Banca Transilvania announces Sustained Growth and Operating Efficiency in Q1, 201

After an atypical 2015 in the history of Banca Transilvania, the first quarter of this year was a back-to-business year for BT, with a series of new projects targeting the increase in operating efficiency, preparing the ground for a full range of multi-channel sales & digitalization, as well as the modernization of the bank's branch and agency network.

2016-04-28 14:38:42

BT operating income reached RON 599.1 million, being 10.7 per cent above the level in the same period of 2015 i.e. 541.3 million lei. The net profit of the Bank as at March 31, 2016 was 228.5 million lei, which is 50.8 per cent higher than in Q1 2015.

Banca Transilvania assets amount to RON 46.12 billion, of which net loans 25.5 billion lei, on the increase by 1.5 per cent as compared to the net loan balance at the end of 2015.

Banca Transilvania continued to support the Romanian entrepreneurs: almost 35,000 new loans, with a total amount of more than RON 1,377 million, were granted to companies and individuals in Q1.

Omer Tetik, Banca Transilvania CEO, said: "The first quarter of 2016 features sound, sustainable growth of the lending activity and number of operations. Our target is to use the background provided by our solid financial statements in order to invest in new projects, modernize the network, digitize, automate, and modernize flows, so that our bank becomes a convenience store. We wish to increase our income through higher voumes, without raising the costs for clients."

Results of the current activity of Banca Transilvania in Q1, 2016: BT net profit is RON 228.5 million; The number of operations through BT accounts grew by over 13% as compared to the same period of 2015, while the income from operating commissions was 16% higher. BT continued to focus on the SME sector in Q1, 2016, granting almost 4,000 new loans to its clients. The loan/deposit ratio is more efficient, increasing from 65% end of 2015 to 69% end of Q1, 2016; BT's operating efficiency improved, so that the cost/income ratio dropped to 45.2%, even if the expense with the contribution to the Deposit Guarantee Fund was recorded in Q1 for the whole year;

As at March 31, 2016, Banca Transilvania portfolio counted 2.60 million cards, generating transactions almost 25 per cent higher relative to the similar period of the previous year. The bank market share in terms of card transaction volume is 19%. BT has over 286,000 credit cards, enrolled in the STAR loyalty program.

Other financial information:
-As at March 31, 2016, BT registered net expenses with depreciation adjustments and provisions of 59.6 million lei (including the impact of write-offs amounting to 296 million lei);
-Non-performing loans PAR >90 are 9.04 per cent of Banca Transilvania total loan portfolio;
-The coverage of non-performing loans with related provisions and mortgage collaterals remains at a comfortable level of 119.84% and in line with the bank's risk appetite;
-The total balance of adjustments (provisions and other value adjustments) as at 31.03.2016 is RON 3,456 million, representing 11.90 per cent of the total loan portfolio.
-BT's CAR is 18.20 per cent, considering the profit for Q1, 2016 and the special dividend payout proposal (17.40 per cent without profit).