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BT’s financial results as at March 31, 2014. Banca Transilvania, 23% gross profit increase versus March 31, 2013

Comunicat de presa 2014-04-30

● Growth trend maintained in Q1 2014: +23% gross profit, +2.5% loan balance, +3% deposits

● Operational efficiency improved: cost/income ratio reached 46.9% at the end of Q1 2014

● Prudential provisioning policy: the coverage ratio for Q1 2014 was 123.4%

● Gross profit in Q1 2014: RON 123.5 mil., 23% higher as compared to Q1 2013


Banca Transilvania registered a gross profit of RON 123.5 million, which is 23% higher as compared to the same period in 2013, as well as a net profit of RON 103.4 million. At the end of the first 3 months of 2013, the bank’s assets amounted to RON 32,924 million, the loan balance was 2.5% higher than at the end of 2013, while total deposits from customers grew by 3% over the 2013 level, all increases having exceeded the budgeted level.


During the 1st quarter of 2014, company and retail clients were granted more than 22.700 new loans, amounting to RON 2,315 million.


Ömer Tetik, Banca Transilvania’s CEO states: “The bank’s major objective for 2014 resides in increasing the bank’s revenues and boosting efficiency. According to the figures, transaction volumes and operating income levels have experienced significant increases, growing faster than the bank’s assets. Our clients use more and more of BT’s services, as we are becoming their main bank. In terms of lending, we focus on responsible growth, as the retail sector, namely individuals and small companies, remains our main target.”


FINANCIAL RESULTS BT 2014 - details:


The ongoing support of the real economy, the development of new product and services, i.e. the focus on activity growth in all fields of interest, explain Banca Transilvania’s increase in operating income during the first quarter in 2014, reaching RON 425 million, which is 19% higher as compared to the same period last year (RON 357 million). The net interest margin in Q1 2014 was 3.36%. Likewise, Banca Transilvania’s positive result in 2014 is due to the streamlining and cost-control initiatives which improved the cost-income ratio by almost 300 basis points vs. Q1 2013, reaching 46.9% in Q1 2014.


As at 31.03.2014, BT’s loan balance amounted to RON 19,641 million and deposits reached RON 26,674 million, with a loan/deposit ratio of 73.63%.


The number of the bank’s active clients (individuals and companies) went up, as well, from 1.76 million clients as at 31.12.2013 to almost 1.78 million as at 31.03.2014. Banca Transilvania directed its attention on Retail and SME clients, as well as on specialized segments such as the agriculture and the healthcare sectors. The number of operations performed via BT accounts increased in line with the growth of the active client base, being 14% higher as compared to the same period in 2013.


During the last years, Banca Transilvania has preserved a prudent lending policy, focusing on risk dispersion. Non-performing loans, PAR >90, represent 12.97% of the total loan portfolio of Banca Transilvania, end of Q1 2014, being below the average value for the Romanian banking system. Non-performing loans are covered by related provisions and mortgage collateral at a level of 123.4%, featuring a relatively stable level in the last two years.


The net provision expenses for assets and loan commitments amount to RON 102 million, Banca Transilvania continuing to apply the same prudent provisioning policy, which it had adopted from the very beginning of the financial crisis. The strategy resulted in the consolidation of the bank’s financial stability. Total provision balance amounted to RON 2,607 million, as at March 31, 2014 vs. RON 2,493 million, as at end 2013.


Banca Transilvania ended Q1 2014 with a portfolio of 2.14 million cards, generating transactions 15% higher vs. Q1 2013. The market share in terms of transaction volumes exceeded 17%. Significant retail related increases were recorded in Q1 2014, loans worth RON 379 million being granted. As for company customers, BT extended 5,800 new loans, with an average exposure per client of RON 331 thousand.


The Bank’s CAR is 13.49%, considering the aggregated profit for the first quarter.


Starting with May 1st, Mrs. Luminiţa Runcan will occupy the position of Deputy CEO, Chief Risk Officer, until the respective date being Deputy CEO, Chief Treasury Officer.