Banca Transilvania – Financial results for H1 2013
Banca Transilvania ended the first half of 2013 with a higher gross profit, namely lei 209.42 million versus lei 193.22 million, as at 30.06.2012. The net profit is lei 180.19 million, close to the level registered for H1 2012, when it was lei 179.62 million.
Fitch Ratings has recently affirmed Banca Transilvania’s ratings at BB- with stable outlook, in terms of Long-term foreign currency Issuer Default (IDR). The main driving forces behind this rating are BT’s strong deposit base, the bank’s profitability and low level of FCY loans.
“Banca Transilvania’s H1 results confirm our estimates and we are confident of meeting the budget target for 2013. Despite the difficult economic environment, we have reached a substantial profit level. We will continue to be active on the market, to optimize our business model, while also contributing to the revival of the Romanian economy” – stated Horia Ciorcilă, Chairman of Banca Transilvania’s Board of Directors.
Financial highlights as at 30.06.2013:
- Net profit: RON 180.19 mill.; gross profit: RON 209.42 mill;
- Operating income: RON 733.55 mill.;
- Credit risk costs: RON 140.98 mill.;
- Total assets: RON 30,122.42 mill., 2% higher than as at 31.12.2012;
- Loans to customers: RON 17,300 mill.;
- The loan/term deposits and LT borrowings ratio is 77.30%, reflecting the bank’s high liquidity level;
- Number of active clients: almost 1.68 million.
Banca Transilvania’s operating income is lei 733.55 million for H1 2013, similar to the level of 30.06.2012.
Operating expenses are 4% higher than during H1 2012, due to the costs involved in amortizing the new core-banking IT system.
Net provision expenses were lei 141.03 million as compared with lei 182.72 million as at 30.06.2012.Net loan provision expenseswerelei 140.98 million corresponding to 179.13 million lei end of H1 2012.
The52% cost/income ratioas at 30.06.2013 falls within acceptable limits, this being one of BT’s top priorities.
Banca Transilvania’s assetsreached RON 30,122.42 million end of H1 2013, namely 2% higher than the amount registered as at 31.12.2012. This increase is mainly generated by investments in available-for-sale assets, which grew by 19% vs. end of 2012, amounting to 7,760.50 million lei.
The Bank’s loan portfolio has the same structure, predominantly in local currency. End of H1 2013, loan portfolio balance (including accruals) amounted to RON 17,724.78 million, of which 64% are loans to companies and 36% loans to individuals.Non-performing loans(PAR 90) account for 11.94 % of the bank’s total loan portfolio.
The balance of loan provisions increased from 2,111 million lei (end of 2012) to 2,191.98 million lei (H1 2013), ensuring an adequate non-performing loan coverage ratio of 105.53%.
Total resources from clients rose with 4% vs. end of 2012, the deposit balance amounting to 24,165.05 million lei at 30.06.2013.
Banca Transilvania’s liquidity is very good, with the loan/term deposits and LT borrowings ratio below 80%, an adequate level compared to the Romanian banking system. The capital adequacy ratio is also at a comfortable level, 11.85% - profit included and 10.92% profit excluded.
The number of operations performed via BT accounts increased with 7.52% vs. the same period of the previous year. The number of active customers, both individuals and companies grew from 1.56 million customers, end of H1 2012 to 1.68 million, end of H1 2013.