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BT Financial Results at June 30, 2014. Banca Transilvania continues the growth path compared to reference periods: operations +11%, total assets +5.7%

Comunicat de presa 2014-08-04
  • +5.7% total assets, +3.8% loan portfolio balance, +4.3% deposits
  • Higher operational efficiency: cost/income ratio improved to 44.6% end of H1 2014
  • Prudential provisioning policy: coverage ratio end of H1 2014 - 123.24%
  • Gross profit at 30.06.14: RON 246.14 mil., 17.5% higher than for H1 2013
  • Liquidity ratio: 51.5%, exceeding banking system average


Banca Transilvania closed the first half of 2014 with a gross profit of lei246.1 million, 17.5% higher than for the same period of 2013, respectively a net profit of RON 212.1 million. At the end of the first 6 months, the bank’s assets reached RON 33,899 million, with a loan portfolio balance 3.8% higher than at the end of 2013, while the total deposits from customers were more than 4% higher as compared to the same period – all these results are above budgeted level.


During the first semester of 2014, new loans granted to companies and retail clients reached a total number of 66.300, amounting to RON 5,200 million.


Horia Ciorcila, Banca Transilvania’s Chairman of the Board of Directors, stated: “We consider the first half of 2014 results to be satisfactory. With a better cost/income ratio and a prudent coverage ratio, we feel prepared to face market challenges, across all business lines. With a high liquidity and a sound capital base, with a consolidated and efficient team and strategy we are confident of continuing our growth path, taking advantage of any market opportunity.”


Ömer Tetik, Banca Transilvania’s CEO, stated: “The first half of 2014 meant overall growth for BT – from profit to operational volume and total assets. We have reached our goals to raise efficiency of processes and increase operational revenues, while maintaining lending in support of the Romanian economy. Our main focus continues to be loan portfolio and revenue growth”.


FINANCIAL RESULTS BT 2014 - details:


Our constant support to the real economy and development of new products and services – the focus on increasing activity on all areas of interest to the bank – have led to increasing operational income during the first semester of 2014, which amounted to RON 907 million, 24% higher than H1 2013, when RON 734 million. The net interest margin reached 3.45% during the first semester of this year. BT’s positive results in 2014 were also supported by streamlining and cost control initiatives, leading to an improvement of the cost to income ratio by more than 7 percentage points in comparison to H1 2013, reaching 44.6% in H1 2014.


The number of the bank’s active clients – both individuals and companies – was maintained at the level registered at 31.12.2013, namely 1.76 million clients. Banca Transilvania’s attention was focused on retail and SME clients, with tailored approaches for specialized segments, such as agriculture and healthcare. In line with the increase of the active client base, the number of operations performed via BT accounts was augmented by 11% in comparison to the same period of 2013, with a fee income pace of 15%.


As at 30.06.2013 the loan portfolio balance reached RON 19,773 million, with resources from clients amounting to RON 26,904 million and resulting in a loan to deposit ratio of 73.50%. Banca Transilvania continues to register a very comfortable liquidity level, with an immediate liquidity ratio of 51.5%, considerably better than the banking market average.


According to the recommendation of the National Bank of Romania, Banca Transilvania proceeded to writing off loans with a debt service of more than 360 days, which were fully covered by depreciation adjustments. As a result of this operation, during the 1st semester of 2014, loans amounting to a gross value of RON 320 million were written off.    


Over the past years, Banca Transilvania has pursued a prudent lending policy, granting special attention to risk dispersion. Non-performing loans, PAR >90 represent 12.30% of Banca Transilvania’s credit portfolio, end of H1 2014, being below the average of the Romanian banking system. By aiming to maintain provision coverage of NPLs, even after fully provisioned loans had been written off, during H1 2014 Banca Transilvania registered net provision expenses for assets and lending commitments of RON 256 million, resulting in NPL coverage with related provisions and mortgage collateral by more than 123%, value which has been relatively stable over the past two years.


This strategy contributes to the consolidation of the bank’s financial stability. The total provision balance was RON 2,470 million at June 30, 2014, as opposed to 2,493 million - end of 2013, this level being partly influenced by the abovementioned write-offs performed during H1 2014.


Banca Transilvania has ended H1 2014 with a portfolio of 2.2 million cards, generating transactions 16% higher than for the same period of last year. The bank’s market share in terms of transaction volumes reached 17.3%. The first semester of 2014 brought consistent retail segment figure increases for Banca Transilvania, with granted loans reaching RON 956 mil. In terms of companies, during H1 2014 the Bank granted approximately 12,400 new loans, with an average exposure of RON 450 thd. per client.


The bank’s CAR was 14.16%, considering the first semester profit.


During the month of June, Fitch Ratings Agency has affirmed the long term foreign currency IDR at 'BB-' with Stable outlook, while the short term foreign currency IDR was affirmed at 'B'. The viability rating reflects strong deposit funding base, stable profitability and internal capital generation, low concentrations in the loan book, a low share of foreign-currency lending and reasonable coverage of impaired loans with accounting provisions.


Financial results, 30.06.2014

Profit and loss account