May 9 (SeeNews) - Romania's Banca Transilvania [BSE:TLV] said that its net profit fell by 47.1% year-on-year in the first quarter of 2022, to 308 million lei ($66 million/ 62 million euro).
The negative impact comes mainly from a higher cost of risk in March 2022, given the geo-political tensions in Eastern Europe that put pressure on the economy and inflation, compared to the release of provisions in March 2021, as well as the increase in operating expenses, the lender said said in an unaudited first-quarter financial report filed with the Bucharest Stock Exchange, BVB, on Friday.
Operating expenses surged 96.5% on the year to 688.5 million lei in the first quarter, influenced by the expenses from the adjustments for financial assets for other risks and credit commitments, the bank added.
"Romania started the year full of uncertainties and more challenges than ever. 2022 came with macroeconomic turbulence, a complicated regional geopolitical situation, price increases and logistic problems. Under this scenario, Banca Transilvania has proven that it can support its clients' plans, regardless of the context, both through increased levels in lending and through investments in technology," Banca Transilvania CEO Omer Tetik said in a statement accompanying the financial report.
"The bank's activity and income are above the forecasted levels and above the budget, and the net result is in line with the budget," Tetik added.
The bank's operating income rose 2.8% on the year to 1.052 billion lei in the first three months of 2022.
At the end of March, the bank's assets totalled 121 billion lei, up 13.8% on the year.
Net loans increased to 54.6 billion lei at end-March, up 32% on the year. At the end of March, the bank had over 4.6 million customers, of which 3.3 million were individuals and 390,000 were legal entities.
Deposits from customers reached 102.6 billion lei in the first quarter of 2022, rising by 13.5% compared to end-March 2021 .
Non-performing loans made up 2.9% of Banca Transilvania’s total loan portfolio at end-March, while their coverage with related provisions and mortgage collaterals remained at a comfortable level of 179% and in line with the bank’s risk appetite.
Blue-chip Banca Transilvania is the largest Romanian privately-owned bank. Its net profit rose by 49% year-on-year in 2021, reaching 1.782 billion lei.
Banca Transilvania Group, which also comprises Moldovan lender Victoriabank, BT Leasing Transilvania IFN, BT Direct IFN, BT Microfinantare IFN, BT Leasing MD and BT Asset Management, posted a net profit of 400 million lei in the first quarter of 2022, down 39% year-on-year. Group assets totalled 128.3 billion lei at the end of March 2022, up by an annual 15.7%.
At the end of March 2022, the group employed 10,989, of which 8,755 work for the bank.
Banca Transilvania's shares traded 1.09% lower at 2.2750 lei on the Bucharest Stock Exchange as at 0948 CET on Monday.
(1 euro= 4.9490 lei)
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