BT’s gross profit, up 4% after nine months in 2013

Another confirmation of the revival of the Romanian banking sector comes from Banca Transilvania (BT). After yesterday’s report released by BCR, showing a significant improvement after the losses recorded in 2012, the data published this morning by Banca Transilvania certifies the upward tendency in the banking area.

Thereby, the results released by BT after the end of the third quarter in 2013 show a gross profit of about EUR64 million, 4% higher than the one obtained within the same interval last year. Thus, the net profit calculated at the end of September, 2013 is of approximately EUR54 million, this improvement being due to a growth of the bank’s asset, lending or operating income states the afferent news release.

‘The results registered by Banca Transilvania during the first nine months of this year confirm that BT has a business model adequate to the current economic context: lending grew with 5%, operating income, the number of active clients and balance sheet assets are also higher. The third quarter was the best for our bank considering the lending because the increase of the portfolio with RON850 million in 2013 was registered almost entirely in July-September period. The BT’s policy regarding the restoration of lending is fruitful and reaffirms the engagement of Banca Transilvania, as local bank, to finance the economy. Our focus in the very next period will be the continuation of growing the lending, the preponderantly RON financing, as well as the supporting of startups, SMEs and individual clients.’ Horia Ciorcila, BT’s Chairman of the Board, said.

According to the bank’s financial results, its operating income is 3% higher compared to the one registered at the end of Q3 in 2012. Additionally, the operations carried out through BT accounts grew, likewise the number of active clients that has increased with almost 100.000 since September, 2012. As per the net expenses with provisions, they’re at the same level as last year.  The total balance of provisions was around EUR530 million at September 30, 2013, while a year ago, the reports indicated over EUR475 million.

In the first nine months of this year, the total funds the bank raised from its clients amount nearly EUR5.5 billion, 5% more than at the end of 2012. BT has issued up to now convertible bonds worth EUR30 million and concluded a new subordinated loan contract of EUR25 million. Besides that, this month BT signed a partnership with the European Investment Fund for a micro-credit guarantee facility shows the same press release.

Banca Transilvania whose main shareholder is the European Bank for Reconstruction and Development is the third bank in Romania, based on its asset, having a growing market share of 8.5%.