, while total operating expenses rose by an annual 26.6%, to 837.4 million lei.

Net loans increased to 72.7 billion lei at end-March, up 14.5% on the year.

Deposits from customers reached 136.977 billion lei in the first quarter of 2024, rising by 12% compared to end-March 2023.

Non-performing loans made up 2% of Banca Transilvania’s total loan portfolio at end-March, while their coverage with related provisions and mortgage collaterals stood at 198%.

Banca Transilvania Group, which also comprises Moldovan lender Victoriabank, BCR Chisinau, Salt Bank, BT Leasing Transilvania IFN, BT Investments, BT Direct IFN, BT Building, BT Microfinantare IFN, BT Leasing MD, BT Asset Management, Improvement Credit Collection, VB Investment Holding and Idea Bank, among other entities, posted a net profit of 1.132 billion lei, up 35% year-on-year.

Banca Transilvania’s net profit grew by 14.3% on the year in 2023, reaching 2.491 billion lei, while the group’s net result increased by an annual 19.94% to 2.984 billion lei.

At the end of March 2024, the group employed 12,037, including 9,600 working for the bank.

Banca Transilvania shares traded 2.4% higher at 29.85 lei as at 1109 CET on Monday on the Bucharest bourse.

(1 euro=4.9756 lei)