Banca Transilvania, one of the top three financial groups in Romania, posted a net profit of RON 1.28 billion (€285 million) in 2016, some 48 percent lower compared to 2015. However, the 2015 result was highly influenced by the group’s acquisition of competitor Volksbank Romania, which brought it a €370 million financial gain.
Banca Transilvania’s total assets went up by 9.2 percent, to RON 52 billion (€11.55 billion), as of December 31, 2016. The Cluj-Napoca-based group thus surpassed BRD-Groupe Societe Generale becoming the second-biggest bank in Romania in terms of assets. BRD group’s total assets were RON 51.9 billion (€11.52 billion) at the end of December 2015.
“2016 represented a new phase in consolidating the BT Group and we are pleased that this year we delivered again better than promised,” said Horia Ciorcila, Chairman of Banca Transilvania’s Board of Directors.
“We will continue to grow organically, financing the Romanian economy and making sure we value our competitive advantage of local decision-making. We believe that the market consolidation process will continue and we are also open to and interested in potential acquisitions. However, any such decision has to be rational and to make sense, adding value to our business,” he added.
Banca Transilvania’s operating results improved in 2016. The group’s operating income went up by 4.65 percent, to RON 3 billion (€664 million), and the operating expenses went down by 10 percent, to RON 1.26 billion (€281 million). The operating profit thus went up by 19 percent to RON 1.72 billion (€383 million).
The risk costs also declined by 17.5 percent, to RON 658 million (€146 million) as Banca Transilvania reduced the volume of its non-performing loans (NPL) to only 4.62 percent of its total loans portfolio, down from 9.75 percent in December 2015.
The group’s net loan portfolio increased by 8 percent, to RON 27.2 billion (€6 billion). The group’s deposit base also went up by 8.8 percent, reaching RON 41.7 billion (€9.27 billion).
Banca Transilvania is one of the most valuable companies listed on the Bucharest Stock Exchange. Its market capitalization recently passed €2 billion, the highest level ever, after the share price has gone up by a third in the last 12 months.
